Selling a vacant land can be a difficult and complex process, as it requires the seller to provide various documents in order to complete the transaction. These documents are necessary for ensuring that all parties involved have an accurate understanding of the property being sold, its legal status and any related restrictions or obligations.
Knowing what documents you need when selling land will help make sure the sale is successful and legally binding. In this article, we’ll discuss some of the key documents needed when selling a vacant land.
Title search
The first step in selling your vacant land is to order a title search. This will help to ensure that there are no liens or encumbrances on the property that could prevent you from selling it. The title search will also provide you with a legal description of the property. Which will be needed when drafting the sales contract.
Property Land Survey
You will also need to have a property survey conducted in order to determine the exact boundaries of the property. The survey should be conducted by a licensed surveyor and should include a certificate of accuracy.
Deed
The deed is the legal document that transfers ownership of the property from the seller to the buyer. The deed should be prepared by an attorney or title company and should be signed by both parties.
Bill of sale
The bill of sale is a document that outlines the terms of the land sale, including the purchase price and any other conditions that may apply. The bill of sale should be prepared by an attorney or title company and should be signed by both parties.
Earnest money deposit
An earnest money deposit is typically required when you sell land. This deposit shows that the buyer is serious about purchasing the property and is usually held in escrow until the sale is finalized.
Title insurance policy
A title insurance policy protects the prospective buyer against any claims that may arise from defects in the title to the property. The policy should be obtained from a reputable title insurance company and should be paid for by the buyer at closing.
Closing documents
The closing documents are the final documents that are required in order to complete the sale of your vacant land. These documents include the sales contract, sales agreement, deed, and bill of sale, as well as any other documents that may be required by your state or local laws.
Transfer Tax Declaration Form
In most states, you will need to file a transfer tax declaration form in order to sell a vacant land. This form is used to calculate the amount of transfer taxes that are owed on the sale of the property.
Read More: Tips to Make your Home More Valuable and Sell Faster
Certificate of Eligibility for Reassessment Form
If you are selling a vacant land in California, you will need to file a certificate of eligibility for reassessment form with the county assessor’s office. This form allows the property to be reassessed at its current market value. Which can save the buyer money on their property taxes.
Escrow Instructions
If you are using an escrow company to facilitate the sale, you will need to provide them with instructions on how to disburse the funds from the sale. These instructions should include information on who is responsible for paying any outstanding liens or encumbrances on the property.
Zoning Information
Before listing your vacant land for sale, you’ll need to research the zoning regulations in your area. This information will be important for potential land buyers as it will dictate what can and cannot be done with the property. For example, if the property is zoned for residential use, then it can only be used for that purpose.
Environmental Reports
If you’ve had any environmental reports conducted on the property, such as a Phase I or II Environmental Site Assessment, you’ll need to make these available to potential buyers. These reports can provide valuable information about any potential environmental hazards on the property. Such as underground storage tanks or contaminated soil.
Utility Information
Potential buyers will also want to know about any utilities that are available on the property. This includes water, sewer, electricity, gas, and telephone service. If there are no utilities available, then you’ll need to disclose this information as well.
Sales Contract
Once you’ve gathered all of the necessary documents, you’ll need to draft a sales contract. This contract should include all pertinent information about the sale. Such as the purchase price, purchase agreement, financing terms, and closing date. Be sure to have a real estate attorney review the contract before signing it.
Read More: How To Sell Your Land for Cash Fast
Conclusion
When selling your vacant land to a cash buyer is often the best choice. As it eliminates the need to hire a real estate agent and deal with all of the paperwork associated with the sale. The best that we can recommend is the Eagle Cash Buyers for they will buy your land as is with no closing costs. Selling a vacant land can be quite complicated. As there are many documents that must be prepared and filed in order to complete the transaction. These include a bill of sale, an earnest money deposit, title insurance policy, closing documents, transfer tax declaration form, certificate of eligibility for reassessment form, escrow instructions and zoning information. Additionally, environmental reports and utility information may also need to be provided in order to ensure that potential buyers have all the necessary information they need before making their purchase.
