Here’s a comprehensive list of questions real estate agents commonly ask about the CAR Vacant Land Purchase Agreement (VLPA) form — along with clear explanations for each question to support training, due diligence, or transaction preparation.
🧾 1. When should I use the VLPA instead of the RPA (Residential Purchase Agreement)?
Explanation:
Use the VLPA when the property being sold is vacant land with no residential structure on it. If there’s a residential dwelling or mobile home, the RPA or MHPA (Manufactured Home Purchase Agreement) should be used.
📍 2. Does the VLPA include zoning or land use disclosures?
Explanation:
Yes. Paragraph 7C(2) requires seller to disclose known zoning and land use restrictions, but the buyer is strongly advised to verify with the local planning department. Agents should not give zoning advice unless qualified.
📑 3. Are contingencies like feasibility studies or septic permits included in the VLPA?
Explanation:
Yes, Paragraph 14 allows the buyer to include investigation periods for:
- Feasibility studies
- Permits (septic, water, access)
- Survey or soils tests
These are critical for land deals and must be clearly specified.
💧 4. What if there’s no water or utility access—can the buyer cancel?
Explanation:
If the contract is contingent on obtaining utilities (often in Paragraph 14B), the buyer may cancel within the contingency period if these cannot be secured or are not feasible.
💵 5. Is the seller required to provide a natural hazard disclosure (NHD) report for land?
Explanation:
Yes, per California law. Even vacant land sales require statutory disclosures such as:
- Natural Hazard Disclosure (NHD)
- Mello-Roos (if applicable)
- Lead-based paint only applies if there’s a structure built before 1978
🧾 6. Are escrow and title terms different in the VLPA?
Explanation:
No, the structure is similar to the RPA. The buyer typically selects the escrow holder and pays title and escrow fees unless negotiated otherwise.
🗓️ 7. How long is the default escrow period in the VLPA?
Explanation:
The default is 30 days unless another date is inserted in Paragraph 1D. However, land transactions often take longer due to permits, zoning, or financing.
📐 8. Is the buyer responsible for verifying lot size and boundaries?
Explanation:
Yes. The buyer is strongly encouraged to conduct a survey and verify lot lines. Paragraph 10 addresses “Property Condition and Buyer’s Investigations.”
💼 9. Can the buyer assign the contract to another party?
Explanation:
Yes, unless prohibited in Paragraph 1F. Many investors use this form for assignable land contracts, so it’s important to state if assignments are not allowed.
⚠️ 10. Are there specific environmental risks that must be disclosed?
Explanation:
If the seller has knowledge of environmental hazards (e.g., toxic waste, wetlands, endangered species), they must disclose under Paragraph 11. Buyers are encouraged to conduct Phase 1 Environmental Site Assessments.
🔁 11. Can the buyer make the offer contingent on a lot split, zoning change, or development plan?
Explanation:
Yes, but this must be clearly added as a buyer contingency in Paragraph 14 or on an addendum, such as the Buyer Investigation Addendum (BIA) or Contingency for Sale of Other Property (COP).
🧾 12. Is seller financing allowed in the VLPA?
Explanation:
Yes. Use CAR Forms SFA (Seller Financing Addendum) or Financing Addendum (FA) to outline seller carryback terms. Paragraph 3 handles financing generally.
🛣️ 13. What if the property lacks legal access or easements?
Explanation:
If the buyer discovers during the investigation period that there’s no legal ingress/egress, they can cancel. Paragraph 14B(4) allows this type of contingency.
🧱 14. Does the seller have to disclose prior grading or fill dirt?
Explanation:
Yes, under the property condition disclosure section. Any work that may affect soils stability or require a permit must be disclosed, especially in areas with grading ordinances.
❌ 15. What happens if the buyer fails to remove contingencies on time?
Explanation:
Paragraph 14D provides for a Notice to Perform and allows the seller to cancel if the buyer doesn’t act. Same process as in the RPA.
💼 16. Can the buyer conduct a 1031 exchange using the VLPA?
Explanation:
Yes. Paragraph 21 supports a 1031 Exchange clause. The parties can cooperate to facilitate an exchange without extending liability or cost to the other party.
🔍 17. Are agent visual inspections required on land?
Explanation:
Yes, under Easton v. Strassburger and the Transfer Disclosure Statement (TDS) rules, agents must still visually inspect vacant land for observable hazards or conditions, though the obligation is less intensive than for homes.
🏗️ 18. Does the VLPA include requirements for seller to disclose development plans or HOA restrictions?
Explanation:
Yes. Paragraph 7 requires disclosure of any CC&Rs, HOA rules, or recorded restrictions. Development plans or approvals must also be disclosed if known.