You’ve signed the contract—congratulations! Now the real work to prepare for ranch ownership begins. Before you close you want to 1) validate your assumptions and information given to you during the option period 2) secure financing (if you decide to go this route) and insurance and 3) clear any items that may come up prior to closing. So, what actually happens during this process?
Step 1: The Option Period – Your Chance to Dig Deeper
In Texas, most contracts include an option period, a period of time that you and the seller have agreed to (the duration depends on how complex the purchase is) where you can back out for any reason. Use this time wisely!
Validate assumptions
A ranch is more than just land. You’ll want to inspect:
✔️ Water sources – If there is a company or city providing water service to the property, visit with them to understand the process for transferring the meter(s) or adding additional meters. Many water companies require a hydraulic analysis (hydro) study to see how many additional meters can be placed on the water line. If you plan to develop the property, this is a critical step.
✔️ Fencing & gates – Good condition or need repairs? We often have cattle ranchers schedule time to “walk the fences” to understand exactly where repairs are needed. Cattle that are new to the property tend to explore more than existing cattle so it’s important to understand where repairs are needed before you put new cattle on the property.
✔️ Structures – Barns, homes, or sheds need an inspection, too. If you plan to hire contractors the option period is the best time to get estimates for repairs. If there is a home on the property you can schedule an inspection during the option period.
✔️ Easements & property restrictions – Are there any restrictions on land use? The title commitment and survey will help you understand what (if any) restrictions there are on land use. We’ve seen restrictions ranging from no mobile home, to no subdividing into smaller than 20 acre tracts, to no cattle. Easements and property restrictions can impact your plan for the property, so we recommend asking for an option period long enough to review the title commitment and survey.
Step 2: Secure Financing & Insurance
Loan Approval
If you’re financing, your lender will finalize approval. You were likely “pre-qualified” or “pre-approved” by your lender prior to making the offer. The approval process confirms that the information you gave them during the pre-qualification/approval process is still valid. Your lender will also likely require an appraisal to confirm the property’s value. Ranch appraisals can take longer than residential ones, and are typically scheduled towards the end of the option period. We work with lenders to keep them informed during the process to identify and mitigate issues that may come up that could delay closing.
Line Up Insurance
Ranches require more than standard homeowner’s insurance. Consider:
✅ Farm & ranch insurance – Covers land, buildings, and liability.
✅ Crop insurance – If you plan to grow crops, this protects against losses due to drought, hail, or other natural disasters. Some policies also cover price drops.
✅ Umbrella insurance – A smart option for ranch owners, this extends liability protection beyond your standard policy. If someone gets injured on your property or you face an unexpected lawsuit, umbrella coverage can be a financial lifesaver.
Your lender may require specific policies before closing. We can also work with you to help you navigate the complex world of land & ranch insurance. It’s a relatively niche market with a mix of private and government programs.
Step 3: Clear the Final Hurdles
Environmental or Ag Exemptions
If the property has an agricultural tax exemption, confirm what’s required to keep it in place. Some counties need proof of livestock or hay production to maintain the lower tax rate.
Final Negotiations
If inspections revealed major issues, now is the time to negotiate repairs or price adjustments. If you’re okay with handling repairs yourself, you may ask for a credit at closing instead.
Step 4: Closing Day – Making It Official
Once everything checks out, it’s time to sign the final paperwork. Closing usually happens at a title company, where you’ll:
✅ Pay closing costs & final balance.
✅ Sign all ownership transfer documents.
✅ Receive keys, gate codes, and any additional property info.
After the paperwork is complete, the title company records the deed, and once the funds have been transferred to the seller, you officially own the ranch!
Closing on a ranch isn’t complicated, but it does require attention to detail. Having a solid contract, performing the right inspections, and working with a knowledgeable ranch real estate agent can make all the difference. You want someone on your team that can assist you throughout the process, and we have more than 20 years of experience helping people just like you purchase and sell land.
Ready to make your ranch dream a reality? Let’s find the perfect property and walk through the process together.
Contact Us
Jacob Story
DFW Story Group
📞 817 201 8352
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