Technically…you don’t need a lawyer when selling land.
Real estate can be considered ‘sold’ when a deed transferring the property to its new owner is recorded with the appropriate government office.
The ‘appropriate government office’ varies from state to state.
Generally, these government offices are called Clerk of Court or Recorder of Deeds.
In some scenarios, a lawyer is a must-have in order to obtain title insurance.
Title insurance is an insurance policy that guarantees that your land’s new owner will own it ‘free and clear.’
In other words – title insurance guarantees that you (and anyone else you may own the land with) are the rightful owners and you have the legal right to sell land.
In most cases, title insurance will be necessary if you are selling land.
Some situations where a buyer wouldn’t mind if the land doesn’t have a title insurance policy would be if you are selling land under…say…$1,000 or you are gifting the land.
Here are 2 questions to ask when selling land…
- What state is the land located in?
- Do you have ‘clear’ title?
What state is the land located in?
Certain states require that a real estate attorney oversee the purchase and sale of land.
In states that do not require an attorney, real estate transactions are handled by title companies.
Real estate attorneys and title companies generally do the same thing for basic real estate transactions.
They verify who the legal owners are and help issue a title insurance policy for the land.
Click here to see a map of which states require an attorney for selling land.
Do you have ‘clear title’?
‘Clear title’ is real estate lingo to say that no one else can claim they own your property.
If you purchased your property and was provided a Warranty Deed then you can consider that you have clear title.
Questions about the true and whole ownership of a property comes in to play when…
- You inherited the land
- Divorces
- A death of one of the owners
- The property is in a trust, estate or owned by a company
A title company or real estate attorney can perform a title search to determine who has the legal right to sell the property.
A property may need to be probated if one of the owners has died.
An attorney would be required to perform a probate.
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Do You Need a Lawyer When Selling Land?
Selling land can seem like a straightforward process, but depending on your property’s circumstances and location, involving a lawyer or a title company can save you time, money, and headaches. Here’s what you need to know when deciding whether or not to hire a lawyer.
When a Lawyer May Be Required
While many states allow real estate transactions to be handled by title companies, certain situations or state laws may require the involvement of a real estate attorney.
States Requiring a Lawyer
In some states, hiring a lawyer is mandatory to complete the sale of land. Attorneys ensure all legal requirements are met, including drafting or reviewing the purchase agreement and overseeing the closing process.
Examples of states that often require an attorney include:
- New York
- Georgia
- South Carolina
If your property is located in one of these states, plan on consulting a real estate lawyer to guide the transaction.
Why Clear Title Matters
A clear title ensures that you have the legal right to sell your land without disputes from others claiming ownership. If there are any doubts about your title’s clarity, resolving them is essential before completing the sale.
Common Title Issues
- Inheritance Situations: If you inherited the land, ensure all legal heirs agree to the sale.
- Divorces: Confirm that ownership is fully resolved if the property was part of a marital settlement.
- Trust or Estate Ownership: If the property is held in a trust or estate, verify the trustee or executor’s authority to sell.
- Deceased Co-Owner: Probate may be necessary to transfer ownership rights if one of the property’s owners has passed away.
A title company or lawyer can perform a title search to uncover and address any outstanding issues before the sale.
Benefits of Using a Title Company
If your state doesn’t require a lawyer, you can work with a title company instead. Title companies handle many of the same tasks as real estate attorneys, including:
- Verifying ownership through a title search.
- Issuing title insurance to protect the buyer against future ownership disputes.
- Preparing and recording the deed with the appropriate government office.
- Acting as an escrow agent to collect and disburse funds.
Pro Tip: Choose a reputable title company that specializes in land transactions to ensure a smooth process.
Title Insurance: Do You Need It?
Title insurance protects the buyer from potential disputes or claims against the property. It’s a standard requirement for most land transactions, especially when financing is involved.
When Title Insurance May Not Be Needed
- Low-Value Transactions: For properties under $1,000, buyers may opt out of title insurance.
- Gifting Land: When transferring ownership to a family member or friend as a gift.
If your buyer insists on title insurance, hiring a title company or attorney is essential to issue the policy.
Selling Land Without a Lawyer
If your state doesn’t require a lawyer and your title is clear, you can sell your land on your own with the help of a title company. Here’s what you’ll need to complete the sale:
- A Purchase and Sale Agreement: Outline the terms of the sale, including the purchase price, closing date, and any contingencies.
- Title Search: Ensure your title is free of liens or ownership disputes.
- Deed Preparation: A title company can draft the deed to transfer ownership to the buyer.
When Hiring a Lawyer Is a Good Idea
Even in states where a lawyer isn’t required, you might consider hiring one if:
- The property is part of a complicated estate or trust.
- The sale involves multiple owners or disputes.
- The property has zoning, easement, or access issues.
- You’re unfamiliar with real estate transactions and need guidance.
Ready to Sell Your Land Quickly?
If you’re looking for a fast and hassle-free way to sell your land, consider working with a professional land-buying company. These companies:
- Purchase land “as-is,” even with title issues.
- Close transactions in as little as two weeks.
- Handle the paperwork, including title searches and deed preparation.
Submit your property details through our online form, and we’ll connect you with our network of experienced land buyers who are ready to make a cash offer today.