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5 documents required for hassle-free land sales

The decision to sell one’s land is indeed not an easy process. Unless you are in the business of real estate, the processes that are involved till the transaction gets through could be appalling. The seller of the land should be in possession of certain crucial documents which have been listed below:

Purchase agreement: This document will be signed by the buyer when an offer is made on the land up for sale. This legal document confirms the intent of the buyer based on all the clauses in the purchase agreement. Once signed, the document becomes legally binding on both parties. The crucial points of the sale, including terms of sale, agreed price, and other deliverables of the deal need to be mentioned in the purchase agreement.

Disclosure documents: The owner is bound to disclose all liabilities and defects of the property. These disclosure requirements vary from state to state, and hence it would be advisable to draft the document with the guidance of a real estate attorney. This form needs to be filled completely and honestly based on the seller’s experience of the property.

Land contract: This document becomes necessary if the seller offers self-financing. This is a separate legal contract that specifies the terms and conditions between the buyer and seller. This document will include the location of the land with its address and detailed description. This document will list out the price agreed on, the initial payment, the monthly payment schedule, the amounts worked out, the dates of payment, grace period, and mode of payment. Once the contract is signed, the buyer will be treated as the property owner, and he would become responsible and liable to pay all bills and taxes for the said land on sale.

Sale deed: This is the document which transfers the ownership from the seller to the buyer. If the buyer pays cash, a deed is made and filed with the appropriate government agency at the time of closing the deal. If the seller provides financing, the deed will be held in escrow till the last payment is made.

Closing statement: This is required to document the financial transactions between the buyer and the seller. This can include an amortization schedule.

The above-mentioned documents certainly ensure a hassle free sale process when you are selling your land.

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