Buying a couple acres, how to make legal?

Wolf mom · #21 02/11/10, 06:53 PM

Please, Read the thread by lickcreek2. That's about buying a house, but the basic issues are the same.

You must put in the contract:contingent upon:1) a perk test if you are going to have a septic. 2) Buyer qualifing for the loan.

You really want to have a survey done. Split the cost with the seller in the contract. Too many issues can come up later. Believe me!

Do you understand what an easement is? The issues you can have with right of ways?

If you're running an electric line, you might want to check out the cost first. the electric co. will come out at no cost. Sometimes that cost will define where the house will be built. Ha ha -"put the meter where you want it?" Sure - if you want to pay for the run.

Since the land is in a hollow, what about flooding or soggy land? (the water table)

If you go through a title company - they will NOT tell you what you need to put in a contract. They write up the paperwork the way you tell them.

As far as the county tax lady is concerned, that's just what she is. She's not a realtor or an attorney able to advise you in all the nuiances of buying land.

Please question and learn.

Allen W · #22 02/11/10, 08:22 PM

If your going to build on it you want it surveyed you don't want to build on some body elses property. And yes I've seen it done.

Gary in ohio · #23 02/11/10, 10:10 PM

He cant split the land, the county will do that... Around here 5 acres is the smallest split without an exception.

mamaof3peas · #24 02/11/10, 10:18 PM

I wish I could give you an Aeriel photo of it. It is just that farmer we would be working with. We already had electric out there this week, so we know cost and where it would be cheapest to put the house. There is no loan. We are paying as we go, and the land would be paid for. Then we would run electric and put in well. Then septic, then our cabin, which is a very small lofted, already built, by the Amish, who have a rent to own policy of 3 yrs, and then it would be paid for. We have tried to consider all the options. If we ever decided to sell, that farmer would buy it back, bc the Mennonites don't like to split up their farms. He is just trying to help us out bc we are a family trying to get back to basics.

texican · #25 02/11/10, 11:24 PM

Without a survey, how do you or him know how much land your getting???

Without a survey, you might be getting a pig in a poke.

You can buy without a survey, or title insurance, but you really leave yourself open... you really could get burned later on. I know two cases where people bought land from their brother... a few years later, the Federal Tax liens were forced upon the new owner, and they either paid the lien or lost the land.

There are few statute of limitations on land ownership... if an unknown heir shows up later, you could lose your place. The couple hundred in title insurance is the best investment you could ever make.

Without a survey, I'd build dead center of the property... otherwise your house might be on someone else's land.

The person your buying from could be the salt of the earth... but if he didn't get title insurance, he doesn't really 'know'.

A 20 acre tract on my place was 'found' by my grandpa back in the fifties... he simply 'claimed' it and started paying taxes (it adjoined his ~500 acres). Now it's mine. It's actually 'grown' with resurvey to 38 acres. Strictly legally speaking, it still belongs to the heirs of the original Patentee. I have a possessionary title (acc. to a land lawyer I know)... been in my family for 80 years, and around here that counts. If I were to sell it, the title company might insist on a publication in the paper, informing the 'heirs' of 160 years ago, that I was taking their land.

ChristieAcres · #26 02/12/10, 12:02 AM

I am a licensed Real Estate Agent and recommend:

1- Escrow Agent
2- Title Company/Title Insurance (clear title & disclosure of easements...)
3- Attorney to approve/assist with the sales contract
4- Have the Purchase Recorded with the County (Escrow handles this)
5- Insist on a Survey! I handled a transaction where the Legal Description was WRONG. An Attorney had to be paid to correct it for the Buyer to get it financed.

Here in WA, Title CO's do NOT require survey's. They simply go off of County recorded boundaries and legal description.

If you do not have your purchase recorded, your seller can mortgage the property you are buying right out from under you. Happened to someone in my family (years before I became an Agent). The home was foreclosed upon and they had to move, despite making all their payments.

There is a lot of good advice on the posts!

7thswan · #27 02/12/10, 08:14 AM

Mama, there is alot you can do on your own. You can search titles your self. A title co. doesn't charge very much and if you have a bank, they probably have one they use. I sold 21 acres last year, we made it as inexpensive as possile for the young folks that bought it. It sounds like your County is being very helpful. Ask them all your questions, sounds like you are getting good sugestions here on what you should ask about. Best of luck to you, sounds like you will have nice neighbors.

ET1 SS · #28 02/12/10, 09:24 AM

I bought our land directly from the seller.

I used a 'land transfer' lawyer, $200 flat fee, which included a new deed being written and recorded, a title search and title insurance.

Beeman · #29 02/12/10, 09:53 AM

I'm guessing much depends on the state. I bought land In NC from the owner with owner financing and a survey was required. I personally wouldn't invest a dime into land without a survey and registered deed with title insurance, just me I've had my go rounds don't need more. I know you of course have every plan to live there forever and of course the trust worthy farmer and his family will always be there for you, thn there's reality.

**highlands** · #30 02/12/10, 11:03 AM

Before you do this read the local zoning as well as state and county rules too. Have your eyes open going in. I carefully researched the rules for every town where I considered buying land. I don't cotton to zoning and having busy bodies tell me what I do with my land.

Look around the land. What happens in that area. Will you be happy living near farms, logging or what ever else is already there or likely to come there?

Eyes open.

ronbre · #31 02/12/10, 11:09 AM

probably a good idea to have a title search and find out laws for the township or county you will be in re setback and access..etc..min house acerage if a house is going on it..also if you will be putting in a well and septic have a perk test done before purchasing the land..make sure elec is avail if you will be using it..

best to have a lawyer if you aren't sure

DoubleBee · #32 02/12/10, 01:28 PM

Quote:

Originally Posted by mamaof3peas

I wish I could give you an Aeriel photo of it.

Terraserver at msrmaps.com or google maps should give you an aerial view.

Nevada · #33 02/12/10, 01:38 PM

Quote:

Originally Posted by lorichristie

1- Escrow Agent
2- Title Company/Title Insurance (clear title & disclosure of easements...)
3- Attorney to approve/assist with the sales contract
4- Have the Purchase Recorded with the County (Escrow handles this)
5- Insist on a Survey!

What? No homesteader spirit?

Quote:

Originally Posted by lorichristie

If you do not have your purchase recorded, your seller can mortgage the property you are buying right out from under you.

That's decided by your state statutes as to whether your state is race, notice, or race-notice (WA is race-notice).

The unrecorded deed is known as a "wild deed" by lawyers. While I've never understood anyone not recording a deed, I know that it happens. Wild deeds invariably wind-up in court in quiet title actions so a judge can decide.

goatlady · #34 02/12/10, 07:45 PM

A survey legally delineates the land boundries and description of the land, and how much land and without a survey you have NO LEGAL PROOF of the property you bought. Plain and simple. No survey = no proof of land. Payment receipts mean nothing because they do NOT describe the land being purchased. Just because the seller verbaly describes the boundries of what he is selling in NOT legal proof of those boundries - in court is considered hearsay and has no legal standing. You must protect yourself and the trusting seller from dishonest others. GET A SURVEY and spend the $5 to record it.

Cheribelle · #35 02/12/10, 08:04 PM

Ours was not surveyed. It is perimeter fenced, and the title description reads something like XXXX feet by XXX feet. There's no dispute, what we saw is what we got.

quietstar · #36 02/12/10, 09:20 PM

Decades of my life have been dedicated to my career as a Real Estate Broker and Appraiser, and even if you didn't hide your location, I would only have two solid pieces of advice for your consideration. Beware the well meaning advice you get on HT or any other similar online group....Then

Make a complete list of due Dilligence items that apply to your planned land purchase and carefully work through the list. Take that list and results to a good land Lawyer and pay him to guide you the remaining way and draw up a straight forward earnest money contract if the owner has agreed to sell at a price you will pay. Good Luck...Glen

Joshie · #37 02/12/10, 09:54 PM

Quote:

Originally Posted by Nevada

What? No homesteader spirit?

What good is a homesteader spirit if you don't get what you think you're purchasing?

ChristieAcres · #38 02/12/10, 09:55 PM

Quote:

Nevada- What? No homesteader spirit?

That's decided by your state statutes as to whether your state is race, notice, or race-notice (WA is race-notice).

The unrecorded deed is known as a "wild deed" by lawyers. While I've never understood anyone not recording a deed, I know that it happens. Wild deeds invariably wind-up in court in quiet title actions so a judge can decide.

Hmmm, working 60 hours a week and trying to keep my post short got me this statement?! (What? No homesteader spirit?)- Simply what I would tell anyone I know who I cared about, especially their best interests at heart. Had to skip the extra adjectives and other comments I might have added (TIME)

Of course, you may have meant something else.

Your next point, also agree, that I don't know why any one would NOT record his sales contract. There are HTers doing that, though. The rest didn't have to do with this: If there is no evidence with the County, the Seller can take out a loan without the Buyer knowing and then not make the payments. The Buyer may not know until the Notice of Foreclosure is pasted on their door! This actually happened to a close relative

After the fact, sure, the Buyer can take the Seller to court (who is on the verge of bankruptcy and the bank now owns the property). Better have deep pockets! Get a judgment, then Seller then can file BK. Or, if the Buyers come after him, he can wait to file BK until after the judgment.

I think you can read through the posts and glean good info from them. I am not a Broker, but just finished all the required courses, and am still a licensed Agent. You can certainly put everything in the hands of an Attorney, who should make sure everything is done to protect your rights, and insure the least risk to you. I like being in charge, myself, and having an Attorney review the contract, use an experienced Escrow Officer, utilize a Title CO, would get a Survey, and get it Recorded.

colourfaste · #39 02/12/10, 10:47 PM

And another thought: do NOT get a quitclaim deed. All a quitclaim deed does is transfer the seller's interest in the property, IF ANY. With a quitclaim deed I can sell you any interest I have in that property ... which is none. You want a general warranty deed.

Nevada · #40 02/13/10, 02:11 PM

Quote:

Originally Posted by lorichristie

Hmmm, working 60 hours a week and trying to keep my post short got me this statement?! (What? No homesteader spirit?)- Simply what I would tell anyone I know who I cared about, especially their best interests at heart. Had to skip the extra adjectives and other comments I might have added (TIME)

Of course, you may have meant something else.

What I meant was that sometimes having all of those professional services done is not cost effective.

I used to make a living buying & selling rural properties in northern Nevada. Those properties were in dedicated subdivisions, with street & utility rights-of-way deeded to the county, but most were not in powered portions of the subdivisions. I bought those 1 to 2 acre properties for $300 to $500, then sold them at eBay for $1200 to $1500.

So with less than $1000 profit to look at, and knowing that about half the profit would be eaten-up by the title policy, how much is left for lawyers, surveyors, and escrow agents? Trust me, eBay buyers won't pay a premium for any of those professional services, including title. All property transfers were done by deed (a special warranty deed, to be precise).

The fact is that this isn't rocket science. Anyone willing to learn about this stuff, and also willing do his own footwork, can do much of it for himself.

And if you think it's different in urban areas, think again. I bought my home in Las Vegas last fall at a trustee sale. I told a realtor that I was attending the trustee sales and she said to me, "Well, I suppose you could get lucky and have a bank asset manager sell you a foreclosed property directly, but since he can get more on the open market I don't know why he would do that." She honestly had no clue of even what the purpose of the trustee auction was, and she wasn't interested in hearing about it. Her opinion was that I was just wasting my time. But I now own a 4-br home in Las Vegas that I only paid $30K for, and own it mortgage-free.

No, I'll do my own diligence, thank you very much.