What is a purchase agreement, and why do I need one?
What’s the main thing that is holding you back from selling your land? Is it the costly fees? The length of time it takes to complete the process? Is it a complex legal document, such as a purchase agreement?
Taking the first step to sell your land can be daunting, but it doesn’t have to be that difficult or complicated!
When you have finally found a buyer that is interested in purchasing your land, the first step in the selling process is to review and sign a purchase agreement. For most real estate transactions, this is can be a very complex and lengthy document. However, when selling your land to a private investment company, such as Pure Land Buyers, it can be a clean and simple one-page document. This makes life so much easier for everybody!
When the bulk of unnecessary legal jargon is removed, a purchase agreement for a cash land transaction will generally boils down to 11 different sections.
These sections include:
- Property Description: This includes the parcel number, legal description of property (ie. Lot #23), and the address.
- Price: This specifically states the exact purchase amount, the currency, and the type of payment (check, money order, wire transfer etc.)
- Payment: This describes who will be paying and the terms. (ie. Cash, loan, monthly payments etc.
- Title and Conveyance: This section basically states the details of the property transfer from one party to another. It includes the type of deed, seller responsibilities; along with details regarding unpaid tax amounts and the submission of IRS tax forms.
- Closing: This section states which fees and costs each party pays, including closing costs, taxes, recording fees, and liens or judgments on the property. It also states who will be handling the entire closing process.
- Closing Date: This states the final date that the deed and possession will be delivered to the Buyer, and the consequences if it is not delivered on time.
- Cancellation: This states the buyer’s right to terminate the agreement on or before the closing date.
- Disclosure: This basically states that each party represents itself, and that the they both have a right to consult with outside real estate professionals regarding the transaction. (ie. agents, attorneys, realtors etc.)
- Assignment: This section states the right of the buyer to assign this purchase agreement to a third party if necessary. (This can be beneficial to the seller in many ways)
- Binding Agreement: This states that once this agreement is signed, it becomes legally binding contract for both parties.
- Deadline For Acceptance: This states the date that the purchase agreement must be signed by in order for it to be valid. If the document is signed after the date, the agreement will expire.
In a nutshell, these 11 sections are meant to protect both the buyer and the seller. This is exactly why the average purchase agreements can be anywhere from 5-20 pages long! Once you trim the unnecessary legal jargon, it becomes a simple yet reliable document. This makes the entire transaction quick and easy for everyone involved, while still protecting both parties. If you need to sell your land, but don’t want to deal with the hassle of closing the transaction, fill out our form here, and we’ll do all the work!