Which listing agreement should you use for a vacant lot?
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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