If you’re considering selling land by owner in Texas, you’ll need to take on the responsibility of preparing the necessary documents for the property transfer. The process in Texas is relatively straightforward, and you can find free land sale contracts designed for landowners. You may be wondering what are documents needed to sell land by owner?
Unlike selling a house, selling land by owner typically doesn’t require the involvement of a real estate attorney. But even though preparing the paperwork to sell land by owner can be time-consuming, it can be the preferred approach when selling privately, especially to neighboring property owners or family members.
In this blog post, you’ll discover the essential documents needed for a successful and fast land sale, as well as alternatives to handling it all yourself, such as selling your land quickly to a cash buyer. Explore your options and find the best approach for selling your land in Texas.
Preparing for the Sale: Essential Documents Needed for Selling Land by Owner in Texas
You’ve decided to sell land without the help of an experienced real estate agent. It is crucial to gather certain documents that provide key information for the potential buyer and facilitate a smooth ownership transfer. Here are all of the steps and documents needed to sell land by owner:
Survey or Topographical Map
A survey or topographical map shows the property boundaries and nearby features like trees, fences, and buildings. It helps potential buyers visualize the property and may be required for creating a legal description. A new or existing survey must be submitted by the seller in Texas for any real estate transaction.
Title to The Property
A title search is when a title company looks into the property’s past records and paperwork to see whether there are any liens, encumbrances, or legal concerns that could affect the owner’s rights or the property’s marketability. The title company’s job is to investigate the property’s past titles in order to ensure the seller has the right to sell the land.
Consider getting a real estate evaluation if you’re unclear about the value of your land. A qualified appraiser will assess factors like location, size, features, and recent sales to estimate the market value.
Real Estate Taxes
Buyers will want to know the annual property taxes. This information is also necessary for creating prorations on the closing statement, dividing taxes between the buyer and seller based on ownership periods.
Top Documents Needed to Sell Land by Owner
When selling land by owner in Texas, there are several crucial documents you need to prepare for a smooth transaction. Let’s explore each document in more detail:
The sale contract or vacant land purchase agreement is a legally binding document that outlines the terms and conditions of the sale. It includes essential details such as the purchase price, closing date, any contingencies, and other relevant terms.
In Texas, there are two primary contract forms for selling land: the Unimproved Property Contract and the Farm and Ranch Contract. The Unimproved Property Contract is used when the property does not have any improvements or buildings and has a recorded Lot/Block legal description. On the other hand, the Farm and Ranch Contract is specifically designed for rural properties with a metes and bounds property description, often including additional items such as fences, sheds, or other farm-related assets.
Property Disclosure Statement
A disclosure document is an important part of selling land. These documents provide information about any known issues or potential risks associated with the property. Even when selling unimproved or vacant land, it is crucial to provide disclosures to the buyer. That way, you ensure transparency and avoid potential legal issues in the future.
Disclosure statements may include information about environmental hazards, zoning restrictions, or other relevant factors that may affect the buyer’s decision.
While many disclosure items may be marked as “unknown” for vacant land, it is still important to provide them. They can reveal any potential issues such as buried tanks, environmental concerns, or other hidden factors that the buyer should be aware of.
The closing statement is a comprehensive document that lists all the financial details of the transaction. It includes a breakdown of the sale’s costs and expenses. These include the purchase price, prorated property taxes, title insurance premiums, and any other pertinent costs.
In most cases, the closing statement is prepared by a title company. Even if you are selling land by owner, it is recommended to involve a title company. They handle certain services such as facilitating the transfer of funds, and ensuring a smooth closing process.
The deed is a crucial legal document that transfers the equitable and legal title of the property from the seller to the buyer. It serves as evidence of ownership and outlines the rights and responsibilities associated with the land. When selling land by owner, it is essential to ensure that the deed is properly drafted to meet the legal requirements in Texas.
The deed should contain the names of the buyer and the seller and a precise and thorough property description. Additionally, they should contain a statement of the seller’s purpose to transmit the property and the seller’s signature.
To make the deed legally binding and recordable, the seller’s signature must be witnessed by a notary public.
Exploring Alternatives to Selling Land by Owner
Another alternative that significantly reduces paperwork is selling the land to a real estate investor for cash. When dealing with a reputable land-buying company, the process often involves using a simple one-page land sale agreement.
While selling for cash may entail selling at a discount compared to market value, it eliminates the need to look for real estate agents and pay hefty commissions. Additionally, selling land for cash offers the advantage of speed, with the entire transaction typically completed in under two weeks.
If you’re seeking a quicker and more streamlined approach to selling your land, consider exploring the option of selling for cash. This alternative can provide a hassle-free experience while saving you valuable time and effort.
Top Documents Needed to Sell Land By Owner in Texas: Final Thoughts
Selling vacant land by owner in Texas requires careful attention to the documents required for a smooth transaction. However, if all the paperwork and complexities of the process become overwhelming, consider selling your property to professional land buyers like SimpleLandSelling.
We will evaluate your piece of land and provide a fair cash offer that aligns with the current market conditions and cover the closing costs. Upon completion of the signing and notarization of all the necessary paperwork, the notary will proceed to provide you with the payment for your property.