Oregon Vacant Land PSA Explained: Key Differences & Uses
If you're a realtor in Oregon, chances are you're already very familiar with the Residential Purchase and Sale Agreement. But what about when you're selling vacant land?
When is it appropriate to use the Vacant Land Purchase and Sale Agreement and how is it different from the Residential PSA? We bring our experience as an oregon land buyer to tackle these questions to prepare you for your next vacant land sale.
When to use the Oregon Vacant Land PSA
The Vacant Land PSA is for land without homes and that is not being used for agricultural, commercial, or industrial purposes. Emphasis here on use not zoning because vacant land could have agricultural, commercial, or industrial zoning, but still be considered vacant land if it's not in use. However, if it�s being used for agricultural, commercial, or industrial purposes, then a different contract template would apply.
If there�s a structure on the property and you�re not sure if it would be considered a residential dwelling, you may want to use the Residential PSA to be on the safe side. Examples when you would use the Residential PSA include when there is a vacant or dilapidated structure that was built for residential purposes. Examples when you would use the Vacant Land PSA would include non-residential structures such as a shed, barn, or garage.
Oregon Vacant Land PSA vs Oregon Agricultural PSA
The Oregon Agricultural PSA defines agricultural land as being used for any of these purposes:
- production, cultivation, growing, husbandry, harvesting or processing of farm, forestry, marine
- solar or other natural resource extraction
- animal or plant conservation programs
If the property is being used for any of these purposes, use the Agricultural PSA. The Vacant Land PSA is for land without homes and that is not being used for agricultural, commercial, or industrial purposes.
Where to find the Oregon Vacant Land PSA
Unfortunately, the contract templates published by Oregon Association of Realtors are not available to the public.
If you�re selling FSBO and not using a realtor, perhaps thinking about how to sell my land in oregon on my own, you might seek out a suitable land sale contract oregon template from providers like LawDepot or eForms.
Differences between the Oregon Vacant Land and Residential PSAs
Shorter. Many terms included in the Residential PSA are not included in this specific land sales contract oregon. For example, since there are no residential structures, there is no need for contract provisions for lead paint disclosures or tenants.
Disclosures. Unlike with home sales, Oregon law does not require there to be a specific disclosure statement for vacant land. However, when using the Oregon Vacant Land PSA, there is a contractual requirement for a disclosure statement. The Vacant Land PSA requires the Seller�s Vacant Land Disclosure to be used instead of the Seller�s Property Disclosure Statement that is used for residential sales. This specific vacant land disclosure statement includes many additional disclosures related to land sales not found in the Seller�s Property Disclosure Statement. Examples include disclosures on land usage, mineral or oil rights, a section on flora and fauna, and soil and water questions.
Water rights. The Vacant Land PSA includes a seller representation regarding water rights not found in the Residential PSA. This representation states that the�Seller has the authority to transfer all water rights associated with the Property, can verify Seller�s beneficial use of the water rights associated with the property within the past 5 years and has no knowledge of any existing claims or causes of action that could terminate the water right.�
Frequently asked questions - Oregon Vacant Land PSA
My property has an RV hookup, should I use the Vacant Land PSA?
A recreational vehicle (RV) is not considered a residential dwelling, so the Residential PSA is not required. The Vacant Land PSA should be used as long as the property is not being used for agricultural, commercial, or industrial purposes.
Conclusion
The Oregon Vacant Land and Residential PSAs are very similar. The Vacant Land PSA is a simpler, shorter contract template in part because there are fewer disclosure requirements compared to selling residential properties. Using the correct psa purchase and sale agreement, like the Vacant Land PSA and related Seller�s Vacant Land Disclosure, will guide property sellers through the specific steps relevant when you sell land in oregon.
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.
