An Example of Land Agreement

    Land agreements, also known as land contracts or installment land contracts, are legal agreements between a buyer and a seller for the purchase of land. These agreements outline the terms and conditions of the sale, including the purchase price, down payment, interest rate, and payment schedule. In this article, we will discuss an example of a land agreement and the key components that should be included.

    Example of a Land Agreement

    This agreement made on [date], between [seller name] (hereafter referred to as “Seller”) and [buyer name] (hereafter referred to as “Buyer”), for the sale of the property located at [address] (hereafter referred to as the “Property”).

    Purchase Price

    The purchase price for the Property is [purchase price]. The Buyer will pay [down payment] as a down payment and the remaining balance of [balance] will be paid in [number of payments] equal installments over a period of [length of payment schedule].

    Interest Rate

    The interest rate for the balance of the purchase price will be [interest rate]. Interest will accrue on the outstanding balance from the date of this agreement until the balance is paid in full.

    Payment Schedule

    The Buyer will make [number of payments] equal payments of [payment amount] every [frequency] beginning [date of first payment]. The payments will be made directly to the Seller or an authorized agent of the Seller.

    Security

    The Seller retains the title to the Property until the balance of the purchase price is paid in full. The Seller may take possession of the Property and retain all payments made by the Buyer if the Buyer defaults on this agreement.

    Closing Costs

    The Buyer will pay all costs associated with closing the sale, including all fees related to title search and recording.

    Taxes and Insurance

    The Buyer is responsible for any property taxes or insurance premiums due during the term of this agreement.

    Default

    If the Buyer fails to make any payment when due, the Seller may declare the entire balance of the purchase price immediately due and payable. In the event of default, the Seller shall have the right to terminate this agreement and take possession of the Property.

    Governing Law

    This agreement shall be governed by the laws of the state in which the Property is located.

    Entire Agreement

    This agreement represents the entire understanding between the parties and supersedes all prior negotiations, representations, and agreements between them.

    Signed

    Buyer:

    Signature: [signature]

    Printed Name: [printed name]

    Date: [date]

    Seller:

    Signature: [signature]

    Printed Name: [printed name]

    Date: [date]

    Conclusion

    A land agreement is a legally binding document that should be drafted carefully to protect the interests of both parties. The example agreement above illustrates the key components that should be included in a land agreement. It is important to seek the advice of a qualified attorney when drafting or reviewing a land agreement to ensure that all legal requirements are met.