Everything you wanted know about purchasing raw land from Land Inspire!
In an effort to provide clear and concise answers to questions regarding the purchase of land parcels, the information below has been developed to assist the buyer in making an informed purchase.
I perform preliminary research on every parcel prior to listing it for sale on my website. This information is included in every listing on the site.
You are encouraged to perform your own due diligence prior to placing a deposit on a parcel in order to ensure that the parcel will meet your needs and expectations. All of our parcels are sold as-is with no warranties or guarantees implied or expressed.
All purchases require a non-refundable initial deposit to reserve the property. This initial deposit can be made through the secure portal on the website or via bank wire.
In order to assist our buyers in being able to obtain their dream parcel(s), Land Inspire typically offers two primary methods of purchasing from us:
A. Full Cash Sale
In a full cash sale, the entire purchase price is paid during the closing process and the deed is conveyed to the buyer. The buyer will have full ownership, use and enjoyment, and tax responsibility for the parcel upon completion of the transaction.
B. Recurrent Payments through Seller Financing
In many, but not all, cases of a land purchase I can offer seller-financing to make your purchase of your dream land easy and affordable.
Our financing structure for Seller-Financed transactions is as follows:
All seller financed purchases require a down payment (in addition to the initial deposit used to reserve the parcel), a one-time documentation fee of $299 which is added to the first monthly payment, and a monthly fee to manage the note which is included in all monthly payments.
No interest is charged on seller-financed land purchases.
Land Inspire will maintain ownership of the parcel through the term of payments and, as such, will be responsible for paying any taxes or association fees during the financing period.
HOW TO BUY:
#1. Make a deposit to reserve the parcel:
A non-refundable initial deposit will reserve the parcel for you, for either payment method. The amount of the deposit is based upon the purchase price of the parcel and may be different for each parcel. Payment of this deposit can be made on the secure payment portal on the website with a credit card or debit card through the “Buy Now” button or a bank wire transfer.
#2. Complete the Google Form:
Upon receipt of the deposit, I will send you Google Form via email confirming receipt of the deposit. On this Google Form, you will need to select your preferred payment option: Full Cash Price or Recurring Payments through Seller-Financing. The completed Google Form is due back within 48 hours, otherwise the reservation on the parcel will be removed.
Once the Google Form is received with the payment option selected, a purchase agreement will be created and sent to you via email. The purchase agreement will delineate the specific payment method details. Once the signed Purchase Agreement is received from you, your documents (based upon payment method) will be processed and emailed and/or mailed to you.
#3. Documents and Payments
A) If “Full Cash Purchase” has been chosen as the payment method, I will send you payment instructions to make the remaining payment:
purchase price minus deposit, plus documentation fee of $199
using your choice of one of the following methods of payment: the secure payment gateway on my website with a credit card or debit card, bank wire transfer, or certified cashier’s check. This payment will need to be received within 14 business days. Once payment is received and cleared, I will release the new Special Warranty Deed, in which the Buyer will be named as the Grantee, and mail the notarized deed to the Buyer. At which time, the parcel now belongs to the Buyer. The conveyance documents will be sent to the County Recorder by the Buyer unless otherwise discussed.
B) If “Recurring Payments through Seller-Financing” has been chosen as the payment method, your document package will include: a Land Contract, Amortization Schedule, and Promissary Note. These documents must be signed and returned to Land Inspire within 7 business days. Please maintain copies of these documents for your reference. Upon receipt of these signed documents, Land Inspire will set up your down payment and seller-financed note through Zimplemoney, a third party note servicing company. Additional instructions will be provided to you via email to set up a Zimplemoney account through which you will make payments.
All payments after the initial deposit (the down payment and monthly recurring payments) will be made through Zimplemoney. The down payment will need to be received (and verified by my bank) within 7 business days of receiving the email with the Zimplemoney account set up information. If the down payment is not received within this time-frame, the contract is void and the initial deposit is non-refundable. A one-time documentation fee of $299 will be added to the first monthly payment. A monthly $25 note servicing fee will be added to the first and all subsequent recurring payments. Your first payment is due approximately 30 days from the date the down payment is received.
At the end of the payment term and when the final recurring payment has been verified by my bank, I will release the new Special Warranty deed, in which the Buyer will be named as the Grantee, and have my signature notarized. I will then send the deed to the County Clerk and Recording Office for recording along with any other required County documents. The recorded deed will be sent to you, the Buyer, directly by the County directly, as your proof of title.
A land contract is an unrecorded contract between you (the buyer) and me (the seller). You agree to make your payments as scheduled and you get immediate access to the land for any reason accept building or any other types of permanent changes.
When the last payment is made as scheduled, I will release the deed and have it recorded in your name. I will pay the recording fees and transfer taxes at that time and you will receive record of title from the county. You will then own the land free and clear.
The main advantages to using a land contract are: Ease and simplicity, low documentation fees (in comparison to other contractual formats), no credit checks, and not reported on your credit (so it doesn’t affect your ability to qualify for financing on other items…does not impact your debt to income ratio). There are no prepayment penalties if you decide to pay off the balance early.
Title Company or Attorney Close
If you would like to use a Title Company or Attorney for the closing at your own expense, I am happy to accommodate your request. In this case, Land Inspire will waive the documentation fee provided that you are responsible for all transfer and recording processes and fees.
And…as always…please reach out to us if you have any questions…Happy Land Ownership!!!