Due dilligence on a land deal (documents, negotiating, agents, properties)

[skippy upwood]

I'm currently in the process of negotiating a land swap. I've swapped photos of the property and I've found it on a map. However, since this is a deal with a private person who I found on CL I'm worried that I'm about to be scammed in some way. What do I need to do before I can complete the transaction? The list below is what I think that both parties need to do before we sign any documents.

- Confirm names and address in case something goes wrong.
- Swap APN numbers so each of us can confirm with the counties that we actually own the parcels in question.
- Swap surveyors maps.

Feel free to point out anything I've missed.

[zman0]

Check the county recorder's office to make sure there are no encumbrances on the land.

[MikeJaquish]

Title search.

In North Carolina, I would have an attorney. Would need one to prepare the deeds anyway.
Might as well have representation.

[skippy upwood]

I'm trying to avoid an attorney if possible because this is a land swap and I'm trying to keep costs down as much as I can.

[Poltracker]

I would also lay eyeballs on it and make sure it is environmentally safe or at least get a phase I done. What was the land last used for? Could it have been subject to illegal dumping or been the home of something fun like a paint and body shop? Could it have been backfilled with kiln sand? These are just a few of the environmental problems I've seen. Remember, the landowner gets stuck with the clean up costs and legal bills.

[jimboburnsy]

Originally Posted by skippy upwood

I'm trying to avoid an attorney if possible because this is a land swap and I'm trying to keep costs down as much as I can.

That's a bit iffy. If you insist on the "pioneering" spirit, you could hire an experienced landman (I'm sure there are plenty looking for work right now) to put together a title runsheet and find out if there are any liens or encumbrances on the property.

It isn't a legal opinion, but that's how a real estate attorney would put together an abstract of title.

Unfortunately, cheap and under-the-radar is going to be extremely risky.

[TexasHorseLady]

Check mineral rights, water rights. Check for easements. Have a title company do a title search or have an attorney examine the abstract of title. (Not sure which is more appropriate in your state.) Check for environmental problems (illegal dumping, chemicals, etc.) Check for flood plain. Make sure the survey is current (title company should be able to advise you there). That's just off the top of my head.

[Silverfall]

Check for landslide hazards, earthquake hazards, zoning, soil samples (so you can build and put a septic on it if you want), well depth of surrounding properties (again if you plan to build on it).

Find out if there are any underground tanks on the property such as old oil tanks.

Those are my ad-ons.

[DMenscha]

Title reports on both properties and since you're going to have to put the deal in writing anyway, get an escrow agent. Ditto on everything my fellow agents mentioned as well.

[MikeJaquish]

Originally Posted by skippy upwood

I'm trying to avoid an attorney if possible because this is a land swap and I'm trying to keep costs down as much as I can.

Cheap?
Forget risk. Just sounds like two strangers trying to unload a lemon on the other, anyway.

Just borrow a Sharpie and you each can write quit claim deeds on an old grocery sack.
Here you might even be able to record for $17 each, if you wanted to go that deep.
"Mission Accomplished!"
Makes just about as much sense, IMO.

Seriously, attorneys and title companies have their function, which commonly offers great value in the security benefit to the client, and you are proposing not practicing safe sex.

Attorneys cost a little money up front. And, when they are not used when they should be used, they can get absolutely stinkin' rich helping folks sort through the wreckage later.