Due Diligence Question

[alwaysready]

Hello Everyone I'm about to take a giant leap. I'm just not sure how to ensure all of the i's are dotted and the t's are crossed. Here is my situation I am about to purchase 11 acres. The Seller and I have a verbally agreed upon price ( The land was not listed and no agent is involved). Is there anything I should do other than hiring a title company?
Thanks in advance.

[suitcase_sally]

Hire a Real Estate lawyer to look over the paperwork. It's not very expensive.

You need to have a contract that spells everything out as to who pays the transfer taxes, ect.

[Harry Chickpea]

Off the top of my head:

Verify that the surrounding neighbors are tolerable.
Verify that there is (potable) water.
Verify that power can be put in at a reasonable cost.
Verify that the land "percs" for a septic system.
Verify that it has legal access NOT through an easement, and there is no easement THROUGH the property.
Verify that there were no hazardous materials stored or used there.
Verify that there are no restrictions, covenants, or other encumbrances.
Verify that mineral rights have not been sold.
Verify the tax rate and burden and that all taxes are paid to date. Get copies of tax maps and any existing surveys.
Have a survey done or at a minimum walk the property line with current owner AND the adjoining neighbor(s) videotaping the walk and marker points. Keep the video or survey in a safe deposit box or secure spot.

[Rustaholic]

Originally Posted by suitcase_sally

Hire a Real Estate lawyer to look over the paperwork. It's not very expensive.

You need to have a contract that spells everything out as to who pays the transfer taxes, ect.

I will second this one.
When I was a kid buying this five acres I called a title company and they told me they would do it but I would also have to contact a lawyer.
I called the lawyer and he did it all for one money.
Having that lawyer contact served me well ten years later when the farmer owning the field next to me tried to take some of my property.

[logbuilder]

I call the county and ask them if they know of any reason I would not be able to build on the property.

I had a parcel that I really liked. I called with the question and was told that the owner (he worked in the lumber industry) had been caught cutting lumber off the land without permits. The county said that when the first building permit is requested they were going to put a 7 year moratorium on it. I passed on it.

[alwaysready]

Originally Posted by suitcase_sally

Hire a Real Estate lawyer to look over the paperwork. It's not very expensive.

You need to have a contract that spells everything out as to who pays the transfer taxes, ect.

Thank you I live in California and the property is in Arkansas I'll contact several lawyers there.

[simi-steading]

Harry, much land has already had the mineral rights sold out years and years ago... Mine was sold out to the Rockafellers before Oil was a big thing.. Such as most land in WV.. and if it has mineral rights, the land is often owned by someone in the oil industry, and they won't sell the land..

To the OP.. yep, Real Estate lawyer is in your best interest, and Harry did hit a few really good points such as water and a perc for a septic

[alwaysready]

Originally Posted by Harry Chickpea

Off the top of my head:

Verify that the surrounding neighbors are tolerable.
Verify that there is (potable) water.
Verify that power can be put in at a reasonable cost.
Verify that the land "percs" for a septic system.
Verify that it has legal access NOT through an easement, and there is no easement THROUGH the property.
Verify that there were no hazardous materials stored or used there.
Verify that there are no restrictions, covenants, or other encumbrances.
Verify that mineral rights have not been sold.
Verify the tax rate and burden and that all taxes are paid to date. Get copies of tax maps and any existing surveys.
Have a survey done or at a minimum walk the property line with current owner AND the adjoining neighbor(s) videotaping the walk and marker points. Keep the video or survey in a safe deposit box or secure spot.

Thank you Harry very good suggestions.
1. I'll be surrounded by Aunts, Uncles, family friends, 1st and 2nd cousins
2. Has a well with tested and proven good quality water
3. Cost of power is reasonable. I also plan on having solar
4. Land percs fine
5. Land borders on a dirt county road with no easements through property.
6. No hazardous ever stored on property. Was once farm land that reverted to trees was logged 3 times over an 18 year period. Last time being in 2012.
7. Not about restrictions, covenants or encumbrances. Will have the lawyer verify.
8. Same with meneral rights
9. Will definitely make sure all taxes are up to date with no liens and verify tax rate. Never thought to get tax maps and existing surveys thanks again!
10. Survey will be the first thing I take of.

Originally Posted by Rustaholic

I will second this one.
When I was a kid buying this five acres I called a title company and they told me they would do it but I would also have to contact a lawyer.
I called the lawyer and he did it all for one money.
Having that lawyer contact served me well ten years later when the farmer owning the field next to me tried to take some of my property.

Thank you Rustaholic I'll began contacting lawyers first thing tomorrow.

[alwaysready]

Originally Posted by logbuilder

I call the county and ask them if they know of any reason I would not be able to build on the property.

I had a parcel that I really liked. I called with the question and was told that the owner (he worked in the lumber industry) had been caught cutting lumber off the land without permits. The county said that when the first building permit is requested they were going to put a 7 year moratorium on it. I passed on it.

Thank you Logbuilder while I believe all cutting was legal I will call and make certain.

[mnn2501]

Even if you have a lawyer (good idea) use a title company as they will guarantee no problems and will pay for any that pop-up later that they did not find before closing.

[1shotwade]

If this is vacant land and you plan on building on it I would make the sale contingent on approval by the health department for septic system. Many people around here have had a lot of trouble and expense getting a permit for septic because of the type land and the "special" system the health department would approve. They were very expensive. I put my up in 92 and at that time the soil test alone cost me over $300. They decided I could not have a traditional system and they made me run extra lines and through the woods and I could not remove any trees over 8" in diameter.BLah,blah,blah.
Good luck

Wade

[1shotwade]

If this is vacant land and you plan on building on it I would make the sale contingent on approval by the health department for septic system. Many people around here have had a lot of trouble and expense getting a permit for septic because of the type land and the "special" system the health department would approve. They were very expensive. I put my up in 92 and at that time the soil test alone cost me over $300. They decided I could not have a traditional system and they made me run extra lines and through the woods and I could not remove any trees over 8" in diameter.BLah,blah,blah.
Good luck

Wade

[michael ark]

Where at it arkansas?

[alwaysready]

Originally Posted by michael ark

Where at it arkansas?

Clark County

[alwaysready]

Originally Posted by 1shotwade

If this is vacant land and you plan on building on it I would make the sale contingent on approval by the health department for septic system. Many people around here have had a lot of trouble and expense getting a permit for septic because of the type land and the "special" system the health department would approve. They were very expensive. I put my up in 92 and at that time the soil test alone cost me over $300. They decided I could not have a traditional system and they made me run extra lines and through the woods and I could not remove any trees over 8" in diameter.BLah,blah,blah.
Good luck

Wade

Just added health department to my list. I am truly grateful to the people that have taken the time to help.

[rambler]

You can share a real estate lawyer, each pays a couple 100 bucks and then everything is done right, no hang ups down the road.

Paul

[po boy]

You don't need a lawyer and title company. A real estate attorney can do/get the title ran and close the deal.

[1shotwade]

Originally Posted by po boy

You don't need a lawyer and title company. A real estate attorney can do/get the title ran and close the deal.

Actually you can do your own title search. I've done it a couple times. It's about 4-5 hours worth of going to one book then another following the sale and transfer of the property back to it's beginning. The people at the courthouse are very helpful.
I bought a house once and did a title search. I found a piece of property that two neighbors both thought they owned. In the search i found the boundary markers had been changed in 1956 when a new road came in. One neighbors description was point to point and the other was to the center of the creek.
I had found a 1/2 acre piece of property bordered by my new property and both these neighbors. It was "landlocked". The only legal way to access the property was to stand in the middle of the bridge and jump off in the middle of the creek.
After researching the property retainment laws i found it should revert back to the original owner. I contacted that person which was 93 years old. She told me if I paid for everything I could have the property.It took about 3 months but I got that 1/2 acre added to my deed and it only cost me $300.
Well worth the effort i think.


Wade

[Harry Chickpea]

"Actually you can do your own title search. I've done it a couple times."

Of course. The benefit of using a title company though is twofold. You get the search done, but then you get the insurance against someone coming after your land. If that person has deep pockets, you can be out a lot of $$$ defending even an obvious claim. The title insurance is the gorilla on your side that just whaps the miscreant on the side of the head and sends him packing.

[Jennifer L.]

Originally Posted by Harry Chickpea

"Actually you can do your own title search. I've done it a couple times."

Of course. The benefit of using a title company though is twofold. You get the search done, but then you get the insurance against someone coming after your land. If that person has deep pockets, you can be out a lot of $$$ defending even an obvious claim. The title insurance is the gorilla on your side that just whaps the miscreant on the side of the head and sends him packing.

True, but you learn a whole lot about the community when you go back through the old deeds, and if you are from the area and know the family names, it's really fascinating. I needed copies of my deeds last spring and because I had the time, went back through the books until I got to the earliest deeds on the place. You think you know a lot from listening to your elders talk, and then you actually see the deeds and who signed and you get some of those "Oh, THAT'S why that piece is like that!" moments. Later on I did my uncle's farm as well, and since I wasn't as familiar with that, I learned a lot about that place, as well. I recommend it to everyone.

And you learn how to look things up, too, so you can check on other properties, and even things like who has mortgages, who has powers of attorney, etc. It's great fun.

Who, me? Stalking my neighbors? No!