Beth:
Hi, I am Beth with TB Properties Buys Land.
In the previous two videos, we’ve discussed scam offer letters and you as the land seller understanding the process in which the transaction takes place. While I cannot speak for other land investors, I can speak on behalf of TB Properties Buys Land and explain to you how we work so that you can understand and compare perhaps to another investor and decide whether you want to work with us or not. In the very first video we discussed that first interaction between us as the investor and you as the seller, and the information that we need in order to make you an offer. In the second video, we discussed the contract and what that involves. Once the contract has been signed, we will send that to the Title Company. We’re always going to work through title for the safety factor.
In case you are not aware, there are a couple ways in which we can send the executed contract over to Title. The easiest way that we work with, and perhaps the most often used way, is an e-sign type option. How this works is that we first email you a copy of the contract, you review it and ask any questions before agreeing to sign. When using eSign, you simply open the email we send you and it allows you to sign from the convenience of your smart phone, tablet or computer. Using an e-signature method is very easy and upon signing, it captures your IP address, and so it can identify that it was indeed you who signed and not someone else. Once all parties sign, you receive an automatic email with a copy of the contract and then we can conveniently and quickly send the executed contract over to Title in order to open up escrow.
To be clear, if you don’t have a means of using an eSign method or if you don’t feel comfortable with that, we can always email you a copy of the contract in which you can print it, sign it and scan it and then send it back to us. You can even print it and sign it and take a picture with your smartphone and email it back to us that way. Just recently we had a gentleman ask us to mail the contract to him. In his case, we mailed him two copies of the contract where he was able to sign both. He mailed one copy directly to title company for us, and he kept the other one. Whatever method you prefer does not matter to us. We are willing to work with and accommodate whichever method is most comfortable for you. However it is you choose to sign the contract, once it is signed, we send it to the Title Company.
Once the contract has been sent over to Title, the first thing they’re going to do is they’re going to let you know that they’ve received it. After that, generally within 24 hours, they ought to email us back with our file number or reference number for the transaction. Why is that important? We believe at TB Properties Buys Land that you, as the land seller, need to have a direct connection to the title company. That way if you have any questions, you can ask them directly, and it’s nice to have the reference number for ease of communication. Again, once the file is established, Title ought to email you directly, but if they don’t, one thing I like to do here at TB Properties is just email you that file number just in case so that you always have that on hand. That way you can easily call them up and say, “Hey, Title Company, this is Mr. or Mrs. So-and-So I’m calling about file # ABC, I have a question about this… I want to close in person now, or I’m traveling that week. What can we do?” We firmly believe that you need to be able to have direct access to the title company.
Once a file number established, we’re still in queue until they are ready to close. Title Companies are very busy and it takes time; they’re not going to get to us right away. Timing depends on how quickly they’re moving through files or how busy they are. The next step is for them to issue forth a title commitment. Basically a title commitment is a big PDF document of information that tells you all about your property. If you have any access or utility easements, it will be listed on your title commitment. It might tell us that your neighbor has access across a private road that runs through your property in order for them to get to their property. If this is inherited land and the deed is not in your name, it’s going to tell us what to do so that legally they can convey the property from you to us.
The title commitment might state that they need a copy of the probated will of one of your family members or it might tell you that there are other heirs who need to sign for the sale of the property in order to legally convey and sell the property. Just know that the title commitment will specify what needs to be done in order to close on the property legally and move forward. This is the next step. After that, it is picking a closing date, and the closing date should be on that contract already. On our contract we call out the closing date as “On or Before…” a specified dates so that if Title can close faster, oftentimes we can close earlier and you get paid sooner. Title will need to know whether you plan to come in and close in person or if you plan to close virtually.
Hopefully this explains a few things about the closing process. In the next video, I’ll try to discuss what closing virtually involves versus closing in person. And if we can squeeze in funding and the different options you have for funding, I’ll discuss that as well. I just want to make sure that you understand all the aspects of the closing process and what it might look like to sell your land to a real estate investor. Knowledge is power and my hope is that this equips you to make a better, more educated, decision about selling your land, that it might help you identify any potential red flags so that you determine whether you need to shy away from somebody or if you need to ask more questions. In any case, feel free to reach out to us here at TB Properties Buys Land. We pay in cash. We close through title. We buy vacant land. I look forward to hearing back from you. Thanks.