The Land Buyer Pros

Selling Land FSBO? What About the Paperwork?

Land
Deciding to sell your land For Sale By Owner? This certainly can save you money on commission fees, however, it also means you’ll be responsible for navigating the entire paperwork process yourself. From listing documents to sale contracts, there are specific forms andse disclosures required when selling vacant land privately in most states. If you’re considering a for-sale-by-owner approach to selling your land, understanding the paperwork trail is crucial. Here’s a rundown of the key documents you’ll likely need to properly execute the sale.

Property Listing Documents

When selling land by owner, you’ll need to create your marketing listings with details about the property, pricing, location, and terms. Basic listing documents include:
  • Property fact sheet/description
  • Photos/video tours of the land
  • Vacant land disclosures
These will form the foundation for online listings, print advertising, and collateral to present to interested buyers.

Proof of Ownership

Of course, you’ll need to prove you own the rights to sell the land. Common documents establishing proof of ownership include:
  • A dated copy of the deed
  • A current title report/search
  • Survey maps and legal property description
  • Recent property tax statements
None of these documents are required, but having these records on hand will be helpful for buyers and/or their real estate agents.

Purchase Agreements & Contracts

Once you find a buyer interested in purchasing your land, you’ll need to draft a legally binding purchase agreement that complies with your state’s laws. This contract will spell out all the terms of the sale, including:
  • Sale price and payment details
  • Closing timelines
  • Contingencies
  • Final walkthrough procedures
  • Conveyance details for transferring titles/deeds
Seller’s disclosures are also typically required as part of the purchase agreement paperwork for selling land privately. These disclose any known issues, defects, liens, or other material facts about the property.

Transfer Documents

After the purchase agreement is solidified, there’s one final set of documents required to officially transfer ownership and complete the sale. This includes documents like:
  • Deed transferring titles/ownership to buyers
  • Any lender paperwork if the buyer is getting a mortgage
  • Title company documents for insurance and fees
  • Closing statements with credits/costs for each party
  • Release documents for any existing mortgages/liens
  • Documentary stamps & taxes for recording the new deed
The benefit here is that title companies typically handle all the documents above. Having an experienced title company or real estate attorney oversee this final paperwork for selling land by owner is highly recommended. They can ensure all i’s are dotted and t’s are crossed for a clean closing. However, the downside is if you have a really small property or a property with a value in the lower thousands, then you cannot use a title company. Many title companies have a minimum purchase price. While selling vacant land privately cuts out realtor commissions, handling the paperwork trail yourself requires care and due diligence. From listing materials to ownership verification to the final transfer documents, having the right paperwork in order will be critical to successfully selling your land by owner.

Meet In the Middle

The best middle point would be to work with a land-buying company as you will get the best of both worlds.
  • No Commission – Just as you would expect when selling For Sale By Owner, you can also save on commission. Typically independent land-buying companies do not charge any type of commission. A bonus is they also save on closing costs because they usually cover those as well.
  • Paperwork – A step above having to sell For Sale by Owner, they handle all the paperwork for you. If you have questions, they are usually happy to answer them and even jump on a call to dive deep into any concerns.
  • Quick Sale – Lastly, a benefit that you won’t receive selling the land on your own or using a realtor, is a quick sale. There is no way you can expedite the sale of your property. You have to just let it sit on the market. Whether that is for weeks, months or sometimes even years. When you use a land-buying company, the process is fast. You receive an offer. Once accepted, the land-buying process begins with a plan to close on a set date.