Introduction
While buying land is a very exciting process, we understand that it can feel both overwhelming and scary at the same time. At Land Champion, we strive to make the process as simple and enjoyable as we possibly can. Below outlines the options you have for buying land, and the process you can expect to go through when making your purchase. As always, we are here to help if you have any questions along the way.
Land Buying Options
First and foremost, we offer two options for buying land. Paying in full (Cash Purchases), or making payments over time (Owner Financing).
Cash Purchases
Buying property for cash is the easiest and most cost-effective way to buy property. When paying for property in full, you will receive the largest discount on the land that I am able to provide, and title will transfer to you as soon as your payment clears.
Owner Financing
An alternative option to paying in full for property, is to make payments over time through our Owner Financing Program. With this option, you will sign a contract, make a down payment, and get set up on a monthly payment plan. You will continue to make payments until the property is paid in full, at which time the title to the property will be transferred to you. You can also prepay and pay off the total balance at any time without penalty. While this option increases the total cost of ownership, it allows you to hold on to your money instead of making one lump sum payment upfront for the property.
The Land Buying Process
Below outlines the detailed processes for both cash purchases and owner financing purchases.
Cash Purchases
1. The first step once you decide on a property is to sign a Purchase Agreement. I will draft the contract, and we will both sign electronically via SignNow.
2. Once the contract is signed, you will submit your payment. I can accept multiple forms of payment (Credit/Debit Card, Bank Wire, ACH, Western Union, or Cashier’s Check).
3. Once the payment has cleared, I will transfer the property into your name via a Full Warranty Deed. A Warranty Deed is a type of Deed where the grantor (me) guarantees that they have clear title to a piece of real estate. This is the best type of deed to buy on as it fully protects you, the buyer.
4. I will record the deed electronically with the county, and once the recording is complete, I will mail the hard copy of the deed to you. There is a $200.00 document preparation fee, which cover the cost of the document creation and the recording. There are no other associated closing fees for you to process the transaction.
5. The process for cash purchases is very simple, and from start to finish can be completed in a little as a couple days.
Owner Financing
1. Similar to Cash Purchases, the first step will be to sign a Purchase Agreement. In addition, we will need to sign a Contract for Deed and you will need to sign a Promissory Note. These two additional documents outline the terms of the financing and your promise to pay per those terms. I will draft the all three of these documents, and we will both sign electronically via SignNow.
2. Once the contract is signed, you will submit your down payment and document preparation fee ($200.00). I can accept multiple forms of payment (Credit/Debit Card, Bank Wire, PayPal, Venmo, Cash App, ACH, Western Union, or Cashiers Check).
3. Next, we will get you set up on an automated monthly payment plan. For the monthly payment, I can accept ACH and Credit/Debit Cards. The monthly payment will consist of the following:
– Monthly Payment Amount (Principal)
– Monthly Property Taxes (escrowed into the payment)
– Monthly HOA Fees (escrowed in if applicable)
– Monthly Note Service Fee
4. With an Owner Financing Deal, the property will stay in my name until it’s paid in full. You will continue to make your monthly payments until the property is paid in full. Once it’s paid in full, it will transfer to you via a Full Warranty Deed (same as above in the Cash Purchase). You can pay down the principal amount on the property as fast as you would like and there are no prepayment penalties.
What to Expect After your Purchase
Cash Purchases
If you purchase the property in full, the property will be recorded in your name within one business week of the payment clearing, and the deed will be mailed to you. You may receive a questionnaire from the county asking you a few questions about the purchase of your new property. This is NOT required to fill out, but the county does appreciate your response.
Other than that, you may not receive any additional information until tax season, which is usually October / November, but can vary by State and County. At that time, you will receive a Tax Bill in the mail. Taxes are due annually, and most counties have options for electronic payments.
If your property is in a HOA (Homeowners Association), you may receive a welcome letter HOA transfer bill (less than $100.00 typically). Then, around the same time as Tax Bills are sent out, HOA’s typically send out their bills for annual dues.
Owner Financing
If you finance your property, you will not receive any documentation from the county until the property is paid in full, and ownership is transferred to you. That is because the property remains in my name until it’s paid in full. I will pay the annual property taxes and HOA (if applicable), and escrow these costs into your monthly payment.
Once the property has been transferred into your name, you can expect the same documentation from the county as outlined above in the Cash Purchases section.
Selling your Property
Once you own the property and the deed has transferred into your name, you are free to sell it at any time in the future. While you can do this yourself, it’s recommended you hire a local title company to help facilitate the transaction. Please keep in mind that if you sell your property for a profit, you may be subject to paying taxes. Also, if you are a foreign investor, you may be subject to additional FIRPTA tax (Foreign Investment in Real Property Tax Act).
Summary
I hope you find this buying guide informative and reassuring that the land buying process with Land Champion is both safe and easy. If at any time you have additional questions, please do not hesitate to reach out. We are always here to help. We look forward to doing business together with you, and helping to make your dream of owning land a reality!