Crucial information required for vacant land purchase agreements include a detailed description of the land, negotiated purchase price, deposit amount, good title and closing date. Information about land improvements should be specified. Important seller details such as financing provided, cooperation and specific performance obligations are necessary to protect the buyer.
Vacant land purchase agreements must include land descriptions that are not vague, and the agreement can stipulate that the land be surveyed to the buyer's satisfaction before purchase. Typically, a bank orders a mandatory survey when providing financing for vacant land purchases. The agreement must include all costs involved in the purchase of the land including the finalized purchase price and the cash deposit amount paid to secure the land for the buyer. If the seller is providing financing to the buyer, conditions of these terms must appear in the agreement. Sellers who finance agreements set repayment terms and commonly include conditions that penalize the buyer for missing payments.
Good title is the buyer's legal claim to the property once the sale is finalized, and sellers must deliver the title upon closing the deal. Both parties agree to a closing date, which might include extensions to allow the buyer more time for completing mandatory conditions. Including a right to inspect clause allows buyers to legally enter the property and inspect it before purchase. Adding a specific performance clause compels the seller to act upon the agreed terms or pay damages.