Florida Vacant Land Contract (Complete Guide)

If you are planning on writing an offer using a Florida Vacant Land Contract, this article is for you. We will discuss all sections of the contract, answer frequently asked questions and teach you how to fill out a Florida Vacant Land Contract. As always, we encourage you to reach out to a real estate attorney with any questions.

What Information is Needed to Fill out a Florida Vacant Land Contract

Before starting to draft the Florida Vacant Land Contract, ensure you have the following information below readily available so you can ensure you proceed in a smooth, professional manner.

1. Identify and provide contact details for all involved parties.
2. Describe the property for sale, incorporating its address, legal description and Property ID.
3. List the title/escrow company along with their contact information.
4. Incorporate the purchase price and outline payment terms within the contract.
5. Clearly state any additional conditions or contingencies to be fulfilled before closing.
6. Provide Poof of Funds or some qualification of funds. (Request from a buyer to ensure they have the actual ability to purchase said property).

Components of the Florida Vacant Land

In the sections below, we will go into detail all the main components of the Florida Vacant Land Contract.

Seller, Buyer & Property Information

Identify the Seller and Buyer. Ensure the Seller’s name corresponds with the recorded title owner. Provide the address and legal description. Note that certain properties may lack complete street addresses; however, furnish all available details. Retrieve the legal description from the current deed or survey, and obtain the Florida Real Property ID number from the property tax bill.

Purchase Price & Terms

This is the area where you will name the offer price for the contract as the buyer as well as note the contact details for the escrow agent, also known as the title company. Here you will indicate any earnest money deposit and specify the number of days allotted for the buyer to submit the deposit to the escrow agent. Additionally, note the financed amount, if applicable. There’s also an alternative where the purchase price is determined based on a per-unit cost instead of a fixed price. In such instances, a licensed surveyor in Florida would assess the property’s size, which would then be utilized to compute the purchase price.

Acceptance and Closing Date

The date specified in this field, is the contract offer expiration on that date if the contract is not signed by all parties. The closing date for the transaction is also noted. If the selected date falls on a Saturday, Sunday, or legal holiday, the closing date extends to the following business day.

Buyer Financial Terms

This section outlines the payment method for the Florida property, including options such as cash, traditional financing, seller financing, or mortgage assumption. As mentioned, be sure if you are selling your land and the offer is in cash, obtain proof of funds to ensure the buyer is qualified. Same goes with a pre approval from a bank for financing.

Title Insurance Details

Assigning the contract involves transferring it to another buyer. If the buyer is able to assign the contract and be released from liability, it means they will not be held responsible if the contract is assigned and the new buyer fails to close on the property.

This section specifies the type of Florida deed that will be provided to the buyer, with options including statutory warranty deed, special warranty deed, or other.

Additionally, this section outlines the type of title evidence required and who will bear the associated costs for a full title commitment, which provides insurance protecting their title interest in the Florida property.

Due Diligence

In a Florida vacant land contract, due diligence refers to the comprehensive investigation and examination of various aspects related to the land parcel before finalizing the purchase. Due diligence is crucial because vacant land may have hidden issues or limitations that could significantly affect its value or intended use. Here’s a breakdown of what due diligence might entail in a vacant land contract:

1. Legal and Ownership Due Diligence: This involves verifying the legal ownership of the Florida land and ensuring that the seller has the legal right to sell it. This may include examining property records, titles, deeds, and surveys to identify any liens, easements, encumbrances, or legal disputes associated with the land.
2. Zoning and Land Use Regulations: Understanding the zoning ordinances and land use regulations applicable to the property is essential. This helps the buyer determine if the land can be used for their intended purposes, such as residential, commercial, agricultural, or industrial development. Buyers may also want to investigate future zoning plans or potential changes in regulations that could impact their plans for the land.
3. Environmental Due Diligence: Assessing environmental factors is crucial to identify any potential contamination or environmental hazards on the land. This may involve conducting environmental site assessments, soil testing, groundwater testing, and evaluating the presence of hazardous materials or endangered species. Florida environmental issues can have significant legal, financial, and reputational consequences, so thorough investigation is essential.
4. Utilities and Infrastructure: Buyers need to determine the availability and accessibility of essential utilities and infrastructure such as water, sewer, electricity, gas, and telecommunications. Evaluating the proximity to existing utility connections and assessing the costs and feasibility of extending utilities to the property are important considerations.
5. Physical Inspection: Conducting a physical inspection of the Florida land allows buyers to assess its topography, drainage, soil quality, flood risk, vegetation, and any natural features or hazards. This information helps buyers understand the suitability of the land for their intended purposes and identify any potential development constraints or challenges.
6. Market Analysis and Valuation: Buyers may also conduct a market analysis and appraisal to assess the current market value of the Florida land and compare it to similar properties in the area. Understanding market trends, property values, and potential future appreciation or depreciation can help buyers make informed decisions about the purchase price and investment potential of the land.

Other Florida Vacant Land Contract Terms

Closing Procedure and Costs

This outlines that the closing will occur in the Florida County where the Property is situated and may be facilitated via mail or electronic methods. If title insurance covers the Buyer for any title defects arising between the effective date of the title binder and the recording of the Buyer’s deed, the closing agent will disburse the net sale proceeds to the Seller at closing. This also goes into detail on prorations of real estate taxes and other scenarios that you can review in the contract PDF below.

Computation of Time

When calculating time periods, calendar days will be utilized, except for periods of 5 days or fewer. Timeframes of 5 days or fewer will be computed excluding Saturday, Sunday, or national legal holidays. Except for the time for acceptance and the Effective Date specified in, any time periods or dates stipulated in this Contract, whether preprinted, handwritten, typewritten, or inserted herein, which fall on a Saturday, Sunday, or national legal holiday will extend until 5:00 p.m. (local time where the Property is located) of the following business day. Time is of the essence in the Florida Vacant Land Contract.

Risk Of Loss; Eminent Domain

In the event that any part of the Property suffers significant damage due to unforeseen circumstances prior to the closing date, or if the Seller engages in negotiations with a governmental body to transfer all or a portion of the Property instead of undergoing eminent domain proceedings, or if such proceedings are initiated, the Seller shall promptly notify the Buyer. Following receipt of Seller’s notification, either party has the option to terminate this Contract within 10 days by providing written notice to the other party. If the Buyer opts not to terminate the Contract within this period, they are obligated to proceed with the closing as per the terms outlined in this Contract. In such a scenario, the Buyer will be entitled to receive any payments issued by the governmental authority or insurance company, if applicable, and the Buyer’s deposit(s) will be returned and all parties can move on with the Florida Vacant Land Contract.

Florida Vacant Land Contract – Force Majeure Clause

Neither Seller nor Buyer shall be obligated to fulfill any obligation under this Florida Vacant Land Contract, nor shall they be held liable for damages, if the performance or non-performance of said obligation is delayed, caused, or prevented by an act of God or force majeure. An “act of God” or “force majeure” shall encompass events such as hurricanes, earthquakes, floods, fire, unusual transportation delays, wars, insurrections, and any other cause beyond the reasonable control of Seller or Buyer, which despite diligent efforts, the non-performing party is unable, in whole or in part, to prevent or overcome. All time periods outlined in this Contract, including the Closing Date, shall be extended for the duration of the force majeure event. However, should such force majeure event persist for more than 30 days, either party reserves the right to terminate this Contract by delivering written notice to the other party, whereby Buyer’s deposit(s) shall be returned.

Default and Dispute Resolution

The Florida Vacant Land Contract shall be interpreted in accordance with the laws of Florida. This provision shall remain in effect even after the closing or termination of this Contract.

(a) Seller Default: In the event that the Seller fails, neglects, or refuses to fulfill their obligations under this Contract, the Buyer reserves the right to opt for the return of their deposit(s) without forfeiting any rights to pursue damages resulting from the Seller’s breach. Additionally, the Buyer may seek to recover such damages or demand specific performance. The Seller shall also be responsible for the entire brokerage fee if applicable.

(b) Buyer Default: If the Buyer fails, neglects, or refuses to fulfill their obligations under this Contract, including the timely payment of deposit(s), the Seller may choose to retain and withhold the deposit(s) paid and agreed upon, as stipulated liquidated damages for the Seller’s account. This shall serve as consideration for the execution of this Florida Contract and shall constitute a full settlement of any claims. Upon such action, both Seller and Buyer shall be released from any further obligations under this Contract. Alternatively, the Seller may, at their discretion, pursue equitable remedies to enforce their rights under this Contract.

Escrow and Closing Agent on a Florida Vacant Land Contract

The Seller and Buyer hereby grant authorization to the Florida Escrow Agent and closing agent to receive, deposit, and securely hold funds and other pertinent items in escrow. The Agent is further empowered, subject to Collection, to disburse these funds and items upon appropriate authorization and in strict accordance with Florida law and the provisions outlined in this Contract, including the disbursement of brokerage fees. “Collection” or “Collected” denotes the condition where any tendered or received checks have been successfully and conclusively collected and deposited into the Agent’s account.

What To Do After You Have Executed A Florida Vacant Land Contract

Congratulations on successfully executing a contract for vacant land in Florida! Now that the initial steps are complete, it’s essential to understand the subsequent actions required to smoothly navigate through the transaction process. Here’s a comprehensive guide outlining the next steps after executing a Florida Vacant Land Contract in the Sunshine State:

1. Deposit and Escrow: Upon executing the Florida contract, the buyers typically need to submit an earnest money deposit. This deposit is held in escrow by a neutral third party, often the title or escrow company. Ensure that the deposit amount and the instructions for its handling are clearly outlined in the contract.
2. Due Diligence Period: In many Florida real estate contracts, there is a due diligence period during which the buyer can conduct inspections, surveys, and research to assess the property’s suitability for their intended use. Buyer’s will need to use this time wisely to investigate zoning regulations, environmental considerations, easements, and any other pertinent factors that may affect the property. Seller’s should do everything possible to assist when applicable and provide any documentation previously obtained regarding the Florida property.
3. Secure Financing (if applicable): If a buyer is obtaining financing to purchase the vacant land in Florida, it’s crucial to begin the mortgage application process promptly. Work closely with your lender to provide all necessary documentation and ensure a smooth loan approval process. For some larger parcels, it may be wise for a seller to offer seller financing.
4. Title Examination and Insurance: The next step involves a thorough title examination conducted by a Florida title company or attorney. This examination verifies the property’s legal ownership history and identifies any existing liens, encumbrances, or title defects. Upon completion of the examination, the title company will educate the parties on any issues. Once all is cleared, Florida title insurance is purchased to protect everyone against any unforeseen title issues.
5. Surveying the Property: A buyer will want to arrange for a survey of the Florida land to accurately delineate its boundaries, easements, and any encroachments. A survey ensures that you have a clear understanding of the property’s physical characteristics and can help resolve boundary disputes or discrepancies. It is always convenient for a seller to provide a survey to a buyer. However, one must not rely on that survey as encroachments could have taken place after the date of that survey. An example of an encouragement could be that of a neighbor’s fence.
6. Negotiate Contingencies: Review the contract contingencies, such as financing, appraisal, or inspection contingencies, and ensure that all conditions are met within the specified timelines. Best to keep a timeline of events. Negotiate any necessary amendments or extensions to the contract if unexpected issues arise during the due diligence period. It is wise for both parties to even anticipate delays on larger, more complicated Florida Land.
7. Finalizing Closing Details: As the closing date approaches, coordinate with the title company, escrow agent, and other relevant parties to finalize the closing details. Arrange for the transfer of funds, sign all necessary documents, and ensure that any outstanding requirements are met to facilitate a smooth closing process on the Florida land.
8. Closing the Transaction: On the closing day, gather all parties involved at the designated closing location (or remotely). Review and sign the closing documents, including the Florida deed, closing statement, and any loan documents if applicable. Once all documents are executed and funds are disbursed, ownership of the vacant land is officially transferred to the buyer.
9. Post-Closing Tasks: Following the closing, ensure that you promptly receive copies of all closing documents and confirm that the transaction has been recorded with the appropriate county clerk’s office. Update your records to reflect your ownership of the Florida property and begin planning for any future development or use of the land.

How To Fill Out A Florida Vacant Land Contract

Filling our a Florida Vacant Land contract (or agreement template) can be intimidating. And if you are not familiar with any Florida Vacant Land Contracts, then you should consult with a real estate attorney. We are real estate investors and brokers here in Florida. This is why we use the main contract written by the attorneys at the Florida Association of Realtors.

Below you will find the printable Florida Residential Contract aka FAR BAR Florida Vacant Land contract in a PDF Format (Land Sales Contract Template) used by Florida Realtors and real estate agents and brokers who are licensed in the state of Florida. This is to be used as an example only to get familiar with the terms and language of the state contract.

As always, if you have land you would like us to take a look at and make you an offer, submit the form below and we will get an offer to you usually within 24 hours, regardless if you land is for sale or not. We are the land buyers in Florida! PS – If you would like more samples of the Florida Association of Realtors Forms, email us at info@creatingrealestatesolutions.com