Contract & Selling Process

The Selling Process & Choosing a Title Company

Before you ever sign a contract, it's important to understand how the selling process works and the role of the title company.

What the Title Company Does

A title company acts as a neutral third party that protects both the buyer and the seller. Their main jobs include:

• Title Search: Making sure the property can be legally sold with no liens, unpaid taxes, or hidden claims.
• Clearing Title Issues: If problems do come up (like liens or paperwork mistakes), the title company helps fix them so the sale can move forward smoothly.
• Escrow Services: Holding the buyer's deposit and funds safely until the deal closes.
• Title Insurance: Protecting against future ownership or claim disputes.
• Closing Coordination: Preparing final paperwork, collecting signatures, and recording the deed.

Finding a Title Company

• Look for a local company with good reviews. Good reviews build trust — especially if the seller is cautious.
• Most companies charge similar closing fees. You can always request an estimate upfront to make sure costs are fair.
• If the buyer insists on using their own title company, that's usually fine and not worth blowing up the deal over. We've done this many times. When people are spending a lot of money, they often want to feel extra safe working with someone they already know. Just double-check that the company is licensed, legitimate, and reasonably priced — and you'll still have the same protections in place.

Step-by-Step Selling Process

1. Have a Title Company Ready – You should already have your title company chosen so you can add their details into the agreement.
2. Agree on Price & Sign Agreement – Once you and the buyer agree on a price, fill out a simple agreement (shown below) and get it e-signed by all parties.
3. Send Agreement to Title – Include the buyer's contact information when you send it.
4. Title Company Takes Over – They'll open escrow, start communicating directly with the buyer, and begin preparing paperwork.
5. Scheduling the Signing – The title company will arrange the final signing for both sides:
   • In person if local,
   • Remote online signing if available, or
   • Remote notary who comes to you.
6. Closing & Funding – Once everything is signed and the buyer's funds are in escrow, the deed is recorded and the seller gets paid.

Why a Title Company Matters

A good title company keeps the process smooth, protects everyone, clears up any issues that could derail the sale, and ensures the deal closes legally and securely.

Contract / Agreement Breakdown

When most people think of real estate contracts, they picture 20+ page documents filled with confusing legal jargon. That's what agents use — and it intimidates buyers and sellers alike. The truth is, you don't need that when selling land. The title company is the one who prepares and handles all the legal paperwork that really matters: the title search, deed transfer, escrow, and recording with the county.

What we use at this stage is much simpler. I don't even call it a contract — I call it an agreement. Why? Because that word feels less intimidating and makes clear what it really is: a short, 1–1.5 page outline of the deal.

This agreement just sets the basic guidelines so everyone is on the same page before the title company starts. It covers:

• Price
• Buyer and seller names
• Parcel info (address and APN)
• Closing date
• Which title company will handle it
• Who pays which costs

That's it.

The title company won't open a file or begin their process without this. And you don't want them to, because you need to make sure there's no misunderstanding before time and money are spent. This agreement is your chance to get clarity on the deal up front. If anything needs to change — the closing date, buyer info, or even the price — it's better to catch it here than weeks into the closing process.

Think of it like drawing a map: once both parties sign this agreement, the title company has their marching orders, and the deal can move smoothly forward.

Reviewing the Agreement Together

This isn't theory — this is the exact format I use for my own deals. You'll notice how short and simple it is compared to what real estate agents use.

Section Breakdown

1. Parties

This lists who's selling the property and who's buying it.

Everyone who plans to be on the deed as an owner must have their full legal name included here.

2. Property

This section lists the full property address and the parcel ID (APN).

• The full address must be included so there's no confusion.
• The parcel ID can either be written out or you can simply note "as listed in public records," which is often easier and avoids extra steps or mistakes.

3. Terms

Purchase Price: The agreed amount for the property.

Payment Terms: Most deals are "Cash." If financing is involved instead, this should be stated here. You may also choose to adjust how the escrow deposit is handled (for example, making it refundable if financing falls through).

Escrow Deposit (Earnest Money Deposit): A small deposit (often $500–$1,000) paid by the buyer to the title company, not to you directly.

• This shows the buyer is serious and committed to closing.
• In a standard cash deal, the deposit is only refundable if we cannot deliver free and clear title.
• With financing, you can decide whether to allow the deposit to be refunded if the loan doesn't get approved.
• Either way, the deposit helps protect your time and ensures buyers are committed.

4. Licensed Closing Agent

The title company that handles the closing. This is where their name, address, and phone number are listed.

You should have your title company chosen before filling out this part of the agreement.

5. Closing Date

The deadline for when the deal will be finalized. Typically this is set at 30 days, but it can be shorter if both sides agree.

I often use 10–14 days, as long as the title company confirms they can meet that timeline. The sooner the better, but the buyer also has to agree to the shorter window.

6. Acceptance Period

This is the "expiration date" of the agreement. If the buyer doesn't sign by then, you're free to move on. It creates urgency and gives you a clear deadline so you're not stuck waiting on an unsigned agreement.

7. Condition & Possession

States the land is sold "AS-IS." This keeps you safe from buyers asking for repairs or improvements.

8. Closing Costs

Explains how costs are split. 50/50 is common, but you can negotiate. Buyer pays future taxes, title insurance, and lender fees. Seller covers any existing back taxes, liens, or violations up to the closing date.

9. Termination Clause

If the buyer doesn't follow through, you (the seller) can cancel the agreement. Normally, title companies require a cancellation signed by both parties, but if the buyer isn't cooperative, this clause allows the title company to cancel based on your request. That way, you can move forward with a new buyer without unnecessary delays.

10. Additional Terms

This section explains where disputes will be handled, makes it clear that any changes must be done through a written addendum signed by both parties, and leaves room to add anything specific to your case that doesn't fit elsewhere in the agreement.

Using E-Sign for Contracts

Once your agreement is filled out, it needs to be signed by both parties. The easiest way to do this is with an e-sign platform such as DocuSign, HelloSign, or similar services. These systems are secure, legally recognized, and save you the back-and-forth of printing, scanning, or mailing.

How it works (Step by Step):

1. Upload the contract into the e-sign platform.
2. Enter the buyer's email first, then yours second — this ensures the buyer signs before you.
3. Place the signature and date fields where required.
4. Send the agreement out for signatures in the order you set.
5. Receive a completed copy automatically once both parties have signed.

Why buyer signs first:

By having the buyer sign before you, they're the ones making the binding offer. This protects you from being locked into the agreement until the buyer has shown commitment. Once they sign, you can add your signature to finalize the deal.

Inspection Periods & Proof of Funds

Some buyers may ask for an inspection period in the agreement. This means they have a set number of days after signing to review the land and, if they change their mind, they can back out without losing their earnest money deposit.

For land under $100,000, I almost never include inspection periods. By simply leaving them out of the agreement, buyers rarely even ask about them — it's not expected at this price point. Inspection periods are more common once you get into higher-value properties where special conditions may need verifying (environmental issues, floodplain reports, subdivision rules, etc.). But under $100K, an inspection period usually just slows things down and adds risk without much benefit.

When Buyers Ask for an Inspection Period

Some buyers may want an inspection period, and when that happens the closing timeline is usually longer — often 30 days or more. That's where risk creeps in, because you could spend weeks under contract only to have the buyer back out or fail to close.

Why Proof of Funds Matters Here

If you allow an inspection period, you should always verify proof of funds (POF) first. Here's how:

• Signing order protects you. If you've followed our advice, the buyer signs first. Until you sign, the agreement is not executed — which means you hold the cards.
• They're already invested. Once the buyer has signed, they're emotionally committed. That's the perfect time to say:

"We see you've signed, great. Before we sign our half and execute the agreement and send it to title to begin, can you please send some sort of proof of funds so we know you're able to close?"

What Counts as Proof of Funds

• A bank letter from their financial institution.
• A screenshot of their bank balance, with account numbers and private info hidden.
• A lender pre-approval letter, if they're using financing.

👉 That said, I never even consider sending an agreement if I know the buyer is financing and they haven't already provided a pre-approval letter. On top of that, I personally reach out to their lender to confirm they're likely to be approved before moving forward.

POF vs. Earnest Money Deposit (EMD)

• If you have EMD and no inspection period on the agreement: POF is less critical. Buyers usually have 3 days to deposit their earnest money into escrow. If they don't, the agreement is void. If they do and then fail to close, you keep the deposit.
• If you don't have EMD or you allow an inspection period: POF becomes very important. Without it, you risk wasting time with a buyer who isn't financially ready.

When I Skip Asking for Proof of Funds

• On super-fast closings (7–10 days), I often skip POF because the deal moves so quickly there's little risk of wasting time.
• When there's an EMD deposit and no inspection period, I don't worry much about proof of funds. The buyer has only a few days to submit their deposit into escrow or the agreement becomes void. And if they do submit it but fail to close, I keep their deposit.
• In rare cases, I may skip asking for an EMD if I believe it would create too much friction. This doesn't happen often, but sometimes you get a first-time buyer who's already nervous about the process. If I see enough signs that they have the funds and are genuinely committed, I'll keep the deal simple and move forward without it.

The real problems come with 30+ day closings and inspection periods — that's when you need to be strict with both POF & EMD. Without POF, you could be tied up with buyers who are just hoping they can scrape funds together before closing (we've learned this the hard way).

Working With Buyers Who Have an Agent

If you are working with a buyer who's represented by an agent (buyer's agent), they will almost never accept this simple agreement — and that's okay. This version is primarily for direct-to-buyer deals when you're selling to someone who found you without an agent.

When an agent is involved, they are trained (and required by their broker) to only use the state-approved contracts. These are long, multi-page documents that default to protecting the buyer. They often include:

• Longer closing periods
• Inspection periods
• Additional contingencies that slow the process

Here's how to handle it:

• Let them use their contract — put the work on them.
• Review what they send and negotiate what matters (shorter closing window, removing inspection period if unnecessary, etc.).
• Remember: you can always dictate what you're willing to accept or not. Just because their form includes something doesn't mean you have to agree.

The key is to stay confident. Your role doesn't change: you set the boundaries of the deal, the agent just puts it in writing.