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).
Make sure the deposit is held by the conveyancer of the vendor, not the vendor if unrepresented.  A conveyancer has professional obligations with respect to the retaining of deposits which are effectively held on trust for both parties in a transaction pending completion of its terms.  A lay vendor has no such professional obligations, although they of course have legal obligations but those obligations can often only be “policed” in Court.
Whether you inherited a piece of property that doesn’t mesh with your goals, discovered that you simply need to live in another part of the world, or even if you bought a piece of property and later just fell out of love with it, selling land, particularly in a poor market, can appear to be a daunting task.  The amateur’s first reaction is usually to list with a real estate agent and hope for the best.
California's basic transfer tax is $1.10 per $1,000 of value, and generally the seller pays the cost. If a $575,000 piece of land changes hands, the seller will pay the entire $632.50 tax at closing. Some cities also impose transfer taxes, which vary from $1.10 to $15.00 per $1,000 of value transferred, depending on the value of the property and the community in which it is located. The custom is for the buyer and seller to equally split the tax in most cities, but in some areas sellers customarily pay the entire tax.
Have a pre-prepared contract and Form 1 statement at the ready, to be signed when you find yourself a buyer who is prepared to pay you the right price.  You must remember that on most occasions purchasers have a right to “cool off” on a contract that they have just signed which they can exercise at any time and for any reason within 2 clear business days of signing the contract.  It is therefore critical that you strike while the iron is hot.
If the neighbor isn’t interested, the next best option is to go to your buyer’s list. “What I like to do every single day,” said Mark, “is [to] do something to create some value or educate people on the benefits of owning raw land.” Then, he will end the content with a call-to-action. Two example of calls-to-action would be, “If you want to learn more, just opt-in here” or “Get $250 off your first land purchase.”
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.
Now, when you get into the more expensive properties, as a general rule – it’s usually safer to work through a title company on those (and it’s easier to justify the costs too), and in those cases, you may not have a choice but to do a quiet title action, because the deal won’t close without this extra step. But again, since there will most likely be more profit baked into these larger deals, it may be easier to justify these costs.
The land contract is its own legal agreement or contract, with all the terms and conditions agreed to between the buyer and seller. At a minimum, a land contract should list the address of the real estate and the full legal description of the property, the purchase price, down payment amount, the monthly payment amounts and term, number of payments to be made, and any balloon payment required. Attaching an amortization schedule to show the exact payoff schedule of applying the monthly payments to the total purchase price is helpful.
Hi Sean! When I do my own title search, it’s because I’m NOT planning to get a title insurance policy (mainly because the property is so cheap, and the extra cost is difficult to justify). And yes, I am always sure to get a Warranty Deed from the seller. If I find any apparent problem in the title search, then I’ll usually walk away from the deal unless it’s VERY minor and/or we’re able to resolve the issue as part of my closing.
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.
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.
Now, when you get into the more expensive properties, as a general rule – it’s usually safer to work through a title company on those (and it’s easier to justify the costs too), and in those cases, you may not have a choice but to do a quiet title action, because the deal won’t close without this extra step. But again, since there will most likely be more profit baked into these larger deals, it may be easier to justify these costs.
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.
As with other real estate transactions, land contracts require a “closing” to prepare, sign, and file all necessary legal documents. This article discusses the common steps a buyer and seller should take to close on a land contract purchase. For information on land contracts in general, see the Nolo article, The Basics of Land Contracts. And for a variety of useful articles on real estate closings, see Escrow and Closing in Nolo’s Real Estate section.
If the sellers do find a buyer on their own, despite having a contract with an agent, they may be able to negotiate a reduced commission with the agent. But the sellers should be up-front about their potential to find their own buyer when drawing up the exclusive-right-to-sell listing agreement, says Markel. Maybe they know of a friend of a friend who is looking for a house, or they plan on marketing their home on social media.
While a good agent can certainly help with the negotiation process, he or she also has a vested interest in the transaction. “And closing the deal may in some cases be more important to the agent than getting you the absolute best price,” Schorr says. If you’re a good negotiator and can handle the process without emotion and with clear eyes, you might do better on your own.
Additionally, the land contract should indicate how many payments will be made, their due dates, grace periods (if applicable), fees for late payments, and how the buyer should deliver each payment. Under a land contract, buyers are usually treated just like a property owner, and will be responsible for paying property taxes, insurance, and any utility bills associated with the land use.
Additionally, the land contract should indicate how many payments will be made, their due dates, grace periods (if applicable), fees for late payments, and how the buyer should deliver each payment. Under a land contract, buyers are usually treated just like a property owner, and will be responsible for paying property taxes, insurance, and any utility bills associated with the land use.
At the showing, make sure valuables and other confidential items are put away so the potential buyers are free to walk around. Try and keep the number of people in the house to a minimum. Give them some time and space to look around on their own, but be available for questions. Gather receipts for heating costs, taxes, past repairs, or renovations; buyers interested in the house will want to know these details.

Dino Di Rosa, the Founder and Principal of Di Rosa Lawyers, has over 25 years’ experience as a lawyer.   Based in the heart of Adelaide’s legal precinct, he is the trusted adviser many South Australian business and property owners turn to whenever they need help in the areas of law that matter most: family law, wills and estate planning, deceased estates and property law and conveyancing.


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.
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).

Some people prefer to cut out the middleman when selling property, which means selling land without a Realtor. If you go the for sale by owner, or FSBO, route, you don’t have to pay a commission to an agent. The drawback is that you’re likely to sell for less than you would at auction, and it might take considerably longer for the sale to go through. You also have to manage all the advertising, negotiations and paperwork yourself!
The steps above are fairly similar to transactions that involve owner financing. The primary exception is that a deal that involves owner financing requires a few additional documents. Depending on the state and the specifics of the transaction, some seller financed deals will make the most sense to use in conjunction with a land contract (aka – contract for deed), which I explain in this blog post). Likewise, other seller financed deals will make more sense to use in conjunction with a Promissory Note and Deed of Trust, which I explain in this blog post.
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.

We are buying a home (FSBO) with cash from a friend, and want to avoid ridiculous closing costs. The seller is in Chapter 13 bankruptcy and the bankruptcy court has lifted the “stay” that had protected the house from foreclosure. We have contacted her bank (mortgage holder) and informed them we want to buy the house, and they have provided us with the payoff number. Does this package tell me everything I need to do to close this deal myself?
Purchase agreement: A purchase agreement is a document stating the buyer is going to buy the land for a given amount, and that you’re going to sell that land for that amount. A purchase agreement also lists any conditions that would allow either of you to back out of the sale, and includes any details of the purchase that have been met, such as the buyer making a down payment.

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).


Consider all offers. An offer can be accepted, rejected or countered. You choose how to respond but it's important to remain focused on your bottom line. Don't take any offers personal. Buyers generally are looking out for their best interest; you need to look out for yours. As the seller, you may decide not to counter if you think that the buyer is not serious enough to continue negotiations.
When we are buying land for our personal accounts, we always try to negotiate immediate possession for “purposes of making improvements.” This catch-all phrase gives us the opportunity to get a head start on simple improvements such as rotor mowing and clearing brush. You must be able to get the Prospects on the property before they can make an informed decision to buy. Often the prime spots which would normally “close the deal” are grown up in briars and brush. In many husband and wife instances, only one partner wants to move out in the country. The husband may be trying harder than we are to sell his wife on rural living, but if she can’t see the creeks, views, and big trees, then neither he nor we will be successful.
That’s why you may want to tackle the job on your own.  These days, you can set your land apart from the crowd by marketing and selling it yourself.  Since the advent of the internet, it’s easier and more effective than ever, and the phrase “for sale by owner” has a particular cachet about it that buyers seem to like.  Many buyers assume that they’ll be saving the sales commission by buying directly from the owner.  Of course, you’re probably assuming that you’re saving the sales commission by selling it yourself.  Which of you is correct depends on how adeptly you handle your sale.
×