7 replies to this topic

[muppet]

Sorry for off topic but am sweatin my land purchase offer. I'm assuming there is no sales tax on the purchase of raw land. Is that correct? As well, do most people purchase title insurance? The seller is paying for a new survey ... so not sure if I need title insurance? Are there other, potentially hidden costs of raw land purchase that I need to be aware of? There is only one agent ... same woman for seller and buyer. I think this can work in our favor, but not certain. It's not a super expensive property and the contract looks pretty straight forward ... I understand what is written and so am not planning to get a lawyer. Do most people hire a lawyer for raw land purchase? Thanks in advance. Muppet

[hiker]

title insurance is necessary...and prudent..nearly anyone will tell you that...yes, for land the HUD statement spells out your costs...yes, there are some small fees you will pay if you have never been thru this before...make sure you request to see the HUD before you go to closing. In all the raw land purchases I have made, I have never not used an attorney and it has rarely cost me more than $300 in fees...well worth it. The correct title description based on the survey is important since it is what your recorded deed reflects....I suggest you personally compare the title description with the survey, before you go to closing...this is why I like to have an attorney representing me who writes the title description based on the survey....otherwise, you are using someone who is not representing you that prepares the document that is attached to your deed. you relying on someone else to ck out what kind of easements and liens are recorded on the land....are you personally going to review the title search for such info. to determine there is nothing detrimental to your legal ownership? how are you going to be presented with whatever encumberances are found in the title search if you do not have anyone representing you? No one is going to point this info. out to you...buyer beware prevails in this process...if you have no experience, how are you going to protect yourself that pertinent inforamation that is not self-evident will come to your attention?

[colours]

1. There should be no sales tax on a real estate purchase 2. Title insurance will protect you from any problems from the past with the ownership of this land ( liens, etc. ) Purchase it. 3. Since you are purchasing raw land the seller should provide you with : a.) current perk test for the soil ( if it does not perk , you cannot put in a septic drainage field and cannot build a house on the property ) b.) current survey of property lines and utility line access c.) flood plain information , if applicable ( esp. if property has a creek on it ) 4. Someone should represent your interests ( your real estate agent or lawyer ) .

[tommyt]

I wouldn't use same agent on both sides...obvious conflict. I did it once on a house and said I wouldn't again.

[selecto]

Hate to sound like a lawyer, but get a lawyer. I have bought and sold a number of pieces of land. Give it to the lawyer, tell him to call you when its tme to close. Internet chat rooms, howsoever brilliant their participants, are not noted for their accurate or complete legal advice. Buying land is not a trivial undertaking. There also tutorials on the web which will take you through step-by-step and will give you an idea of the pitfalls, etc., and permit you to ask more intelligent questions.

Edited by selecto, 08 March 2007 - 01:24 PM.

[tradermama]

Hi Muppet Not sure if you already did a contract but I hope not. You don't sound like you are knowing what you are doing so it's best to be safe. Always put in a contract with land a contingency for a feasiblity study. This is a way you can check everything out i.e, buildable, flood plain, etc.. If you know of any engineer friends, have them do a feasiblity on the soil prior to a contract. But if you feel you have a great deal and don't want to lose it, put the contingency in there. Then you can back out if it is not up to your desire usage. Whatever you do, don't be in a hurry. It's all relative to what your purpose is for the useage of the land. If you can't build on it and it's cheap, then that could be a reason. If you signed a contract. Then it's too late. But you should always get title insurance. Good luck Irene

[muppet]

Thanks everyone ... REALLY appreciate all the suggestions. I have made a low ball offer and they have come back with a higher offer ... but I've not offered again ... YET (intend to). My initial offer DID have a 10 day option to back out pending perk testing and other investigations ... so I didn't sign anything without that safeguard to back out. Not sure 10 days will be long enough to get people out there to look. Will have to investigate. Interesting thing about this deal is that I have some inside information ... pure luck that I found out from a neighbour about some changes happening to adjacent property ... that neither my agent nor the seller is aware of. And I've checked the validity ... so am happy about this bit of info .... I think it pays to wander around and talk to people nearby ... if that's possible. In any case, thanks again! I think this will all work out. Muppet

[OEXCHAOS]

On your next offer, you may want to amend it with about every possible out you can think of (financing cost, even), so in point of fact, you'll be able to bail if things don't eventually pass the smell test. I'd still get an attorney with some experience. Also, be alert for the con. Sometimes "inside info" is just what someone wants you to know. Yanno? Best of luck! M