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Buying Land In Texas

A suitcase full of money.

Owning your own plot of land is a dream for many, whether it’s a smallholding, a larger farm or any other reason, and there is nowhere better to claim that dream than by buying land in Texas. Texas land is very desirable, but it remains affordable land that is easily accessible. Making that choice is just the start of the journey though and understanding what is involved in buying Texas land can help make the whole process a lot smoother.

Financing Texas land

Land buying is different to buying a built home, and that includes how it is financed. You can’t go to your high street bank and obtain a loan for land; they simply don’t offer loans for this purpose. Instead, you need to contact a specialized loan company, such as a farm credit institution.

How long does it take?

Once you have found the perfect plot, land buying in Texas is relatively straightforward, although there are some legal requirements to overcome. These are:

A Survey – Performed by a registered land surveyor, the boundary survey is an essential task in the buying process. This survey will confirm the acreage, identify where the boundaries are and determine if there is any encroachment onto the land.

Title Policy – Obtained from a title company, this is a one-time expense that protects you from false claims of ownership after the purchase. The title company will find out if there are any outstanding liens on the property or other legal issues to ensure the seller has the legal right of ownership to sell to you.

Appraisal – Usually required by your lender, the appraisal seeks to evaluate the property value to make sure the purchase price is appropriate. Depending on the value of the loan, this may be carried out by an in-house appraiser (for loans below $250,000), or by a state-certified appraiser for higher-value loans.

Overall, these essential tasks make land buying in Texas take around 60 days from start to finish.

Insurances and other expenses

A cattle fence and posts at sunset in Texas.

If the land has no structures at all built on it, you don’t need any insurance coverage, however there are other insurance costs you will need. Liability insurance protects you if anyone has an accident on your property, and it is important. Even if you were not aware that they were on your property, or you have not explicitly given permission for whatever activity caused the accident, it is possible you may be found liable. In addition, if you have substantial timber areas on your property, timber insurance may be needed to cover natural disaster or fire loss.

There are other costs to complete the land purchase in Texas too. If you are borrowing to purchase the land, allow for around a 20% down payment, and closing costs of somewhere around 1.5% too. You also need to pay recording fees, which are dependent on the country the land is located.

However, with everything in place, in two to three months you can turn a dream of land ownership in Texas into reality. It has never been easier to buy land, and no better place than Texas to buy it.