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Are land buying companies legit, and how do I check a buyer before I sell?

Updated · By EasyLotBuyer, buying land since 2021 · 7 sources

Yes, many land buying companies are real businesses that close through title companies, but some are not, and a few are scams. It depends on whether the buyer is registered with the state, signs a written contract, closes through an independent title company or attorney, and never asks you for money. Check those four things before you sign anything.

Key points

  • A real land buyer never asks the seller for an upfront fee. Closing costs are settled at closing, by the title company or attorney.
  • Look up the company in your state's business registry, run by the secretary of state or a similar office in every state.
  • Call the title company yourself, using a number you find on your own, to confirm the deal and any earnest money.
  • Owner names and mailing addresses are in county property records, which are public. That is how most buyers find you.
  • Never follow wiring instructions sent by email or text. The CFPB says to confirm them by phone or in person first.

Assignment of contract: An assignment of contract is when a buyer signs a purchase agreement with you and then sells its right to buy your land to another buyer, who closes in its place.

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Red flags checklist for land buyers, and what a real buyer does instead
Red flagWhy it mattersWhat a real buyer does
Asks you to pay a fee up frontUpfront fees are a common scam sign in real estate offers.Takes any costs out at closing, through the title company.
No written purchase agreementWithout a signed contract, nothing binds the buyer.Sends a written contract with price, dates and who pays costs.
Will not name a title company or attorneyNo neutral party checks title or holds the money.Names an independent title company or closing attorney you can call.
Wants the deed signed before you are paidOnce the deed is recorded, the buyer owns the land.Has the deed signed at closing, when funds are ready to disburse.
Pressure to sign todayPressure keeps you from reading and comparing.Gives you time to read, ask questions and compare offers.
Cannot be found in the state business registryYou cannot confirm who you are dealing with.Is registered and in good standing, with a real address.
Wire instructions by email or textEmail can be spoofed, and wired funds are hard to recover.Confirms payment details by phone at a known number.
Long free-look period and an assignment clauseThe buyer may tie up your land while it looks for another buyer.Says plainly whether it will close in its own name.

How did a land buyer get my information?

From public records. Counties keep property records that show who owns each parcel, the mailing address for the tax bill, and when the land last changed hands. Many counties publish these online. For example, one Indiana county assessor states that property assessment records are a matter of public record and include owners' names, address and the transfer date.

Buyers and data companies pull these records in bulk. They often target owners who live out of the area, own vacant land, inherited land, or have back taxes. A letter or text does not mean someone listed your land. It means your name is on a public record.

A company texted me an offer for my land. Is it real?

It may be. Many real buyers send texts and letters, and so do scammers. Do not click links in an unexpected text. The FTC advises contacting a company with a phone number or website you find on your own, and forwarding spam texts to 7726 (SPAM).

If the offer interests you, look up the company name in your state business registry, search its name with words like complaint or scam, and ask for a written offer that names the title company. A real buyer will not ask for your bank login, Social Security number or a fee before there is a contract.

How do I verify any land buyer?

These checks are quick and work for any buyer, including us.

  • Business registration: search the company on your state's business registry. The National Association of Secretaries of State links to each state's database. Check the legal name, status and date formed.
  • Contact details: the name, address and phone on the letter, website and contract should match.
  • Written contract: get a signed purchase agreement with the price, closing date, due diligence period, earnest money and who pays costs.
  • Title company or attorney: look up the named company on your own and call it to confirm the file.
  • Earnest money: ask that it be held by the title company or attorney, not the buyer.
  • No upfront fees: you should not pay anything before closing.
  • Closing: the deed is signed at closing, and the title company or attorney sends your funds by wire or check.

Is a purchase and listing agreement a real cash sale?

Not always. Some offers look like a purchase but work more like a listing. The contract may let the buyer assign it, market your land to other buyers, or cancel during a long free-look period if it cannot find one. Words to look for include "and/or assigns", "marketing", "exclusive", "option" and long inspection or feasibility periods.

Rules on assigning land contracts vary by state, and your state real estate commission can tell you what applies. Assignment is not a scam by itself, but it changes your risk: the closing may depend on someone else. Ask the buyer in writing whether it will close in its own name with its own funds. If you are unsure what a clause does, ask a real estate attorney before you sign.

What scams target land owners?

The most serious one does not involve a buyer at all. In seller impersonation fraud, a criminal pretends to be the owner of vacant land and tries to sell it. The California Department of Real Estate and the Nevada Real Estate Division have both warned about it. Signs include a seller who only uses text or email, wants a quick sale below market, will not attend signing, uses their own notary and asks for funds by wire.

Wire fraud is the other big risk. The FBI's Internet Crime Complaint Center reports that criminals break into email accounts in real estate deals and send fake payment instructions. The CFPB says never to follow instructions sent by email and to confirm them by phone at a number you already agreed to.

To protect vacant land, ask your county recorder whether it offers a free alert when a document is recorded in your name. Report fraud at ReportFraud.ftc.gov and IC3.gov.

Is it a good idea to sell land to an investor?

It can be, if you know the trade. An investor usually pays below full retail value, in exchange for speed, certainty and taking land as it is. Listing with an agent may bring more if your land has clear title, road access and demand.

Selling to an investor often makes sense when the land has back taxes, liens, title problems or no road access, when several heirs own it, or when you want a set closing date and no showings. Read our guide on how cash offers for land work before you decide.

How EasyLotBuyer handles this

EasyLotBuyer was founded in 2021. We send a written cash offer within 24 hours and never charge fees or commissions. We pay closing costs. Every closing goes through an independent title company or attorney, and the deed is signed at closing. You can look us up, call the title company yourself, and compare our offer with a listing before you decide.

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Questions sellers ask

Are land buying companies legit?

Yes, many are. Real land buying companies are registered businesses that sign written contracts and close through independent title companies or attorneys. Some are not real, and some only try to tie up your land to resell the contract. Check the state business registry, the contract, the title company and whether any fee is asked of you.

Should I ever pay a fee to sell my land to a buyer?

No. A real buyer does not ask the seller for an application, processing or appraisal fee before closing. Any costs you agree to pay are taken out of the sale at closing by the title company or attorney and shown on the settlement statement. An upfront fee request is a strong scam sign.

How do land buyers get my name and address?

From public county records. Assessor and recorder records list owners, mailing addresses for tax bills, and transfer dates, and many counties publish them online. Buyers and data firms pull these records in bulk. A letter or text does not mean your land was listed for sale.

Is a text offer to buy my land a scam?

Not always. Many real buyers send texts, but scammers do too. Do not click links in an unexpected text. Look up the company on your own, ask for a written offer that names a title company, and never share bank logins or pay a fee. Forward spam texts to 7726.

Who should hold the earnest money?

The title company or closing attorney. A neutral party holding the deposit is standard and lets you call to confirm it was received. Earnest money paid straight to the seller or kept by the buyer gives you less protection. The contract should say who holds it and when you keep it.

Can a land buyer back out after signing?

Yes, often during the due diligence or inspection period named in the contract. After that period, backing out usually costs the buyer its earnest money, if the contract says so. Read the termination terms and deadlines before you sign, and ask a real estate attorney if anything is unclear.

What should I do if I think a buyer is a scam?

Stop contact and do not sign or send money. Report it at ReportFraud.ftc.gov, and file at IC3.gov if wire fraud or deed theft is involved. If someone may have tried to sell your land, call your county recorder and local police. A real estate attorney can help clear a false deed.