The sale of land is governed by the laws and practices of the jurisdiction in which the land is located. It is a legal requirement in all jurisdictions that contracts for the sale of land be in writing.
It is the responsibility of the buyer of real property to ensure that he or she obtains a good and marketable title to the land—ie., that the seller is the owner, has the right to sell the property, and there is no factor which would impede a mortgage or re-sale. Some jurisdictions have legislated some protections for the buyer, besides the ability for the buyer to do searches relating to the property in the land registries.
The sale of land contract is designed to ensure that the buyer secures title to the land together with all the rights that run with the land, and is notified of any restrictions in advance of purchase. Thus, a well-drafted agreement will include provisions about the purchase price and its payment; the inspection (checking the condition of the property) and taking possession of the real property; collateral commitments; and the registration of the change of ownership.
KEY VOCABULARY
buyer
commitment
to do searches
good and marketable title to the land
to impede (a mortgage or re-sale)
inspection
land registry
located
restriction
rights that run with the land
seller
to secure
to take possession
