Land Sale Agreement

In depth

A land sale agreement is any written contract for the sale of real property. In some jurisdictions the phrase refers specifically to an installment land contract, while in others it simply means a standard purchase and sale agreement. Because the term is ambiguous, owner-finance buyers and sellers should look at the substance of the document, not the title at the top. Misconception: not every land sale agreement is seller-financed; many are cash or third-party financed transactions. Practically, when reviewing a document labeled land sale agreement, confirm whether title transfers at closing or after a payoff, who pays taxes and insurance during the term, and what remedies apply on default. Always require recordable notice of the buyer's interest if payments will be made over time.