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Buying land as a group

I’m considering buying land with a group of people. What do I need to know?

Buying land as a group can be a complex process, and there are several important factors to consider before completing the transaction. Here are the top 10 things you should consider:

  1. Clear Objectives and Agreements - Clearly define the objectives of the group. What is the purpose of buying the land? Establish written agreements outlining the responsibilities, rights, and obligations of each member. This may include rules for decision-making, resource use, and potential exit strategies. It’s much better to have these hard conversations before you start your property search than it is after you have committed your time and resources to an investment.

  2. Legal Structure - Decide on the legal structure for your group. Common options include forming a limited liability partnership (LLP) or limited liability company (LLC). Each structure has its own implications for liability, decision-making, and taxation.

  3. Financing - Determine how the land purchase will be financed. Will each member contribute an equal amount, or will contributions vary based on usage or ownership share? Consider how ongoing costs and potential future developments will be funded. With land, financing costs (if used) will be your biggest recurring expense. If you choose to raise the capital on a recurring basis (for example, annually) consider what happens if a member of the group is unable or chooses not to contribute.

  4. Survey and Boundaries - Obtain a current survey of the land to clearly define its boundaries. This will help prevent disputes with neighbors and ensure that you are aware of any encroachments or easements. A survey can also help simplify your exit strategy. For example, the property can be surveyed into tracts with each member owning a tract.

  5. Exit Strategy - Plan for the possibility that a member may want to leave the group. Define the process for selling or transferring individual shares and how the valuation will be determined.

  6. Environmental Considerations - Conduct a thorough environmental assessment of the land. Check for issues such as soil contamination, endangered species, wetlands, or other environmental concerns that could affect your plans or have legal implications. We recommend that all of our buyers conduct a Phase 1 environmental assessment prior to purchasing a property.

  7. Utilities and Infrastructure - Verify the availability and cost of utilities such as water, electricity, and sewage. If the land lacks infrastructure, determine the feasibility and cost of bringing in these services.

  8. Title Search - Conduct a thorough title search to ensure there are no liens, claims, or other issues with the property's title. This is crucial for establishing clear ownership and is a part of the title company’s work prior to closing.

  9. Insurance - Explore insurance options to protect the group from potential risks and liabilities associated with land ownership, such as liability insurance or property insurance.

  10. Legal Assistance - Engage legal professionals with experience in real estate transactions and group ownership structures. They can help draft agreements, review contracts, and ensure that the purchase is legally sound.

We have experience helping people buy or sell land individually or in groups, and would welcome the opportunity to help you do the same. If you have any questions, please reach out to us:

Jacob Story

817 201 8352

Rick Story

817 992 9218


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