5 Important Documents to Sell Land By Owner in Oregon
If you're looking to sell land by owner in Oregon, you'll be responsible for preparing all the necessary documents for the property sale. Selling land is typically simpler than selling a house by owner, and you may be able to do so without a lawyer. But you should be prepared to do some research to educate yourself about the process.
While handling all the paperwork yourself can be time-consuming, it may be the preferred method when selling land privately, such as to a neighbor or family member. Learn about the required documents for selling by owner, as well as alternatives like selling land quickly to a cash buyer.
Title report
Examining the land title early in the process is crucial for a smooth transaction. The title serves as proof of ownership and can be transferred to a new owner. Even if you are confident about the ownership, it's essential to verify who is listed on the title, as these names will also appear on the sale contract and new deed.
Although it's the buyer's responsibility to conduct a title search to check for any liens or claims against the property, this usually occurs after the real estate contract is signed. However, uncovering title issues later in the sale process can cause significant delays and, in some cases, may even lead the buyer to reconsider the purchase.
You can order a title search online or ask a local title company to run one for you.
For a free option, you could start by finding the existing deed. If you don’t have a paper copy, often you can find it online by visiting your county recorder’s office. For example, the Klamath County website has a Digital Research Room where you can search for deeds. The deed will show who’s currently on title. The deed may also have key information such as deed restrictions or easements.
Property survey
When selling land, it's often important to have a survey or topographical map of the property. This document outlines the property boundaries and highlights any features on or near the land, such as trees, fences, and buildings. Buyers often want a clear visualization of the property boundaries. Additionally, a survey may be required to create a legal description of the land if one has not been previously established.
You can find a surveyor through the Professional Land Surveyors of Oregon.
Sales contract
You’ll need a template for the sales contract. The Oregon Association of Realtors publishes contract templates including one for vacant land and another for agricultural land. There are a number of benefits to using these contract templates, although they are not the simplest.
See our guide for a detailed overview of the Oregon Association of Realtors Vacant Land PSA.
Unfortunately, they are not available to the public. Still, you may be able to find a copy by asking any real estate contacts you have.
As an alternative, you can find contract templates from providers like LawDepot or eForms.
Disclosures
Disclosures are how sellers tell buyers about potential issues with the property. Oregon state law does not require there to be a specific disclosure statement for vacant land.
(But if you are using the Oregon Association of Realtors Vacant Land PSA, there is a contractual requirement for a disclosure statement.)
If disclosures are not required by law, why would a seller provide them? The short answer is limitation of liability. Although the buyer has a responsibility to perform due diligence, failing to disclose a known material defect with a property which would be hard for a buyer to discover could leave the seller open to a lawsuit.
If you’re not sure how to make disclosures, one option is to use the Oregon Association of Realtors Seller’s Vacant Land Disclosure. Again, this document is not made available to the public, but you may be able to obtain a copy. It guides you through extensive disclosure questions applicable to land sales.
Deed
The deed is the document that actually transfers ownership to the new owner. Oregon has four recognized statutory deed forms:
Warranty deed. A warranty deed offers the most protection to the buyer. It conveys the sellers interest in the property and also warrants that the property is free of encumbrances, (except for ones described in the deed). The Oregon Association of Realtors contract form calls for a statutory warranty deed to be provided. This is a type of warranty deed where the warranty is clearly defined by Oregon statute.
The Oregon.gov website has a Warranty Deed template.
Special warranty deed. A special warranty deed is like a warranty deed, but only guarantees that the property title is free of defects or problems that occurred during the seller's ownership
Bargain and sale deed. A bargain and sale deed indicates that only the seller of a property holds the title and has the right to transfer ownership, but it does not contain any warranties or covenants.
Quitclaim deed. Quitclaim deeds also do not guarantee the title's ownership. Instead, they state that the seller is transferring any ownership interest they have to the buyer.
Each of these types of deeds has its purpose and appropriate time to use. If you’re in doubt about which one to use or how to prepare the document, you may want to consult with an attorney.
Conclusion
Selling land by owner in Oregon involves preparing several key documents, including a title report, property survey, sales contract, disclosures, and the appropriate deed. While this process is generally simpler than selling a house, it requires careful attention to detail and a thorough understanding of the overall process.
For those who prefer a quicker and less involved process, selling to a cash buyer is a viable alternative. This option can expedite the sale, but it may involve selling the property at a discount.
By understanding the necessary documents and steps, you can confidently navigate the process of selling land by owner in Oregon.
Please consult your financial advisor, accountant, real estate attorney, or tax specialist. This article is for informational purposes and is not tax or legal advice.
