If you`re considering buying farm land in South Dakota, it`s essential to have a legally binding purchase agreement. A purchase agreement ensures that both parties understand and agree to the terms of the sale, including the price, payment terms, and any contingencies.
Here are some key items to include in a South Dakota farm land purchase agreement:
1. Description of the property: The purchase agreement should include a detailed description of the property, including the legal description, address, acreage, and any improvements on the land.
2. Purchase price: The purchase agreement should state the purchase price and how it will be paid. For example, will the buyer pay in cash or finance the purchase? If financing is involved, the agreement should spell out the terms of the loan.
3. Contingencies: Contingencies protect both the buyer and the seller by outlining specific conditions that must be met before the sale can be completed. For example, the purchase agreement might include contingencies related to inspections, appraisal, or financing.
4. Closing date: The purchase agreement should state the expected closing date, which is when the property changes ownership. The agreement might also include provisions for extending the closing date if necessary.
5. Title and survey: The agreement should require the seller to provide a clear title to the property and a survey showing the boundaries of the land.
6. Closing costs: The agreement should specify who pays for the various closing costs, such as title insurance, attorney fees, and recording fees.
Overall, a well-drafted purchase agreement can help ensure that your South Dakota farm land purchase goes smoothly. Consider working with an attorney experienced in real estate law to help you draft a legally binding agreement that protects your interests.
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