There is no substitute for due diligence when contemplating a land and / or building purchase. Even though “buying a building” is common terminology, real estate transactions are technically the purchase of land, not buildings. “Unimproved” land means there are no buildings on it; “improved” land has a building or buildings on it.
We recommend that the services of a Realtor and Attorney be used when making a property purchase. Make sure that the Realtor is working for you and not both the Seller and Buyer.
Depending on state laws and local practices different types of agreements may be used for purchasing property. However, here are some basic things to keep in mind when considering a property purchase:
- Use a Warranty Deed to protect your rights and ensure clear title to the property, meaning there are no defects or encumbrances before and after the actual transfer of title
- If a Special Warranty Deed is suggested, make sure that the limits on the Seller’s liability do not unacceptably put you – the Buyer – at risk for title defects
- Avoid the use of a Quit Claim Deed
- The agreement should have a minimum 30-day feasibility period clause
- The agreement should have a financing clause making the sale contingent on approved financing
- The Seller should provide a current Boundary Survey of the property
Call us for a more detailed explanation of potential concerns with the various Purchase Agreements. We can provide the necessary information to formulate appropriate question for professionals, or speak with them on your behalf.
Remember, if you don’t understand it, don’t sign it! Call us before you begin planning your project.
Let us be a part of your team from start to finish!