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I recently noticed that a strip of my neighbor’s property goes right in behind my house. It makes no sense to me but now I feel the need to buy what clearly should be part of my property.
I doubt my neighbors even know they own it…. so I’m in the process of buying this piece of land from them. Here are the steps I’m taking and ones you should at least consider.
1. Call a Surveyor for a Free Estimate
Begin by contacting a licensed surveyor to get a free estimate for marking your boundary. This initial step is crucial for understanding the exact size and location of the parcel you’re interested in. A surveyor can provide a preliminary overview and discuss the process involved.
2. Get a Detailed Boundary Survey
If the cost of the survey seems worth it to you, proceed with the boundary survey. Inquire with your surveyor about the portion you want to buy and see if they can help you determine the exact square footage or acreage.
This ensures you both know the precise amount of land in question, making the upcoming discussions with your neighbor more informed and specific.
3. Do Research and Consult a Real Estate Agent
Conduct thorough research on local property values and trends so that your initial offer is fair to both of you. If you feel the need, you could consult a real estate agent to determine a fair market value for the parcel you’re interested in purchasing. The agent can provide insights into comparable property sales and advise on a reasonable offer.
4. Discuss with Your Neighbor
Approach your neighbor with the survey results and express your interest in purchasing the specific parcel. Present your offer and be prepared to discuss the details.
Having a clear dollar amount in mind helps provide a concrete basis for negotiation and can make the process smoother. Be respectful and considerate during these discussions to maintain good neighborly relations.
5. Prepare an Offer
Draft a formal offer based on your research and the survey results. Clearly outline the terms and conditions of the sale, including the proposed purchase price and any other relevant details. A detailed offer shows your seriousness and sets a professional tone for the transaction.
6. Consult a Real Estate Attorney
Hire a real estate attorney to review your offer and ensure all legal aspects are covered. The attorney can also help draft the purchase agreement and handle any legal complexities that may arise. This step ensures that your interests are protected and that the transaction complies with local laws and regulations.
7. Conduct a Title Search and Obtain Insurance
Perform a title search to ensure there are no liens or legal issues with the property. Obtain title insurance to protect yourself from future claims and ensure a smooth transfer of ownership. This step is crucial for verifying that the property is free of any encumbrances.
8. Negotiate the Terms
Engage in negotiations with your neighbor to finalize the terms of the sale. Be flexible and open to adjustments to reach a mutually beneficial agreement. Effective negotiation involves clear communication, understanding the other party’s concerns, and finding common ground.
9. Draft and Sign the Purchase Agreement
Work with your attorney to draft a detailed purchase agreement. Ensure that both parties review and sign the document to formalize the sale. The agreement should clearly outline all terms and conditions, and both parties should fully understand and agree to these terms before signing.
10. Record the Deed
Once the sale is finalized, record the new deed with the local government to update the property records and ensure your ownership is officially recognized. Recording the deed is a crucial step for establishing your legal ownership of the property.
11. Update Property Records
Ensure that the new parcel is accurately reflected in local property records. This step is essential for avoiding future disputes and ensuring legal clarity. Accurate property records are important for property taxes and other legal matters.
12. Install Boundary Markers
If not already done by the surveyor, install permanent boundary markers such as trees or even a fence to clearly delineate your new property lines. Even simple boundary markers help prevent future disputes and ensure that the property lines are easily identifiable.
By following these steps, you can smoothly navigate the process of purchasing a small parcel of land from your neighbor, ensuring a clear and legally sound transaction.
FAQ
How much does a survey cost?
The cost of a detailed boundary survey can range from $500 to $2,000, depending on the complexity and size of the property.
Why is a title search necessary?
A title search ensures there are no existing liens, disputes, or legal issues associated with the property, providing peace of mind and legal clarity.
What should be included in the purchase agreement?
The purchase agreement should include the purchase price, terms and conditions, property description, closing date, and any contingencies or special conditions.
How do I negotiate effectively with my neighbor?
Effective negotiation involves clear communication, understanding each other’s needs, being flexible, and finding a mutually beneficial solution.
What are boundary markers and why are they important?
Boundary markers are physical markers placed at property lines to clearly delineate boundaries. They help prevent future disputes and provide clarity on property limits.
Should I make the initial offer or should I let my neighbor price it?
My thinking is that you do the research on land and real estate values in your area, or perhaps even consult a real estate agent. Then, you come up with the initial offer based on the size of the land, location, and other factors.
Asking them to price it could put your neighbor in an awkward position or could delay the whole process. Approach them initially with a number in mind as a starting point in negotiations at the very least. If they didn’t even know about the land being theirs it could all seem like free money to them.
