What is the Buying Process for Land?
Making a large purchase of land or a cabin can feel very scary. The following information will help answer your questions about the land buying process. The process will be the same whether your looking to buy land in Shasta County or a cabin in Tehama County. As a land and cabin specialist, my job is to help you every step of the way.
First, you will need to be sure you have your down payment in order or all your cash in order if you do not plan on getting financing the property. Most banks will not lend on land so the owner will have to finance it or you have to put the whole amount down if they won’t. You will find the most Shasta County land sellers and Tehama County land sellers will finance to a buyer with about 20% down.
Second, is to figure out what type of land your looking for and the location, be it in Redding, Tehama County, or the Shasta County area. How many acres, does the elevation matter, secluded or private, creek front, heavily treed, mountain views, improvements you want, such as a well or septic system, close to a large town, hospital, 4WD access or paved road access, level, rolling, or steep land, go solar or use household power, wildlife, cost, and more. Start by asking yourself what you plan to do with the property. I can help you with this process.
Lastly, View our listings or search the Shasta County MLS to find the Tehama or Shasta County land that is the perfect fit for you. Then go see it. If you like it we can start the offer process. The offer can be emailed to you to sign if you are not present. All aspects of the sale can be handled long distance; you do not need to be present to write an offer or sign your closing escrow papers. Escrow papers can be sent over night and most forms can me emailed. Once your offer is accepted an escrow will be opened at a title company of your choice. Escrow is usually handled through a title company; they hold all the monies for the transaction and are a neutral third party to the contract. They follow the instructions on the Land Purchase Agreement that you and the seller agreed to in writing. You will have three days to get the initial good faith deposit to the title company. This amount is typically $500-$1,000. In most situations this amount is refundable in the first 17 days after your offer is accepted. If you decide you do not want the property due to some fault of the land or property report you do not approve of you are entitled to a refund of your deposit.
It’s the title company’s’ job to pull up all recorded documents pertaining to the Shasta County land, or Tehama County land you’re purchasing. They will send you a title report that outlines what taxes are owed, any recorded liens against the property, any easements or lack of access as well as any reserved oil or mineral rights. Anything they can find that is recorded with the property that they can find.
Once your escrow paper work is completed you will send it back to the title company along with your funds required to close, this is your down payment if you financed the property. You can wire funds directly to the title company or send them a cashiers check. The next day, the property deed and note are now recorded with the Shasta County Recorders office. Congratulations, you are now a land owner!
If you have any questions about the buying process please feel free to contact me about it today. I look forward to helping you with a smooth land purchase.