Land can easily be one of man’s most precious possessions. Its value appreciates over the years and remains one of the most highly coveted properties in the market. Whether you’re a business man or just person looking to sell their land and home, selling a piece of land requires a legal process and a list of documents to secure. This ensures that the transaction done is valid and agreeable to all parties. Some owners hire a real estate agent in selling land, but some others prefer selling the land on their own.
But both ways of selling still require a basic knowledge of what documents to actually procure to seal their deal.
Original Sales Contract
Before listing your land, make sure you have the original document stating where you bought or received the land from. This document proves that the land is yours and that you have all the rights to sell it.
Have some potential buyers shown heightened interest in your land? You may need to get them to sign a purchase agreement. This legal document is signed by the buyer signifying that heintents to pursue with buying the land as long as all terms and conditions in the contract are fulfilled.
This is a document you may find useful when you need to disclose any defect or possible issues in your property or land. The items required to be stated in the disclosure form may vary from state to state, but it is better to be safe from possible disputes by disclosing major items that may be of issue. These issues may include environmental or fire hazards near the area.
Contract of the Sale
After careful negotiation, a contract of the sale can be conjured. Simply put, this is is a document that highlights terms of the sale in order for it to push through. It will also include a list of any other document needed to be submitted by both parties. Such other document may include proof or financing, title insurance, and more.
This is applicable for transactions that involve seller financing. This document indicates mostly terms of payment, plus the location of the land, as well as legal description of the the land being sold. This may also include how many payments are needed for the sale including down payment, monthly or annual payments to be made, and other terms. Along with this document also comes the Memorandum of Land Contract (an abbreviated form of the Land Contract).
When everything is ironed out, the next document is the deed. The deed indicates transfer of ownership and title from owner to buyer. This document then needs to be filed to appropriate government offices after the buyer pays in cash. For deals involving seller financing, owners may hold the deed until final payment is received.
This document include all the fees related to closing the deal. Such list includes property tax deposits, mortgage insurance, and all credits or debits involved between seller and buyer. It also states an amortization schedule that the buyer needs to follow when paying.