Georgia Land Purchase and Sale Agreement Quick Guide

When to use the Land Purchase and Sale Agreement

The Land Purchase and Sale Agreement (F213) can be used when the property to be sold consists of unimproved property. Unimproved means the property’s value is primarily in the land. It’s common for land to include improvements like outbuildings, barns, fences, or even a home. But if these improvements are only incidental to the value of the property, then it’s appropriate to use the Land Purchase and Sale Agreement.

Where to find the Land Purchase and Sale Agreement

Unfortunately, in Georgia only licensed realtors have access to the Georgia Association of Realtors contract forms. These contract forms are valuable because the Georgia Association of Realtors have already done the ‘heavy lifting’ to create balanced contracts that address the most common situations. 

Members of the general public should be aware that unauthorized use of the form violates the licensing terms. For a free contract template, you may consider using the State Bar of Georgia’s Contract For Sale of Real Estate.

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

Key Differences of the Land Purchase and Sale Agreement

• Acreage. Acreage is synonymous with land in many ways, and it features prominently in the Land Purchase and Sale Agreement:
  • Survey. A survey is more critical with land sales. In the Land Purchase and Sale Agreement, there are more options for how the survey can be obtained. There are options for the buyer or seller to provide the survey, and either party can pay for it.
  • Price per acre. The Land Purchase and Sale Agreement allows for the purchase price to be set on a per acre basis. The seller provides an initial estimate of the property’s acreage. The final purchase price would be adjusted based on the acreage confirmed by the survey.
  • Termination right. Either the buyer or seller can terminate the agreement if the acreage determined by the survey is 15% more or less than the seller’s estimate. This protects the buyer from a property that may be too small for their use or paying more than they intended. It protects the seller from selling the property for less than they intended.
• Zoning. The value of land is often determined by its zoning. The Land Purchase and Sale Agreement has a specific clause to disclose the current zoning of the property. 
• Inspections and Due Diligence. Homes and vacant land have different diligence requirements, and this is reflected in the contract forms:
  • The Land Purchase and Sale Agreement requires the seller to provide Due Diligence Materials to the buyer after contract signing. This package includes information regarding (1) tax and title, (2) environmental reports such as soil reports or hazardous substance reports, (3) leases, and (4) miscellaneous management fees, permits, or licenses. 
  • The standard Purchase and Sale Agreement allows the buyer to conduct a Lead-Based Paint Hazard Evaluation. If any portion of a residential dwelling was built prior to 1978, the Lead-Based Paint Exhibit must also be attached to the contract. These clauses are not present in the Land Purchase and Sale Agreement because these concerns are not typically relevant to vacant land sales. 
• Default. A default occurs if either party breaches the contract. The language of these sections of the standard and land purchase agreements are very similar, but the standard agreement has stronger remedies in favor of the buyer. Under the Remedies of Buyer, in addition to enforcing specific performance or terminating the agreement, the buyer may “pursue any other remedy available at law.” This language is not present in the Land Purchase and Sale Agreement.
• Property not being sold for the value of improvements. A significant difference in the Land Purchase and Sale Agreement is that the buyer acknowledges that the property is being purchased for the value of the land, not incidental improvements that may exist such as fences, barns, or outbuildings. Any improvements are being sold in as-is condition and the seller has no responsibility to make disclosures or repair any of the improvements. 

Frequently asked questions

How long is the due diligence period in Georgia?

The due diligence period can be any length of time that the buyer and seller agree. The Due Diligence Period is left blank to be filled in when using the Georgia Association of Realtors contract forms.

Can I use the GAR Purchase and Sale Agreement if I am not a licensed real estate agent?

The Georgia Association of Realtors claims a copyright on their published forms. Forms may be used by an active REALTOR® member or by a non-member who is a Georgia real estate licensee and pays a fee. A licensee is someone who has passed the Georgia real estate salesperson licensing exam and met other requirements. For members of the general public looking for an alternative, you may consider using the State Bar of Georgia’s Contract For Sale of Real Estate.

Conclusion

The F201 Purchase and Sale Agreement and F213 Land Purchase and Sale Agreement have many of the same clauses. But they’re different enough to warrant spending some time with this guide and reviewing the contract forms in detail. Getting familiar with the Land Purchase and Sale Agreement will help ensure your next land sale goes smoothly.

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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.