|
I want to buy a couple of acres off Cousin Lou’s farm. What do I need to do?
That’s the phone-call question that sets off this article. What do you have to do to get an acre or two from Cousin Lou?
The terms of the deal have to be certain, and the local laws have to be met. The terms can be as simple as an "I love you dear, take what you want," or as complex as a twenty page document detailing each and every detail. What’s the advantage of a long contract? It will provide you with a checklist of things to think about before you set the price, and ‘who does what’ should make a difference in how much you pay for the land.
Here are some things you and Cousin Lou have to discuss and get into a contract:
• Will Lou provide proof of ownership and when will he give it to you? This means abstracts of title and tax searches.. If you’re going to borrow and build, you need an abstract from him. Who’s going to pay for it? Usually the seller unless.... you guys agree differently.
• Will Cousin Lou guarantee title and give you a full warranty deed? Will all the taxes be current, will you give him back his share of the taxes paid in advance for the part of the year that you are going to own his property? If he has a mortgage on the property, will his bank release the acreage from the mortgage? And how much will his bank want from the purchase price?
• How will you deal with water if there is no municipal supply? Who will pay for the well and when will it be drilled? Before or after the title passes? What happens if it comes up dry? Should you make the contract conditioned upon finding water and drill before you pay for the land? Even if the cost of the well is yours?
• Is the property on a public high way that is maintained by the town? If it is a private way, who pays for its upkeep and who keeps it open in the winter?
• What about percolation of the soil, [will the soil pass water like sand, stop it like stone and clay, or leach it like loam]? Can you get by with a simple leach field or will you have to install an above- ground engineered leaching system?
• Does the town require a subdivision approval process through the planning board? And will it need a survey before it can act? Who is going to go through the hassle of getting this approval, Lou or you? Who will pay for the survey?
• Has there ever been any junk or garbage dumped on the property you are buying? Has there ever been any fuel tanks there? Has there been an unauthorized release or use of fertilizer? Will Lou guarantee and hold you harmless in writing if there ever is one of those environmental poisoning of the ground waters and the state comes after you.
• What is the purchase price and how will it be paid? Will there be a land contract, will it be recorded? (Poor idea.) Will there be a deed paid for in cash or on a promissory note and mortgage with Lou acting as the banker? ( Good idea) How much will the interest be, how long will the payout be, what will the monthly payments be?
All these questions come to mind when somebody calls about buying a couple of acres off a friend. Ponder these questions when you start to think about buying a little lot off in the country. Give us a call and we can help. It can be worth the trouble to find and build the place of your dreams.
|