How to Close on Owner Financed Land Purchases
The first step is to schedule a meeting with the sellers to sign the purchase agreement. This document outlines the terms of the sale, including the price, down payment, interest rate, and repayment schedule. It's important to have an attorney review this document before you sign it so that you understand all of the terms and conditions.
Once the purchase agreement is signed, you'll need to get insurance for the property. This will protect you in case anything happens to the property after you purchase it. You'll also need to get a survey of the property so that you know exactly what you're buying. The survey will show any easements or rights of way that may be on the property.
Once you have insurance and a survey, you're ready to close on the purchase. The closing process will vary depending on whether you're using a title company or an attorney. If you're using a title company, they will handle all of the paperwork and transfer of funds. If you're using an attorney, they will prepare all of the necessary documents and coordinate with the seller's attorney to finalize the sale. Either way, you'll need to bring your down payment and proof of insurance to the closing.
Closing on an owner financed land purchase is a bit different than closing on a traditional home purchase. But, as long as you understand the process and have all of your ducks in a row, it doesn't have to be complicated or stressful. Just be sure to consult with an attorney or title company beforehand so that you know what to expect and can be prepared with everything you need on closing day.