The legal documents that are required to sell land

The first step to selling your land is arranging and sorting out all the documents that are needed for the land transaction. So let’s get you started with a list of all the legal paperwork you need.

The Title Deed of the Land

This document will serve as evidence that you are the true owner of the land that you’re selling. The document should contain the name, surname, and residence of the owner, location of the land, the area and the map of the plot of land showing boundaries on all four sides and shall have an index of registration. If you are not sure where your title deeds are then you should talk with the solicitor who acted for you when you bought the land, or if you have a mortgage then you should talk with your mortgage company.

The Preliminary Title Report

This report documents the claims, liens or other problems related to the land you want to sell. This must be done before the title insurance is issued because there may appear errors.

Title Insurance

The title insurance is needed to protect the owners against any property loss or damage that might occur. Each title policy has its own terms and conditions.

If you have a mortgage, the title insurance covers you up to the amount of the loan in the event that any problems arise with the home’s title after financing. The title insurance of the lender stays in effect until you pay off your loan, sell the home or refinance.

Purchase agreement

This document states that the buyer is going to buy the land for a given amount and that you are going to sell that land for that amount. The document lists any condition that would allow both the buyer and the seller to back out of the sale.

The contract for sale

The contract for sale outlines the terms and conditions of the sale and lists the documents that are required for the sale to go through.

Escrow Instructions

The escrow process includes written instructions and a deposit to a neutral party from both the buyer and the seller. The neutral party can be a title company or an escrow company. The deposit is the good faith check that is given by the buyer at the time the purchase agreement is signed. This process protects all the parties involved as payments are not made directly by the buyer and the seller.

Closing statement

The closing statement includes all the closing documents such as the settlement statement, the closing protection letter by title Company, listing agreement, property tax deposits and mortgage insurance.

The Settlement Statement

The settlement statement is part of the closing documents. It provides clarity by itemizing all of the fees charged to the buyer such as the loan amount, finance charges and settlement fees.

Closing Protection Letter by Title Company

The closing protection letter is highly recommended as it protects the owner against unauthorized actions by their agents. This document protects the owner if the agent doesn’t comply with the terms of the closing instructions. So if there are violations of the terms then the title insurance company or the closing agent will cover the costs of the misused funds.