What are the key clauses and terms to include in a land acquisition agreement for real estate development?

1 Property description

The first and most basic clause of a land acquisition agreement is the property description. This clause should identify the location, size, boundaries, and legal description of the property that is being acquired. It should also include any easements, encumbrances, liens, or other restrictions that affect the property. The property description should be clear, accurate, and consistent with the title report and survey.

4 Representations and warranties

The fourth clause of a land acquisition agreement is the representations and warranties. This clause should state the facts and promises that each party makes to the other regarding the property and the transaction. For example, the seller may represent and warrant that they have the legal authority and title to sell the property, that the property is free of defects and claims, and that they have disclosed all material information to the buyer. The buyer may represent and warrant that they have the financial capacity and legal ability to buy the property, that they have conducted their own due diligence, and that they have complied with all applicable laws and regulations. The representations and warranties clause should establish the basis and liability for any breach or misrepresentation that may occur.

5 Closing and delivery

The fifth clause of a land acquisition agreement is the closing and delivery. This clause should set the date, time, and place of the closing, as well as the documents and funds that each party needs to exchange and deliver. It should also outline the procedures and responsibilities for transferring the title, possession, and risk of the property from the seller to the buyer. The closing and delivery clause should ensure a smooth and timely completion of the transaction.

6 Default and remedies

The sixth and final clause of a land acquisition agreement is the default and remedies. This clause should describe the events and consequences of a default by either party, such as a failure to pay, perform, or comply with the agreement. It should also specify the remedies and actions that each party can take in case of a default, such as termination, cancellation, damages, specific performance, or injunction. The default and remedies clause should provide a fair and enforceable solution for any dispute or problem that may arise.