4 Documents Required To Sell Land By Owner

Selling land on your own may appear easy, but there is always much more to it than we think. You own the land, a person wants to purchase it, and you sell it to them. Sounds simple, but there’s a lot more to it, especially if you go the For Sale By Owner path. 

Keep in mind whether you sell for yourself or collaborate with a real estate agent, there will be a series of files and other things that you must be aware of that can be used in order to complete a sale. 

Although there are methods around all of this, such as trying to sell your land directly to a cash buyer, in this guide to selling land in Texas, we’ll look more closely at the documents you’ll need to be aware of.

Here are the Documents you will Need to Sell Land in Texas

1. Purchase Contract
2. Disclosure Document
3. Purchase Agreement
4. Deed

Documents Required to Sell Property By Owner

Selling land in Texas will require these four documents. Sellers won’t need an attorney, but the form must be filled out correctly.

1) Purchase Contract

A purchase agreement is the first and perhaps most important document you’ll need. The purchase agreement is a legal contract that the purchaser will ratify as part of their offer to purchase the property.

This document shows that the buyer intends to complete the transaction and is committed to meeting the conditions of the deal.

While some of the language in a land contract will be standard, there ought to be some very precise descriptions of your land and property.

It should provide a description of the property that corresponds to the real acreage or borders. 

If the land is described in ambiguous terms or differs from other plans, funding or legal approvals may be hampered. The agreed-upon price should be stated in both numbers and words. 

The buyer will be required to pay a deposit, and the entire quantity should be noted in the contract. It should also state what the seller intends to do with the deposit during the transaction. 

If the seller is offering financing for the transaction, the agreement should specify the terms. This includes loan amounts, interest rates, repayment terms, and any mortgage language. 

Take note of what happens if the buyers fail to make installments and how a default will operate. The contract should also specify whether any improvements, such as wells or walls, have been promised. 

Take note of the status of any existing features. Make sure to include the final date and any possible future extensions in the report as well. 

Allow for the possibility that a buyer will require more time than consented upon, if it appears to work for both parties.

There ought to be terminology somewhere about what occurs if you decide to pull out of the deal and what consequences are.

2) Disclosure Document

While you may be truthful and up front and honest about how you present the property, any savvy buyer will insist on a disclosure document as part of that deal. You should want it as well in order to build a paper trail that backs up everything you’ve said about the property.

Most places require these, so it’s not really up for debate in many cases.

The disclosure statement must be prepared by the landowner and must disclose all known material facts about the property. 

A property disclosure statement describes any problems or issues that the seller is cognizant of that may have a negative impact on the land’s value. 

After their offer is accepted, the majority of buyers will start receiving the disclosure statements. 

This way, the buyer can check the information before hiring an inspector to inspect the property, paying close attention to the specifics outlined in the disclosures.

It’s a valuable tool for buyers to know where to look for to ensure they’re satisfied with the transaction.

Certain substances, such as asbestos and lead-based paints, must be mentioned in all cases, according to the United States government. Texas, as well as its counties, will have their own set of rules and regulations. 

Check your local regulations because some regions need disclosures if there was a fatality on the property, while others may compel acknowledgment if any sex offenders live close.

Disclosure agreements protect not only the seller, but everyone related to the sale. This is the time to clarify anything in a disclosure agreement that is perplexing or unclear to either party. 

The buyer could always pull out of the agreement (though they will almost certainly lose their earnest money deposits. Remember that just because you didn’t disclose an issue you were totally unaware of doesn’t mean you’ve done anything wrong. 

That is why inspections are so important. If there is something that doesn’t make sense in the disclosure agreement, it is best to clear up any questions and concerns.

3) Purchase Agreement

A contract for sale will be required if the buyer is buying your Texas land with secured funding or cash. This contract will outline all of the terms of the sale and may include a list of other documents needed to complete the transaction. 

These will include financial documents pertaining to how the land will be bought and any financing arrangements. The contract for sale may also include title insurance information. 

As a result, a title company may be required to become engaged in the process in order to provide that as well as a chain of information attempting to prove it.

4) Deed

A deed is utilized to transfer the title of the land from the purchaser. If the buyer is financing or paying cash, the deed must be introduced at closing and therefore should be brought by the seller. 

The deed must then be transferred to the buyer and registered with all relevant local, state, and federal government organizations. If the seller is offering financial support, a deed is still required, but it should be held in escrow until the buyer makes the final payment. 

The deed which is a legal instrument, will be submitted with the county clerk and other government agencies once payment is completed. It will then be transferred to the buyer.

The Recorder of Deeds can be found at your local government office, which keeps track of real estate ownership records and papers. 

Can I use TREC Forms

Yes you can use TREC forms. The Texas Real Estate Commission provides these items on their website. It is available for people to use in their real estate transactions. Be sure to use these forms with caution.

People with a farm or ranches can use this document.

Other Related Documents

When you sell a house, one of the requirements will be a survey. The cost of a survey is a negotiable portion. It can be paid for by the seller or the buyer. It is customary for the sale to pay in Texas.

If you are financing the transaction, you will need a closing statement that details all credits and debits. That can be done by a title company or an attorney. 

It might include a schedule outlining the buyer’s projected payments. Other documents that will be required include a copy of the property insurance and a topographical map of the real estate with clear boundaries.

• A title search is recommended to be conducted by the seller prior to selling land by owner in Texas.
• A title insurance policy is recommended to be obtained by the buyer when purchasing land by owner in Texas.

What exactly is for Sale by Owner FSBO

If you are asking what does FSBO mean, it stands for For Sale by Owner. This is when a seller decides to list and sell their home without the help of a real estate agent or any brokers. 

This can certainly save costs that the seller typically pays. There are a few reasons why someone might want to sell their house without an agent. The most common reason is to avoid paying the real estate commission, which is typically around 6% of the sale price. 

Other reasons might include wanting to be more involved in the sale process or not having a good experience with agents in the past.

Pros of an FSBO

Selling land on your own does present its own set of challenges. It does present benefits, usually in the amount of fees that you get to keep.

The only commission you will need to pay is probably to the buyer’s agent. Its also possible you may locate a buyer who isn’t represented by an agent which would allow you to forgo a buyer’s agent fee. You get to price the property on your own.

Cons of an FSBO

Since your setting the asking price, you need to be aware of what the pricing in the market. Set it too high, and your property will sit on the market with no activity. 

When a listing sits on the market too long, this can lead buyers to feel something is wrong with the property. Being a for-sale-by-owner (FSBO) seller for your land might take a long time. 

It’s more like a full-time job, so be totally ready to handle everything on your own.

Most people will have a real estate agent who is representing them and they will have a list of homes in your neighborhood. These recent listings are known as comps and include data and research that most sellers won’t have access to. 

That also means as a seller you will be responsible for making repairs, the curb appeal of the property, and all the negotiations with the buyers agent!

Get your List of Comps Together

Since you won’t have access to MLS you can either ask a listing agent for this data. Some will be happy to do this for free. The best comps are those listings that in your subdivision and are in the same condition, square footage, and have the same amenities. 

How to List Properties for Sale

Aside from the fundamentals of FSBO for listing your home and determining an appropriate price, it’s time to list your land and any properties. Don’t worry; it’s not as difficult as it may appear; all you need to do is describe your property in the effective manner possible.

Simply put, a listing description is required for the listing process of your land. You may need to concentrate on the following points in this description:

1. Your property’s key features and any benefits of the area and location It is located in.
2. Why is your property a better choice for the buyer?
3. What other offers (negotiation, discount, etc.) do you have, if any?

With this listing summary, you can easily capture the attention of your target audience and pique the buyers’ interest in acquiring your land/property.

Once you’ve written the listing description, it’s time to familiarize it with the market and potential buyers. What better way to accomplish this than through advertising?

Photos are one of the most important aspects of any listing. Think about hiring a professional who knows how to take photos of a home!

Wait! Before you go looking for any random advertising or posting reference for your listing, ensure you don’t overlook any potentially beneficial options. This primarily entails advertising/posting your listing via:

1. Craigslist
2. Facebook
3. FSBO Website
4. Yard Sign

Are you going to be responsible for the agent commission? If not, most real estate agents won’t show homes if they can’t collect a fee!

Avoid paperwork and sell as-is to a cash buyer

The list of documents required to sell land on the market place, as well as the laws and restrictions that must be followed, can appear daunting. You must prepare the land, market it, and find a prospective buyer interested in meeting you at your price. 

The seller must also be knowledgeable to some extent about contracts. They might need to consult a broker or real estate attorney for advice. Even if you do everything correctly, you may still not find buyers, which is not fun.

Another option is to sell the undeveloped land directly to a cash buyer, such as Bodebuilders. Although the name implies that we only buy houses, we will also buy undeveloped land and lots from you with no commissions ,additional fees, or a need for a lender. 

Buyers like us will even buy your land even if you have a lease agreement with a current tenant or owe back taxes on the property.

All you have to do is contact us and tell us about the property. We can answer any questions you have at that time. We’ll inspect any properties and take ownership of it with a reasonable cash offer with no strings attached.

If you accept the offer, we will pay you in cash and take over title to the property. A buyer like us can explain in detail any verbiage in the contract. The best part is that you don’t even need to clean up, prepare the land, make repairs, or do anything other than present it as-is.