Using a Tenn. Assn. of Realtors "Lot/Land Purchase and Sale Agreement" for buying land (no improvements) located in Tenn., the agreement describes the land at 165 acres and the total purchase price at $381,000 with the purchase price to be determined by a new survey
at $2,300 per acre. At time this agreement is signed, all parties thought the land contained 165 acres + or - a few acres and thought the total purchase price would be $381,00 + or - a few thousand dollars.
The survey was then made showing 207 acres (42 acres or 25% more land than expected). At $2,300 per acre, the purchase price becomes $476,000 ($95,000 or 25% more than expected).
Questions: Given the large variance in land area and in dollar amounts,
1. Does the agreement remain as a valid & binding agreement on Buyer and Seller?
2. Can Buyer terminate and be refunded its deposit?
3. Can Seller terminate and return deposit to Buyer?
Thanks for your help. I looked forward to your response ASAP.