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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
Legal Use & context
This term is commonly used in real estate law, particularly in transactions involving land sales. A sale in gross may arise in various scenarios, such as when a seller offers a parcel of land described by its boundaries rather than by its acreage. Users can manage these transactions themselves using legal templates from US Legal Forms, which provide guidance on drafting contracts that reflect a sale in gross.
Key legal elements
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.
Common misunderstandings
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.
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