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.
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.
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?
Although the process of selling land is less complex than selling a piece of property with a home, this is still a process that requires the help of a professional. Real estate laws vary from state to state, so its important to work with an experienced real estate attorney when selling your land. The help of a professional becomes even more important if youre creating a land contract.
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.
When you’re selling a home, you want to give buyers all the details about it, such as a list of all projects you’ve had completed and a list of all updates and maintenance work performed within the last decade. You also want to show off the most desirable areas of the home, such as the kitchen or recently renovated bathrooms. Buyers are looking for details on the community, such as nearby schools, the friendliness of the neighborhood and property tax information.
When you're buying a property for just a few hundred bucks (which is how most of my deals work) and you're already on a tight budget to begin with, it can be difficult to justify paying twice the amount of your purchase price just to close the darn thing. If you're in a situation where you need to act fast, acquire a property inexpensively and make the closing as easy as possible, closing it yourself may be the most advantageous way to move forward.
In order to determine the right buyer for your land, look at the highest and best use to determine where to start placing ads. If it is country land that is perfect for hunting, look for local outdoor forums and clubs to advertise your land. If it is a good home site, a land broker or traditional real estate agent may be best. You can also contact the neighbors, who may be interested in extending their property.