Land Contract Question

I have a 1 year LC that I am looking over about some property I want to buy, but in it are 2 items that I am quite not sure of the full meaning.


#1. It states as follows; "Vacant land sold "as is", this is for a commercial building and the zoning has to be appproved or a variance granted or this offer is void." - - - Since this is vacant land that is currently zoned resendential and is to be rezoned commercial I would take the above statement to mean that if it is not approved for commercial that I don't have to buy the land?

#2. "This offer is subject to a perc test at purchasers(ME) expense and is not to exceed $10,000 cost for a tile field and tank." - - - Does that mean if it doesn't perc or the cost of field and tank exceed $10,000 that I don't have to buy or whatever money I have gave is to be refunded?

TomK
Looks like you need an attorney or a good realtor....Maybe both.
Good Luck!
Bud

Hey Bud, that's exactly what Stan said - good lawyer. This has too many loose ends.

Ya need a Real Estate Lawyer.....good luck, and don't sign nothing!!

"eyes"

I agree with all that you need to talk to a real estate agent or lawyer or both.

tom lawyer that sounds like double talk there getting to fancy for a simple statement and i've been a broker i'm not now and it's been a few years don't like there wording

Yeah, I don't like the wording either. The very fact that you're not sure of what it says tells me (heck, screams at me! LOL!) that it needs to be rewritten. For instance, the first part of #1 says it's sold "as is", but the last part says unless it's zoned different. This different zoning will change it's "as is" status to "not as is." A simple "as is" save and except the following condition: will clear that up a lot.

Also, zoned by who? I'd stipulate in case there's two applicable agencies. And by what date? Taken as that statement is written, the commercial zoning could be approved in 2009 and still apply. I also wouldn't say the offer is "void if it's not done" ~ I'd say something like: if not zoned commercial by such and such date, Buyer may rescind the offer without penalty and all earnest monies shall be refunded to Buyer. This lets you decide if you still want it if only some but not all of the land is zoned commercial ~ leaves you in the catbird seat.

#2 is really muddy and dangerous. The first part just says it's subject to a perk test. Here, ALL land is subject to a perk test. I think what you want is for this agreement to be subject to a successful perk test and an approved permit for installation of a septic system not to exceed $10,000 in total price (installed, labor and materials included). I'd go further and stipulate what happens if it's not successful ~ you get the earnest money back and let out of the contract.

Here in Texas, Earnest Money Contracts survive closing (i.e. will still hold up in court after closing). This is an Earnest Money Contract, right? Sounds like one. The courts do try to find the meaning behind the contract, so make it easy on them and write it clearly. BTW, (in case you didn't know) you can rewrite whatever you want in it even if you didn't write it in the first place ~ the other party can say no and rewrite it again, but I doubt they will if you're reasonable. Anything that's important to you now or will be important in the future needs to be put in that contract ~ oral agreements will not hold up against it no matter HOW many witnesses you have. Write it all out. There's a section in state-approved EMC forms called "Special Provisions" that's made for this ~ if you have to, add another page with language in the actual contract tying the extra page to it and initials of you and seller on the extra page. It may seem like splitting hairs because it is. When doing this type of thing, you NEED to split hairs and even quarter a few. *grin*

All in all, you ought to talk to a real estate lawyer. If you can't afford that (I know how buying property can nickel and dime you to death! LOL!), then at the very least make sure this EMC is on a state-approved form and talk this over with your real-estate agent. If you think something's wrong, don't let anyone, including your agent, tell you, "Oh, don't worry about that. Just sign it." NOW IS the time to worry about it. The last EMC I signed took me 8 days to rewrite the way I wanted it ~ I'd write a little, put it down and come back to it when I was fresh. I had people breathing down my neck to hurry up, but that just told me that I needed to read it closer, that there was something in it they didn't want me to see. Sure 'nuff there was.

Good luck!

Thanks to all that have so far responsed, I am going to see if a real estate lawyer can look this over and hopefully not charge me to much. From the answers given so far I think it best to maybe befriend a lawyer,especially since I want to buy some others properties and develop them.

Tom that lawyer will make you money if he's any good in four or five purcherses just like a good accountant will at tax time