LAND SALE CONTRACTS
Land Sale contracts are
contracts for the purchase and sale of land. These contracts are usually installment
contracts for the sale of land whereby the buyer receives the deed from the
seller once the final payment is made.
Land contract, Contract for sale of land, Installment land contract and
Contract for deed are all terms used to refer to and sale contracts.
REQUIREMENTS FOR A VALID LAND SALE CONTRACT
In order for a land sale
contract to be valid it should meet the following requirements:
(a) Outline the rights and obligations of the parties
(b) Identify and be signed by the contracting parties
(c) Specify the consideration paid or to be paid
(d) Adequately describe the property to be sold
RIGHTS AND OBLIGATIONS OF THE PARTIES
The land sale contract
should specifically state what is expected from each party. For example, the
contract should provide for:
(a) payment of the purchase price, including the method
and time in which payment is to be made;
(b) conveyance of the property by deed once the purchase
price is paid; and
(c) the rights of the parties in the event that one party
does not fulfill its obligations.
IDENTITY AND SIGNATURE OF CONTRACTING PARTIES
Each
party to a land sale contract should be identified in and be required to sign
the contract. A contract for sale of land may not be considered a valid
contract unless in writing and signed by the parties.
CONSIDERATION
A valid land sale contract
must be supported by sufficient consideration. Consideration is a legal term
that means that the buyer must provide the seller with a legal right or benefit
in return for the seller’s promise to sell the land. The consideration for the land sale contract is usually the
purchase price, a down payment of the purchase price or a promise to obtain
financing that secures the seller’s promise to sell.
DESCRIPTION OF THE PROPERTY
A contract for the sale of
land must contain an adequate description of the land to be sold. This
description must be such that the size and location of the property to be
bought or sold can be easily ascertained. A description of the land to be sold
is usually considered adequate if the property can be found by a surveyor.
THINGS TO BEFORE SIGNING OR MAKING ANY PAYMENTS UNDER A LAND
SALE CONTRACT
(a) Have a title search conducted to make sure that there
are no problems with the ownership of the property;
(b) Obtain title insurance if possible, these policies
protect buyers from damages or losses caused by title defects that were not
discover by a title search.
(c) Make sure that the seller is authorized to sell the
land. He should either be the owner or legally acting on the owner’s behalf;
(d) Check with the Department of Licensing and Consumer
Affairs and the Attorney General’s Office to see if any complaints have been
filed against the seller of the property in the past;
THINGS TO DO ARTER EXECUTING A LAND SALE CONTRACT
(a) Once all payments have been made as required by the
contract, make sure that the seller executes a deed transferring title of the
property;
(b) Make sure that the deed properly and adequately
describes the property that was sold, properly identifies the buyer and seller,
includes the purchase price and any restrictions or covenants that run with the
land;
(c) If the deed is correct, it MUST be filed with the
Recorder of Deeds—MAKE SURE THIS IS DONE.
Christiansted, St. Croix
U.S Virgin Island 00820
(340) 773-2626
No. 57 Dronnigens Gade
Charlotte Amalie, St. Thomas
U.S Virgin Islands 00801
(340) 774-6720