Free Alabama Land Sales Contract PDF Template Fill Out This Document Now

Free Alabama Land Sales Contract PDF Template

The Alabama Land Sales Contract is a legally binding agreement between a buyer and a seller for the purchase of unimproved land. This form outlines essential details such as the purchase price, earnest money, and any contingencies related to financing or development. To get started on your land purchase, fill out the form by clicking the button below.

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Outline

The Alabama Land Sales Contract form is an essential document for anyone looking to buy or sell unimproved land in Alabama. This form outlines the agreement between the buyer and seller, detailing critical aspects such as the total purchase price, earnest money, and financing contingencies. It specifies the legal description of the property and sets a timeline for closing the sale. Buyers must understand their responsibilities, including securing financing and obtaining necessary permits for development. The contract also addresses issues like title insurance, property condition, and any existing encumbrances. Additionally, it includes provisions for mediation and arbitration to resolve disputes, ensuring both parties have a clear path for conflict resolution. By using this form, buyers and sellers can navigate the complexities of land transactions with greater clarity and confidence.

Documents used along the form

The Alabama Land Sales Contract is often accompanied by several other important documents that help facilitate the real estate transaction process. Each of these forms serves a specific purpose and is crucial for ensuring that both buyers and sellers are protected throughout the sale. Below is a list of commonly used forms along with brief descriptions of their functions.

  • Earnest Money Receipt: This document acknowledges the receipt of earnest money from the buyer, which demonstrates their serious intent to purchase the property. It outlines the amount received and the conditions under which the money may be forfeited or refunded.
  • Title Insurance Policy: This policy protects the buyer against potential losses due to defects in the title of the property. It ensures that the buyer has clear ownership and covers issues such as liens or disputes over property ownership.
  • Property Disclosure Statement: This statement is provided by the seller and details any known issues with the property. It may include information about past repairs, environmental hazards, or structural problems, helping the buyer make an informed decision.
  • Closing Statement: This document summarizes the financial details of the transaction at closing. It includes the purchase price, closing costs, and any adjustments for taxes or fees, ensuring transparency between both parties.
  • Articles of Incorporation: This form is essential for establishing a corporation in New York, outlining its name, purpose, and structure. For more information, visit https://nydocuments.com/articles-of-incorporation-form.
  • Survey Report: A survey report outlines the boundaries of the property and identifies any easements or encroachments. This information is critical for the buyer to understand the exact dimensions and limitations of the property.
  • Loan Application: If the buyer is financing the purchase, this application is submitted to the lender for approval. It includes personal financial information and details about the property to assess the buyer's eligibility for a mortgage.
  • Power of Attorney: In some cases, a buyer or seller may designate someone else to act on their behalf during the transaction. This document grants that person the authority to sign documents and make decisions related to the sale.

Each of these documents plays a vital role in the real estate transaction process in Alabama. Properly preparing and reviewing these forms can help ensure a smooth and successful sale for all parties involved.

Steps to Filling Out Alabama Land Sales Contract

Completing the Alabama Land Sales Contract form is a straightforward process. This contract outlines the agreement between the buyer and seller regarding the purchase of unimproved land. To ensure accuracy and clarity, follow the steps below carefully.

  1. Date: Write the date on which you are filling out the contract.
  2. Buyer Information: Print the exact names of the buyer(s) as they will appear on the title.
  3. Seller Information: Print the exact names of the seller(s) as they will appear on the title.
  4. Property Description: Fill in the city, county, and address of the property, including the zip code.
  5. Legal Description: Provide the legal description of the property, including lot, block, survey, map book, and page number.
  6. Total Purchase Price: Enter the total purchase price of the property.
  7. Earnest Money: Specify the amount of earnest money to be deposited.
  8. Financing Section: Indicate whether the buyer will pay cash or obtain a loan. If financing is required, fill in the loan amount and percentage.
  9. Development Contingencies: Check applicable boxes regarding permits and utilities needed for the property.
  10. Closing Date: Enter the date by which the sale will be closed and the deed delivered.
  11. Earnest Money Handling: Specify how the earnest money will be handled in case of acceptance or non-acceptance of the offer.
  12. Agency Disclosure: Fill in the names of the listing and selling companies, and check the appropriate agency relationship boxes.
  13. Title Insurance: Confirm that the seller will provide a title insurance policy at their expense.
  14. Survey: Indicate whether a survey is required.
  15. Prorations: Note any taxes or fees that will be prorated at closing.
  16. Conveyance: Specify how the property will be conveyed to the buyer.
  17. Condition of the Property: Acknowledge that the seller makes no warranties regarding the property condition.
  18. Disclaimer: Acknowledge that neither party has relied on any representations from brokers.
  19. Seller Warranty: Confirm seller warranties regarding assessments and unpaid debts.
  20. Hazardous Substances: Acknowledge responsibility for investigating hazardous materials.
  21. Selection of Attorney: Indicate whether the buyer and seller agree to share attorney fees.
  22. Other Offers: Acknowledge that other offers may be pending while this offer is considered.
  23. Mediation and Arbitration: Agree to resolve disputes through mediation and arbitration.
  24. Facsimile Signatures: Agree that facsimile or e-signatures are acceptable.
  25. Additional Provisions: List any additional provisions or attached addenda.
  26. Fees and Expenses: Acknowledge that fees may not be refundable if the contract is canceled.
  27. Entire Agreement: Confirm that this contract represents the entire agreement between parties.
  28. Signatures: Ensure all parties sign and date the contract. Include witnesses if required.

Once you have completed the form, review it for accuracy before submitting it to the appropriate parties. Make sure all signatures are collected and that any necessary attachments are included. This contract will serve as the foundation for your real estate transaction.

Misconceptions

Misconceptions about the Alabama Land Sales Contract form can lead to confusion for buyers and sellers. Here are five common misunderstandings:

  • The contract guarantees financing approval. Many believe that signing the contract ensures they will receive financing. In reality, the contract may include contingencies for financing, but it does not guarantee approval.
  • Earnest money is non-refundable. Some assume that once earnest money is paid, it cannot be recovered. However, the contract specifies conditions under which the earnest money can be refunded, such as if financing contingencies are not met.
  • The seller must make repairs before closing. Buyers often think that sellers are obligated to fix any issues found during inspections. The contract states that the property is sold "as is," meaning the buyer accepts it in its current condition unless otherwise agreed.
  • Title insurance is optional. Many people believe that title insurance is not necessary. However, the contract specifies that the seller is responsible for providing a title insurance policy to protect the buyer against any title defects.
  • All offers must be accepted in order. Buyers may think that once they submit an offer, it must be accepted before any other offers are considered. The contract allows sellers to entertain multiple offers simultaneously, which can lead to competitive bidding.

Form Sample

LOTS OR OTHER UNIMPROVED LAND SALES CONTRACT

Form Approved by Birmingham Association of REALTORS®, Inc.

March 29, 2006 (Previous forms are obsolete and no longer approved)

Date:

The undersigned Buyer(s)

 

 

 

hereby agrees to purchase and

 

(Please print exact

names in which title will be taken)

the undersigned Seller(s)

 

 

hereby agrees to sell the following

 

(Please print exact

names in which title will be taken)

described lot(s) or other unimproved land and appurtenances thereto (the "Property") situated in the City

of

 

, County of

 

 

, Alabama, on the terms stated below:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Address

 

 

 

 

 

 

 

 

 

 

Zip Code:_____________

Legal Description : Lot

 

 

Block

 

 

 

 

 

Survey

 

 

 

 

 

 

 

 

 

Map Book

 

 

Page ________________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1.THE TOTAL PURCHASE PRICE OF THE PROPERTY SHALL BE $

Earnest Money under this Contract shall be

$

(A)FINANCING: (Check as applicable)

(1) Buyer will pay cash or obtain a loan for the Property with no financing contingency.

(2) This Contract is contingent on Buyer obtaining approval of a loan in the amount of $______________________ or _____________% of the Purchase Price (excluding any financed loan

costs) at the prevailing interest rate and loan costs. Buyer will apply for financing within ____ days (7

days if left blank), from the Finalized Date and will provide any and all credit, employment, financial and other information required by the mortgage lender. "Finalized Date" shall mean the date that appears under the signatures of the parties to this Contract. No term of this financing contingency can be

changed without written authorization of the Seller.

(B) DEVELOPMENT: (Check if applicable)

This Contract is contingent upon Buyer obtaining appropriate financing, applicable building permits, all utilities (electricity, gas, sewer and water) for use on the Property for the purpose intended. In the event there is not a public sewer system, this Contract is also subject to approval by proper Health Department authorities of a permit for installation of a septic tank. In the event of any one of these contingencies cannot be fulfilled on or before _____________, 20__, Seller agrees to refund Earnest

Money and this Contract shall become null and void. Buyer is responsible for determining whether all necessary utilities are on the Property and are available for the intended purpose of the Buyer.

2.CLOSING DATE: The sale shall be closed and the deed delivered on or before

,20___ at __:___ a.m.___ p.m.___.

3.EARNEST MONEY & BUYER'S DEFAULT: Seller and Buyer hereby direct the Listing Company to hold the Earnest Money in trust until this Contract has been accepted and signed by all parties, at which time the Earnest Money will be promptly deposited into the escrow account of the

The Birmingham Association of Realtors®, Inc. is not engaged in rendering legal, accounting or other professional service by approving this form. This form is published as a service to member real estate professionals and an explanation of its various provisions should be obtained from the appropriate professional. Because of varying state and local laws, competent legal or other advice should be secured before using any form. If a user of this form makes any substantive changes to any portions above, the form will no longer be an approved form.

Copyright© 2006 by the Birmingham Association of REALTORS®, Inc.

Lots or Other Unimproved Land Sales Contract, Page 1 of 5

Listing Company. In the event an offer or counteroffer is not accepted, the Earnest Money shall be returned to Buyer without a signed release. If the Contract is accepted and signed by all parties and the sale does not close, however, a separate mutual release signed by all parties to this Contract will be required before the Earnest Money will be disbursed. In the event either Buyer or Seller claims the escrowed funds without the agreement of the other party, any holder of the escrowed funds, as prescribed by Alabama Real Estate License Law Rule: 790-X-3-.03 (4), (5), must either retain the escrowed funds until there is a written mutual release among the parties or interplead the disputed portion of the funds into the appropriate court, and shall be entitled to deduct from the escrowed funds for court costs, attorney fees and other expenses relating to the interpleader; provided, however, that any Claim as defined in Paragraph 15 below shall remain subject to mediation and arbitration as set forth in said Paragraph. Seller, at Seller's option, may cancel this Contract if the Earnest Money check is rejected by the financial institution upon which it is drawn. In the event of default by Buyer, all deposits made hereunder may be forfeited as liquidated damages at the option of Seller, provided Seller agrees to the cancellation of this Contract, or alternatively, Seller may elect to pursue his or her available legal or equitable remedies against Buyer pursuant to Paragraph 15 below.

4.AGENCY DISCLOSURE:

The listing company is _________________________________________________________________ .

The selling company is _________________________________________________________________ .

The listing company is: (Two blocks may be checked)

An agent of the seller.

An agent of the buyer.

An agent of both the seller and buyer and is acting as a limited consensual dual agent.

Assisting the

buyer

seller (check one or both) as a transaction broker.

 

The selling company is: (Two blocks may be checked)

An agent of the seller.

An agent of the buyer.

An agent of both the seller and buyer and is acting as a limited consensual dual agent.

Assisting the

buyer

seller (check one or both) as a transaction broker.

 

Buyer's Initials

Seller's Initials

5.TITLE INSURANCE: Seller agrees to furnish Buyer a standard form owner's title insurance policy at Seller's expense, issued by a company qualified to insure titles in Alabama, in the amount of the Purchase Price, insuring Buyer against loss on account of any defect or encumbrance in the title, subject to exceptions herein, including Paragraphs 6 & 8 below; otherwise, the Earnest Money shall be refunded in accordance with Paragraph 3 above. In the event owner's and mortgagee's title policies are required at closing, the total expense of procuring the two policies will be divided equally between Seller and Buyer, even if the mortgagee is the Seller. Seller shall have a reasonable length of time within which to perfect title or cure defects in the title to the Property.

6.SURVEY: Buyer does does not require a survey by a registered Alabama land surveyor of Buyer's choosing. The lender may require a survey and it is recommended that a new survey

be obtained on all purchases. Available information indicates that the Property

is

is not located in

a flood plain, but this should be confirmed by a flood plain certification and/or a current surveyor's statement in the survey which shall be the responsibility of Buyer. Further, unless otherwise agreed herein, the Property is purchased subject to utility easements, residential subdivision covenants and restrictions, if any, and building lines of record. It is the responsibility of Buyer to determine, prior to closing of this Contract, whether the foregoing materially impairs the use of the Property for intended purposes. Unless otherwise agreed herein, the survey shall be at Buyer's expense.

The Birmingham Association of Realtors®, Inc. is not engaged in rendering legal, accounting or other professional service by approving this form. This form is published as a service to member real estate professionals and an explanation of its various provisions should be obtained from the appropriate professional. Because of varying state and local laws, competent legal or other advice should be secured before using any form. If a user of this form makes any substantive changes to any portions above, the form will no longer be an approved form.

Copyright© 2006 by the Birmingham Association of REALTORS®, Inc.

Lots or Other Unimproved Land Sales Contract, Page 2 of 5

7.PRORATIONS: Ad valorem taxes, as determined on the date of closing, accrued interest on mortgage(s) assumed, and homeowners association, fire district or other dues, fees or assessments are to be prorated between Seller and Buyer as of the date of closing, and any existing escrow deposits shall be credited to Seller. Unless otherwise agreed herein, all ad valorem taxes except municipal are presumed to be paid in arrears for purpose of proration; municipal taxes, if any, are presumed to be paid in advance.

8.

CONVEYANCE: Seller agrees to convey the Property to Buyer by

________

warranty

deed (check

if Buyer desires that title be held as joint tenants with rights of survivorship), free of all

encumbrances except as permitted in this Contract. Seller and Buyer agree that any encumbrances not herein excepted or assumed may be cleared at the time of closing from sales proceeds. The Property is sold and is to be conveyed subject to any mineral and/or mining rights not owned by Seller. Seller

understands that the present zoning classification is:

 

. It is Buyer's responsibility

to verify the current zoning classification.

 

 

9.CONDITION OF THE PROPERTY: SELLER MAKES NO REPRESENTATIONS OR WARRANTIES REGARDING CONDITION OF THE PROPERTY EXCEPT TO THE EXTENT EXPRESSLY AND SPECIFICALLY SET FORTH HEREIN. Purchaser has the obligation to determine any and all conditions of the Property material to Buyer decision to buy the Property, including without limitiation, subsurface condition, including the presence or absence of sinkholes, mining activity, wells or buried tanks and other objects; soil conditions; and utility and sewer or septic availabilty and condition. Except as otherwise stated in this Contract, Buyer accepts the Property in its present "as is" conditions.

Buyer's Initials

Seller's Initials

10.DISCLAIMER: Seller and Buyer hereby acknowledge and agree that they have not relied upon any advice or representation of the Listing Broker or Company or the Selling Broker or Company or any of their sales associates ("brokers and sales associates"), and accordingly Seller and Buyer agree that no broker or sales associate shall be held responsible for any obligations or agreements that Seller or Buyer have to one another hereunder. Further, Seller and Buyer agree to discharge and release the brokers and sales associates from any claims, demands, damages, actions, causes of actions or suits at law arising in any way from this Contract related to the Property, and shall include but not be limited to the availability or location of utilities, sewer or septic system; the investment or resale value of the Property; subsurface or subsoil conditions such as sinkholes, mining or other soil conditions, including radon or other potentially hazardous gases or toxic materials; Property access, easements, covenants, restrictions, development structure, and appurtenances thereto, the availability of utilities or sewer service; and any matters affecting the character of the neighborhood; the past, present, or future financial stability of the developer, if any, or the future insurability of the Property; the investment or resale value of the Property; or any other matters affecting the willingness of the Seller and Buyer to sell or purchase the Property on the terms and at the Purchase Price herein set forth. Seller and Buyer acknowledge and agree that if such matters are of concern to them in the decision to sell or purchase the Property, they have sought and obtained independent advice relative thereto.

Buyer's Initials

Seller's Initials

11.SELLER WARRANTY: Seller warrants that Seller has not received notification from any owners association or lawful authority regarding any unpaid assessments, pending assessments, pending public improvements, or repairs, replacements, or alterations to the Property that have not been satisfactorily made. Seller warrants that there is no unpaid indebtedness on the Property except as described in this Contract. These warranties shall survive the closing.

The Birmingham Association of Realtors®, Inc. is not engaged in rendering legal, accounting or other professional service by approving this form. This form is published as a service to member real estate professionals and an explanation of its various provisions should be obtained from the appropriate professional. Because of varying state and local laws, competent legal or other advice should be secured before using any form. If a user of this form makes any substantive changes to any portions above, the form will no longer be an approved form.

Copyright© 2006 by the Birmingham Association of REALTORS®, Inc.

Lots or Other Unimproved Land Sales Contract, Page 3 of 5

12.HAZARDOUS SUBSTANCES: Seller and Buyer expressly acknowledge that the Broker(s) have not made an independent investigation or determination with respect to the existence or nonexistence of PCB transformers, or other toxic, hazardous or contaminated substances or gases in, on, or about the Property, or for the presence of underground storage tanks. Any such investigation or determination shall be the responsibility of Seller and/or Buyer and Broker(s) shall not be held responsible therefor.

13.SELECTION OF ATTORNEY: Buyer and Seller hereby do do not agree to share the fees of a closing attorney. Buyer and Seller acknowledge and agree that such sharing of fees may involve a conflict of interest on the part of the attorney and the attorney will require that an affidavit be signed at closing acknowledging the conflict of interest and Buyer's and Seller's acceptance of the same. The parties further acknowledge that they have a right to be represented at all times by separate and independent counsel in connection with this Contract and the closing thereof by an attorney of their own choosing at their own expense.

14.OTHER OFFERS WHILE BUYER'S OFFER IS PENDING: Buyer hereby acknowledges that offers other than Buyer's offer may have been made or may be made before Seller acts on or while Seller is considering Buyer's offer or counteroffer. While the Buyer's offer or counteroffer is pending, and before this Contract becomes effective, Seller hereby expressly reserves the right to reject Buyer's offer or counteroffer or to withdraw any offer previously made by Seller to Buyer relating to the Property, and to accept any other offer or counteroffer.

15.MEDIATION AND ARBITRATION/WAIVER OF TRIAL BY JURY: All claims, disputes or other matters in question arising out of or relating in any way to this Contract or the breach thereof, including claims against any broker or sales associate, or relating to the relationship involved with, created by or concerning this Contract, including the involvement of any broker or sales associate ("Claim"), shall be submitted to mediation with a mutually agreed upon mediator within forty-five (45) days of notice of the Claim. In the event no mediated resolution is reached within sixty (60) days of the party's notice of the Claim, all Claims shall be resolved by binding arbitration by a single arbitrator in Birmingham, Alabama in accordance with the Commercial Arbitration Rules of the American Arbitration Association then in effect. EACH PARTY ACKNOWLEDGES THAT HE OR SHE IS KNOWINGLY WAIVING THE RIGHT TO A TRIAL BY JURY RELATING TO ALL CLAIMS. All disputes concerning the arbitrability of any Claim or the enforceability or scope of this provision shall be subject to the same binding arbitration. The parties shall bear equally the cost of the arbitrator and each party shall otherwise bear their own costs; provided the arbitrator shall have the authority to award costs as a part of this award to the extent authorized by applicable law. The arbitrator shall follow the law applicable to any Claim and shall be empowered to award any damages or other relief which would be available under the law applicable to any such Claim. The determination of the arbitrator shall be final, binding on the parties and non-appealable, and may be entered in any court of competent jurisdiction to enforce it. The parties acknowledge and agree that the transactions contemplated by and relating to this Contract, which may include the use of materials and components which are obtained from out-of-state and which otherwise include the use of interstate mails, roadways and commerce, involve interstate commerce, as that term is defined in the Federal Arbitration Act, 9 U.S.C. § 2.

Buyer's Initials

Seller's Initials

The Birmingham Association of Realtors®, Inc. is not engaged in rendering legal, accounting or other professional service by approving this form. This form is published as a service to member real estate professionals and an explanation of its various provisions should be obtained from the appropriate professional. Because of varying state and local laws, competent legal or other advice should be secured before using any form. If a user of this form makes any substantive changes to any portions above, the form will no longer be an approved form.

Copyright© 2006 by the Birmingham Association of REALTORS®, Inc.

Lots or Other Unimproved Land Sales Contract, Page 4 of 5

16.FACSIMILE OR COUNTERPART SIGNATURES: This Contract may be executed and delivered by any party hereto by sending a facsimile of the signature or by a legally recognized e- signature. Such facsimile signature or legally recognized e-signature shall be binding upon the party so executing it upon the receipt of the signature by any other party.

17.ADDITIONAL PROVISIONS: Additional provisions to this Contract are set forth on the attached Addendum(s) # ______________________ which shall be signed by all parties and shall be part of this Contract.

18.OBLIGATION FOR FEES AND EXPENSES: Buyer and Seller acknowledge that in the event this Contract is cancelled or does not close for any reason, fees or costs paid in advance may be non- refundable.

19.ENTIRE AGREEMENT: This Contract constitutes the entire agreement between Buyer and Seller regarding the Property, and supersedes all prior discussions, negotiations and agreements between Buyer and Seller, whether oral or written. Neither Buyer, Seller, nor any broker or sales associate shall be bound by any understanding, agreement, promise, or representation concerning the Property, expressed or implied, not specified herein.

THIS IS A LEGALLY BINDING CONTRACT. IF YOU DO NOT UNDERSTAND THE LEGAL EFFECT OF ANY PART OF THIS CONTRACT, SEEK LEGAL ADVICE BEFORE SIGNING.

Witness to Buyer's Signature

Witness to Buyer's Signature

Witness to Seller's Signature

Witness to Seller's Signature

Buyer

(Date)

 

 

Buyer

(Date)

 

 

Seller

(Date)

 

 

Seller

(Date)

Finalized Date: ________________________, 20______

(Date on which last party signed or initialed acceptance of final offer)

EARNEST MONEY: Receipt of the earnest money in the amount identified in Paragraph 1 is hereby acknowledged.

 

CASH

 

 

CHECK

LISTING COMPANY:

By:

 

DATE ____________, 20_____

 

 

 

 

 

 

The Birmingham Association of Realtors®, Inc. is not engaged in rendering legal, accounting or other professional service by approving this form. This form is published as a service to member real estate professionals and an explanation of its various provisions should be obtained from the appropriate professional. Because of varying state and local laws, competent legal or other advice should be secured before using any form. If a user of this form makes any substantive changes to any portions above, the form will no longer be an approved form.

Copyright© 2006 by the Birmingham Association of REALTORS®, Inc.

Lots or Other Unimproved Land Sales Contract, Page 5 of 5