There"s been alot of good points made. Another way to buy land is using a 99yr lease. Here the lessor (you) agrees to pay the leasee (original owner) a yearly fee that is equal too the property tax increase or decrease thru a escrow agent that"s up and above the yearly property payment. A escrow agent pays the tax bill so both parties are assurd the property taxes get paid each year, for usually a small ecrow fee, approx $35yr. The more the esrow agent preforms the more it costs for this service. Using a escrow agent, both the leasee and lessor are guarteed that the monies will be disbursed to there rightful owners or incase of default, return the property back to the original owner. The escrow agent follows the lease contract to a tee so make sure it contains all the correct info.
Usually the onwer gets the 99yr money upfront when the deal is made or can be set up with payment just like buying on time payments.
So the lease turns out with a yearly TI (actual cost of taxes and insurance) payment OR just like a PITI payment when you borrow money to buy property that covers principle, interst, taxes and insurance.
Some States allow for a automatic 99yr lease renewal without any additional fees and this would be just like holding a deeded property. Once grandfathered in, this lease can continue for life of the lease (deed).
In our county, a non-owner use of raw property is charged at a 16% of accessement rate where owner use is charged 10% of the accessment rate. This is why our State and county allows a renewable 99yr lease. The county makes you declare each year if the property is not owner used.
Our State has approved standard realestate forms that contain all the legal mumbo jumbo that needs to be in there. After the owners sign the form(s) then there recorded at the County recorders office and that document is written in stone. Bought at any stationary supply.
There are also lease closers, just like deed closers when you buy property out right, that will handle all the paper work for a fee. Most title companys will preform this service, about $250/transaction. My last one was done 99% over the telephone and only required me to show up for closing signatures. This was completed in less than 30days as there was a small title problem that needed correcting.
So why would a owner sell on a 99yr lease? Because they can defer income taxes with getting cash up front, the return of capital (ROC as the IRS calls it). The profit would then collected yearly just like principle money on a cash sale at maybe a lower tax rate to the seller. Your benifit might be you can spead out the amount due over the life of part/all of the lease without paying interest and earn interest on the money being held to pay the lease.
The lease can/can not also contain interest fees.
Again the escrow agent can handle all the money disbursement for both parties.
In our State only county recorded surveys are 100% unchangeable provided that they are correct when recorded or a period of time lasped? I can"t remember the exact wording.
My son ran into this problem when the contractor built 100ft of his block fence on 2ft of his neighbors property. The contractor had to pay 100% of the cost to move the fence, about $5grand
Consult an Attorney for the correct info as this is just what I remember.
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Today's Featured Article - Seeing an Old Friend - by Joe Evans. Dad had a concrete contracting business starting in 1960. One of his first pieces of equipment was a Ferguson TO-35 with a Davis loader. Dad replaced the TO-35 with a MF 202 Workbull, essentially an industrialized Ferguson 35 I am told. Dad bought the 202 new in 1962, and I recall quite clearly going to the dealer with him to sign for it.
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