Beth:
Hi, I’m Beth with TB Properties Buys Land. What does the closing process look like when you are selling your vacant land to a land investor? Last week we discussed in detail our own contract that you might sign between yourself as the seller and TB Properties Buys Land as a land investor. We also mentioned that everyone’s going to have a different contract, and we talked about a few things to look out for in order to protect yourself. Back to today’s topic: what does closing look like when you’re working with the real estate investor? Not all real estate investors are alike but when working with TB Properties Buys Land, we try to keep it so very, very simple. First of all, all of our transactions go through a Title Company and what makes everything so easy is that Title takes care of everything! After you sign the purchase agreement that we discussed last week, that is the contract between you as the seller and TB Properties Buys Land as the buyer, we will email the signed contract off to title and copy your. Title will send a response, with the file number for your reference so that you can respond at any time with questions directly to them or you are always able to reach out to us. Once they have set up our file they get to work putting together the title commitment.
Once they have the title commitment ready, they will email it out to both you as the seller and we as the buyer for us to look at everything. If there’s anything that you need to do in order to sell the property, for example let’s say the deed is in your company’s name, they might ask for your LLC documents or if there’s some issues with heirship for your inherited property, they’re going to ask you for some information. For us as the buyer, it will give us a greater history of the property and alert us to any potential issues that we may need to be aware of. Once everyone looks at the title commitment and once title has everything that they need in order to close, they will send out closing paperwork to both you as the seller and we as the buyer.
Not much happens after that! Both parties sign the documents, it closes, and title will give you your payment. They will ask us as the buyer to send certified funds. This means they will only accept a bank check (a cashier’s check from the bank), or we have to wire funds directly into their account. They have to be certified, so they have to receive these funds before they can close. Once everything’s recorded, they will issue you your payment and your cash payment will either be wired to you or if you requested a check, that will be overnighted directly to you. If you close in-person, Title may hand you a check as you walk out the door. As you can see, there are different options for your cash payment for the sale of your land and Title will ask you directly how do you preferred to be paid? It is important to point out that when working with TB Properties Buys Land, you will be interacting with Title directly, and you are free to ask any questions that you may have. We are also here to answer any questions you may have as well. We want there to be transparency for you as the seller throughout the transaction.
Regarding last week’s discussion on the contract, we’ve had questions about one of the items on here which specifically says, “Title and Conveyance: Seller (that will be you) will transfer marketable title to the property by warranty deed. Seller will clear all liens and encumbrances from title.” The question we encountered was: is it you as a seller putting together a warranty deed for us? Are we going to require you to do some research and figure this out? No! What this is simply stating is that we are asking the title company to convey the property via a warranty deed. There are multiple types of deeds out there, and we’re simply saying that we want the warranty deed. That doesn’t mean that there’s anything that you have to do, these are just instructions for the title company. Just to reiterate really quickly, what do you do as the seller when you’re selling your bare land to TB Properties Buys Land? You look at the contract, if you agree with everything and you don’t have any further questions, you sign it and you send that back to us.
We copy you on our email to the title company, they get started, they send you the title commitment. If there are any instructions that you need to do, you do those if you agree with that, of course. And then you simply sign your paperwork in front of a notary and title closes. They send you your closing paperwork, they send you your cash, and you’re ready to go. As quick as three to four weeks, you’ve got your money. If you have questions about selling your bare land to a real estate investor such as TB Properties Buys Land, feel free to reach out to us. We pay in cash so we can close quickly, we always close through a title company so that you’re protected, and we try to work with you as quickly as possible. Thanks again for listening, and we look forward to hearing from you.