Which listing agreement should you use for a vacant lot?

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08/14/2015 | Author: Editorial Staff

My client bought a vacant lot in a neighborhood years ago and never built on it. Now he wants to sell the lot. Which listing agreement should I use to sell the property?

The listing agreement you choose depends on how you think a buyer will use the property. If you think a buyer will probably use the lot to build a home, the Residential Real Estate Listing Agreement Exclusive Right to Sell (TAR 1101) would be the best choice.

To reduce the likelihood of confusing the seller, the listing broker, as a principal to the agreement, could delete the part of the agreement that applies to improvements, or add a statement in the Special Provisions Paragraph indicating that the property is an unimproved lot.

These same considerations apply for selecting a listing agreement if the buyer likely intends to use the unimproved property for commercial or farm and ranch purposes.

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Categories: Forms, Legal
Tags: legal, legal faq, forms, listing agreement


Comments

Laura Rowe on 08/20/2015

I"ve never understood why we have a (purchase) contract for Unimproved Property but not a corresponding Listing Agreement.  We usually feel we have to use the Farm & Ranch, which is still not fitting.  I’d like to see a change regarding this.


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The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

While the Texas Association of REALTORS® has used reasonable efforts in collecting and preparing materials included here, due to the rapidly changing nature of the real estate marketplace and the law, and our reliance on information provided by outside sources, the Texas Association of REALTORS® makes no representation, warranty, or guarantee of the accuracy or reliability of any information provided here or elsewhere on texasrealestate.com. Any legal or other information found here, on texasrealestate.com, or at other sites to which we link, should be verified before it is relied upon.

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