In this post you will discover what is included in an Offer to Purchase Land. Below you’ll find our 24 question checklist that will help us draft your offer in an efficient way.
Over the years we’ve discovered that most people are not completely aware of what is needed to be included in an offer to purchase land. So we’ve developed this checklist that mirrors our State Approved Contract to simplify the process of drafting and making an offer the purchase land.
Offer To Purchase Land Checklist
- How do you plan to take title to the property?
- Who will be signing your offer to purchase land?
- If taking title in an LLC or Corporation, is the signer authorized to legally bind the LLC or Corporation?
- Who would you like to be your closing attorney?
- Are you a licensed Real Estate Agent/Broker in SC?
- What would you like your offer price to be?
- Will you be paying cash or financing the purchase?
- If paying cash, the seller and the sellers representative will want to see a Proof of Funds. This can be a bank or stock account statement. It is advisable that the proof of funds have the institutions letterhead on it as well as your name. (Please black out the account number)
- If financing, how much do you plan to put down as a down payment? (10, 15, 20 % or more)
- When financing, who will be your lender?
- If financing, the seller will want to see your financing approval letter.
- When would you want to close on the property?
- You will need to provide an Earnest Money Deposit. Typically, this is 1% of the purchase price but can be any amount. Sellers will often look at this to determine a buyer’s seriousness.
- Are you comfortable paying your own closing costs or do you need seller assistance with closing costs? If so, how much?
- When inspecting the property, will you need to connect any utility services to facilitate your inspection?
- Would you like your purchase to be contingent upon an appraisal?
- We always recommend that you get a survey when buying land and research the flood zones in the area. If you want to include these as contingencies in your offer to purchase land we would need to know this in advance.
- How many business days would you like your Due Diligence Period to be?
- Will your contract be contingent upon getting a building permit?
- Is it important that your contract be contingent upon a Rezoning?
- Will your contract be contingent upon verifying Well and Septic or Public Water and Sewer Availability?
- If Roll Back Taxes apply to this property are you willing to take on that responsibility or would you like the seller to take that on?
- Are their any Wetlands, Soil Tests or and other Environmental Studies that you would like to perform on the property?
- Are there any other contingencies or stipulations that you would like to add to the contract?
See Charleston County Land Listings
In conclusion, knowing the answers to these questions will make the process of making your offer to purchase land a smoother experience. And in the competitive environment that we are in today it’s important to be prepared and ready to jump when the perfect property becomes available.
After reviewing these 24 questions please feel free to reach out to us if you more questions or would like us to elaborate on this topic or any other real estate question.
Bill Byrd has been a licensed realtor since 1986 and one of his specialties has been in working with land. Whether it’s helping land owners sell or buyers find the right property, Bill has handled it all. When you hire Bill, you can feel comfortable and confident that your working with a true real estate expert that has your best interests at heart!
