What method of payment and what papers for (empty) land purchase?

[RedWhiteBlue]

What is the name of your state? KS The land owner wants cash, what method of payment should be used (no financing involved). There is nothing on the land.

Any advice about the transaction is appreciated.

Is a contract needed or is a deed similar to a title when purchasing a used car? The owner is the legitimate owner, the land is OK (codes, history, etc.), what are the steps from paying the money to being the new 100% owner of the property. The land is not expensive btw.

[FlyingRon]

Unimproved land is normally handled like any other real estate transaction.

At a minimum a deed is executed and recorded granting the ownership to the buyer in exchange for the buyer giving over the money. Usually you have a written contract to purchase as the offer and acceptance and the closing is handled via an escrow office or lawyer as local custom dictates.

The buyer is well advised to get title insurance.

[HomeGuru]

Originally Posted by RedWhiteBlue

What is the name of your state? KS The land owner wants cash, what method of payment should be used (no financing involved). There is nothing on the land.

Any advice about the transaction is appreciated.

Is a contract needed or is a deed similar to a title when purchasing a used car? The owner is the legitimate owner, the land is OK (codes, history, etc.), what are the steps from paying the money to being the new 100% owner of the property. The land is not expensive btw.

**A: the method of payment is cash. Escrow will tell you more.

[CraigFL]

And pay for a survey before you buy it so you have an idea what you will own!

[RedWhiteBlue]

How can you find out if the the deed is free & clear with no liens against it?

[FlyingRon]

You pay a title insurance company to research it and issue a policy warranting the integrity of their findings.

[RedWhiteBlue]

I assume you answer to mean it cannot be done by an individual.

What about typing up an agreement there are no liens which the buyer & seller would simply sign.

Title search would be performed once the construction starts anyway...

[efflandt]

Not sure what is done in your part of the country. But if the seller does not provide title insurance at closing, it is in your best interests to get your own title insurance or have a title abstract done before you pay out any money. When you want to start construction is NOT when you want to find out that the title is not clear.

I bought land on contract, without an attorney, and it was not until 12 years later while attempting to sell it that I learned from the attorney I hired then, that what I thought was the easement wasn't. The seller I bought from had title insurance, but it specifically excluded easements, and he had never given it to me until I tracked him down while I was trying to sell it. Lesson learned.

If you are not absolutely certain what you are doing, hire a real estate attorney to make sure everything is in order.

[RedWhiteBlue]

You can't get a construction loan without doing all the survey/title searches etc. right?

So my question is, if the buyer types up an agreement that is signed by the seller & the buyer stating the land has no liens on it, is that good enough to hold the buyer over until the construction loan papers sort out the real facts about the deed being 100% clear?

[nextwife]

Originally Posted by RedWhiteBlue

You can't get a construction loan without doing all the survey/title searches etc. right?

So my question is, if the buyer types up an agreement that is signed by the seller & the buyer stating the land has no liens on it, is that good enough to hold the buyer over until the construction loan papers sort out the real facts about the deed being 100% clear?

Do not buy any real estate from anyone without title insurance. Even from your own mother.

The average joe doesn't even know or understand WHAT affects the title to their own land. So a statement from someone asserting something they themselves don't know or understand is worthless.

[FlyingRon]

You can do all the research you want but you're screwed if you miss something.

No bank will lend you money secured by that land without a title search and title insurance to protect THEIR interests.

As I and other posters have pointed out, you should always get title insurance to cover YOUR interest.

[Grandma's house]

The main purpose in title insurance is to protect the lenders lien position, accurately payoff the other lender and insure the loan's position. Most 2nd mtgs. do not even require title insurance at all. (this is why most 2nds have NO closing costs and can be closed at the lenders site vs. a title co. site) They are in 2nd position so it isn't necessary. There are title policies that insure the borrowers and look out for them as well. Unless the borrower requests this type of policy the lenders policy is all the lender is going to get, is necessary to close the loan and insure THEIR position. (just to clarify purposes of title insurance and different types) you need an ALTA policy.
In this case a lien search is necessary to make sure taxes are paid to date, no other liens and things. survey always on land purchases to make sure you are buying WHERE you think you are buying...and a buyer's policy. A well done note to insure there is no more monies owed and the deal is done.
Call the local title co. and open title to handle this transaction and have their atty. review the note on you the buyers behalf. :-) if not signed and sealed at a title co. with title insurance then you are being foolish. Even an auto deal is being done by the D.M.V. etc...properly transferring title on the right vehicle with a pin number. In this case look for the PARCEL # and make sure this parcel # applies to this lot and the ONLY way to do this is a land surveying co. to come out and mark with long metal pegs deep within the ground and actually measuring the demensions from the adjoining lots. This can be quite costly but an absolute must. If you don't do all of this...I too have a lot for sale. LOL in FL. in swamp land. However COULD show you a great piece of land that you THINK you are buying.

[seniorjudge]

Originally Posted by RedWhiteBlue

I assume you answer to mean it cannot be done by an individual.

What about typing up an agreement there are no liens which the buyer & seller would simply sign.

Title search would be performed once the construction starts anyway...

The lawyers of Kansas thank you; sounds like you will need lots of legal work to get this cleared up unless you follow the advice of those who know and posted the correct advice in this thread.

[Grandma's house]

I still have a lot in FL. for sale if you want it. I will sign an agreement that there are no liens on it, then you buy it and THEN when you get your construction loan down the road let that lender do the search and survey Great idea.

Send me a check today and I will e-mail you the note with my digital signature on it.

The lot address is:

123 Sesame St.
Walt Disney FL. 12345

Cost for this 2 acre lot is 20,000 it's a real bargain.

[nextwife]

Originally Posted by Grandma's house

The main purpose in title insurance is to protect the lenders lien position, accurately payoff the other lender and insure the loan's position. .

THAT is incorrect. What you described is the main purpose of a LENDERS title policy.

The main purpose of title insurance is to accurately represent the current condition of title and to insure the accuracy of the search and the INSURED parties position. The insured party could be the Owner (if a purchase), the Vendee (if a Land Contract), the Leasee (under a Leasehold policy). As the lender's interest is temporary, the loan policy coverage ONLY lasts the duration of the lender's interest, whereas the OWNERS policy coverage continues as long as the insured (or their heirs) own the property.