How to Fill Out Oklahoma Vacant Land Contract - OREC Template

Key takeaways

• The Oklahoma Real Estate Commission (OREC) provides contract forms that are mandatory for realtors but also accessible to the public
• For FSBO (For Sale By Owner) sellers, the OREC contract forms are recommended for fair and balanced agreements
• Free OREC version contracts can be found on the website of the Oklahoma Real Estate Commission
• This article provides simple explanations for all the contract terms

‍Why use the OREC real estate forms and contracts?

The Oklahoma Real Estate Commission (OREC) is the professional governing body for real estate brokers in Oklahoma. They provide contract forms that are mandatory for realtors but also accessible to the public.

For FSBO sellers, we recommend utilizing the OREC contract forms for three reasons:

1. Fair and Balanced: These contract forms ensure a fair and balanced agreement between the buyer and seller.
2. Comprehensive: The Oklahoma uniform contract of sale covers most situations with the option to include addenda.
3. Industry Standard: The OREC contract forms are widely utilized and understood within the real estate industry. This includes third parties such as title companies and lenders, contributing to smoother transactions.

However, selecting the appropriate OK contract form for specific situations can be confusing. We address this question next.

Oklahoma vacant lot vs farm ranch recreational contract

The Oklahoma Real Estate Commission has both a Vacant Lot/Land contract and a Farm, Ranch, and Recreational Land contract. 

• The Vacant Lot/Land contract. Use this contract for vacant residential lots. This contract has specific provisions for common personal property associated with residential lots, including fences, entry gates, and propane tanks.
• The Farm, Ranch, and Recreational Land contract. Use this contract when selling a property that also has farm or recreational accessories. This contract has specific provisions for farm and livestock items including crops, pens, corrals, and livestock feeders and troughs. There are also specific recreational items such as hunting blinds and game feeders.

In this article, we are explaining the Vacant Lot/Land contract. 

Where to find free OREC version contracts online

There are a few places where you can find free OREC version contracts online. The best option is to visit the website of the Oklahoma Real Estate Commission. The OREC website has a section where you can download free copies of various real estate contracts.  The free Oklahoma real estate vacant land contract a fillable, printable PDF template that you can complete and send to the other parties involved.

How to fill out the Oklahoma vacant lot/land uniform contract of sale

Next, we move on to explaining each of the vacant lot/land contract provisions. 

CONTRACT DOCUMENTS. This is where the relevant contract documents are listed. These are supplements to the main contract document because they don’t apply to every contract. These supplements are available from OREC. Common ones for vacant land sales are the Seller Financing and Single Family Mandatory Homeowners’ Association supplements.

PARTIES. Identifies the buyer and the seller in the transaction. This section also states that the document represents the complete understanding of the terms of the contract. Any prior verbal or written negotiations are superseded by this contract.

1. LEGAL DESCRIPTION. This is a written description of the property that is specific enough to uniquely identify it as distinct from all other properties. 
2. PURCHASE PRICE, EARNEST MONEY, AND SOURCE OF FUNDS. States the purchase price to be paid. Also states the earnest money deposit amount and where it will be held. If there is not a real estate broker involved in the transaction, don’t leave this blank! Normally, the earnest money would be held by the title company if a broker is not involved. 
3. CLOSING, FUNDING AND POSSESSION. Insert the closing date for the sale. The closing date is when the title will be transferred to the buyer. There is also a blank field if the possession date will be different than the closing date. For most vacant land sales, this field can be left blank. This applies more if someone is selling a home and wishes to remain in the home for a period of time after the sale.
4. ACCESSORIES, EQUIPMENT AND SYSTEMS. Unless otherwise excluded, the items listed in this article convey with the property: Write in any additional inclusions or any specific exclusions you’d like to 
5. TIME PERIODS SPECIFIED IN CONTRACT. The Time Reference Date is a key date that many other dates in the contract reference. This allows for the due diligence period when investigations and inspections are performed to start a little later. For example, a buyer may want the Time Reference Date to be one week after the contract signing date to give them time to line up inspections.
6. INVESTIGATIONS, INSPECTIONS and REVIEWS. The buyer has a time period specified in this section to perform inspections and reviews. The buyer can cancel the contract during this inspection period if they find the results of the investigations unsatisfactory. These investigations may include, but are not limited to the following:

• Flood, Storm Runoff Water, Storm Sewer Backup or Water History.
• Psychologically Impacted Property and Megan’s Law.
• Environmental Risks. including, but not limited to soil, air, water, hydrocarbon, chemical, carbon, asbestos, mold, radon gas, lead-based paint.
• Use of Property. Property use restrictions, building restrictions, easements, restrictive covenants, zoning ordinances and regulations, mandatory Homeowner Associations, dues and special assessments.
• Square Footage/Acreage.

7. DELIVERY OF PROPERTY INSPECTION REPORTS AND TEST RESULTS. The buyer will share any written inspection reports received with the seller.
8. COST OF INSPECTIONS/REINSPECTIONS. The cost of any inspections will be paid by the Buyer, unless prohibited by the mortgage lender.
9. RISK OF LOSS. This paragraph states that before closing, the seller has the risk of loss. After closing, this becomes the buyer’s risk. Risk of loss means the property could be damaged or destroyed between signing the contract and the closing. This is not normally a concern for vacant land sales.
10. ACCEPTANCE OF PROPERTY. This paragraph states that once the buyer accepts title or takes possession of the property, the buyer accepts the property in its present condition.
11. TITLE EVIDENCE. Paragraph A - the buyer may choose between a commitment for issuance of a title insurance policy or relying only on an attorney’s title opinion. Paragraph C - the buyer can pay for a pin stake survey or a mortgage inspection report. A pin stake survey is a full boundary survey that requires the surveyor to perform an in-depth analysis of the property boundary and the boundaries of adjoining properties. Although a drawing is provided with a mortgage inspection report, it is not a boundary survey. The mortgage inspection report is based on a land surveyor’s general knowledge of land boundaries and monuments in a given area.
12. TAXES, ASSESSMENTS AND PRORATIONS. This paragraph explains that any taxes of homeowner association dues will be prorated between the buyer and the seller at the time of closing.
13. ADDITIONAL PROVISIONS. The buyer and seller can use this section to add any other contract terms not covered elsewhere in the contract.
    
14. MEDIATION. If a dispute arises regarding the contract, the parties must attempt mediation before seeking legal remedies. The dispute will be submitted to an alternative dispute resolution system in the county where the property is located. 
15. BREACH AND FAILURE TO CLOSE. This paragraph describes what remedies the buyer and seller have if either breach the contract. As stated above, the parties would have to go through mediation first if there is a breach of contract. If the mediation is unsuccessful, then the parties may seek legal remedies. The remedies are discussed below under ‘Can you back out of a real estate contract in Oklahoma?’
    
16. INCURRED EXPENSES AND RELEASE OF EARNEST MONEY. This paragraph states that the seller and buyer are responsible for their own expenses and the earnest money will not be used to pay any expenses.
17. DELIVERY OF ACCEPTED OFFER OR COUNTEROFFER. The buyer and seller authorize their respective real estate brokers to accept delivery of acceptance of the offer or counteroffer.
    
18. NON-FOREIGN SELLER. Seller represents that they are not a “foreign person” as defined in the Foreign Investments in Real Property Tax Act (FIRPTA). Seller will provide an affidavit to the buyer declaring that the seller is not a foreign person. OREC has a template for this called the Affidavit of Non-Foreign Seller (Form 2303). For more on FIRPTA, see our article on the withholding requirements.
19. TERMINATION OF OFFER. The buyer can optionally choose a date for the contract to automatically terminate.
    
20. EXECUTION BY PARTIES. This section is where the parties sign the contract. Note that electronic signatures are acceptable and binding.
    

FAQ - vacant lot/land purchase agreement

What constitutes a valid contract for the sale of real estate?

According to 'Title 15 - Contracts' of the Oklahoma Statutes, there are four requirements for a valid contract:

1. Parties capable of contracting. In order to enter into a valid contract, both parties must be capable of doing so. This means that they must be adults of sound mind. Minors and people who are mentally incapacitated cannot enter into contracts.
2. Their consent. Both parties must give their consent to the contract. This means that they must agree to the terms of the contract freely and without coercion.
3. A lawful object. The object of the contract must be lawful. This means that it cannot be illegal or against public policy.
4. Sufficient cause or consideration. Consideration is something of value that each party gives to the other in exchange for their promise. For a contract to be valid, the consideration must be sufficient. In most real estate contracts, the consideration is the purchase price.

If a contract does not meet all of these requirements, it may be considered invalid. This means that the parties may not be able to enforce the terms of the contract.

Can you back out of a real estate contract in Oklahoma?

Yes, the buyer can back out of a real estate contract in limited circumstances. These include any issues found during the investigation and inspection period, failure by seller to cure title issues, and financing contingencies, if any.

In the OREC real estate contract, a dispute about a breach of contract by either party needs to be mediated before seeking legal remedies. 

If the buyer backs out for a reason not covered in the contract, the seller can keep the earnest money deposit as liquidated damages (not to exceed 5% of the purchase price) OR pursue any other remedy available at law or in equity, including specific performance. Specific performance would require the seller to sell the property to the buyer as agreed upon in the contract.

It's harder for a seller to back out of a real estate contract. There are limited contract contingencies that allow the seller to terminate the contract. One example is that if the buyer does not make the earnest money deposit by the deadline specified, the seller may terminate the contract. If the buyer performs their obligations in the contract, but the seller does not, the buyer can sue the seller to enforce specific performance.

What happens when one of the parties breaches the contract is covered by Article 15 of the contract - 'BREACH AND FAILURE TO CLOSE.'

 Who holds earnest money in Oklahoma?

In the OREC real estate contract, the earnest money deposit is held by the listing real estate broker unless otherwise stated in the contract. If there is no real estate broker in the transaction, the earnest money could be held by the title company or settlement agent. 

Conclusion - the OK vacant lot and land contract

The OREC vacant land contract is a simple and effective way to sell vacant land in Oklahoma. If you are selling vacant land, you should consider using the OREC vacant land contract to protect yourself and your interests.

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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.