# Land Purchase Agreement: What Sellers and Buyers Read | FOUND The parts of a land purchase agreement in general terms: parties, legal description, price, deposits, due diligence, contingencies, title, closing, default. Canonical: https://lotsfound.com/insights/land-purchase-agreement/ ## What is in a land purchase agreement? A land purchase agreement is the signed contract in which a seller agrees to sell and a buyer agrees to buy a specific tract on stated terms. A real estate attorney explains how each part applies to you. ## What a land purchase agreement is A land purchase agreement is a written contract for the sale of land, signed by the buyer and the seller. North Carolina law requires a contract to sell land to be in writing and signed to be enforced. It is not legal advice. ## The parties and the legal description The parties and the legal description state who sells, who buys, and exactly which land changes hands. The seller must include each person who holds title. The legal description comes from the recorded deed or a survey, not from a street address or a tax map. When only part of a tract is sold, the contract states how a survey will fix the new line. See [parcels and boundaries](/what-we-check/parcels-and-boundaries/). ## Price and deposits Price and deposits set what the buyer pays and how much money the buyer puts at risk before closing. The price may be a fixed sum or a rate per acre applied to a surveyed figure. A rate per acre needs a clear rule on which acres count. See [gross acres vs. net acres](/insights/gross-acres-vs-net-acres/). Deposits include earnest money held by an escrow agent and, in some North Carolina contracts, a separate fee paid to the seller. ## The due-diligence period The due-diligence period is the time the buyer has to study the land before the deal becomes firm. During it, the buyer orders studies such as surveys, title work, environmental reports, and soil tests. Land buyers often need a long period, because answers from utilities and local governments take time. Many contracts let the buyer end the deal during this period. See the [land due diligence checklist](/insights/land-due-diligence-checklist/). ## Contingencies Contingencies are conditions that must be met before the buyer must close. Common contingencies for land include the following. - **Zoning.** The buyer obtains the rezoning or permit its use needs. - **Utilities.** The buyer confirms water, sewer, and power service in writing. - **Financing.** The buyer obtains a loan on stated terms. - **Plan approval.** The buyer obtains site plan or subdivision approval. Each contingency needs a deadline and a stated result if it fails. For the zoning paths, see [special use permit, conditional zoning, and rezoning](/insights/special-use-permit-conditional-zoning-rezoning/). ## Title and survey Title and survey confirm that the seller can convey the land and that the land matches the contract. A title examiner searches the recorded chain of ownership, liens, and easements. A surveyor locates the boundaries, encroachments, and access. The contract gives the buyer a period to object to defects and gives the seller a chance to cure them. ## Closing Closing is the day the seller signs the deed and the buyer pays the price. In North Carolina, an attorney usually conducts the closing, records the deed, and pays off liens. The contract names the closing date. It also states how property taxes are split and who pays deferred taxes that come due when land leaves a farm or forest tax program. ## Default Default is a party's failure to perform the contract. The contract states the remedies for each side. A common pattern lets the seller keep the earnest money if the buyer defaults. It lets the buyer recover its deposit and seek other remedies if the seller defaults. A real estate attorney explains the remedies in yours. ## What the record shows The public record shows the deed, the plat, recorded easements, and liens. It does not show the contract or its terms unless the parties record a memorandum. ## Questions ### Who drafts a land purchase agreement in North Carolina? Brokers often complete a standard form for simpler sales. Attorneys draft or review contracts for larger or more complex land deals, and they conduct most closings. ### Can a buyer back out of a land contract? Often, during the due-diligence period, depending on the contract's terms. After the period ends, backing out usually costs the buyer its deposits. A real estate attorney reads your contract to say which applies. ### Should a land contract be priced per acre? A price per acre suits land whose size a survey will fix. Transactions are handled through a licensed North Carolina real estate brokerage.