Acquiring a piece of land with cash sometimes looks like a very simple process if you are new to the real estate industry.
However, in the real sense, buying a plot involves some important steps that have to be followed strictly. If you are enthusiastic about real estate, then this article has detailed all the steps that you need to consider before buying a vacant piece of land.
Here is a list of steps to follow in acquiring land with cash.
- Find land for sale
It is not often easy to come across vacant land that meets your intended purpose. You will need to do some research both online or offline.
The most recommended way of looking for vacant land is by looking for listed property for sale in a specific area on major leading websites for listing lands.
Alternatively, if you don’t get land that is the right size as you wish to have, you can consider contacting the leading real estate agent to recommend you some of the properties.
- Research into finer details of the land
Once you identify the land, you are supposed to further research the property on sale to avoid unexpected costs.
For instance, you need to understand the local zoning under which the property sits on like utilities, sewer systems, and road access.
The zoning regulates the use of particular land.
- Get finances in order
Once you have identified the property to settle on, then you need to get your finances right since the next remaining steps are faster.
In most scenarios, sellers will need proof that you will be able to meet the payment. They might ask you about account balance, bank statement among other.
If you will be using bank financing, then you will need to ensure that you have finished all the documentation with your bank.
- Make an offer letter to the seller and make the first deposit.
With property acquisition, especially land, an official letter of offer is needed to express interest. Payment of first payment is a way of booking the property. And it is proof that you are serious about acquiring the property.
A letter of offer is required by the law to have both parties signing. And will be used in court as evidence if disputes arise along the process.
- Get environment Test
Many new real estate investors tend to skip this step yet it is very important. In this step, your surveyor will need to determine if there is any pollution on the land, any restriction on the use of the land, the local zoning of the property among others.
- Look into survey
“It is important to have a land surveyor to measure and put beacons on your piece of land so that you don’t run into surprises later,” says Reuben Kimani, CEO of Username Investment Limited. He has been in the real estate business for the last 9 years.
Once the land survey has been done on the property, you will know exactly where your land boundaries will be. Often, the land will have to be marked using beacons or debars.
Reuben further added that not all pieces of land are often usable, some pieces of land could not be of use because it has a public right of way. This reduces the area which can be used.
- Do title search
A title search is often done to ascertain the rightful owner of the piece of land. A title search can be done through the government lands ministry.
Doing a title deed search helps you know understanding taxes, restrictions on the property, easement of the property, and if a property lien exists.
- Tour the land
You are Almost closing the land deal. What next should you exactly do? Taking a tour of the land by foot is often the most recommended step before closing the deal. Know where you are putting your money into.
When you do this, you will be able to confirm title search and ascertain land survey of the land.
- Get Ready to pay the funds
Closing the deal involves making the complete payment if you are making a cash purchase. When making large transactions and property is changing hands, cashier’s checks in only accepted. A personal check is not allowed.
- Final process.
Once satisfied with everything and payment has been done, deed signing is the final step and you can do it through the land registry in your country.
This can be done as an individual, through a real estate agent, or with help of a lawyer. However, it is advisable to go through a top reputable real estate agent to assist you in acquiring a perfect piece of land.
