Land purchase question

[TJay]

My wife and I have found a small parcel of land that we would like to buy and it is for sale "by owner". Any property we have ever bought was facilitated thru a real estate agent and I was wondering if it's feasible to just do it on our own without an agent? As I understand it we will need a survey, perk test and a title search. Is there anything else that we'll need at closing? I'm tempted to contact a real estate person just for a purchasing agent but if it's not that complicated I'd like to do it myself. Has anyone ever purchased land private party to private party, so to speak? Am I missing anything? Thanks!

 

[dwhee87]

I'd recommend hiring a real estate attorney. They'll handle all the paperwork and make sure all the I's are dotted and t's crossed. Seems last time I used one for a home purchase, it cost me about $1200.

 

[Jim Baker]

Have you come to an agreement with the seller on price?


If so you need a surveyor and a real estate attorney. The county health dept. will do the perk test. Get that first.

Give the seller a binder based on a perk test passing and the survey. A written agreement on those particulars and the amount of ground being purchased and that seller will pay survey if it does not reflect the property as represented to you.

 

[TJay]

Haven't made an offer yet, that will be the next step I guess. We have some docs downloaded from the net, due diligence/earnest money and another one that I can't remember offhand probably the purchase contract. I'm trying to figure out the order in which I need to proceed. I will need a real estate attorney to close and prepare a deed. I don't think the sellers know that much on the process either.

 

[rjcruiser]

You don't need a perk test. I just bought some property without one. Used a realtor, but all they did was be the go between for myself and the landowner.

The financing company (AgSouth) set up the closing attorney and dealt with all of the survey, title insurance etc etc.

 

[Jim Baker]

You don't need a perk test. I just bought some property without one. Used a realtor, but all they did was be the go between for myself and the landowner.

The financing company (AgSouth) set up the closing attorney and dealt with all of the survey, title insurance etc etc.

YOu don't have to get a perc test to buy property, but unless something has changed you will have to get one before you build on the property if there is no public sewage. It is best to know ahead of time what will be required and allowed on the property. There are several requirements that must be met to have a septic system and water well depending on the size and configuration of the property.

 

[TJay]

It's 5 acres and we are planning to build a home on it. I'm thinking I'm going to need a perk test sooner as opposed to later. There was a perk test done around 15 years ago but I'm sure it's probably no longer valid.

 

[rjcruiser]

Unless it is on a swamp/lake or has an extremely high water table, how is 5 acres not going to perc? But, if it makes you feel better, get it done before you buy.

 

[Lilly001]

Last two pieces I bought I just hired a local attorney to do it. One was 160 acres that cost me 350.00 + title insurance. The other was 1 acre that cost me less than 200.00.
It was easy. Both already had surveys, but that wasn't needed as both were cash deals. Attorney did a local check though the county records and we closed in less than a week.
If you finance the purchase the lender may have additional requirements.

 

[Lilly001]

Unless it is on a swamp/lake or has an extremely high water table, how is 5 acres not going to perc? But, if it makes you feel better, get it done before you buy.

You would think.
But on my 160 acres the area I picked for my cabin wouldn't pass at first. We finally found an area about 150 feet away that did pass.
This was sand/clay of a type that the county girl recognized right away as being troublesome. It covered an area of about 10 acres (county soil maps are interesting) and of the 160 total I chose right in the middle of it.

 

[oops1]

Sold 50 acres to a developer and the deal was contingent on a perk test.. I'd get one for piece of mind.

 

[95g atl]

Contingent upon:
perk test
survey
etc

Closing attorney for sure.

 

[NCHillbilly]

I bought a 7-acre parcel last year owner-to-owner cash deal. All I had to do was get a lawyer to transfer the deed, then file it at the courthouse. All mine. Cost about $175 total with no hassles at all. The corner markers were obvious, and pretty much where the GPS/plat map said they should be, so I didn't bother with a survey. If I was planning on building a house on it, I would probably get that perk test before buying, though.

 

[westcobbdog]

With or with out a Realtor consider making your offer contingent upon being issued a building permit, which comes after every other step. This is if you intend to build right away.

If not your due diligence needs to be extended to include the 21-30 days a surveyor needs to survey and site the home inside the set backs and in your building footprint.
Also keep in mind if not using a Realtor's G A R form, then that other form has many holes or loopholes and may not hold up in court. It's all good until a dispute arises, then the contract controls.
And these forms are better than an on line form, imo.
I frequently get offers from agents that are non realtors and their forms are not allowed by my Broker, because they are too vague and won't hold up in court.
Best of Luck TJ.

 

[JustUs4All]

I bought a 7-acre parcel last year owner-to-owner cash deal. All I had to do was get a lawyer to transfer the deed, then file it at the courthouse. All mine. Cost about $175 total with no hassles at all. The corner markers were obvious, and pretty much where the GPS/plat map said they should be, so I didn't bother with a survey. If I was planning on building a house on it, I would probably get that perk test before buying, though.

I did the same a month ago on a 15 acre parcel except that I drew my own deed. Corners were clearly marked and I was familiar with the last 100 years of ownership. Total cost was the filing fee of $18 and the transfer tax of $1 per thousand.

Perk test for sure if you are going to build even if you only determine the protocol used and do it yourself. Title search if you are not sure of it. If there is any doubt get a pro involved.

 

[notnksnemor]

Definitely a perk test since you're going to build.
A lot of people don't realize that water being absorbed by the ground too fast will also fail a perk test. Sand is notorious for this.

 

[TJay]

Thanks guys, good information all. This will be a cash deal so that should make it easy. Sounds like a perk test, survey (with setbacks) and title search. Secure a lawyer and do the deal. I think that'll work. We made them an offer today so things are happening!

 

[95g atl]

With or with out a Realtor consider making your offer contingent upon being issued a building permit, which comes after every other step. This is if you intend to build right away.

If not your due diligence needs to be extended to include the 21-30 days a surveyor needs to survey and site the home inside the set backs and in your building footprint.
Also keep in mind if not using a Realtor's G A R form, then that other form has many holes or loopholes and may not hold up in court. It's all good until a dispute arises, then the contract controls.
And these forms are better than an on line form, imo.
I frequently get offers from agents that are non realtors and their forms are not allowed by my Broker, because they are too vague and won't hold up in court.
Best of Luck TJ.

Very very valid points. (you must have a R/E lic like me). I can elaborate more in depth about the benefits of using an exp'd agent w/all transactions, but some folks may not want to go that route (which is ok too). That commission becomes peanuts compared to legal costs in that rare case if something goes wrong.

There are more in depth Real Estate forms that you can PURCHASE online that cover more than a basic one or two page contract. In my humble opinion, they are worth the price of admission if the parties do not use the GA "GAR" forms.

SPEAKING FROM TRANSACTIONS IN GEORGIA:
One should HIGHLY consider using a closing attorney. They are able to conduct a TITLE SEARCH and HAVE TITLE INSURANCE in case something pops up on title that was never caught. Small price to pay to ensure everything is done properly.

 

[westcobbdog]

TJ in addition to your survey make sure you purchase Owners Title Ins. to protect your equity interest in the property forever with a 1 time fee. Closing atty sells you this ins policy and gets a cut.
In todays current market you now get a Closing Disclosure that replaced the old HUD1 settlement form.
Point is you get it a bit sooner as required by law vs the day of or day before closing. Closing atty rep's Buyers Lender in Ga., unless you are cash.

 

[NOYDB]

survey make sure you purchase Owners Title Ins. to protect your equity interest in the propertyforever with a 1 time fee.

Or until the co goes under or is bought out. Protect your interests with your copies of everything.