What is Sale in Gross? A Comprehensive Legal Overview

Definition & Meaning

A sale in gross refers to a type of real estate transaction where the sale is made without consideration of the exact quantity or size of the property. In this type of sale, the seller does not guarantee the precise amount of land being sold, which can lead to uncertainties regarding the actual acreage involved. Essentially, it is a contract that does not imply a warranty on the quantity of land, even if the contract specifies a certain number of acres.

Table of content

Real-world examples

Here are a couple of examples of abatement:

Example 1: A seller lists a piece of land for sale, stating it is "approximately 10 acres." The sale is completed without a precise measurement, making it a sale in gross.

Example 2: A contract specifies a price for a tract of land described as "containing 5 acres," but the seller does not guarantee this measurement. This is also a sale in gross.

State-by-state differences

Examples of state differences (not exhaustive):

State Notes
California Sales in gross are common, but disclosures about land size are required.
Texas Contracts must clearly state if the sale is in gross to avoid disputes.
Florida Specific regulations govern the sale of land, including the requirement for accurate descriptions.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition Key Differences
Sale in Gross A sale without regard to the exact quantity of land. No warranty on size; price is for the whole tract.
Sale by the Acre A sale where the price is determined per acre of land. Guarantees a specific quantity; price varies with size.

What to do if this term applies to you

If you are involved in a sale in gross, ensure that the contract clearly outlines the terms of the sale. It is advisable to use legal form templates from US Legal Forms to draft or review your agreement. If the situation is complex or if disputes arise, consider seeking professional legal assistance to navigate the specifics of your case.

Quick facts

  • Typical Fees: Varies by state and transaction.
  • Jurisdiction: Primarily real estate law.
  • Possible Disputes: Over acreage and land descriptions.

Key takeaways