Finalizing Your Land Purchase

Finalizing a raw land purchase is all about everyone’s favorite thing: paperwork! Okay, maybe the idea of reading and filling out paperwork isn’t all that appealing to you. If that’s the case, you’re in luck because this article will help make it as smooth a process as possible. 

Purchasing raw land doesn’t require the amount of paperwork that buying a house does, but there are still some things you need to know before putting your John Hancock on the property documents, so let’s dive right in. 

(Note: At this point, you should already have done your due diligence and know how you’re going to finance your land purchase. If you haven’t done these things, click on the links to read those articles.)

Purchase Agreements

Purchase agreements are common in real estate transactions of all kinds. Essentially, this is an official way of the buyer and seller agreeing to the terms of the sale. Once signed, it means that the seller won’t be able to rescind the sale if they get a better offer. 

Purchase agreements include details like the purchase price, terms of sale, length of payment term (if any), and the number for the initial down payment. 

For most raw land transactions, you’ll want to have a purchase agreement in place. If you purchase your land from us at Land Elevated, we’ll hold the property for you for 48 hours for a refundable $20 deposit. This allows you to decide whether you want to purchase the land. We do this in lieu of a purchase agreement because it helps simplify the process. Plus, we own all our land outright, so you’re not dealing with a third party — just us!

What Contracts Do You Need to Finalize Your Land Purchase?

If there’s a more appealing word than “paperwork,” it’s probably “contract.” If you’ve ever bought a house, you know all about contracts. You also know how many different entities are involved in the sale of a house. 

Mercifully, most raw land sales are nowhere near as involved as the sale of a home. Not only is raw land much cheaper, but since there are no structures in place on the property, it simplifies the process considerably. This means you’ll only need one of two contracts when purchasing raw land. 

Cash Contract

A cash contract is used when the buyer will pay for the land outright in one lump sum. This doesn’t mean cash necessarily. Most often, it’s a transfer of funds or a check. Either way, you won’t need to worry about a payment schedule, a down payment, or a date for the final payment and transfer of deed. 

This simplifies the contract, which will state who the seller is, who the buyer is, what is being sold, and the price. These major factors will make up the majority of the cash contract. And once the buyer pays for the land, the seller will sign the deed of sale and file it with the appropriate agency, at which point you (the buyer) will officially own the land!

Land Contract

If you won’t be purchasing the land outright, you’ll need a land contract to outline the purchasing deal. These are very common in the sale of raw land. They’re sometimes called an owner carry sale, seller-financed sale, installment sale, or a terms sale. 

Essentially, a land contract outlines the terms of the sale, detailing the payment plan, interest rate, and final price the buyer will pay. It will also include the address and a detailed description of the land. Additionally, it will have information about any grace period for late payments, how the payments will be made, and any fees charged for late payments.

Land contracts protect both the seller and the buyer and are the main legal document in seller-financed land transactions, such as the ones we do here at Land Elevated. 

Do You Need an Escrow Company to Purchase Raw Land?

If you’ve bought a house, you’ve likely used an escrow company. Buying a house is a complicated process, and an escrow company is a useful third party that holds significant sums of money, making sure that the stipulations of the sale are met by both parties before releasing the money to the seller. This is because purchasing a home requires things like appraisals, inspections, loan terms, and other factors. 

However, purchasing raw land is a much simpler process. As such most land transactions for individuals don’t require the services of an escrow company. This saves both time and money, and both parties can rest easy knowing that they’re protected by the land contract. 

Ensuring The Title is Clear

One of the biggest problems land buyers face is ensuring a clear title on their land. For this reason, many people opt for use of a title insurance company. This means that if you purchase the land and find out later that there’s a lien on the title, you’ll be protected. 

At Land Elevated, we do something that many other land sellers do not: we provide a 100% money-back clear title guarantee on every piece of land we sell. We do in-depth research on every property we sell so you don’t have to worry about it. Of course, it’s always good to do your own due diligence before purchasing any piece of land. But with our clear title guarantee, you don’t have to worry about getting title insurance before you purchase the land.  

That said, if you plan on purchasing land from an individual or a company that doesn’t have such a guarantee, you’ll want to protect yourself with title insurance. 

Getting the Deed

Once the property is paid in full, the seller (or escrow company, if you use one) will transfer the deed, and you’ll officially own the property! If you purchase the property outright, this will happen as soon as you pay. If you’re using seller financing, the deed will be transferred as soon as you make the last payment. 

Closing On Your Land Purchase: Conclusion

The process for finalizing or closing on your land purchase is pretty straightforward, especially with Land Elevated. The type of contract you sign will depend on how you’ll pay for the land. It will also determine whether you need an escrow company as well as the complexity of the contract. When purchasing from companies or individuals other than Land Elevated, you’ll want to get title insurance as protection. 

We’re all about making the land buying process simple, affordable, and transparent, which is why we always do a 150-point inspection on all our land and guarantee a clear title. That’s not to say you shouldn’t do your due diligence — you definitely should. But once that’s done, purchasing your dream land through us is a simple matter that will have you enjoying your land in no time!   

Contact us today with any questions you have about purchasing raw land. Our Land Specialists are standing by to help you!