A land purchase agreement is the contract a buyer and seller sign to transfer a piece of vacant land: a lot, acreage, a rural parcel. It sets the price, the deposit, and the closing date, and, more than a house contract, it gives the buyer time to find out whether the land can actually be used the way they want. This free vacant land purchase agreement is built around that due diligence period.

Why is buying land different from buying a house?

Because with land, the big questions are invisible. A house either has a working septic system or it doesn’t, and an inspector can tell you in an afternoon. A bare five-acre parcel might look perfect and still be unbuildable: the soil won’t pass a perc test, the zoning doesn’t allow a home, part of it is wetland, or the only road in crosses a neighbor’s property without a recorded right to use it.

Consider a hypothetical buyer who finds 5 acres outside Asheville for $85,000 and plans to build a small home in two years. Everything that matters to that buyer (can I get a septic permit, can I build here, can I get in and out, is the title clean) needs checking before the money goes hard. That’s why our template gives the buyer a defined inspection period with the right to walk away and get the deposit back.

If you’re buying land with a house on it, our real estate purchase agreement fits better. If you want to rent land rather than buy it, see the land lease agreement.

What does our land purchase agreement cover?

The property. Street address if there is one, the county parcel or tax ID number, the approximate acreage, and a full legal description attached as an exhibit. Copy the legal description from the seller’s deed or title commitment, not from a listing.

Price and earnest money. The price, how it’s paid, and an earnest money deposit held by a title company, escrow agent or attorney, never by the seller directly.

Due diligence period. A set number of days for the buyer to investigate. During that time the buyer can end the contract for any reason and get the deposit back. After it ends, the deposit is generally at risk if the buyer backs out without another contract reason.

Survey. Who orders a survey, who pays, and what happens if it shows encroachments or a boundary that doesn’t match the legal description.

Zoning and permitted use. The buyer states the intended use and can walk away if zoning or local rules won’t allow it.

Perc test and utilities. Access to test the soil, and a check on water, power and sewer availability.

Title. The seller provides a title commitment, the buyer can object to problems, and the seller fixes them or the buyer can end the deal.

Closing, deed and costs. The closing date, the kind of deed, who pays which costs, and how property taxes are prorated.

What should a land buyer check during due diligence?

Survey and boundaries

A survey tells you where the lines actually are and whether anything crosses them: a neighbor’s fence, a shed, a driveway that clips the corner. For raw land it also confirms the acreage you’re paying for. If the price is per acre, tie the final price to the surveyed acreage, and our template has a checkbox for that. Have the surveyor stake the corners, too. You’ll want them marked before anyone comes out to test the soil.

Zoning and the perc test

Prince William County, Virginia describes a perc test as measuring the absorption rate of soil for an onsite sewage disposal system. It’s done through the health department, and the county requires zoning approval first. The same page says properties there that aren’t connected to public sewer must be at least one acre. Your county’s rules will differ, which is exactly why the test and the zoning check belong inside the contingency period.

Easements and access

An easement is a right to use someone else’s land, and the Legal Information Institute notes that easements transfer along with the property they benefit. That works both ways. The parcel you’re buying may be subject to a utility line or a neighbor’s driveway, or it may depend on an easement across someone else’s land to reach the road. Make sure legal access is recorded. A dirt track everyone has always used isn’t the same thing.

Wetlands and floodplain

Low, wet ground can limit what you build. The EPA explains that Clean Water Act Section 404 requires a permit for discharging dredged or fill material into waters of the United States, including wetlands, and that includes fill for development. If part of the land looks wet, find out before closing.

Title

A title search and title insurance protect you from someone else’s old claims. The CFPB describes an owner’s title policy as protecting the owner if someone sues over a claim against the property from before the purchase, such as unpaid taxes or unpaid contractor bills.

How do you sign a land purchase agreement and close?

  1. Fill in the parties, parcel number and legal description, then attach the description as Exhibit A.
  2. Agree on price, earnest money, the escrow holder and the length of due diligence. Longer is better for the buyer. Call the county health department and a surveyor before you pick a number, so the period is long enough for their wait times.
  3. Both parties sign. Land contracts generally have to be in writing and signed by the parties bound by them under the statute of frauds.
  4. Deliver the earnest money to the escrow holder by the deadline.
  5. Order the survey, title commitment and perc test right away. They take longer than people think.
  6. At closing, the seller signs the deed and it’s recorded with the county.

The purchase agreement itself can generally be e-signed, since the federal ESIGN Act says a contract can’t be denied legal effect just because it’s electronic. The deed is different. Deeds usually need notarization, and some county recorders still require original paper documents with wet signatures. Our article on documents you can’t sign electronically explains why, and your title company or closing attorney will know the local rule.

Download the template, fill it in, and send it for e-signature with any tool you like. (We’re building SignWren for exactly this; join the waitlist.)

This template and guide are general information, not legal advice. Land deals turn on local rules, so talk to a real estate lawyer or title professional licensed where the land is before you sign.