How Selling Land Works in NC and How Our Closing Process Protects You
We get questions all the time from sellers asking how they can sell their land and more importantly is it safe? The short answer is, YES! In North Carolina you can rest easy because….
An Attorney Does It All!
NC is an “attorney close” state, which is different than many other states. This means that a licensed NC attorney handles the transaction and wears many hats. The closing attorney does all the following:
- Completes the title search to ensure correct property ownership
- Draws up accurate paperwork to complete the transfer legally
- Most importantly, serves as an escrow agent
Wait… What’s an Escrow Agent??
Great question! An Escrow Agent is a neutral third party who is responsible for obtaining the cash prior to closing and transferring it to you after closing is complete. This gives you peace of mind knowing you will be paid and the end of the transaction.
Best of all, you can work with the Attorney directly, no realtors are required. We are the direct buyer and save you the hassle of finding a real estate agent, listing your property, waiting months or even years to get an offer and then paying agent commission fees (8-10% for land) and closing fees.
Our Process is Safe, Easy, and Fast
1. Sign A Purchase Agreement
Once a price is agreed upon, a purchase agreement is signed by both parties. Signing a purchase agreement doesn’t mean we get your land. It simply lets the attorney know the key components of the transaction:
- What land parcel being is being sold?
- What is the purchase price?
- When is the closing date?
- How will the closing fees be divvyed up?
We typically sign this document electronically using Sign Now because it’s faster, but we’re happy to mail you a contract to sign and return if you prefer.
2. Hand Off To The Closing Attorney
Once the purchase agreement has been signed by all the parties in the transaction, we send the signed contract directly to a NC licensed real estate attorney to handle the rest of the process.
You might be thinking…. How much is all of this going to cost?? We pay ALL fees associated with the typical closing process, so the price we agree on is the amount you will receive.
The attorney draws up the deed and prepares a settlement statement. The settlement statement shows the sales price and breaks down all the fees associated with closing. At the bottom you will see the total amount due to you, and you can confirm this matches up with what we agreed to.
Attorneys are people too, so if you think there is an error in the settlement statement don’t panic! In most real estate transactions, the buyer and seller split the closing costs, and sometimes the attorney forgets to have us pay for 100% of these fees. We can easily get it fixed :-).
3. We Send Funds to The Attorney
Once everyone has approved the settlement statement, we will send the funds to the attorney. The attorney holds the funds in a bank account with his/her firm (also known as the escrow account). Since it’s not our bank account, we can’t move the funds back. The only way for us to get funds back is if the sale gets cancelled for some reason, and we’ve never had this happen once we’ve sent funds.
4. Everyone Signs the Closing Package
If you are closing remotely, the attorney sends you the closing package to sign and mail back. If you are closing in person, you will sign the closing package at the attorney’s office on closing day. The closing package for a land sale is typically short and only requires a few signatures.
Note: If you are closing remotely, there will be some documents you will need to sign in front of a Notary Public. Most banks provide notary services to account holders. If you don’t have a Notary at your bank, you can either go to a UPS store or we can help setup a mobile notary to meet you wherever you like!
5.Attorney Records the Deed and Sends You Funds
Once the attorney has the funds and the signed documents, they will then record the deed with the county. This is typically done electronically, but occasionally the attorney must do this in person or by mail.
Once they have received confirmation from the county that the deed has been recorded (typically between a few hours to next business day), the attorney will send the seller (YOU) the funds. This can usually be done via mail by certified check or wire transfer (whatever you choose).
Selling With Us Is Easy and Secure
If you sell to us, you can rest assured that the transaction is 100% safe and you will be paid exactly what we agree to. This process may seem long, but it’s typically only a 3 to 4 week process. If the attorney needs additional documents from you (like estate documents for inherited property), make sure to get them back as soon as possible to ensure a fast closing.
Ps. Don’t hesitate to shoot me an email or give me a call/text if you have more questions. (firstname.lastname@example.org, 919-535-4858)