first time buying land, The legalities, and how?

[ktlove]

I found a little bit of land in NY State, "back home" right where I want to be.
I currently live in Florida, soon to move back home to NY. (Less than a year)
I found this for sale by the owner, just about 3 acres for $6,000. I can pull that money together, but I am not quite sure what more to expect.
I have been looking for land, but ,admittedly, not been doing my homework as how to follow thru with the purchase.
Ok, should I get a real estate attorney? I mean, someone has to sign these documents right? That has to cost something, the legal fees.
What about the title search, I should do one of those right? That has to cost as well, I am guessing a couple hundred bucks on that.
I am sure a lawyer can do both these things for me, I DONT KNOW WHERE TO FIND ONE.
Should I use a local attny? UGH, by the time I figure this all out I fear the land will be gone.
Please, what do I need to know, should I just find a lawyer and call him? I dont want to get duped and 6,000 is alot of cash for me, and if an un needed lawyer is going to cost me an additional 10% that I dont REALLY need to spend...Thats $ I could have spent on fruit trees...
Thanks all.

[AlchemyAcres]

Where in NY?
You definitely need a title search!!!!!!!!
What do you plan to build?
You really need to compare property taxes in the area because the Marxist *****rds are gonna want their share!

~Martin

[beekeeper]

When we bought the land of our farm, the sellers usually sign a quit claim deed. I insisted on using lawyer, which they refused to pay for. So I paid $200 flat fee to a land transaction lawyer.

For that $200, we got a title insurance policy, and a deed.

I spoke with the lawyer over the phone a couple times, and mailed him the check for the land. I got the deed in the mail.

[jen_in_southtexas]

Definately hire a reputable title company to do a title search in order to obtain a title policy. Attorneys that represent the title company will draw up the papers. It will be the best money you've ever spent. And in my experience, the money has always been payable to the title company for the property. Shop around for title companies. I have found some to be considerably cheaper than others. They usually file all court documents for you. That is usually included in the fee.

It also wouldnt hurt to call the county appraisal district for that property to find out who owns it, are there any taxes due(call county tax office)? How much? Will they pay them? Also ask them if this property was ever in any legal disputes. Sometimes when properties are/have been in legal disputes and if the attorney/legal fees have not been paid off, they still have a lien on the property and even at that some people will still try to sell it to you. That happened with one of the properties i was interested in. Thank goodness the clerk mentioned it.

Before you call them, try to get the legal description of the properties. They are usually sold in parcels. Ex: lot 3, lot4, lot 5 of Smith Acres, Palomino Subdivision. Sometimes its just one whole one depending on how they were originally registered thru the county.

Ask questions and lots of them. Call a title company. They are full of information that can help tremendously.

Find out maybe thru the county surveyors office if that is a flooding zone. Find out what kind of restrictions you are looking at..ask seller for a copy of restrictions before any paper work is signed. Ex: cant build this, no animals allowed, home must be so many square feet etc. Is the lot only for residency or commercial? Also ask the seller how long the property has been for sale. If its been a good while, offer a little less money.

And another VERY important thing to make sure there is is a recent survey of your property with visible markers on all corners of your property and a copy of it on paper. When you ask them for one they should be able to provide you with one but not everyone will. I strongly advise to get one and try to get the seller to get it for you. They are costly. They say a survey less than 10yrs old is good. But he should be able to walk the entire perimeter of property and show it to you and the markers/stakes. If he says he will get it for you later make sure it is stated on paper but i would prefer to have a survey before you even purchased the land. You NEED TO KNOW what is yours and what is not. Big nasty disputes are are result of such things.

I hope this helps. Ive been in a nasty dispute about property boundaries. I dont wish that on anyone.

Good luck to you. I hope it all works out for you. $6,000.00 for 3 acres is really cheap.

-j

[ktlove]

Thank you to everyone so far.

My intentions are to plant some fruit trees and berry bushes, in the future, dig the well, and the septic, add a green house, work the field, get some chicks.


Basicly this woman bought the land 30 years ago it was a small 3 acre lot next to her parents farm, she bought is so they would not have an imediate neighbor.
She thought for years he son would like to build on it but he never did. The womans parents sold thier home a few years back.
soil is good, the neighbors have wells, thats all I know about the wells.
Flat land with a few pines, almost totally cleared, some of the nicest looking grass. (everything is nice compared to the grass down here)
It sits on top of the valley, looking down, cant imagine much flooding there, rural area, zoned residential.
I looked at other land for sale in the area and this is just below what everyone else is asking.
Its a few minutes drive from letchworth state park, and, anywhere but NY City is basicly depressed, thats why its 6,000.
Taxes paid up, only a few hundred a year as it stands, and in one of the best counties for taxes that I have been doing my homework on.
Thanks again!

[WRTN]

In addition to a title search already mentioned, I suggest obtaining title insurance. It is not an essential item but can cover you years down the road if a problem is uncovered with the deed.

I also suggest obtaining a current and past couple of copies of the deed from the previous owners and any surveys. Read through them to look for any easements, covenants, restrictions, grave yards, mineral rights witheld, even timber rights. You want to ensure you are buying ALL of the land as well as ALL rights and options that come with it.

Easements in particular are a HUGE headache. So much so that I DO NOT grant them.

It would also be a wise move to walk the property and look for any signs of illegal dumping or other activities that could come back to haunt you later.

Get your earnest money paid and real estate contract signed so that way the owner cannot legally sell to someone else while the waiting to close.

Well PRIOR TO CLOSING (I suggest at least 2 or 3 days) INSIST upon being provided a copy of a HUD-1 form which shows who is paying for what and exactly what all the closing and other costs are. This form shows the TRUE cost of the deal so you can raise the BS flag if need be or point out any mistakes (which do happen).

Are you buying from the owner or is a real estate agent involved?

Insist a deeded legal access be included in the deed (this is important as if there is none, you could be land locked with no legal access requiring EXPENSIVE legal action of obtain one)

Below is an example of a real estate contract. The required items and format vary by state but it covers most of the essential points. Sorry for the long cut and paste:


CONTRACT TO PURCHASE UNIMPROVED
(NONRESIDENTIAL) REAL PROPERTY

THIS CONTRACT made this XXth day of Month, Year, by and between Seller's Full Legal Name, hereinafter referred to as the Seller and Buyers Full Legal Name, hereinafter referred to as the Buyers.

WITNESSETH:

The Sellers agree to sell and the Buyer agrees to purchase for the sum of FOUR THOUSAND SEVEN HUNDRED FIFTY and 00/100 DOLLARS ($4,750.00), the property in County, State, known and designated as follows:

Map #, Parcel #, Deed Book #, page #, of # deeded acres owned by Owners Full Legal Name on Deed,

(1) PURCHASE PRICE AND MANNER OF PAYMENT:
Total sale price is FOUR THOUSAND SEVEN HUNDRED FIFTY and 00/100 DOLLARS ($4,750.00). Purchase price shall be paid as follows:

1. Contract deposit ONE THOUSAND dollars ($1,000) earnest money to be refunded if the sale fails through no fault of the buyer. Funds to be deposited into a non-interest bearing Trust Account with closing attorney Full Legal Name immediately upon sellers acceptance of this offer and returned to buyer at closing.

2. Balance to be paid by buyers at closing.

(2) SETTLEMENT AND POSSESSION:
Final settlement shall be made on or before Month Date, Year. Buyers will settle as soon as possible.

(3) MECHANICS LIENS AND POSSESSION:
Property shall be delivered to the Buyers at settlement, vacant, free of any and all other leaseholds, rentals, tenants, occupants, and the Sellers agree to execute a standard Affidavit relative to Mechanics Liens. Possession will be at settlement.

(4) PRO-RATED ITEMS:
Real Estate Taxes and other prorated items shall be adjusted as of the date of final settlement.

(5) CASUALTY LOSS:
In the event that there is a casualty loss to the property, the parties agree that the liability for such loss shall remain with the Sellers until closing is complete and the buyers have been so notified.

(6) SETTLEMENT EXPENSES:

(a) Payable by Seller:
1. Seller’s recording cost (if any)
2. Cost of preparation of General Warranty Deed delivered at settlement
3. Seller’s attorney’s fees, if any.

(b) Payable by Buyer:
1. Examination of title.
2. Title Insurance premium.
3. Buyers recording cost
4. Buyers’ attorney fees, if any.

(7) DEFECTS IN TITLE:
The Sellers shall convey said property to the Buyer by General Warranty Deed, with full covenants, except as may be hereinafter specifically set forth, in proper statutory form for recording. In the event that there are any defects, liens, or encumbrances revealed by examination of title that would prevent or inhibit conveyance of a fee simple marketable title insurable by a reputable title company in the State of Name of State, the Seller shall have 45 days following written notice of such defects, within which to correct such defects. In the event that said defect or defects would render the title non-marketable, or uninsurable aforesaid, without standard exceptions thereto, then all money paid hereunder as earnest money or deposit, shall forthwith be returned to the Buyer and the parties shall have no further liability to each other under this contract. However, the Buyer, at his sole option, may waive such defects and accept conveyance subject thereto.

(8) HEIRS AND ASSIGNS:
Provisions of this agreement shall be binding upon the heirs, devisees, administrators, executors, personal representatives, and assigns of the parties hereto.

(9) CONTRACT CONTAINS ENTIRE AGREEMENT:
All parties hereto agree that they have read and understand the entire contract, and it presents the entire agreement by and between the parties hereto, and no representation has been made that is not included herein.

(10) INTERPRETATION OF AGREEMENT:
Throughout this agreement the singular shall include the plural and vice versa: and the word “Buyer” shall include Buyers or Buyer and the word “Sellers” shall include Sellers or Seller.

(11) COMMISSION:
Since this contract is being executed between the buyers and sellers, no commission is involved. (if a real estate agent is involved, list the Full Legal Name and amount of commission spelled out and numerically written)

(12) SETTLEMENT:
Settlement hereunder is estimated to be or before Month Date, Year. Settlement to take place at the offices of Name of Closing Attorney during normal business hours.

(13) MISCELLANEOUS:

1. A legal deeded access to the property will be guaranteed to the buyers by the sellers in the deed.

2. All available copies of previous deeds, plats, surveys, area map showing State and County roads, etc. will be provided to the buyers prior to settlement.

3. Seller warrants that the Property is free of any amount of waste or hidden debris and is also free from all Hazardous Materials and no Hazardous Materials have ever been stored or located upon the Property. Purchaser may obtain an environmental audit, at Purchaser's expense, showing the Property free from any indications of contamination, but shall not be obligated to do so. Should said audit reveal any evidence of contamination, Purchaser may terminate this Contract.

4. This contract/offer is valid through Midnight of Month Date, Year.

WITNESS the following signatures and seals:
SELLERS:
_____________________________ Date ___________
Full Legal Name of Sellers

BUYERS:
_____________________________Date____________
Full Legal Name of Buyers

Receipt of the $_____________ deposit is hereby acknowledged:
____________________________________
Full Legal Name of Closing Attorney

Date____________

[hillsidedigger]

I would recommend getting a new survey. Much could have happened since a survey 10 years ago.

$6k is a bargain for 3 acres.

I am scheduled for a closing on a 3 acre sale next week of very rural, secluded and remote 'sorry mountain land' (not in a resort area or in a development) here in WNC for a price of $55k. I was asking for $95k. Note: This very property was formerly nearly worthless having sold in 1960 for $45.00.

[AlchemyAcres]

and the septic!

Make sure that there's a suitable septic site on the property.
Without one the 'rulers' will not allow you to build a dwelling.

A soils profile and percolation test will need to be done.
See if the current owner will pay for the testing, or at least split the cost.
It's worth a try!


~Martin :)

[buzzy]

Call a Real Estate agent in the area and tell them you want to buy the land.

Tell them you want a title search, title insurance, etc... Tell them you want a perk test, see how much it would cost to run electric to the land, if there are any zoning problems, etc. and on and on. It's likely they will have a few questions you haven't thought of.

They'll make sure you get all that stuff. That's what they do.

Good luck.

[Saoirse]

Take a trip to the County building to the land use dept. They will be able to tell you if the property is zoned for building, if there is floodplain or wetlands, if they require engineering (expensive) prior to building and if there are any county restrictions as to the use of the land. They can also give you an aerial map and a very good idea of where the boundaries are and if there are any easements. A trip to the Assessor's office will clarify any tax questions. You should hire a lawyer or real estate agent to write the contract contingent upon the seller giving you clear title. $6000 is a lot of money, so why not spend a few hundred more on professional help to insure your investment is a wise one?