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Updated April 18, 2024

A California land contract records the terms of the sale of an undeveloped or vacant property. A buyer can purchase either commercial or residential land from a seller by drafting a land contract with all the appropriate information, such as the land’s legal description and the agreed-upon purchase price. A due diligence period will often begin upon the signing of the contract and after the buyer deposits earnest money. Both parties must schedule a closing date once the buyer has conducted land surveys.

At closing, the seller will receive the stipulated funds and sign the deed to the buyer.

Supplemental Information

Natural Hazard Disclosure Statement – Seller must complete this statement in order to disclose any natural hazardous threats affecting the area in which the land is located.^[1]
Commercial Property Owner’s Guide to Earthquake Safety (Booklet) – Sellers of commercial property built before 1975 must deliver this booklet to a buyer before any transfer. The booklet describes the most common weaknesses that can cause damage to commercial property in the event of an earthquake. However, it does not disclose any specific weaknesses of the property being sold.
Transfer Disclosure Statement (TDS) – A seller shall provide prospective buyers this statement disclosing material facts of the property, any deaths in the past three years (if considered a material fact), and methamphetamine clean-up orders. A groundwater basin comprehensive notice must be attached to TDS if the owner has received said notice.^[2]
Wood Destroying Pests and Organisms Inspection Report – Must only be supplied to a buyer if required by contract or the Buyer’s lender.^[3]
Where to Record? – Upon closing, all deeds must be filed with the County Recorder’s Office.^[4]