Hopefully someone experienced here can help me out. I bought some land 6 months ago and financed it with my Bank. I put the land up for sale by owner and got an offer and accepted it. The person buying it does not have a realtor and wants to pay cash for it. I called the title company and since they are paying cash, they told me that I didn't have to use a title company to do the deal. So I called my back to see if I could just pay it off with the money the buyer gives me and we can transfer the deed or lein or whatever it is to the buyer and the bank said I HAD to use a title company for that. So I called the title company back and they said they could do it there and named off numerous fees i'd have to pay along with getting title insurance and everything else in the world. Does selling a piece of land really have to be this complicated? I'm not sure what to do, the buyer gave me a $10k down payment for earnest money and wants to pay the rest off cash on friday.
I'd agree you have to have a title company, and you'll have to pay a not insignificant amount of money is various fees to dispose of the land. Since you don't know what you're doing, you may want to hire a realtor. Of course, that's more money you'd spend.
So, pay off the mortgage and it won't matter. The bank will no longer be a lienholder and they won't have a say.
I wouldn't be worried about what the bank would prefer. I would be worried about the government holding me responsible for the buyers' RE taxes, or prosecuting me for fraud.
I don't know if I agree. Hey, jgreen91, look into something called a special warranty deed. Be warned though, I have no experience in this stuff except what I learned in my Property class.
All things to think about. This is why transaction attorneys make so much money. Makes you wonder why this guy is in such a hurry to finish the deal.
I actually know the guy, he is a good, honest guy so i'm not worried about that. He just loves the property and is ready to start building his home on it. Neither he nor I are into real estate and we don't have a realtor involved (which should save money in the end out of my pocket) so we weren't sure how to go about it. I'm pretty sure title companies are ripoffs with all the misc. fees they charge but that may be the only way to do it.
You should not need a realtor or an attorney. You definately should go through the title company, however. I don't know what they typically charge in your state, but for un-improved land, it should be less than $1,000. The title company will prepare all the legal documents and get all the necessary signatures from you and the buyer. They will make sure the sale is properly recorded. Believe, me, it will protect you and the buyer.
1. Your buyer would be dumb not to get a title policy. Sure he knows you, you had a title policy, blah blah. Still, he ought to insure the title. How would he know if you have any leins against the land, sometimes you don't even know if someone has filed a lein. 2. You really don't even have to have an attorney to transfer land title but there are certain legalities that must be tended to, like recording the deed in the county records and rendering the property to the taxing authorities (so you don't get the tax bill next year) Are there any mineral rights? If there are I recommend you keep them. 3. Title companies handle the grey areas between when he pays you, you pay the bank and you deliver the deed. They also handle prorating the taxes owed on the property for the portion of the tax year you own it (if the full tax load is not to be paid by the owner on the next due date) They earn their fees. There are too many ways to get in a bind doing it yourself, IMHO
Follow Dubious' advice. He is 100% correct. If you have a lien, they are well within their right to require you to have title opened. Afterall, its "technically" their land, not yours.
Is this land in Houston or elsewhere? I ask this because you might want to look into making some reservations. Hit me up on aim @ UTJoel if you have any questions.
Follow his advice, especially the above...Even if you are friends, money causes all sorts of problems...
