B. Moss

Selling Leased Land in the USA: What You Need to Know

February 10, 2025

Understanding Leased Land Sales

Selling land that is currently under lease presents unique challenges and opportunities. Whether you own agricultural, commercial, or residential leased land, the process requires careful planning to ensure compliance with lease agreements and legal regulations. This guide will walk you through the essential steps, key considerations, and best strategies for selling leased land in the USA.

Can You Sell Land While It’s Leased?

Yes, you can sell leased land, but the transaction involves additional steps compared to selling unoccupied property. The lease agreement remains in effect even after the land is sold, meaning the new owner must honor its terms. Therefore, understanding the lease’s duration, conditions, and transferability is critical before listing the property for sale.

Key Factors to Consider Before Selling

1. Lease Terms and Transferability

  • Review the lease agreement to determine if it allows for property transfers.
  • Some leases contain clauses requiring tenant approval or first right of refusal.
  • Understand how lease duration and renewal options impact potential buyers.

2. Buyer Interest and Market Demand

  • Investors and developers often look for leased land because it provides immediate income.
  • Agricultural leased land can be attractive to farming companies looking for long-term stability.
  • Commercial and industrial leased land can draw interest from businesses seeking strategic locations with established tenants.

3. Valuation and Pricing Strategies

  • Leased land is often valued based on the rental income it generates.
  • Long-term leases with stable tenants increase property value.
  • Consider hiring a professional appraiser with experience in leased land transactions.

4. Legal and Tax Implications

  • Consult a real estate attorney to ensure compliance with state laws and lease agreements.
  • Capital gains tax may apply to the sale, depending on ownership duration and profit margins.
  • Some states have unique tax structures for leased land sales, so research local tax regulations.

How to Sell Leased Land Successfully

1. Determine the Best Selling Strategy

  • Sell to an investor interested in passive income from the lease.
  • Offer the land to the existing tenant, as they may be willing to purchase it.
  • List the property with a professional land buyer specializing in leased properties.

2. Market the Property Effectively

  • Highlight the stability and income potential of the lease in listings.
  • Use online platforms like LandWatch, LoopNet, and Zillow to reach potential buyers.
  • Consider networking with local real estate investors and land-buying companies.

3. Negotiate with Buyers

  • Be transparent about lease terms and property rights.
  • Address potential buyer concerns regarding lease expiration and tenant obligations.
  • Offer incentives such as seller financing if applicable e.g when searching for land buyers in Texas.

4. Close the Deal

  • Work with an attorney to draft necessary legal documents.
  • Ensure a smooth transition by notifying tenants of the new ownership.
  • File the deed transfer with the local county recorder’s office.

Who Buys Leased Land?

Several types of buyers might be interested in leased land:

  • Real Estate Investors seeking rental income and long-term appreciation.
  • Developers planning future projects once the lease ends.
  • Businesses needing land for expansion or storage.
  • Institutional Buyers like REITs (Real Estate Investment Trusts) looking for diversified portfolios.

Selling Leased Land Without a Real Estate Agent

Many landowners choose to sell directly to professional land buyers instead of listing with an agent. Selling to a direct buyer can save time, reduce closing costs, and avoid lengthy negotiations. If you are considering this route, research reputable land-buying companies that specialize in leased land transactions.

Final Thoughts

Selling leased land requires careful planning, but with the right approach, you can secure a profitable deal. Understanding lease terms, marketing effectively, and working with knowledgeable professionals will help ensure a smooth transaction. If you’re considering selling your leased land, explore your options and work with experienced buyers who understand the complexities of these sales.

Table of Contents

Selling Concerns

What is the process for selling my land?

Our process is simple and easy. Just fill out our online form or give us a call. We will then schedule a time to view your property and make you an offer.

How much can I sell my land for?

The value of your land will depend on a number of factors such as its size, location, and condition. We will take careful consideration taking into account the market, location and features to provide a fair offer.

How long does it take to sell my land to you?

The value of your land will depend on a number of factors such as its size, location, and condition. We will take careful consideration taking into account the market, location and features to provide a fair offer. We can typically close on a deal within 30 days of receiving your signed contract.

Legal Concerns

What if one of the owners are deceased?

No worries. We are in the business of solving problems. We have worked with this issue on several occasions. Give us a call and we will work closely with you to fill in the appropriate documents to legally sell.

What if I owe a LOT of back taxes or have a lien on my property?

Not an issue. There is still value in your land. We will make you an offer and you will still leave the closing table with funds in your pocket. 

What if I don't have a copy of the deed?

This is not a concern. A deed is a legally recorded document. As long as the property was properly purchased, we can acquire a copy of the deed in the county records.

Closing Concerns

What is a title search and why is it important?

A title search is a process of investigating the ownership history of a property to identify any potential title defects. A title search is important to ensure that the seller has a clear title to the property and can legally sell the land. 

How much will I have to come out of pocket?

You will only leave the closing table with payment for your property. You will not pay for a survey (if one is required) and you will not be responsible for closing costs, which typically is required in a standard sale. We have you covered.

Do I need to be physically present in the city of the property to sell my property?

No, you have the option for an in person closing or a remote closing. You can come in person to the title office to sign the deed and receive payment directly or you can handle the closing remotely in which you will travel to a certified notary to sign necessary documents.

Yes! I'm Ready to Sell My Land

⚠︎ DISCLAIMER:

The contents of this blog are for informational purposes only and should not be taken as legal or tax advice. You should consult a licensed professional for advise on your specific situation. The information in this blog may be changed without notice and is not guaranteed to be complete, correct, or up-to-date. This blog is not intended to be a substitute for professional advice

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