Next, it’s time to advertise.  Depending somewhat on the type and location of your property, you can find a handful of free advertising sites on the web and you should employ these, preferably with a link to your web-page(s) if that’s permitted.   However, few of these free sites bring you enough traffic to help much in the absence of some uncommonly good luck.
A deed to transfer the legal title of the property from the seller to the buyer should be drafted and signed by the seller at the closing. This deed will be held in escrow until the final payment is made on the land contract and then filed with the appropriate government agency, such as the county clerk in the county where the property is located. Held in escrow means that the deed is held until a triggering event, payment of the land contract. A title agency, an attorney, or a financial institution may hold the deed in escrow for the buyer and seller.
Closing your own real estate deal doesn't have to be difficult. When I am buying or selling a property with a cash sale (most of my deals are cash transactions these days), it's just a matter of taking the time to ensure that all the documents are completed with the correct information, signed by all appropriate parties and then sent to the appropriate places for recording (the deed should be sent to the county for recording and the supporting documentation should be sent to the local city, township or municipality office for their records).
1.  The Road:  The better the condition of the access road, the better impression your property will make.  If your land is three miles of bad county-road away from pavement, then I wouldn’t waste a lot of money making the access from the county road any better than the county road itself, but remember that you can do quite a bit to civilize a dirt driveway with a tractor and blade.   If you don’t have too much length to cover, there’s no substitute for a layer of 1” crushed rock (or larger rock in deep mud-holes).  One layer of 1” rock one lane wide will cost you about 75¢ per foot around my neighborhood.  Needless to say, if the property is on a road maintained by the county, or some other local government entity, and if this road has any work that needs to be done, this is an excellent time to complain politely about it to the wonderful folks on the Road Board.  Most counties grade their roads once or twice a year, but some roads that don’t get much traffic may be neglected if no-one complains.
A closing statement should be prepared to show an accounting of the debits and credits to each the buyer and to the seller as part of the land contract transaction. An attorney or a title agency can prepare a closing statement for the parties. The closing statement may also contain an amortization schedule showing the projected payments to be made from buyer to seller to fulfill the financial obligation of the land contract.
I do most of my own title searches these days, but only because I know what I'm doing. If you have no idea where to start (even after watching the video above), there's nothing wrong with playing it safe and hiring a title company to handle this for you. Pay attention to what they're doing, ask a lot of questions along the way and learn how to do it yourself for future reference.
Moreover, even though you’ll not have a lump sum of money to place against another piece of land or some other big-ticket item such as a vehicle or home construction, you will have the guaranteed income to match your payments, or some such new purchases, including the interest.   You’ll also get to keep a lot more of the money you’ll receive, because you’ll only pay income taxes in small installments over the years, rather than all at once, which is likely to bump you into a higher tax bracket.
If you have unimproved land to sell, you may also find that the majority of agents are more interested in selling more expensive improved properties where they stand to make much larger commissions (and get fewer ticks) so your five acres of woods may get short shrift when it comes to exposure to the market.  This wouldn’t be such a big problem were it not for the fact that these days, more and more brokers are insisting on exclusive listing contracts that obligate you to pay them a commission even if you sell the property yourself to the fellow next door.
If you feel that your agent isn't performing to your expectations, engage in an open conversation with them explaining what you feel isn't being done. Refer to the services spelled out in the contract. It's possible that miscommunication is the problem, and tour listing agent should get the opportunity to make it right. If you still don't see results, talk to other brokers at the firm carrying your listing and see if they can meet your needs.
No, the purchase agreement doesn’t need to be notarized – however, in some states (like Michigan, for instance), you technically need to get a witness signature to go along with each party’s signature (the witness doesn’t need to be a notary, it can be pretty much anyone). That being said – there’s nothing “wrong” with getting a notary’s signature on this, it’s just overkill.
Moreover, even though you’ll not have a lump sum of money to place against another piece of land or some other big-ticket item such as a vehicle or home construction, you will have the guaranteed income to match your payments, or some such new purchases, including the interest.   You’ll also get to keep a lot more of the money you’ll receive, because you’ll only pay income taxes in small installments over the years, rather than all at once, which is likely to bump you into a higher tax bracket.
Agents are generally pretty good at protecting their clients’ position.  They also have a vested interest in ensuring that settlement proceeds without delay so that they can get paid their commission.  Without an agent, and in particular without a lawyer or conveyancer involved in the negotiation process, vendors and purchasers can sometimes commit to terms and conditions that are unworkable, ill-advised and even unlawful.   For example, vendor finance clauses, rent-to-buy conditions, options and the like are very complicated even for seasoned investors.  Getting conveyancing and in particular legal advice and assistance is the key.
Hi Esther – if I were in your position, I would let the bank and/or title company handle the closing. They know these procedures inside and out, and with the closing costs involved, it usually makes more sense to let the professionals handle it… especially if you aren’t planning to do a lot of these “self-closings” on an ongoing basis (as a business).
Now, far be it from me to discourage using an agent.  This certainly is the easiest way and not necessarily the least profitable or most expensive, especially in a booming market.  In a less-than-booming market however, it’s good to remember that listing your property with an agent will subject it to comparison with dozens, perhaps hundreds of other listings, all competing with yours in features and price. Selling your property then, will probably require that a potential buyer finds it to be either the best he sees… or the cheapest.
Hi Seth, I am selling my house as is cash only. I have two buyers. One is using a loan from Chase bank. I am a senior citizen and my first time to sell a house free and clear (bought it cashed). Should I just let the bank do all the paper work on closing the deal? not sure what to do and I don’t want to loose my house for nothing because I am only getting social security retirement.
Access: While few in number, there are still some properties that don’t have legal access – that is, a deeded access-easement, or frontage on a public road.  This is what is known as “landlocked” property, and it is of considerably less value.  If you see an extremely low-priced piece of land for sale, it may be a bargain, or it may just not have legal access.  Curing this can be fairly simple, but don’t count on it.  If it were an easy matter, it would likely already have been fixed.  In most cases, legal access will require a deed from the neighbor whose land you’re crossing, and folks tend not to like to sign deeds unless they get something of significant value in return.
Hi Seth, and thanks for the quick response! I’ve looked at the steps you’ve outlined, and, other than a few required disclosures when selling a house, the steps seem the same to me. I’m just not willing to pay a third party 2300 bucks to close a cash deal on a 54k property. It’s just not right that I can go pay cash for a 54k car, but somebody else’s hands have to be in the pot when I buy a 54k house for cash! Arghh! I’m going to buy title insurance because the owner is in bankruptcy, but I really don’t see anything else that I can’t do by myself. I’m waiting on a couple of quotes from different title companies, but I’ll likely buy your package and go from there. Even if it doesn’t work out for this deal, I’m sure I’ll be able to use the info on future land only deals!

A closing statement should be prepared to show an accounting of the debits and credits to each the buyer and to the seller as part of the land contract transaction. An attorney or a title agency can prepare a closing statement for the parties. The closing statement may also contain an amortization schedule showing the projected payments to be made from buyer to seller to fulfill the financial obligation of the land contract.
Schedule and conduct inspections with qualified buyers. Learn how to separate the “lookers” from qualified buyers. Ask for names and phone numbers and be sure to follow up with telephone calls. Be prepared to negotiate with the buyer(s) as an impartial third party. Remain calm and refrain from any emotional outbursts that might spoil a sale or jeopardise your sale price.
One way you can do this is by using a third party escrow service like SafeFunds.com (I’ve never used them, but I know some who have and I’ve heard it works well). You could also give the cashier’s check to your mobile notary (if you’re using one) and they can deliver it to the seller after they’ve completed their documents. You could also just make a copy of the cashier’s check (to give the seller evidence that you have the money and it’s ready to go), and send this to them along with their docs to complete… and then you could mail it to them AFTER you receive everything from them.
Just like any sale of real estate, a land contract should begin with a purchase agreement. This is a legal document signed by a potential buyer making an offer on the real property for sale. The purchase agreement should indicate that the offer is for a land contract, and should state the purchase price, initial cash down payment, length of the payment term, and any other terms of sale.

In terms of paying off the mortgage, you’d have to work directly with the lender to make sure they get paid and that they discharge their mortgage. If you’re unsure about how the process works, then honestly – it probably is best to just work with a title company. It may cost a few hundred dollars more – but for a property like what you’re describing, that’s what I would be doing anyway (I use title companies for anything in excess of $10K). They will take all the guesswork out of this process and make it WAY easier to get the job done.

Access: While few in number, there are still some properties that don’t have legal access – that is, a deeded access-easement, or frontage on a public road.  This is what is known as “landlocked” property, and it is of considerably less value.  If you see an extremely low-priced piece of land for sale, it may be a bargain, or it may just not have legal access.  Curing this can be fairly simple, but don’t count on it.  If it were an easy matter, it would likely already have been fixed.  In most cases, legal access will require a deed from the neighbor whose land you’re crossing, and folks tend not to like to sign deeds unless they get something of significant value in return.
Just like any sale of real estate, a land contract should begin with a purchase agreement. This is a legal document signed by a potential buyer making an offer on the real property for sale. The purchase agreement should indicate that the offer is for a land contract, and should state the purchase price, initial cash down payment, length of the payment term, and any other terms of sale.
Negotiate the price with the buyer and finalize the paperwork. Once you’ve decided on a purchase price, you can write up your contract. Free contracts can be found online or you can contact a real estate attorney. Some states also require additional paperwork, such as a land disclosure form, so be sure to do your research before completing the transaction.

I found the affidavit that you linked to and I get how to fill it out but the thing I’m stuck on is the notarizing. It has to be signed by both the seller/buyer and notarized. Obviously we aren’t near one another; can this document be notarized separately? Should I sign/notarize and then send it to the buyer for them to do the same? Have a mobile notary go to them? Any best practices?

Advertise your property is for sale. Be sure to include location, price, dimensions and any other information that could add value to the land. For example, if your land has a lake view or beach access, it is important to mention that on the listing as well. Advertising mediums such as newspapers, television, signage or the Internet can be used to promote the sale of your property.


Personally, I’ve had good experience with Google Adwords where you can set your ad budget to as little as one dollar per day.  (You may be able to set it even lower, but let’s get serious, you DO want to sell this place don’t you?  Adwords also coordinates with Google Analytics, which will tell you far more than you need to know about the traffic you’re getting to your pages.  Also provided are ways to see how effective the ads you write are proving to be.  LandWatch.com is another favorite source of mine which consistently supplies better-quality leads, that is, more serious clients, than Google and others.
Hi Esther – if I were in your position, I would let the bank and/or title company handle the closing. They know these procedures inside and out, and with the closing costs involved, it usually makes more sense to let the professionals handle it… especially if you aren’t planning to do a lot of these “self-closings” on an ongoing basis (as a business).
Owners wishing to sell their property privately, will not only save thousands of dollars in commission fees you will also not be paying the sometimes extraordinarily high adverting rates that most traditional agents charge the owners upfront. For our very modest marketing fee to list your property privately through our online service you can save hundreds, if not thousands, of dollars on this outlay alone.
Hmm, I would think that most attorneys would want to control the recording process themselves rather than leaving it up to the buyer (because most buyers have no idea how to do this). Does the deed say that it was drafted by the buyer, or by the attorney? I’ve never heard of a rule where ONLY the buyer could record these things (maybe it works differently in Illinois, I’m not sure), but I know most recorders will only accept the original copies… so if you didn’t have the original copies (with “wet ink”), that could’ve been the issue too.
An attorney’s office or a title company can prepare closing documents for a land contract sale, but only the parties themselves or an attorney can prepare the actual land contract document and land contract memorandum. It is important to keep copies of all documents involved in closing on a land contract to verify required filings are performed and to protect each party’s interests in the sale.

That's tricky. It is not as easy to find a buyer for land as it is for a residence. Not all buyers have the resources or the vision to do a project like that. I would say try marketing to a builder that will put something on it, or try marketing to those that would like to build. First, and most important is location. What is in the area. Is it a highly sought after residential area, is it a commercial area. Know what your zoning is, and who this piece of property would appeal to. You have to have some kind of a vision for who it would suit in order to know who and where to market it.
×