Is it possible to purchase land without a title company if your not there in person?

Question

Was looking at a small lot for sale by owner. The owner wanted to have a contract sent over through email for me to sign. After signing the real estate contract he wanted me to scan the document and email it back. However is this even a legal contract? Is there anyway to buy land without you being in person besides a real estate attorney or title company? The lot location is in Southern West Virginia.

David L. · Answer

Some investors / flippers of very inexpensive vacant land do self-close, where the cost to close with a title company (most often requiring that you purchase title insurance, which comes with a minimum cost just for issuing a policy) approaches or exceeds the monetary value of the land.

For example, there are investors who will buy desert parcels for $500 or less and flip them for a few thousand dollars. In that case, the math doesn't support paying a couple thousand dollars in fixed fees to a title company.

In those cases, the investor would know how,  and have the necessary access, to do their own title history search on the property. Or they could hire a title abstractor to do that search for them at a nominal cost. Title abstractors are the people who actually do the title research in the courthouse records for a title/closing company. Some are for-hire independent contractors, whose services an investor could enlist directly, typically for a relatively minimal cost. (suggested search term: "title abstractor [County] west virginia")

Then, if all was clear with the seller's title to the property, a valid deed needs to be drawn up. First, the investor would want to determine what they call the type of deed that is applicable to this purchase in West Virginia. As someone else replied above, you don't want a quitclaim deed (because that provides no assurance to the buyer that the seller actually even has title to the property, leaving the buyer with no legal recourse if things go south). You want what's generically called a warranty deed, only some states call it different things. For instance, in Virginia I believe it's called a bargain and sale deed. You might try googling "warranty deed West Virginia", and then look for some legal blog posts that discuss the specifics of warranty deeds in West Virginia, and whether in fact that's what they're called there, before then going back to the search results (maybe modifying to "sample warranty deed West Virginia") to find a template of the document from a reputable source.

You'd then need to get the legal description correct when filing out the deed. Assuming that the exact same parcel (no more, no less) sold previously, and you have a copy of the prior deed from the title search that your abstractor did for you, you could copy the legal description from the prior deed, word for word (diligently).

Then you'd need the seller to execute the deed in a way that is consistent with West Virginia law. In any state where I've bought and sold property, this meant the deed needed a wet signature, witnessed by at least a notary. I've not come across a state personally that would allow Docusigned or scanned electronic copies of a deed. Some states, such as Florida, require that you have two witnesses and a notary for signing a deed. There are also typically nuanced requirements for what the first page or cover sheet of the deed needs to look like (e.g., at least a x by y inches box in the top right corner left blank for use by the courthouse staff who will actually record the deed).

Once you have a proper deed document, ready for the seller to sign, you'd need a way for them to sign it before you give them the money (again, with the correct number and typeof witnesses/notary). Some investors will find a mobile notary that is willing to hand over a check to the seller, on the buyer's behalf, once the seller has signed the deed. The buyer sends the check and a return addressed envelope to the notary (not the seller), and the seller sends the executed deed back to the buyer.

Lastly, you need to get the deed properly recorded at the courthouse. If this will likely be your only, or one of very few, times that you're doing that, then recording in person might be the most practical. If the county is very old school, it's possible that recording the deed in person might be the only option anyway. Many counties do allow for e-recording of deeds though (search: "record deed [County] West Virginia"), but I think there might be only one service that does this, and it might require a subscription.

Mechanically speaking, that whole process is what a title company provides, and it definitely simplifies things (and generally provides better assurance of a good outcome) to use a title company whenever possibly.

If it's important to be able to resell the property in the (near or distant) future, having a title insurance policy is obviously a huge benefit of using a title company, as well.

Patti Robertson · Answer

Be very, very careful.  We have had so many situations with people trying to sell vacant land they don't own, that our MLS put out a warning about it for all agents.  You want to use a title company to ensure the seller is legit who they say they are.

Aaron Howell · Answer

@Hunter Pence ... I grew up in Southern West Virginia.  Honestly, I'd see if you could get as much professional help on this one as possible.  Title Company for sure and maybe an Agent if you don't have boots on the ground.  "Them Hillbillies ain't playing 'round !!!"  Maybe offer the Agent a flat fee for helping if the Seller isn't willing since it's a FSBO.

Bill B. · Answer

I’ll echo the does he even own it part.

How are they passing title? A quitclaim deed? I’ll give you a quitclaim on the land for $5o0

Are there $500k in liens on the property?

Is the land build able or are there title restrictions or land conditions saying it will be forever green space?

Why are you. Buying this? What are you planning to build there? (Please don’t say flip it or hold for appreciation.)

Follow all that with I’m not signing that contract unless I do deals like this all the time or it says real simple stuff like this legal description for this much money. No room for “gotchas”. Get your title company and lawyer involved before you sign anything. Once you sign you may be required to pay even if it’s worthless, or they’re not the only seller.

Is it possible to purchase land without a title company if your not there in person?

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