Do you want to make money in exchange for some space? But, don’t know how to sell part of your land to generate extra income? Looking for a guideline that can help you?
Well, we understand, that gaining knowledge in this field is overwhelming. Then, how are you going to discuss the process and limitations?
Don’t worry, boss! You have come to the right place. This blog will guide you through successfully selling portions of your land.
Before You Begin: Can You Sell Land?
Before you start selling your land, you should gain knowledge on a guide that will equip you with the knowledge to navigate selling a piece of your land smoothly and successfully.
1. Mortgage
You need a partial release from your lender if your land has a mortgage. This allows you to sell a specific section without paying off the entire loan. Communicate with your lender to talk about the procedure and expected limitations drawn in your mortgage agreement.
2. Local Regulations
When it comes to subdivision, only a free is created equal. To ensure your property meets zoning requirements for splitting land, consult the local planning department. They will provide you with advice on any permits or approvals.
4 Steps to Sell Parts of Your Land
Mapping will help you on how to sell part of your land carefully. Just remember to access rights and disclose the limitations before confirming the paperwork. By following the steps, go for professional guidance. Also, you need to know advanced information about selling your property.
1. Survey the Area
Hire a licensed surveyor to accurately measure and mark the specific area you’re parting with. This establishes a clear legal description for the portion you’re selling. Then, the surveyor creates a new plat map which is one of the important documents for selling your land.
2. Take Partners or Sell Solo
You should decide whether you should go alone or enlist a real estate agent. They can leverage their expertise and network to seek the attention of the right buyers.
3. Prepare Legal Paperwork
A lawyer is hired to handle and complete the transfer of ownership of the specific portion of your land. The legal paperwork and associated documents provide a smooth and secure transaction for both you and the buyer.
4. Market Like a Pro
You should prepare an enticing list to highlight the unique features of the land. Then, to promote the portion of your land, you can use online platforms. You can utilize Facebook marketplace and other social media. Additionally, local publications should be utilized, and signage should be considered near the property.
Mandatory Documents to Sell Parts of Your Land
Freeing up some of the space will help you generate extra earnings.
1. Provide Purchase Agreement of Empty Land
The Vacant land purchase agreement is an essential legal document for you. It serves as the outline of the whole sales process. It routines the terms and conditions under which the seller agrees to sell a portion of your land.
Additionally, this agreement works as a binding agreement. The agreement includes the legal description, size, location, and unique features relevant to the sale. This ensures that both parties understand and fulfill their obligations and conditions.
The Purchase Agreement must outline the consequences if either party fails to uphold it.
2. Transfer the Ownership of the Land
The deed provides a crucial document while transferring the ownership from the seller to the buyer. This legal paperwork identifies the seller’s and buyer’s names with full credentials. Both parties must sign the deed in the presence of the witness. It includes a layer of legal validity and ensures authenticity in the future.
3. Determine the Boundary of the Land
A map of your land defines the boundaries of the specific area you’re selling. It provides a legal document matching the property description within the sales agreement and deed.
Therefore, the communication will be simplified between the seller and buyer. It also helps other parties involved in the transaction like surveyors and lawyers to communicate.
4. Get the Property Tax Bill
The property tax bill shows the responsibility of government agencies for the property. This bill gives a detailed legal description of the entire property, including the portion you’re selling. Therefore, this is the total tax due for the whole property.
Additionally, this bill gives an estimated market value. Based on that, the entire property is determined by the tax authority.
5. Provide Disclosures
Disclosures are the documents that reveal any known or unknown limitations, potential issues, or defects of your land. Transparency is the main key in this case.
Considerations Before Selling Part of Mortgaged Land
Selling part of your mortgaged land needs the lender’s approval and careful planning. You need to find a trustworthy buyer as well.
Firstly, written permission will be needed from the lender to proceed further. Most mortgages have a ‘Clie-on-sale’. It involves that selling any portion could trigger full-load repayment. Therefore, you will likely need a partial release of the mortgage.
This will guide you to sell land without paying off the entire loan. This process often involves evaluation to see if you’re eligible to buy the portion. Additionally, it involves land surveys, appraisals, and partial loan payoffs to maintain the load-to-value ratio.
It is advised to take professional guidance. Consulting a lawyer can help you understand the full implications of selling part of your land. It will ensure a smooth and compliant transaction.
Conclusion
Now we’ve come to an end. So far, we have discussed how selling part of your land can help you to get extra cash. It will also give you more control, however, it’s not always a walk in the park.
This blog has hopefully broken things down into easy steps you can follow. But remember, if you’d rather have a stress-free, smooth experience, there are companies like Super Land Buyers that can help!
FAQ
Can I Sell Land to My Neighbor?
Of course. However, you need to maintain the following steps-
- Check the local regulations to ensure that your land can be legally subdivided.
- Position the fair market value of the portion you’re selling.
- Come to a negotiation point and involve a lawyer for further consultation.
How Do I Buy Part of a Piece of Land?
To buy a part of a particular land, you need to follow some steps-
- Contact the land owner and discuss the area you want to buy.
- Determine the market value of the land you’re eager to buy a portion of.
- Consult with a lawyer for all the paperwork and deed agreement.
- Finalize the transaction at closing, where the ownership of your part of the land will be transferred to you.
What is a Partial Release of Mortgage?
A partial release of mortgage guides you to sell a portion of your mortgaged land. The mortgage land can be sold without paying off the entire loan. The seller will remove his/her share on the specific portion you sell. He/she will free up the title for the buyer as well.
