To hire an attorney, visit your state bar’s website and locate their lawyer referral service. This will allow you to talk to someone about your needs. In return, they will give you a number of qualified attorneys to contact. To hire a real estate agent, look online for brokers or companies that offer auction services. In addition, because you are looking for land, as opposed to residential or commercial property, try to find an agency that specializes in that area.
In recent times, land auctions have also gone online. Check with your county to see if they offer this service. For example, Palm Beach County, Florida offers an online auction service for their foreclosed properties. [2] X Research source
The parcel number The amount of land available The specific location of the land Access points, including right-of-ways Where you can find the survey (usually at the county recorder’s office) Restrictions Other notes
What types of properties are offered What the minimum bid prices are Whether there is a reserve on a particular piece of land (i. e. , will it not sell if the bidding doesn’t reach a certain price) The type of title that will be conveyed When property taxes will be due How and when you can get possession of the property Conditions of the sale
If you are looking at purchasing land that is going through a forced sale, you may not be able to gain legal access to the property. This is the case because the government or bank auctioning off the land does not yet have an ownership interest in the land. Technically, it still belongs to the borrower or delinquent taxpayer. If you are in this situation, you can still visit the property and view it from public space. Do not, however, walk onto private land without the landowner’s permission.
It is important to accurately value the auction property as it will dictate how much you are willing to bid and how much financing you will need to have in place.
If you are allowed to finance your purchase, get pre-approved for a mortgage. When you go to a bank, they will assess the likely value of the property, inform you of the max bid you could make, give you estimated closing costs, and determine your eligibility. If qualified, the bank will promise to finance your purchase if it goes through. If you cannot finance your possible purchase, you will need to gather the cash required to complete the purchase at the time of the auction. Regardless of your financing options, most auction houses will require a down payment on the land when you bid for it. For this reason, be sure you have enough funds to cover the down payment before you ever go to the auction.
If you will be conveyed a quit-claim deed, you need to purchase title insurance if you can. [6] X Trustworthy Source State of Michigan Official website for the State of Michigan Go to source Title insurance will protect you against unforeseen problems that may arise after you purchase the land. In at-will sales, an auction house and seller may convey a general warranty deed. With this type of deed, the seller is guaranteeing against future problems and is insuring you against against other issues. [7] X Research source If the seller is conveying this type of deed, you may not have to purchase title insurance.
If you are the high bidder, your down payment will go towards the final price you owe. If the auction allows financing, the down payment will usually be held in escrow until closing, at which time it will be added to your final payment. If you are required to pay in cash, your down payment will simply be subtracted from the final purchase price. If you are unsuccessful at the auction, your down payment will be returned to you promptly, in whole.
You should bid until the price reaches the maximum you are willing and able to pay, at which time you should let the property go. While you may like the property in question, you never want to pay more than it is worth. If you are the successful bidder, the auctioneer will take down your information.
The closing disclosure, which lays out the conditions and terms of your loan An initial escrow statement, which lists the taxes and other payments the lender foresees having to pay during the first year of your loan A promissory note, which lays out how much you owe the bank and how it will be paid back
Depending on where you live, you may need to serve the holdover possessor with a notice of ejectment before you can bring a civil lawsuit to have the court help you. In other places, you may be able to file a lawsuit directly with your local civil court. At that point, you would serve the holdover possessor with a copy of your complaint and a summons. [9] X Research source
