Land buyers are going to be more interested in a property that’s in the right location than one that’s more far-flung. For example, a buyer looking to build up a housing development might be more interested in land that’s near the Kansas City metro area, as the houses built on that land will be more likely to attract buyers, especially buyers who work in the metro area.
For what it’s worth, I do know of at least one wholesaler who has worked in Florida for years (though he does use a title company for every deal, he doesn’t close them himself). Given the logistical challenges with assigning contracts, I wouldn’t recommend trying to do these types of deals without a title company – it requires A LOT more running around and coordination than just paying cash and buying the property yourself.
The memorandum of land contract is an abbreviated legal document referencing the land contract itself. This memorandum serves to put the public on notice of the buyer’s interest in the real property without the parties having to publicly disclose and record the full land contract and all of its terms, including price. Since the deed to the property is not filed until the seller receives payment in full of the purchase price indicated in the land contract, this memorandum is filed with the city and county to record the buyer’s interest in the property. The memorandum should list the address and legal description of the property as well as the names of the buyer and seller, and the date of the land contract. This document should be notarized and signed by the seller.
So your home is for sale, and you've signed a contract with a real estate agent, but you were actually able to nab a buyer through your own efforts. Maybe it was through word of mouth or your aggressive push on Facebook (you should really apologize to your friends for posting so many pictures of your house!), but someone is writing you an offer and really wants to buy your house. Having found a buyer on your own, are you still legally obligated to pay real estate fees or commission? Here's how to know if you're on the hook.
Closing a real estate deal involves a fair amount of work and attention to detail (and of course, there’s always the chance that you could do something wrong). With a property like what you’re describing, the value that a professional closing agent brings to the table is a pretty easy thing to justify spending money on. In Virginia, I believe either an attorney or a title agency could do the job (but this kind of thing varies from state to state, so you may want to ask a local real state agent what they recommend).
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 Ben, you could use these for houses as well (I have in the past). The only caveat is that most houses have a lot more variables to consider (inspections, mortgages, utilities, etc.) – so it’s not a bad idea to at least consult with a title company or closing attorney and ask if they know of any other items you’d be required to have completed in your state.
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?
Demand a Title Insurance Policy. Title searches of the public records will also show liens or judgments filed against a buyer. The title company will likely ask for satisfaction of those encumbrances before it will insure the land contract on a title policy. Ask to see a copy of the preliminary title report (or commitment for title insurance) to determine if a search reveals anything about the buyer.
Part of the reason for a title company is not only to help facilitate the closing, but also to make sure everything is prepared properly, and (perhaps most importantly) to be a mediator who can handle the documentation and transfer of funds (making sure both parties do everything completely, and that you actually get paid). If there’s no title company involved with this closing, I would be sure your dad and the mortgage company get paid either before or at the same time your dad is signing his documents, to ensure that everything is completed, and you/he actually gets paid.
Provide as much detail as you can. Land buyers want the facts, and they wanted them yesterday. When you’re listing your property, be sure to include the zoning, plus details on whether the buyer will be able to change the way the property is zoned. You also want to include details on taxes paid on the land and other typical expenses. If you can, include the tax-roll printout from your local land registry or county assessor and include the legal description of the land in the listing. You can also provide that detail when people come to look at the land.
It depends on a number of factors, are you trying to find cash buyers for your land, what is your time frame to sell the land, and are you trying to get full market value for the property, and how much work do you want to do to sell it? Depending on your answer to those questions the method by which you decide to list and market the property is going to be different.