California Vacant Land Purchase Agreement Quick Guide

When to use the Vacant Land Purchase Agreement?

If you want to sell land in California or buy land in California, understanding the vacant land purchase agreement California is essential. This guide explains the California vacant land purchase agreement, how it compares to the California real estate purchase agreement, and what you need to know for a successful transaction. Whether you are a buyer, seller, or considering a for sale by owner purchase agreement California, this overview will help you navigate the process.

The California Association of Realtors (CAR) Vacant Land Purchase Agreement is the standard California land purchase agreement for land transactions. This form is different from the more commonly used California real estate purchase agreement (RPA) for residential sales. Use the vacant land purchase agreement California when you are buying or selling land without material improvements.

According to the CAR, Vacant Land Purchase Agreement should be used for �the Sale of land without material improvements, such as an urban lot or agricultural property. Sheds, minimal storage facilities, or covered resting areas would not change use of form.�

Essentially, the VLPA is used when there are not residential or commercial structures on the property. The one exception is that the California vacant land purchase agreement can include a manufactured housing addendum when a manufactured home is being sold with the vacant land.

Are you looking to sell an inherited property? Check out our guide to inherited property in California .

When not to use the VLPA form?

If you�re selling land for sale by owner or in a private sale, the for sale by owner purchase agreement California or a simpler California land purchase agreement may be a better fit than the CAR VLPA. It�s a lengthy document with many clauses that may not be applicable to a for sale by owner transaction including condominium disclosures, disclosures regarding tenants on the property, leased or liened items or systems, and even hazardous liquid transmission pipelines!

Some for sale by owner sellers would benefit from a simpler contract template. There are many available if you search for �California for sale by owner contract.� Some of them are even free!

Where to find the California state vacant land purchase agreement

California Association of Realtors members have access to the California vacant land purchase agreement. It�s also possible for the general public to purchase it from C.A.R. Business Products. Alternatively, it may be possible to use your relationships with a realtor or a title company to get access to this form.

What�s different about the VLPA

In this overview, we assume you are already familiar with the California real estate purchase agreement. We focus on what�s different in the vacant land purchase agreement California so you can quickly get familiar with this contract form and make the right choice when you sell land in California or buy land in California.

• The RPA includes terms for appliances and fixtures , while the VLPA does not. The RPA has an extensive list of items that come with the property by default. In the VLPA, items are excluded from the sale unless specified in the contract, even if they were advertised as coming with the property.
• The VLPA has a paragraph on environmental hazard consultation that the RPA does not. The main purpose of this paragraph is to inform the Buyer and Seller that there can be legal liability for current and former property owners associated with environmentally hazardous substances. The Buyer and Seller are advised to consult with experts about potential risks from environmentally hazardous substances.
• The seller disclosures in the VLPA also reflect the greater emphasis on environmental hazards compared to the RPA. These hazard disclosures include the presence of endangered species, historic soil fill, and soil problems like flooding, drainage, or grading issues. The property disclosures also include other risks specific to raw land such as legal and physical access to the property, zoning issues, and deed restrictions.
• The VLPA has a paragraph on the Americans With Disabilities Act (ADA), while the RPA does not. This is because ADA requirements do not typically apply to residential properties. However, these requirements could apply to commercial use of vacant land, so the Buyer and Seller should consult with an expert to determine if the property�s use will require ADA compliance.
• The VLPA has a contract contingency for manufactured homes , which is not present in the RPA. If this clause is used, the land purchase would be contingent on the Buyer acquiring a manufactured home to be placed on the property. The contract also encourages the Buyer to investigate conditions that may affect manufactured home placement.
• The VLPA and RPA handle liquidated damages differently. Both contracts define liquidated damages as the amount of the deposit the Buyer will forfeit to the Seller if the Buyer defaults. But in the RPA, if the property is a residential dwelling with no more than four units, one of which the buyer intends to occupy, the liquidated damages cannot exceed 3% of the purchase price. The VLPA does not have this cap, as it is not for residential dwellings.

Conclusion - Using the VLPA for your vacant land sale

The VLPA is easy to learn for realtors already familiar with the RPA. There are just a few new concepts and differences to learn. For private land sales, the VLPA is a good choice for many sales it's comprehensive. However, for a simple vacant land sale it may be more than is needed because of the document�s length and complexity.

Please consult your financial advisor, accountant, real estate attorney, or tax specialist. This article is for informational purposes and is not tax or legal advice.