California Vacant Land Purchase Agreement Quick Guide

The Vacant Land Purchase Agreement (VLPA) is the contract form to use when selling vacant land in California. But how is it different from the California Residential Purchase Agreement? In this article, we’ll cover specifically when to use the VLPA, where to find it, and the key differences between the VLPA and the RPA.

When to use the Vacant Land Purchase Agreement?

The California Association of Realtors (CAR) developed the Vacant Land Purchase Agreement for use by its realtor members. This form is different from the more commonly used Residential Purchase Agreement (RPA) that would be used for the typical home sale.

According to the CAR, Vacant Land Purchase Agreement should be used for “the Sale of land without material improvements, such as an urban lot or agricultural property. Sheds, minimal storage facilities, or covered resting areas would not change use of form.”

‍Essentially, the VLPA is used when there are not residential or commercial structures on the property. The one exception is that the Vacant Land Purchase Agreement can include a manufactured housing addendum when a manufactured home is being sold with the vacant land.

When not to use the VLPA form?

If you’re selling land for sale by owner or in a private sale, the CAR California Vacant Land Purchase Agreement won't always be the best template for you to use. It’s a lengthy document with many clauses that may not be applicable to a for sale by owner transaction including condominium disclosures, disclosures regarding tenants on the property, leased or liened items or systems, and even hazardous liquid transmission pipelines!

Some for sale by owner sellers would benefit from a simpler contract template. There are many available if you search for ‘California for sale by owner contract.’ Some of them are even free!

Where to find the California state vacant land purchase agreement

California Association of Realtors members have access to the Vacant Land Purchase Agreement. It’s also possible for the general public to purchase it from C.A.R. Business Products. Alternatively, it may be possible to use your relationships with a realtor or a title company to get access to this form.

What’s different about the VLPA

In this overview, we assume you are already familiar with the California Residential Purchase Agreement. We focus on what’s different in the Vacant Land Purchase Agreement so you can quickly get familiar with this contract form.

• The RPA includes terms for appliances and fixtures, while the VLPA does not. The RPA has an extensive list of items that come with the property by default. In the VLPA, items are excluded from the sale unless specified in the contract, even if they were advertised as coming with the property.
• The VLPA has a paragraph on environmental hazard consultation that the RPA does not. The main purpose of this paragraph is to inform the Buyer and Seller that there can be legal liability for current and former property owners associated with environmentally hazardous substances. The Buyer and Seller are advised to consult with experts about potential risks from environmentally hazardous substances.
• The seller disclosures in the VLPA also reflect the greater emphasis on environmental hazards compared to the RPA. These hazard disclosures include the presence of endangered species, historic soil fill, and soil problems like flooding, drainage, or grading issues. The property disclosures also include other risks specific to raw land such as legal and physical access to the property, zoning issues, and deed restrictions.
• The VLPA has a paragraph on the Americans With Disabilities Act (ADA), while the RPA does not. This is because ADA requirements do not typically apply to residential properties. However, these requirements could apply to commercial use of vacant land, so the Buyer and Seller should consult with an expert to determine if the property’s use will require ADA compliance.
• The VLPA has a contract contingency for manufactured homes, which is not present in the RPA. If this clause is used, the land purchase would be contingent on the Buyer acquiring a manufactured home to be placed on the property. The contract also encourages the Buyer to investigate conditions that may affect manufactured home placement.
• The VLPA and RPA handle liquidated damages differently. Both contracts define liquidated damages as the amount of the deposit the Buyer will forfeit to the Seller if the Buyer defaults. But in the RPA, if the property is a residential dwelling with no more than four units, one of which the buyer intends to occupy, the liquidated damages cannot exceed 3% of the purchase price. The VLPA does not have this cap, as it is not for residential dwellings.

Conclusion - Using the VLPA for your vacant land sale

The VLPA is easy to learn for realtors already familiar with the RPA. There are just a few new concepts and differences to learn. For private land sales, the VLPA is a good choice for many sales it's comprehensive. However, for a simple vacant land sale it may be more than is needed because of the document’s length and complexity.

Please consult your financial advisor, accountant, real estate attorney, or tax specialist. This article is for informational purposes and is not tax or legal advice.