Hi, I’m Beth with TB properties Buys Land. Today we will discuss how to keep yourself safe from a scam when you are finally ready to sell your vacant land to a land investor. It’s important to note that while I cannot speak for all land investors, I can speak on behalf of TB Properties Buys Land and share with you a few things. The first thing I would look out for, if you’re considering selling your vacant land to a land investor, is one, are they closing through a title company or are they proposing to self-close? Self-closing means they are going to close out the transaction and have it recorded with the county themselves. They’re not going to use a title company so they may propose to pay you in a variety of ways, whether they are paying you with a cashier’s check / bank check, or if they’re going to have a notary come to your door and give you a check once they notarize your documents.
There can be some red flags to look out for when working with a land investor who wants to self-close. My thought, though not legal advice, but my thought is to make sure that you’re closing through a title company that’s licensed to close transactions within the county where your property is located. The title company is going to prepare the title commitment. They’re going to make sure that the paperwork is done correctly, that it’s recorded with the county, but most importantly, they are going to require certified funds from the buyer, which would be a cashier’s check directly from the bank or a bank wire. Once Title has the funds in their account, and once they have all the paperwork, then will they record with the county and only then will the property change hands you as the owner to the buyer, TB Properties Buys Land or whoever you’re working with.
When it comes to closing through a Title Company, you know that you are going to be paid because you’re working with a licensed title company and this is what they do everyday. Closing through a TItle Company is the easiest way to protect yourself from a scam. Number two, the next way to protect yourself is to take a look at the contract. Is the contract really long? Is it confusing? Is there a lot of fine print involved in that? Or is it simple and clear and easy to figure out? Here at TB Properties Buys Land, we don’t want to confuse you. Our goal is to make it very simple. With that said, our purchase and sale agreement is only one page. We very clearly call out your property and all of the individual items that we’re paying for when it comes to closing costs so that you know that whatever we quote you in terms of purchase price is what you’re going to walk away with.
There is a third point I will bring up to protect yourself from being scammed when it comes to selling your vacant land. This red flag to lookout for is if the buyer does not want you communicating with the Title Company directly. In a legitimate transaction, you should feel free to be able to reach out to the title company that they have selected (or select your own title company within that county!), but make sure that you are able to contact the title company directly and ask any questions that you might have.
In my opinion, if the person that you’re working with or the entity that you’re working with does not want you to call a title company, there is something wrong. You should be able to call Title at any time and ask them any questions that you might have. In all transactions, the title company should be in touch with you directly to find out how you wish to be funded. To give an example from one of the properties we purchased in WA state, we had a young lady who was selling her property to us and she called up the title company and she asked them all her questions. She asked them, “Hey, have you dealt with TB Properties Buys Land and before? Have you worked with them? What do you think about them?” And that was perfectly fine. In the county where her property was located, we had done many transactions with that particular Title Company before and they were able to answer her questions. She felt confident enough to proceed with the transaction and was paid cash in just 3 weeks. So, feel free to do that! I think the more due diligence that you do on your side, the safer that you’re going to feel, and that goes for so many things in life as well. But back to selling your vacant land! Selling your bare land through a title company is definitely a way to protect yourself. Next, understanding the purchase agreement is important. if it’s really confusing, I would either consult a professional or consider walking away or even renegotiating the purchase contract. You have all those options because it is your property and the ball is in your court.
One of the great benefits to working with a real estate investor, such as TB Properties Buys Land is that we are able to purchase your property quickly. We pay in cash, which means that we’re not waiting on a lender, which is oftentimes waiting on an appraiser to get out there, possibly a surveyor, which means you’re adding weeks to even a month or more time to close on top of the 2-4 weeks it would normally take. Since we pay in cash, we can close quickly, often as fast as two weeks in some counties, more likely four weeks in most other counties. Please remember that we quote covering all the closing costs so that you’re not surprised (in a bad way) at the money you are bringing home at the end of the transaction.
That’s really important because closing costs can take a substantial amount out of your profit if they are not covered completely by your buyer. There is another benefit to working with a real estate investor like TB Properties Buys Land; we are fast. You do not have to wait on the market. I mentioned this earlier, but you’re not waiting on the ever-changing market for your property to sell. Even though they say there is generally a buyer for every property out there, that doesn’t mean it might not take some time, especially as we’re coming up on the colder months, not to mention the cooling the economy and real estate market. There’s a lot of factors out there that might prolong the sale of your property but working with a real estate investor like TB Properties Buys Land, we will be able to close quickly and put cash in your hands fast. If you have any questions about safety in a real estate transaction, working with TB Properties Buys Land, if you have specific questions, we’re happy to answer those for you. Feel free to reach out. We look forward to working with you. Thanks again for listening.