Provisions to Include in a Land Sale Contract

A land sale contract should include these five provisions:

·         Purchase Price

·         Property Description

·         Payment Terms

·         Easements

Purchase Price

It is the most important provision to include in a land scale contract. This should include the down payment as well as the total purchase price. If either the buyer or seller tries to default on the contract, they can take it to court.

Property Description

The land sale contract should include complete description along with “Legal Description” of the property.  Legal descriptions contain surveyor language that describes the exact location of a parcel of land.

Payment Terms

This section should specify how often payments should be made, the total number of payments, the start and stop dates and the amount of each installment. It should also include interest rates and late fees.

Obligations of the Parties

The land contract should set forth the duties and responsibilities of each side. It must specify the obligations of both the buyer and the seller. This avoids misunderstandings.