A major issue is ownership of the home. If you build a home on someone else's property without a written and signed agreement, that house more or less belongs to the property owner. If there's a disagreement in a few years, the home builder may lose out in a dispute with the land owner.
Second, many people don't have the cash to build a home from scratch. You may want to use the land as collateral in order to get a bank loan for a stick built home or mobile home trailer. To do this, you will want to have the portion of the land where the home is to be built or installed transferred to your name.
Happily the transfer process is not too difficult in Texas. If the portion of land you want conveyed has NOT been surveyed before, you need to contact a land surveyor to survey the property and create a legal description of the land. If the land does not adjoin a public roadway, make sure an easement is included so you are not landlocked. After the surveyor completes his or her work, our attorneys will create the appropriate deed paperwork, arrange for it to be signed in the correct manner, and record it with the county clerk. This transfers the title to the future home builders and will be sufficient to allow banks and lenders to use the property as collateral and issue a loan.
If you have any questions about gifting or selling land to someone, contact us at Martin Millican Cooley PLLC. We are very experienced with real estate transactions and help hundreds of people each year with buying or selling land and homes.