The most important thing is to verify and be informed that the legal and contract process is carried out properly. Buying land is one that works as an investment or housing solution. However, before taking this big step, some aspects must be taken into account. The most important thing is to be well aware, to be clear about personal needs. Here are some useful tips from Agriculture Mortgages that will help you make the best purchase and not take risks.
1. First, define
It is important to define the characteristics you want about the land, a reference point, the location, on the main avenue. You must be well sure where the land is going to be, look for a real estate agency and support yourself with a page with information on the inventory available in the city that interests you.
2. Go with the experts
It is highly recommended to consult an advisor, be it a lawyer or a real estate advisor, to give more certainty to the transaction. Sometimes lawyers can be expensive, but they give you a guarantee that the property will be safe. It is best to look for exclusive properties, those that the advisors are the only ones authorized to sell. These have already gone through an investigation process: without liens, debts, embargoes, or delays. If the person who is going to acquire does not have experience, it is preferable that they approach a lawyer to guide them and, if possible, accompany them during the process.
3. Review the requirements
The buyer must request a simple copy of the documents that prove ownership. This is the deed granted before a notary, and a request for a certificate of freedom from encumbrances, for which a simple copy of the deed is needed. Obtaining the certificate of freedom from encumbrances guarantees that that person continues to be the owner, and that the property is not at risk or with any preventive annotation prior to the transaction. You can avoid fraud if they are selling you a property that is seized.
4. Review the contract
The contract must include who currently owns the land, the details of the owner or developer. Also, it must have specifications such as the orientation of the space, the boundary (streets or avenues with which it adjoins), and a precise description of the place. Make it clear who is in charge of paying the notarial expenses, that the land is free of liens, free of predial, and if there are requirements such as the payment of maintenance. At the time of purchase, the contract includes a section and a formalization of the purchase and sale, and a penalty is set in case the buyer or seller cancels the operation.
Tips to know how to choose a good land
The first decision that must be faced when starting a construction project, be it family or intended for investment, is the location: where to build? For various reasons, it is not a minor decision, since the choice will be decisive for the rest of the project, and once a purchase operation has been undertaken with payments involved, it is much more difficult to go back. The decision made will have long-term consequences, for better or for worse. There are a number of elements that can be analyzed in advance, avoiding bad drinks in the future. Below, is a series of tips to keep in mind when choosing the right land, based on the needs of each particular case.
The first aspect to consider when choosing is the size of the land. However, there are neighborhoods in which the dimensions are much larger, which then allows subdividing into two plots, or else thinking of a different project, with more green and outdoor spaces.
The purpose for which the lot will be used is decisive for your choice. The decision is not the same if the land is acquired to build the family home, to build duplexes that will later be put up for rent, or simply as a long-term investment, with the sole objective of waiting for time to pass and the property is revalued as the neighborhood grows around it.
The location of the land is a determining element. In this sense, the proximity of basic services such as sewers, water, electricity, and gas, and secondary services such as garbage collection, internet, or cable television, are things that, if not taken into account at the beginning, can later bring Headaches. Choosing an open or closed neighborhood is not a trivial decision either. The closed neighborhoods usually require the payment of expenses later. The view that is obtained from the balcony of the new home, or the noise that must be endured when living in it, are directly related to the location of the subdivision. In this sense, it is very different to choose a lot close to the main artery, which involves more movement and therefore more noise, than one located at the end of the neighborhood, which can be much quieter, but perhaps more unsafe.
The position of the lot in reference to the place where the sun rises and sets will later affect the way in which the environments of the construction are located, in order to achieve better luminosity. Thus, as the sun comes from the north, in general, the main rooms of a house will turn towards that cardinal point. If the front of the lot faces north, the main rooms will face the front and the back will be shaded, complicating later the location of a pool or a barbecue area. If, on the other hand, the front faces south, the entire house will lean towards the back, creating a sunny garden and a front with few windows. It is crucial to take this item into account when choosing the plot in a subdivision.
A very relevant fact is the proximity of the lot to the city, and to the activities that daily life requires. Establishing the distance to the usual place of work, the children’s school, the nearest service station or ATM, is key to deciding. Similarly, ensuring proximity to basic emergency services, such as firefighters, ambulances, or police, is an extremely important aspect.
Although in general, if the region has similar climatic characteristics, there are usually cities with a higher level of rainfall. In this sense, knowing the slope of the land when choosing is very important, especially in places located on fences, mountains, or hills.
Sellers often carefully choose the time they visit the land with potential buyers. A good exercise is to put anxiety aside, and before making a decision, visit the lot alone, without the presence of the seller. It is advisable to make at least three visits, in the morning, in the afternoon, and at night. In this way, a much more complete panorama of the context is obtained, of the usual movements of the neighborhood, of the noise level at different times, and it is even possible to initiate a first contact with the neighbors with whom it may be necessary to share a good part of the life in the future.
The proliferation of subdivisions in recent years, generally located on old fruit farms, offers buyers excellent opportunities, but also dangerous traps. There are a series of essential precautions before closing a purchase operation. The most basic thing is to make sure that the property is free of liens: mortgages, liens, taxes, or other damages. Even more important is to make sure that the person offering the lot is the owner or acts on its legitimate behalf through the corresponding power of attorney. Another element is the municipal regulations regarding location. It is common to find subdivisions in places not authorized, whose sale is classified as “opportunity”, but in reality, it is carried out “waiting” for the commune to enable the urbanization. This is a serious irregularity, which can significantly affect whether the intention is to build a home to live in immediately.
Although it is usually the first thing you look at, it should be the last factor to consider. The accumulation of all the elements mentioned above is what ends up configuring the price of the plot, and can offer a complete notion of whether the price that is requested is appropriate. In general, the closer the lot is to commercial, residential, or downtown areas, larger urban centres, main arteries, or essential services, the higher the price. It is also feasible that in cities where there are few lots, the price of a lot of equal dimensions and services is much more expensive than in a city where lots abound.
Choosing the place where a construction project will begin implies taking into account aspects that seem trivial, but that affect the final success. The brightness that can be achieved in the house, the slope of the land, or the noise level of the context, are very important elements.
These tips will allow you to buy a property with the certainty that you acquire it in the manner established by law. Get advice from a lawyer when buying property, it is an important decision, so prudence is always recommended.
Jonathan Veers is the founder of Agriculture Mortgages. He can help you to find and secure the best farmland mortgage options to push your farm investment dreams to move forward. As a specialist mortgage broker with over 10 years of industry knowledge, he has helped new farmers, existing farmers, and rural business owners across the country.
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