Red Flags To Look Out For When Selling Your Land

No Business Website

Reputable land investment companies always maintain professional websites. If you’ve received an offer from a business without a website, consider this a red flag. Additionally, when evaluating a potential buyer’s online presence, look beyond surface appearances. A legitimate company’s website should feature comprehensive information, detailed processes, and functional links. Websites with minimal content, generic language, broken links, or missing contact details often indicate questionable operations or inexperienced “here today, gone tomorrow” businesses that may not follow through on their promises.

Untraceable Phone Numbers

When contacted by a potential land buyer, we strongly recommend using an internet search engine to research their business phone number. Use quotation marks around the number and proper phone number dashes to ensure you are searching for an exact match (Example “479-974-5263”). Does their phone number connect to a legitimate company website? Untrustworthy operators typically avoid using traceable contact information. As property owners in Bella Vista ourselves, we frequently receive offers ourselves from supposed “land buyers” using disposable phone numbers that don’t link to any verifiable business or individual. This is a significant warning sign that shouldn’t be ignored.

Vague Due Diligence Clauses

For example, clauses like “lot must be suitable to buyer” where “suitable” remains undefined. This vague language essentially gives the potential buyer freedom to cancel for any reason under the guise of due diligence concerns. Many opportunistic investment companies lack familiarity with Bella Vista and conduct minimal research before sending offers. Their strategy involves casting a wide net with generic, often inflated offers that ignore each lot’s unique characteristics. These ambiguous due diligence provisions allow them to properly investigate AFTER securing an agreement, then they can either terminate the contract without consequence or pressure sellers into accepting a reduced price once they’re emotionally invested in the sale.

Assignment Clauses

A clause frequently employed by “wholesalers,” this provision allows the supposed buyer (who often never actually intends to purchase your property) to assign your contract to another buyer, typically at a higher price than they agreed to pay you. The wholesaler then pockets the difference as an “assignment fee.” In a sense, they operate as unlicensed real estate agents, which is why numerous states have implemented strict regulations on this practice. Most wholesalers lack transparency with sellers about marketing their properties; they often resort to deceitful tactics, such as claiming they’re performing “due diligence” when they’re actually hunting for buyers. Furthermore, many wholesalers conduct minimal due diligence on properties before extending offers. Their initial prices are often inflated to secure your interest. Since they bear no financial risk, they frequently cancel contracts when buyers can’t be found, pressure you into price reductions later, or repeatedly delay closing with various excuses to extend contract deadlines. If you’re considering an offer that contains an assignment clause, we strongly recommend demanding its removal before accepting the offer. Fortney Land Holdings firmly opposes wholesaling practices and has never, and will never, engage in this activity. Furthermore, we refuse to purchase land from wholesalers, as we know that the actual property owner likely has no knowledge their property is being marketed to other potential buyers.

Example of assignment clause wording: “Buyer has an unqualified right to assign its rights under this contract to a third party. No notice to the Seller of an assignment is necessary. Such an assignment will release the original Buyer from this contract and substitute the assignee in its place.”

An assignment clause may also be subtly incorporated into the contract by simply stating the buyer’s name as “Buyer Name LLC and/or assigns”.

Cancellation/Escape Clauses

A cancellation (or escape) clause gives buyers an easy way to back out of a deal. With these clauses in place, buyers can cancel for any reason prior to closing. At Fortney Land Holdings, we thoroughly research all land lots before making offers to sellers. Unlike most of our competitors, we have deep local knowledge of Bella Vista and have lived in the area ourselves. We don’t need a cancellation clause. We stand fully committed to purchasing your property at the price offered and are one of the only companies investing in Bella Vista that doesn’t include a cancellation or escape clause in our contract.

Extended Closing Timeframe

We believe that any land buyer promising a simple, hassle-free closing should deliver on that promise within 1 month or less (At Fortney Land Holdings, we close within 10 business days). In Bella Vista, even when legitimate due diligence is necessary (such as topographical surveys or septic permit approvals), the entire process shouldn’t exceed 1.5 months. Any length of time beyond this is egregious and potentially indicates that your buyer is planning to “assign” your contract (more details in the Assignment Clause section). If your buyer claims they need more time than this for due diligence, don’t hesitate to request documentation proving their due diligence activities – for instance, copies of soil test results or survey order confirmations.

Backtracking on Offer Price

Beware of deceptive buyers who intentionally send high offers only to later use alleged “due diligence” or contract clauses as leverage to slash their initial price. They’re counting on your reluctance to restart the selling process from scratch. We’ve heard countless stories from frustrated sellers who’ve experienced this bait-and-switch tactic. This practice infuriates us and tarnishes the reputation of legitimate land investors everywhere. Remember: unless specifically outlined in your contract, you have no obligation to accept a reduced price! At Fortney Land Holdings, we stand by our word – the price we agree to is the price we pay. If you’re dealing with an unreliable buyer trying to renegotiate, let them walk away and call Fortney Land Holdings instead! We provide a straightforward, honest solution for selling your Bella Vista property without the games.

Unwilling to Speak with Your Lawyer and/or Remove Excessive Contingencies & Clauses

When selling your property, we recommend having your attorney review the contract and research the land investment company prior to signing their purchase agreement. At Fortney Land Holdings, transparency is our foundation—we’ve completed numerous lot purchases while collaborating directly with sellers’ attorneys. We are more than willing to speak with your attorney and happy to have them review our contract. If the potential buyer is not willing to speak with your attorney, this is a red flag—and often signals they’re concealing something or engaging in questionable practices. Additionally, if a buyer refuses to remove assignment clauses, vague due diligence terms, or cancellation provisions, we recommend choosing a different buyer. If you want a legitimate, professional land investment company to purchase your land with zero contingencies, no cancellation clauses, and no assignment clauses, give us a call at (479) 974-5263!