If you’re selling your land, Clockwork Riverside Management advises that you must prepare several documents before listing it. It includes a purchase agreement, land contract, and other sales documents. Additionally, you should perform a thorough property inspection. It will help you identify and disclose any potential problems to buyers. It will also help you decide on a price.
Title
The documentation involved in selling a piece of land can feel overwhelming to someone unfamiliar. Dozens of sheets, statements, and forms need to be prepared and submitted before, during, and after the sale is completed. Getting the title of your property in order is one of the most critical steps. You need a general warranty deed to demonstrate that you own the property and that it can be transferred to the new buyer. You also need a society transfer certificate showing you have paid outstanding mortgages. If the land has a history of title issues, you must prepare a disclosure statement that lists them. Click here to learn how it protects the buyer from being held responsible for any lingering complications after they buy the property.
Deed
The deed is a legal document that transfers property ownership from one party to another. It typically lists the names of both parties and a complete legal description of the land being transferred. A deed also contains covenants and warranties conveyed by the grantor – the party giving the deed – to the grantee – the person receiving the deed. The covenants and warranties depend on the type of deed being used. A general warranty deed guarantees that the transferred title is complete and free from liens, debts, or other restrictions. Other deeds include extraordinary warranty deeds, bargain and sale deeds, and quitclaim deeds. Quitclaim deeds do not guarantee that the heirs of previous owners will not dispute ownership and, therefore, offer less protection for buyers.
Survey
When selling land, it’s essential to have a survey or surveying done before listing your property. It will show the property boundaries and help potential buyers visualize what they can do with the land. Another document that’s a necessity when selling land is an easement. This legal agreement allows someone to use someone else’s land for a specific purpose. Hiring a photographer specializing in taking photos of real estate properties is also a good idea. It will make your property stand out and attract more potential buyers. Land buyers are much different from homebuyers, and catering your marketing to their needs is essential. It can include getting topographical surveys, utility estimates, and renderings of the property done.
Closing Statement
Often called a settlement sheet, a closing statement summarizes the financial details of the real estate sale. It includes a breakdown of the fees, credits, and payments between buyers, sellers, and third-party vendors. The first section outlines the property information, including the physical address and legal description. It also lists the purchase price. A lender will usually include information relating to the loan, such as origination fees, underwriting fees, and mortgage insurance premiums. Other standard items include sales commissions, inspection fees, recording charges, and transaction taxes.
A closing statement will list deposits and credit items, such as earnest money deposits and seller concessions. It will also specify prorated amounts, like property taxes and homeowners association fees, payable at closing. It will help determine who is responsible for paying these bills moving forward.
Property Maps
A property map shows where your land’s boundaries lie. Without one, you may find that a buyer can’t fit a pool in their yard or that the overgrown patch behind their house is yours and not theirs. It’s also a helpful document during the title search, as it helps the title company confirm that you are selling what you own.
Unlike the property line survey, a plat map covers an entire neighborhood, subdivision, or tract of land. It includes details like streets, bodies of water, rights-of-way, and structures. It’s an essential tool for homeowners, real estate professionals, and local governments. You may also need an amending or vacating plat if there are any changes. These documents are a must if you’re considering selling your property.
