From Start to Finish: How to Fill Out a Florida Vacant Land Contract

Why use the Florida Realtors vacant land contract form?

If you're selling land, you have several options for the contract form. You could hire a real estate attorney to draft a contract for you, but this may be expensive. It's also not necessary for simple transactions. For a fee, you could also use a contract from a legal document provider such as US Legal or Rocket Lawyer. 

But we recommend using the Florida Realtors contract forms. There are a number of benefits to using these contract forms. The Florida Realtors vacant land contract form (also known as VAC-14) is widely used and understood by people in the real estate industry. Other parties to the transaction such as lenders, title companies, and real estate brokers use these forms. The standard Florida contracts and forms are also balanced between the rights of the buyer and seller.

• Covers most important clauses
• Protect all parties involved in the sale
• Understood by the real estate industry

Still, the forms don't address every potential situation you may encounter when selling Florida land. If your sale will have unique issues, you may want to hire a real estate attorney to draft the contract for you.

Before you start - what information is needed to fill out purchase agreement?

Before you start, you'll need to have a few pieces of information on hand. You should be prepared to:

• Identify the parties involved and their contact information
• Describe the property being sold, including address and  legal description
• List the title/escrow company and their contact information
• Include a purchase price and payment terms in the contract
• Specify any additional conditions or contingencies to be met prior to closing

Florida vacant land contract explained

Here's how to fill out the Florida vacant land contract:

1. Sale and Purchase. List the seller and buyer names. Seller name should match the owner of record on title. Add the address and legal description. Some properties are unassigned parcels and do not have a complete street address. That's OK, just fill out as much as you can. The legal description you can find on the existing deed or survey. The Real Property ID number you can find on the property tax bill.
2. Purchase Price. List the contact information for the escrow agent, also called the title company. Enter the earnest money deposit if any and the number of days the buyer has to deliver the deposit to the escrow agent. List the financed amount if any. There is also an option for the purchase price to be determined based on a per unit cost instead of a fixed price. In this case, a licensed surveyor would determine the size of the property, which would then be used to calculate the purchase price.
3. Time for Acceptance. If a date is added in this field, then the offer expires on that date if the contract is not signed by all parties. Normally, the buyer would have more reason to place a time limit on how long the seller can consider the offer.
4. Closing Date. The date the transaction will be closed. If the chosen date happens to be a Saturday, Sunday, or legal holiday, then the closing date extends to the next business day.
5. Extension of Closing Date. If the contract is contingent on obtaining financing and the closing funds are not available due to disclosure delivery requirements the closing date can be extended up to 10 days.
6. Financing. This section indicates how the property will be paid for: cash, traditional financing, seller financing, or mortgage assumption.
7. Assignability. Assigning the contract means transferring it to another buyer. If the buyer can assign the contract and be released from liability, it means they will not be responsible if they assign the contract and the new buyer does not close on the property.
8. Title. This section specifies the type of deed that will be provided to the buyer. The choices are statutory warranty
   deed, special warranty deed, or other. A statutory warranty deed would normally be preferred by the buyer. The special warranty deed is normally preferred by the seller. This section also specifies the type of title evidence, and who will pay for it. The buyer can get a full title commitment, in which case they will have insurance protecting their title interest in the property. Or the buyer can choose to get an abstract of title or rely on a previous owner's title policy. This option should only be used by people experienced in real estate that understand title matters and how they affect ownership rights and interests.
9. Property Condition. This section determines whether the buyer has a due diligence period or not. If selected, the due diligence period is 30 days unless indicated otherwise.
10. Closing Procedure; Costs. This section indicates who will pay for the closing costs. The buyer pays for most recording fees, inspections, and survey, if applicable. The property taxes are prorated. This means the taxes for that year are divided between the buyer and seller according to their length of ownership for that year.
11. Computation of Time. This just explains how days are counted in the contract, such as when a deadline falls on a weekend or holiday.
12. Risk of Loss; Eminent Domain. This section explains what happens if the property is materially damaged by a casualty event such as natural disaster. It also specifies what happens if the property is named in an eminent domain proceeding.
13. Force Majeure. This section specifics that neither buyer or seller will be required to perform any obligation under the contract if prevented by force majeure. 
14. Notices. All contract notices must be delivered in writing, although they can be by electronic means.
15. Complete Agreement; Persons Bound. States that the contract is the entire agreement between seller and buyer. Regardless of what was discussed before the contract, it's what's in the contract that matters.
16. Default and Dispute Resolution. If the seller defaults, the buyer can terminate and recover their deposit or seek specific performance. Specific performance means making the seller perform their obligation under the contract. The the buyer defaults, the only recourse the seller has is to retain the earnest money deposit.
17. Attorney’s Fees; Costs. If the contract leads to litigation, whoever wins can recover their attorneys fees.
18. Escrow Agent; Closing Agent. The buyer and seller authorize the escrow agent to hold funds in escrow and disburse them in accordance with the terms of this contract.
19. Professional Advice; Broker Liability. The buyer and seller are advised to verify all facts and consult with a professional for specialized advice where needed.
20. Commercial Real Estate Sales Commission Lien Act. Brokers can place liens on commercial property transactions for their commissions.
21. Brokers. This section lists the realtors involved in the sale, if any, and their contact information.
22. Addenda. If there are additional contract addenda, they can be referenced here. A Back-up Contract means that if the primary offer falls through, then the seller agrees to the terms of the back-up contract. A Kick Out Clause means a seller can continue accepting offers even after accepting a contingent offer.
23. Additional Terms. This section can be used to write in brief additional contract terms.

Steps to follow after filling out the contract

Once the contract is filled out and both parties have signed, you're ready for the next steps. The buyer or seller should share the executed contract with the title company closing the transaction. The buyer will need to drop off the earnest money deposit with the title company. The buyer may also need to conduct inspections or order a survey of the property. The seller will typically provide seller disclosures within a few days, if not provided before signing the contract.

Conclusion

That's it! You’ve gone through the Florida vacant land contract and what it entails. Now, it's your turn to fill out the contract and move to the next step of your transaction. You’re well on your way to selling your property in Florida!

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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.