Land Contract Agreement is a legal document prepared when an individual purchases a land owned by another individual. Details like location of the land, purchase price and total area of the land is mentioned in the land contract agreement.
The agreement acts as an evidence if any dispute arises between the purchaser and the owner of the land.
Sample Land Contract Agreement:
The Purchaser, John Davis agrees to purchase from the Owner, Tom Moody a real estate located at 4536 Aspen street in the city of Kentucky, in the state of Los Angeles based on the following terms and conditions:
1. Price of purchase and mode of Payment
The purchase price is one hundred thousand dollars ($100,000) which has to be paid in cash. The amount needs to be paid in full at the time of closing the sale.
2. Possession of the Property
The purchaser will be given the possession of the property on 25th October 2010. If the owner fails to do by that specific date, he will become the tenant of the purchaser. The seller will have to pay charges to the purchaser not as rent but for breach of contract.
3. Risk of Loss
After the sale is closed any loss taking place to damage to the property will be borne by the Purchaser. But, any loss prior to close of sale will be borne by the seller.
4. Taxes and adjustments
The real estate taxes will be borne by the seller and if there is any rent deposit, it should be transferred to the Purchaser.
This offer is made at Kentucky in the state of Los Angeles on 23rd October,2010.
Acceptance by seller:
The offer to purchase this real estate is accepted based on the terms and conditions mentioned above on 23rd October, 2010.