Contract To Buy Raw Land/2 Lots In NC
Hello (Happy Mother's Day to all the mom's out there!).
Here's the scenario: An estate attorney approached me about this.
-This is my first raw land/lot purchase.
- Seller rec'd raw land (part of husband's estate). Seller AND attorney are in NY, land is in NC. I've seen the land & the area. Developers are building directly behind the seller's land & Habitat for Humanity built directly across the street.
- When I asked the seller's NY attorney to send me a contract, he asked me to prep the contract (which will cost me more than having it reviewed, so I may deduct or pass the cost off to the seller). We agreed on price verbally.
- Asked for legal description of the 2 lots & have yet to rec'v the info.
- I am planning to sell the lots back to the family because the sister-in-law (seller) refuses to sell it to her brother-in-law. I think there is an opportunity to work with the family to sell all the lots to a developer, so I will have that conversation once I'm in contract.
Here are my questions:
1. What contingencies are a must when buying land (contingent upon satisfactory soil test, perc test, zoining approval)?
1a. Will a survey & appraisal sufice for due diligence purposes?
2. Can the seller use her NY attorney to broker this deal or does a NC attorney have to prep all docs & close? BTW, the NY attorney is not the most ethical person in the field & he's a 1 man law office.
3. What would your strategy be to get this deal done (assuming the #'s work)?
Thanks in advance for your guidance.
Something doesn't make sense here. If I understand you, you would buy the 2 lots from the estate and then sell them to the family members? You didn't supply any numbers, but I wonder if this deal would make sense for you.
You should have a RE attorney involved in this.
Your feasibility period contingency in the contract should include environmental, title, verification that the lots are buildable and separately deeded, utility availability.
Thanks Nancy! That's exactly what I was looking for (contingency wording). I have an attorney & I am interviewing others, but I wanted to make sure I educated myself re: contingencies.
To your question about the family....the brother owns lots 1-50. The sister-in-law owns lots 23 & 25. The sister-in-law (seller) inherited the land when her husband died and she refuses to sell/give it to her late husband's brother. So, I am planning to tie up the land, talk to the brother and see if we can work out a deal to sell all the land (lots 1-50) to a developer. Did I explain that clearly???
learntherules,
Now I get the picture.
Are the parcels already subdivided and separately deeded? If not, then you need to make your purchase contingent upon receipt of all approvals, permits, waivers, etc. Also have a contingency for an upfront feasibility period.
Your RE attorney should be able to come up with the development contingency language that covers you.
Thank you. This is my first land deal. What's the difference between raw land & vacant lots? I think I have my definitions mixed up.
learntherules,
"Raw land" to me means a parcel without any municipal approvals--not subdivided, not anything. "Lot" to me means a parcel that's been subdivided and is separately deeded from the "parent" parcel. Does that help?