Background
Our team specializes in acquiring undivided interests and landlocked properties across Texas—often dealing with fractional ownership ranging from as little as $200 to $2,000 per interest. These properties typically have total asset values between $25,000 and $50,000, and are frequently tangled in legal and logistical complexities.
To close these types of deals efficiently, we had to develop a streamlined process—one that wouldn’t rely entirely on title companies or rack up excessive legal fees from outside counsel.
Challenges We Faced
- Title Insurability Issues: Many title companies refused to insure fractional, undivided interests, making traditional closings impractical.
- High Transaction Costs: Legal fees and closing costs could easily exceed $1,000–$2,000 per interest—eating into margins.
- Fragmented Ownership: We often purchased interests from multiple heirs or stakeholders at different times.
- Document Management: It was critical to ensure every deed was correctly filed with the county to protect our ownership rights.
- Contract Coordination: Negotiating with several sellers on varying timelines made option contracts difficult to align.
Our Approach & Solutions
To overcome these challenges, we built a custom, in-house closing system that’s fast, efficient, and legally sound:
- Internal Closing Process: Working with our attorney, we created templated purchase agreements and deed documents. Every transaction is reviewed for compliance before being executed, without relying on third-party title companies.
- Immediate Deed Filing: As soon as deeds are signed, we file them with the county recorder—even before a full title review—ensuring our position is recorded.
- Strategic Title Reviews: Instead of requesting a title commitment for every small acquisition, we wait until we’ve gathered all undivided interests before engaging a title company. This reduces complexity and underwriting issues.
- Flexible Option Contracts: We learned that staggered agreements worked better than rigid 30–40 day options. This allowed us to manage seller expectations and avoid pricing conflicts between family members or co-owners.
- Bulk Legal Reviews: To keep costs low, we have our attorney review multiple documents at once instead of paying per transaction—keeping us compliant while saving money.
💡 Lessons Learned
- Relying on title companies alone doesn’t work for undivided interest deals—flexibility and internal control are key.
- Filing deeds quickly with the county protects your investment while you complete the full acquisition.
- A structured, attorney-backed closing system reduces legal exposure and saves thousands in transaction costs.
- Staggered acquisition timelines and smart contract structuring help prevent seller disputes.
- Organized records and strong process management are essential for success when dealing with fractional ownership.
Outcome
By building our own internal closing process and working closely with legal counsel, we’ve been able to efficiently acquire undivided interests and landlocked properties that most investors avoid. This approach allows us to turn complicated deals into clean, profitable outcomes—while offering real solutions to heirs and co-owners who need a path forward.
Frequently Asked Questions (FAQ)
What is an undivided interest?
It’s when multiple people share ownership of a property—without physically dividing it. For example, you might own 1/10 of a 10-acre property but have no specific part assigned to you.
Why won’t a title company insure these deals?
Title companies often view fractional or landlocked ownership as too risky—especially when there’s no formal access or when heirs don’t agree.
Can I sell my interest even if I don’t own 100%?
Yes! We specialize in buying partial interests and have processes in place to protect everyone involved.
What happens if there’s no road or legal access?
We work with attorneys and local officials to establish easements or access rights, or pursue legal claims like prescriptive easements when needed.
How quickly can you close?
Most of our deals close in 1 to 3 weeks, depending on how quickly we can gather documents and verify ownership.
Need Help Selling an Undivided or Landlocked Property?
We’re here to help you turn complicated real estate into cash in your pocket, without the stress. Whether you’re a single heir or managing multiple stakeholders, we’ll guide you through every step.
📞 Call us anytime at 713-322-6553 or
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