Things You Should Know Before Selling Or Buying Land

Posted by highlandsmanagementservices on November 6th, 2018

The land is a scarce commodity in today’s world and buying or selling of land has become a complex and a matter of grave importance. It is thus very imperative to keep a few things in check before proceeding towards any deal.

Land Mortgaged Privately

There are many plots of land which are available at low cost as they have been privately mortgaged with private borrowers. In the event of being unable to pay the interest, the borrower has to sell the private mortgage to pay off the principal along with the interest to the lender. Such lenders try and sell the private mortgage papers to ready buyers at a discount.

Payment of Land In Lieu Of Loan

There are many landowners who have fallen in a debt trap on account of their land mortgage and are willing to sell their mortgage to real estate note buyers who are cash rich and always looking to get a profitable land purchase.

Land Deal

Selling land contract for a value for money deal is very common wherein the buyer has a clean property and the seller gets very close to his required amount enabling both parties to reach a win-win scenario. Due diligence by lawyers plays a very important role in such deals to ensure transparency.

Joint Development

To sell contract for deed is basically a joint venture wherein the landowner gets in contract with the developer and takes a chunk of the developed property for himself while the developer takes care of the construction cost. In this scheme, the landowner receives an advance for his property and then the negotiated property whereas the developer gets the property to develop at a fraction of the cost of the land.

Selling Of Mortgaged Land

There are times wherein due to financial instability landowners opt for a loan against their property with banks or financial institutions and are unable to pay their interest/EMI’s on schedule. Under such circumstances, the financial companies float these properties to prospective buyers who buy the complete loan and give the landowners the option to sell my mortgage note, a phrase which indicates the landowners consent to accept the deal offered by the financial institutions.

The above are a few types of land purchasing and selling which is available in today’s market. There are many other options like Auction/Succession/Gift/Settlement deals which are also available while buying/selling a property. Our professional team at Highlands Management Services helps execute all kinds of land deals with maximum mutual benefits to both parties.