Expert Advice Part 15: Closing Process for Purchasing Land

An important part of any land purchase procedure in Alpine, TX is the closing process. Familiarizing yourself with this process will prove helpful as you navigate your purchase. There are four key components to the process.

Document review

When purchasing land, it might be tempting to think the process is simple and requires little to no paperwork. This would be a bad assumption. Simply because the property is land only, rather than a house or other type of building, does not mean you can skip essential documentation.

Be sure to review all the closing terms in the purchase agreement. Go over all contingencies and ensure these are met before closing. You won’t have time to review everything in detail at the closing and, for many items, it might be too late at that point to do anything about them.

Also review all financing terms. Look over the deed, loan summary and any other material that the bank provides. Again, the closing will be a time for a quick overview and signatures, not a time to thoroughly review terms, so do this ahead of time.

Lastly, review inspection reports, surveys and any septic system designs and soil logs, if applicable. Ensure all details are in order to avoid any surprises at closing or later on down the road.

Final walkthrough

You are entitled to complete a walkthrough of the property just before closing. The point of this inspection is to ensure the land is in the same condition as when you agreed to purchase it. Vacant land can be susceptible to dumping, so look for trash, appliances and other debris. Also check that all vegetation, sand and gravel are still in place.

Title insurance

Title insurance is required by the lender. Even if you aren’t getting a loan for the land, it’s important to pay for title insurance. This coverage provides a title search to reveal any issues with the property, such as liens, easements, boundary issues or anything else that could affect your ownership and marketability of the land in the future.

National title insurance firms handle this coverage. Your lender or your attorney will probably choose a preferred provider, but you can request one as well. Once the title report is completed, review it to ensure there are no issues with the property. If there are issues, you want to discover these as soon as possible so they can be resolved before closing.

Closing

The final step in your land purchase procedure in Alpine, TX is the closing. This is the meeting at which property ownership transfers from the current owner to the new one. You “close the deal.”

The closing can be “in escrow” or “in person.” In-person closings require a representative from all parties involved in the transaction to be present. For an in-escrow closing, a representative from the bank records the deed, and funds are held “in escrow” and distributed at the end of the day or week via checks to each party.

Partner with the pros

Since 1947, Carpenter Real Estate has sold over 1 million acres in Alpine and the surrounding area. We are your go-to source for assistance with your land purchase procedure in Alpine, TX. Contact us today with any questions.