How to Sell Land and Stay Compliant with State and Local Regulations
Liens and Encumbrances
The first thing you'll need to do when selling land is to determine if there are any liens or encumbrances on the property. A lien is a legal claim against the property that must be paid off in full before the sale can be completed. An encumbrance is a non-financial claim against the property that does not have to be paid off but must be disclosed to potential buyers. Common examples of encumbrances include easements and zoning restrictions.
If there are liens or encumbrances on the property, you'll need to pay them off in full or work out an arrangement with the lienholder or encumbrance holder prior to proceeding with the sale. Once all liens and encumbrances have been satisfied, you'll be able to move forward with finding a buyer for the property.
State and Local Regulations
The next thing you'll need to do is research any state or local regulations that may apply to the sale of your land. Depending on where the land is located, there may be special regulations that govern how land can be sold. For example, some states require sellers of vacant land to obtain a real estate license in order to lawfully sell the property. Other states have no such requirement.
Additionally, some municipalities have zoning regulations that restrict how land can be used. These zoning regulations will need to be taken into account when selling land as they will impact who can purchase the property and what they can do with it once it has been purchased.
Finding a Buyer
Once you've determined that there are no liens or encumbrances on the property and you've researched any applicable state or local regulations, you'll be ready to find a buyer for your land. If you know someone who is interested in purchasing the property, great! If not, you'll need to market the property for sale using traditional methods such as print advertising or online listings platforms such as Zillow or Trulia.
When marketing your land for sale, it's important to include information about any liens or encumbrances on the property as well as any applicable state or local regulations so that potential buyers are fully informed about what they're potentially purchasing.
Conclusion:
Selling land is a big decision with many moving parts. In order to ensure a smooth transaction, it's important to do your due diligence upfront by determine if there are any liens or encumbrances on the property as well as researching any applicable state or local regulations. Once you've done your homework, you'll then be ready to find a qualified buyer who is willing agree to terms that are satisfactory to both parties involved in the transaction.