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Blank Alabama Land Sales Contract Form

The Alabama Land Sales Contract is a formal agreement between a buyer and a seller regarding the sale of unimproved land or lots in Alabama. This document outlines essential terms, such as the purchase price, earnest money, and contingencies related to financing and development. Understanding this contract is crucial for both parties to ensure a smooth transaction and protect their respective interests.

Outline

The Alabama Land Sales Contract form serves as a crucial document in real estate transactions involving unimproved land. This form outlines the essential terms agreed upon by the buyer and seller, including the total purchase price and the specific property being sold. It establishes the conditions under which the buyer will secure financing, whether through cash payment or a loan, while also detailing any contingencies that must be satisfied before the sale can proceed. Key elements such as the closing date, earnest money requirements, and the responsibilities of both parties are clearly articulated. The contract also addresses important aspects like title insurance, the condition of the property, and the obligations related to any existing liens or encumbrances. Furthermore, it includes provisions for mediation and arbitration in case of disputes, ensuring that both parties have a clear understanding of their rights and responsibilities. Overall, this form is designed to facilitate a smooth transaction while protecting the interests of both the buyer and seller.

Sample - Alabama Land Sales Contract Form

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.

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.

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.

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.

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.

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 Buyer (Date)

Witness to Seller's Signature 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_____

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Form Information

Fact Name	Description
Form Approval	This form is approved by the Birmingham Association of REALTORS®, Inc. as of March 29, 2006.
Governing Law	The contract is governed by Alabama state law.
Purchase Price	The total purchase price of the property must be specified in the contract.
Earnest Money	Earnest money is required and must be held in trust until the contract is accepted by all parties.
Closing Date	The sale must be closed on or before the specified closing date.
Title Insurance	The seller agrees to provide a standard owner's title insurance policy at their expense.
Survey Requirement	A survey by a registered Alabama land surveyor may be required, depending on the buyer's needs.
Property Condition	The seller makes no representations regarding the condition of the property, except as stated in the contract.
Mediation and Arbitration	Any disputes must be submitted to mediation and, if unresolved, to binding arbitration in Birmingham, Alabama.

Detailed Guide for Filling Out Alabama Land Sales Contract

Filling out the Alabama Land Sales Contract form requires attention to detail. The information you provide will help ensure a smooth transaction between the buyer and seller. Follow the steps below to complete the form accurately.

Enter the date at the top of the form.
In the "Buyer(s)" section, print the exact names of the buyer(s) as they will appear on the title.
In the "Seller(s)" section, print the exact names of the seller(s) as they will appear on the title.
Fill in the city and county where the property is located.
Provide the address and zip code of the property.
Complete the legal description of the property, including lot, block, survey, map book, and page numbers.
State the total purchase price of the property.
Indicate the amount of earnest money to be held under this contract.
For financing, check the appropriate option: cash purchase or loan approval. If applicable, specify the loan amount or percentage of the purchase price.
If there are contingencies related to development, check the box and provide the necessary details.
Set a closing date and time for the sale.
Identify the listing company and selling company in the agency disclosure section.
Indicate if the listing and selling companies represent the buyer, seller, or both.
Confirm whether the seller will provide title insurance and specify any requirements for surveys.
Address the proration of taxes and other fees at closing.
Specify how the property will be conveyed (e.g., warranty deed).
Review the condition of the property and acknowledge the "as is" condition.
Check if the buyer and seller agree to share the fees of a closing attorney.
Sign and date the contract where indicated for both the buyer and seller.
Include any additional provisions or addendums as necessary.
Ensure that all parties receive a copy of the signed contract for their records.

Obtain Answers on Alabama Land Sales Contract

What is the purpose of the Alabama Land Sales Contract form?

The Alabama Land Sales Contract form serves as a legal agreement between a buyer and seller for the purchase of unimproved land. It outlines the terms of the sale, including the purchase price, financing options, and responsibilities of both parties. This form is essential for ensuring that both the buyer and seller are clear on their obligations and rights during the transaction.
What are the key components of the contract?

The contract includes several important sections, such as:
- Total purchase price and earnest money details.
- Financing contingencies, if applicable.
- Closing date and procedures.
- Title insurance obligations.
- Property condition disclaimers.
- Dispute resolution methods, including mediation and arbitration.
What happens if the buyer defaults on the contract?

If the buyer defaults, the seller has the option to retain the earnest money as liquidated damages, provided they agree to cancel the contract. Alternatively, the seller may choose to pursue other legal remedies against the buyer. It is crucial for both parties to understand the implications of default before signing the contract.
Are there contingencies that can affect the sale?

Yes, the contract may include various contingencies that must be satisfied for the sale to proceed. These can include:
- Approval of financing.
- Obtaining necessary building permits.
- Access to essential utilities.
If any of these contingencies are not met by the specified date, the seller must refund the earnest money, and the contract will become void.
What is the significance of the title insurance provision?

The title insurance provision protects the buyer against potential losses due to defects in the title of the property. The seller is responsible for providing a standard owner's title insurance policy at their expense. If the title is found to be defective, the buyer may seek a refund of their earnest money.
How does the contract handle disputes?

The contract includes a clause for mediation and arbitration to resolve disputes. If a claim arises, the parties agree to attempt mediation within 45 days. If mediation fails, the dispute will proceed to binding arbitration. This process is designed to provide a quicker and less costly resolution compared to traditional litigation.

Common mistakes

Filling out the Alabama Land Sales Contract form can be a straightforward process, but there are common mistakes that can complicate matters. One significant error is failing to provide exact names for both the buyer and seller. It’s crucial to ensure that the names are printed exactly as they will appear on the title. Any discrepancies can lead to legal complications or delays during the closing process.

Another frequent mistake involves the purchase price. Buyers often neglect to clearly state the total purchase price of the property. Omitting this information can create confusion and may lead to disputes later on. It’s essential to double-check that all financial details are accurate and clearly outlined.

People sometimes overlook the financing section, which can have significant implications for the contract. Buyers must select whether they will pay cash or seek a loan. If opting for financing, they should specify the amount and any contingencies. Failing to do this can result in the contract being void if financing is not secured.

Additionally, the closing date is often left blank or incorrectly filled out. This date is critical as it sets the timeline for the transaction. Without a specified closing date, both parties may have different expectations, leading to frustration and potential legal issues.

Another common oversight is not addressing the earnest money properly. Buyers must ensure that the amount is stated clearly and that the terms regarding its handling are understood. If the contract is not accepted, the earnest money should be returned. Misunderstandings about earnest money can lead to disputes if the deal falls through.

Buyers and sellers also frequently fail to consider the condition of the property. The contract states that the property is sold "as is," but buyers should still conduct their due diligence. Ignoring this can lead to unexpected repairs or issues after the purchase, which could have been avoided with a thorough inspection.

Lastly, many individuals do not seek legal advice before signing the contract. This is a critical mistake, as the contract is legally binding. Understanding the implications of each section can prevent misunderstandings and protect the interests of both parties involved. It’s always wise to consult a legal professional to ensure that all aspects of the contract are clear and acceptable.

Documents used along the form

When entering into a land sale in Alabama, several additional documents may be necessary to ensure a smooth transaction. These documents help clarify terms, protect the interests of both parties, and ensure compliance with local laws. Below is a list of common forms that are often used alongside the Alabama Land Sales Contract.

Title Insurance Policy: This document protects the buyer against potential losses from defects in the title of the property. It ensures that the title is clear and free from liens or other encumbrances.
Earnest Money Receipt: This receipt acknowledges the buyer's deposit as a sign of good faith. It outlines the amount and conditions under which the money will be held or returned.
Property Disclosure Statement: Sellers must disclose any known issues with the property. This statement helps buyers make informed decisions based on the property's condition.
Survey Report: A survey provides a detailed layout of the property boundaries. It can reveal any encroachments or easements that may affect the buyer's use of the land.
Closing Statement: This document outlines the final financial details of the transaction. It includes all costs, fees, and adjustments that need to be settled at closing.
Deed: The deed transfers ownership of the property from the seller to the buyer. It must be signed and recorded to be legally binding.
Loan Agreement: If the buyer is financing the purchase, this agreement outlines the terms of the loan, including interest rates, repayment schedules, and any contingencies.
Homeowners Association (HOA) Documents: If the property is part of an HOA, these documents provide rules and regulations that govern the community, including fees and restrictions.
Inspection Report: A professional inspection can identify issues with the property that may not be visible to the buyer. This report is crucial for making informed decisions.
Affidavit of Title: This sworn statement by the seller confirms that they have the legal right to sell the property and that there are no undisclosed claims against it.

Understanding these documents can help both buyers and sellers navigate the complexities of real estate transactions in Alabama. Always consider consulting with a legal professional to ensure that all necessary forms are completed accurately and in compliance with state laws.

Similar forms

The Alabama Land Sales Contract form shares similarities with several other real estate documents. Here’s a breakdown of these documents and how they relate:

Purchase Agreement: Like the Alabama Land Sales Contract, a Purchase Agreement outlines the terms of a property sale, including price and contingencies. Both documents serve to formalize the agreement between buyer and seller.
Lease Agreement: A Lease Agreement, while primarily for rental situations, also details terms and conditions between parties. Similar to the land sales contract, it specifies payment amounts, duration, and responsibilities of each party.
Option to Purchase Agreement: This document grants the buyer the right to purchase property at a later date. It shares the same structure in terms of outlining terms, conditions, and contingencies as found in the Alabama Land Sales Contract.
Real Estate Sales Disclosure Form: This form requires sellers to disclose property conditions and issues. Like the Alabama Land Sales Contract, it protects both parties by ensuring transparency regarding the property’s status.
Deed: A Deed transfers ownership of property from seller to buyer. While the Alabama Land Sales Contract initiates the sale, the deed finalizes the transfer, ensuring that all terms agreed upon are executed legally.
Title Insurance Policy: This document protects buyers against title defects. Similar to the Alabama Land Sales Contract, it addresses potential issues related to property ownership and ensures the buyer’s rights are safeguarded.

Dos and Don'ts

When filling out the Alabama Land Sales Contract form, it’s important to be careful and thorough. Here are some things you should and shouldn’t do:

Do print names clearly for both the Buyer(s) and Seller(s) in the designated spaces.
Do specify the total purchase price and the amount of earnest money accurately.
Do check all applicable financing options and development contingencies before submitting the form.
Do ensure the closing date is filled in correctly and is realistic for all parties involved.

Don't leave any sections blank unless instructed to do so, as this may cause confusion later.
Don't make any changes to the form without consulting a professional, as this can invalidate the contract.
Don't overlook the need for signatures from all parties involved; missing signatures can delay the process.
Don't forget to review the entire contract carefully before signing to ensure understanding of all terms.

Misconceptions

Misconception 1: The Alabama Land Sales Contract is a standard form that can be used without any modifications.

This form is not a one-size-fits-all document. While it provides a framework for transactions, any substantive changes can render it obsolete. Each buyer and seller should consider their unique circumstances and possibly seek legal advice before using the form.

Misconception 2: Earnest money is non-refundable in all situations.

While earnest money is typically held in trust, it can be refunded if the contract does not close due to contingencies outlined in the agreement. Buyers should understand the specific conditions under which they may get their earnest money back.

Misconception 3: The seller is responsible for all inspections and disclosures regarding the property.

Buyers have a responsibility to conduct their own due diligence. The seller only provides information as specified in the contract. Buyers should verify conditions of the property, including zoning and utility availability.

Misconception 4: The contract guarantees a closing date.

The contract states a closing date, but this is contingent on various factors, including financing and inspections. Buyers and sellers should be prepared for potential delays and communicate openly about any issues that arise.

Misconception 5: A real estate agent’s approval of the contract means it is legally sound.

Approval by a real estate association does not equate to legal validation. The form is a tool for real estate professionals, and individuals should seek independent legal advice to ensure their rights are protected.

Misconception 6: The contract is the final word in the transaction.

This contract represents the intentions of the buyer and seller, but it can be amended or supplemented with additional provisions. Both parties should ensure that any changes are documented and agreed upon to avoid misunderstandings.

Key takeaways

Understand the Purpose: The Alabama Land Sales Contract is a legally binding agreement between a buyer and seller for the purchase of unimproved land. It outlines the terms and conditions of the sale.
Complete Information Accurately: Fill in the exact names of the buyer and seller, along with the property description, including the address, legal description, and total purchase price. Accuracy is crucial.
Earnest Money: An earnest money deposit is required to show the buyer's serious intent. This amount is held in trust until the contract is finalized and should be specified in the contract.
Financing Contingencies: Buyers can choose to pay cash or obtain financing. If financing is necessary, the contract may include contingencies that depend on loan approval.
Closing Date: The contract should specify a closing date. This is the date when the sale is finalized, and the deed is transferred to the buyer.
Title Insurance: The seller is responsible for providing a title insurance policy to protect the buyer against any title defects or encumbrances. This is an important safeguard for the buyer.
Property Condition: The seller makes no warranties regarding the condition of the property, except as specifically stated in the contract. Buyers should conduct their own inspections.
Entire Agreement Clause: The contract represents the complete agreement between the parties. Any prior discussions or agreements are superseded by this document, emphasizing the importance of understanding all terms before signing.