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Purchasing Land

Purchasing Land. Unit: Owning Property Lesson: Purchasing Land. Selling Price Size of Parcel Deed Restrictions Taxes. Adjacent Properties Open Space Forested Space Location Insurance. What To Consider When Purchasing Land. Land Purchasing Costs. What is Taxation?.

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Purchasing Land

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  1. Purchasing Land Unit: Owning Property Lesson: Purchasing Land

  2. Selling Price Size of Parcel Deed Restrictions Taxes Adjacent Properties Open Space Forested Space Location Insurance What To Consider When Purchasing Land

  3. Land Purchasing Costs

  4. What is Taxation? • A right reserved by the municipal, county, state, and federal government on owners of real and personal property or income and estates to support government activities

  5. More on Taxes • Property or Land Tax must be paid on land and any improvements to the land • Land is taxed based on its location • The tax is determined by an assessed value • Transfer Tax – varies by area (usually approx. 2% between buyer and seller)

  6. A set value to serve as a tax basis Set on both real estate and personal property Set based on actual value if liquidated Set by a county tax assessor Enforced by a tax collector Tax Assessment

  7. Are There Any Tax Breaks?

  8. What is a Deed? • A written instrument from one person to another establishing the title to or possession of real property • Restrictions may be set upon a deed by the seller

  9. Types of Deeds • Quit-Claim • Grant Bargain and Sale • Warranty

  10. Other Deed Costs • Deed Boundary Closure costs (checked by surveyor) • Value loss due to adverse titles or claims • Lawyer fees for drawing up a deed • Closing fees • Back taxes

  11. Who Holds a Deed? • Property Owner • County Recorder’s Office • Partner/Co-Owner

  12. Landowner Website • Columbia County, Pennsylvania – Geographic Information System Website for landowners: http://gis.columbiapa.org/

  13. What is a Loan? • The lending of a specific amount of money, which may include an interest charge, over a given time period

  14. Principal Interest Rate and Method Re-payment period Restrictions Credit Check Terms and Conditions Re-payment method Special Conditions Items Included in a Loan

  15. A lien is the right to keep another person’s property until a debt is repaid (crops, cattle, etc.) A security agreement on an item means that someone else has the right of ownership if a debt is not repaid (land, large assets) Liens Vs. Security

  16. What is a Mortgage? • A legal contract for the conveyance or transfer of an interest in property • May be for both real and personal property

  17. More on Mortgages • Must be in written form and signed by all parties involved • Must meet all mandated requirements • Must be recorded

  18. Encumbrance of unpaid items Foreclosure Right to Sell Affidavit Extension Release Refinancing Issues Concerning Mortgages

  19. Wills A legal document that disposes of a person’s real and personal property • Must be 18 years or older and of sound mind

  20. Single Vs. Married Kind of Will Changes made later Witnesses??? Lawyer Executor(s) Beneficiaries Inheritance Tax Trusts Issues Concerning Wills

  21. Lesson Closure • Items to consider when purchasing land • Taxes associated with land • Importance of deeds, mortgages, and wills

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