LandInvestors.com Forums **Ask A Question** Use The Same Purchase Agreement to Buy and Sell Land???

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  • #28537
    Bobbi
    Participant
    Post count: 4

    Hello there 👋 … still new here and getting my bearings. First off, blessings to you all (Steven and Jill and the entire LA team)! Thank you for creating such an amazingly helpful community and offering so much of yourselves to all of us!

    So, after a lot of research I have yet to stumble across this info. I just wanted to find out what’s typical, with regard to the Purchase Agreement, when selling land? Is it as simple as using the same Purchase Agreement used to Buy it? If so, do you all have suggestions on any necessary modifications when converting the agreement?

    Thanks in advance,

    Bobbi T.

Viewing 6 replies - 1 through 6 (of 6 total)
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  • Kevin Farrell
    Moderator
    Post count: 2033
    ProAdvanced

    Bobbi – The purchase agreement to buy is the one in the offer letter template. When selling the only time you need a PA is when you are closing with a title company to sell. If you are self closing you do not need a PA. Just negotiate the sale price with the buyer and then get paid and prep the deed for them.

    I have a purchase agreement that I have created using a few examples that I found on line. You can do the same or get a form somewhere. I would not use the standard Realtor forms because they are too long and confusing for selling land.

    Kevin Farrell - Moderator
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    Bobbi
    Participant
    Post count: 4

    Ok thanks. Being that I am new, self-closing is probably not something I will be super comfortable doing right away. In that case, what kind of agreement should be in place when selling? … and in what ways could the PA be modified to serve as the contract to show the agreement between me and the buyer (again, if I am not self-closing)?

    Thanks for the reply!!

    Kevin Farrell
    Moderator
    Post count: 2033
    ProAdvanced

    Being new you should self close some of your first deals. It teaches you some things about deeds and how to work with the Clerk at the county. If you know that you will buy and sell with a title company, then you need to shoot for a minimum offer of $5000. Maybe sell for $13000. Less closing costs of about $3000 (both ends) so that you make $5000 on the deal. Look up some examples of Purchase Agreement for land sale on Google. Just a simple document that tells the title company Who, What, When, Where and How Much. Anything that you come up with will be way better than using the standard Realtor PA for land.

    Kevin Farrell - Moderator
    Need more help?
    Schedule a 60 minute call - https://calendly.com/kevin-629

    Bobbi
    Participant
    Post count: 4

    Ok great thanks!! I agree and I will definitely start educating myself on how to do self-closings as I realize how beneficial it is to the transaction!

    Regarding my original question however, 😊 I guess I should clarify, I’m not using a Realtor PA. When I say “Purchase Agreement”, I am referring to the same document/agreement that you are: The one included with the offer letter.

    It’s that document, specifically, the agreement portion, that I was asking how to modify for use when selling land. But it sounds like a good old fashioned Google Search will do it! I’ll get on it!

    Thanks again for being so responsive!

    Kevin Farrell
    Moderator
    Post count: 2033
    ProAdvanced

    Bobbi – You don’t need a PA when when selling land unless you close in a title company. Verbal agreement on the phone with the buyer is good enough unless buyer wants it in writing. Pretty simple conversation – X dollars for Land. Please pay me and I will get the deed prepared for you and have it recorded at the county.

    Kevin Farrell - Moderator
    Need more help?
    Schedule a 60 minute call - https://calendly.com/kevin-629

    Bobbi
    Participant
    Post count: 4

    Ok got it… great info! Didn’t realize it was that simple!

Viewing 6 replies - 1 through 6 (of 6 total)
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