Tn Land for sale by owner questions ?

[Bob77064]

Congrats Grumpy

 

[Grumpy Old Man]

Congratulations Grumpy on your new piece of land. I hope you enjoy it. The only concern I have about the "lease/purchase", or as is common in our area the "contract for deed" is that the title to the land remains in the lienholder/owner until the land is paid for in full. ( I have no idea if yours is either one so these may not apply) A couple of things could happen; if you build any permanent structure on the property and the owner loses the land through foreclosure, your buildings may become property of the bank. Also, if the owner files bankruptcy, the land is still part of his assets. I'm sure your attorney has covered this and has you protected. Again, good luck and enjoy your new property!

Yes ,we did a quick title search and the land is free and clear ,here it's called a land contract which basically means he is a private mortgage holder and relinquishes all rights and liability and tax requirements so unless you miss three payments in a row it's yours with a closing at the end be it 1 year or 7 in my case .I plan on telling every hard working young adult to do the same ,Land is security and builds self esteem which every young person needs ! and here you get 100 % mineral rights ! this property has a cold water spring ,level building site and hard road frontage and enough aged hardwood trees that could be cleared to pay for the property more than twice over and not spoil it for a home site ,Should be fun building it out with the kids over the years !

 

[1bush2hog]

Yes ,we did a quick title search and the land is free and clear ,here it's called a land contract which basically means he is a private mortgage holder and relinquishes all rights and liability and tax requirements so unless you miss three payments in a row it's yours with a closing at the end be it 1 year or 7 in my case .I plan on telling every hard working young adult to do the same ,Land is security and builds self esteem which every young person needs ! and here you get 100 % mineral rights ! this property has a cold water spring ,level building site and hard road frontage and enough aged hardwood trees that could be cleared to pay for the property more than twice over and not spoil it for a home site ,Should be fun building it out with the kids over the years !

Sounds like a great deal Grumpy - Congrats!

 

[Grumpy Old Man]

Sounds like a great deal Grumpy - Congrats!

The only problem I see right off is we will need another tractor and a larger one at that !Oh Da-n ! :laughing:

 

[kootch88]

I purchased some land in Colorado this way. It was set up so I sent the checks to the sellers bank to be deposited into the sellers account. The seller, and their bank, was in California, I was living in New Mexico. I paid it off in 4 years, never did anything with the property and 8 years later I went to sell it. Turns out the seller died 3 years into the 4 years of payments, I never got a note from the seller, sellers estate or the sellers bank stating I had paid the note off. To compound issue, the bank had been sold and nobody was around who knew anything about the loan. I was never able to track down any of the heirs to the estate. Paper trail through the seller, sellers estate, sellers bank was non-existent, all I had was my canceled checks and the original note. It was a major hassle, numerous legal hurdles to get over to be able to sell the property. Something to keep in mind.

Did you register the sale when the note was paid off? If you have a solid purchase and sale agreement the death of an individual shouldn't make it complicated at all.

 

[jinman]

Yes ,we did a quick title search and the land is free and clear ,here it's called a land contract which basically means he is a private mortgage holder and relinquishes all rights and liability and tax requirements so unless you miss three payments in a row it's yours with a closing at the end be it 1 year or 7 in my case .I plan on telling every hard working young adult to do the same ,Land is security and builds self esteem which every young person needs ! and here you get 100 % mineral rights ! this property has a cold water spring ,level building site and hard road frontage and enough aged hardwood trees that could be cleared to pay for the property more than twice over and not spoil it for a home site ,Should be fun building it out with the kids over the years !

Grumpy, if you ever wish to build on the property, you may want to get a severance deed. You normally do that by getting a survey of the land you want to sever and then come to an agreement on price with the mortgage holder. A tract of land will have parts that are more valuable than others, so it is a mistake to think that you can get the severance without paying a premium price. But also, whatever price you pay is deducted from the principal, so you are only paying up front. After you get a severance deed, you can borrow money to build and roll the severance into the mortgage as a down payment. A bank will want the ability to foreclose and have clear title to the structure and the land if needed.

If you want to put a temporary structure such as a portable building or mobile home, you may be able to do that without it having any bearing on the original contract. Certainly, if you build a pole barn or shop, then that would become an improvement that could be lost unless you get a severance.

Good luck! It sounds like you have found a beautiful place and are building a valuable asset for your children. Now, you have the excuse to buy more equipment, tools, and tractors.

 

[stingray1]

Grumpy, I sent you a P.M.

 

[Grumpy Old Man]

Grumpy, if you ever wish to build on the property, you may want to get a severance deed. You normally do that by getting a survey of the land you want to sever and then come to an agreement on price with the mortgage holder. A tract of land will have parts that are more valuable than others, so it is a mistake to think that you can get the severance without paying a premium price. But also, whatever price you pay is deducted from the principal, so you are only paying up front. After you get a severance deed, you can borrow money to build and roll the severance into the mortgage as a down payment. A bank will want the ability to foreclose and have clear title to the structure and the land if needed.

If you want to put a temporary structure such as a portable building or mobile home, you may be able to do that without it having any bearing on the original contract. Certainly, if you build a pole barn or shop, then that would become an improvement that could be lost unless you get a severance.

Good luck! It sounds like you have found a beautiful place and are building a valuable asset for your children. Now, you have the excuse to buy more equipment, tools, and tractors.

I'm building my property and the new one with no mortgages ,I did this one only as an easy way to tie it up and not lose the deal it will be paid for shortly because in this uneasy economy money is better in land than the stock market !and probably has better tax advantages , My intention is to let the kids pay for it together and with help build with no mortgage .you don't OWN anything until the title/deed is in your name till then your just a renter .

 

[FTG-05]

My wife and I are looking for 50-150 acres in western Lincoln county - I'm all hears if you know of someone selling there! My plan is to buy without debt and then start building from there.

Thanks,

 

[Grumpy Old Man]

My wife and I are looking for 50-150 acres in western Lincoln county - I'm all hears if you know of someone selling there! My plan is to buy without debt and then start building from there.

Thanks,

check your local craigsliist and for sale buy owner .com sites there is a place for everyone if you look for it !