How Do You Buy Land? Do You Need a Realtor? Is There a lot of Paperwork?
Have you ever thought about buying land, but are nervous about how it works? There’s a lot to consider, but you'll be happy to know it’s actually a very simple process. You don’t need a realtor or a broker, and there isn’t a mountain of paperwork to go through. This quick post will explain to you how easy it really is to buy land.
This process is much easier than when you buy a house. You don’t need a real estate agent or broker, and you don’t need to sign a bunch of mortgage documents. Buying land is really easy, like buying any other product like a TV or car. You know what you want, you exchange the monetary value, and you gain ownership. It’s really that simple.
There are two main ways you can buy land: cash or owner financing. To buy a property with cash means you pay for the value of the property at the time of purchase (like buying jeans or a sweater from a retail store). To buy a property through owner financing means the property is paid for in monthly instalments over time, and once the property has been paid for in full you gain ownership (like mortgage payments on your house).
I’m just going to go over the cash process here, another post will address the owner financing method.
To use cash is definitely the easiest way to buy land if you’ve got the money for it. If you want to buy land with cash we, Compass Land, will create all the paperwork for you. The paperwork is just two documents. A Land Sale Contract and a Warranty Deed.
The Land Sale Contract explains which property you as the grantee or the buyer are receiving, and how much you will be paying the grantor or seller, for it. You can see example documents on our website, at this link (scroll towards the bottom and click the ‘Sample Documents’ button - you can get the password by emailing or calling us!)
The Warranty Deed is what actually conveys the property ownership from me as the seller to you as the buyer. There are actually a few different types of deeds that can be used in a land sale, but I won’t cover that here. I have a separate post and accompanying video explaining the different types of deeds you can watch - '5 Types of Property Deeds for Successful Land Investing'.
So the Warranty Deed makes you the rightful owner, and is what gets filed with the county. It will have to describe who the seller and buyer are, the parcel number and the legal description of the property.
If I, as Compass Land, am selling you the property, I have to get the deed notarized, so that the notary can prove I’m signing over property to you. I’ll do that, and then I’ll record the deed with the county. I cover all the paperwork and recording fees with the county, so you don’t have to worry about that.
Before we sell you the property we make sure that the title chain is clean and defined, and that there are no back taxes or liens on the lot. If it turns out that there is something not up to par with the property, we will make it right for you. Once the county files the deed, they’ll assign it a book and page number, so that we can look it up on their online database or in the recorder’s office. We’ll send you a copy of that deed as soon as it’s recorded, so you have proof of ownership.
As you can see, it’s much easier to buy land from a company like mine, Compass Land, than it is to go through a realtor or broker. Aside from the annoying paperwork, agents and brokers often charge you a commission, and that’s why they work so hard to get the best price possible. At Compass Land, we don’t do that. We get you amazing prices no matter what.
I hope this has helped you learn how easy it can be to buy land. It’s a really simple process, especially if you’re using cash. You can chat with me anytime to help you identify the parcel you want. Once you have found one you love and want to make it yours, I create the 2 documents and send them to you online for easy 1-click signing, and then I record and file all the paperwork with the county. Done!
If you have any questions about the process of buying land you can leave a comment below. I’d be happy to go over this process with you and address any questions you have. I look forward to hearing from you!