Homesteading: Land from the U. S. Government?

Homesteading: Land from the U.S. Government — Then & Now

Original Homesteading: Getting "Free" Land from the U.S. Government

I remember hearing the stories of how my grandfather was able to acquire some "free" land through homesteading. In those days the U.S. government was interested in transferring land from the public domain to private ownership. Several Homestead Acts were passed in the 1800's. By far, the most famous dated from 1862. My grandfather got in on the last decades of the program, in the early part of the Twentieth Century.

Generally, the required procedures for homesteading a parcel of public land included:

1. To build a house on a parcel of unclaimed land, usually not exceeding 160-acres (although the size changed depending on the individual's marriage status and time-period the homesteading occurred);

2. To determine and describe the land's boundaries;

3. To live on the land for a prescribed length of time;

4. To pay the applicable fees; and

5. To record the Homestead with the applicable Government Land Office.

My grandfather did all these things and got himself a piece of land. Yet, all things considered, he would've come out cheaper and happier to simply pay for a bit of land in cash, finding a location where he really wanted to live. He came out okay. But that was then. This is now.

Today, the Homestead Acts are mostly a thing of the past (info on the 2005 Homestead Act). So "homesteading" as we call it today, isn't what it used to be. Not in the technical or legal sense.

But don't feel bad. Never forget: what the Federal government can give, the Federal government can take away. If you ever doubt that, just ask some of the many Native American nations that made "everlasting" land deals with the U.S. in good faith.

You're often better off to simply hire a good real estate agent (someone who knows the laws and all the procedures) buy your land, pay the fair market value, get your deeds (and know what you're getting) and paperwork, and don't ask for any special favors. Why? Because the American people (that's you and me, and all our neighbors, by the way) are a fickle people, always and forever changing our minds about what we really want, what should be ours, and so on. And then you also have the guys trying to make a career in the Federal government, and some of them come up with strange ideas on their own...

Can I Still Get Hold of Public Lands?

According to the U. S. Bureau of Land Management (BLM), the answer is yes. The following information is made available to all U.S. citizens by the United States Government. All the information on this page is taken from public sources.

Lands identified as "excess" to the public's and Government's needs or "more suited to private ownership" are sometimes offered for sale. The following explains basic procedures and where to go for more details.

First, it's important to understand that the United States Government has two major categories of property which it makes available for sale:

1. Real property and

2. Public lands.

Country road in Montana

Real Property most often describes developed land with buildings, usually acquired by the Federal Government for a specific purpose, such as a military base or office building. If you're interested in real property, contact the General Services Administration (GSA). This Federal agency is responsible for selling developed surplus property. Contact information for the 11 GSA regional offices can be obtained by clicking here.

GSA auctions and sales are posted online by the Office for Property Disposal. Click here to open that page.

Public Land is undeveloped land with no improvements, usually part of the original public domain established during the western expansion of the United States. Most of this land is in the 11 Western States and Alaska, although some scattered parcels are in the East. This land is the responsibility of the Department of the Interior's Bureau of Land Management (BLM).

Note: Because of land entitlements to the State of Alaska and to Alaska Natives, no public land sales will be conducted in Alaska in the foreseeable future.

As a general rule the BLM doesn't offer much land for sale because of a congressional mandate in 1976 to generally retain these lands in public ownership. The BLM does, however, occasionally sell parcels of land where land use planning finds disposal is appropriate.

Here are answers to some of the most common questions. You may also obtain more detailed information from

one of the BLM state offices. (You can also download a PDF version of the directory listing here.)

Where are the public lands made available?

The great majority of all public lands available today are in the Western States of Alaska, Arizona, California, Colorado, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, and Wyoming. There are also small sections in Alabama, Arkansas, Florida, Illinois, Kansas, Louisiana, Michigan, Minnesota, Missouri, Mississippi, Nebraska, North Dakota, Ohio, Oklahoma, South Dakota, Washington, and Wisconsin.

There are no public lands managed by the BLM in Connecticut, Delaware, Georgia, Hawaii, Indiana, Iowa, Kentucky, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Vermont, Virginia, and West Virginia.

Is any of this land available free to the public for homesteading?

No. Congress has repealed the Homestead Act.

What lands are still available?

Although homesteading is a thing of the past, the BLM does have some lands suitable for purchase by private citizens. These are lands that have been identified as unneeded by the Federal Government or as better utilized in private ownership. By law, these lands are made available for sale at no less than fair market value.

How are these lands selected for sale?

The law states that the BLM can select lands for sale if, through land use planning, they are found to meet one of three criteria:

1) they are scattered, isolated tracts, difficult or uneconomic to manage;

2) they were acquired for a specific purpose and are no longer needed for that purpose; or

3) disposal of the land will serve important public objectives, such as community expansion and economic development.

What do the lands look like?

Land types vary widely. Some may be desert; some are rural. Some are small parcels of just a few acres, while others are several hundred acres in size.

Is any of the land suitable for farming?

Any lands with agricultural potential will be clearly identified in the sale notice. However, most public lands have little or no agricultural potential.

Is there an average of what would public land might cost per acre?

There is no "average" cost. Each parcel is evaluated separately through established appraisal procedures, based on the value of surrounding parcels. Fair market value is determined for each parcel. No parcel can be sold for less than fair market value.

How is the land actually sold?

The BLM has three options for selling land:

1) modified competitive bidding where some preferences to adjoining landowners are recognized,

2) direct sale to one party where circumstances warrant, and

3) competitive bidding at public auction.

The sale method is determined on a case-by-case basis, depending on the circumstances of each particular parcel or sale.

Are any preferences given for veterans?

At the present, the BLM gives no preference to veterans for land purchases.

How can I find out about public land being offered for sale?

Your best source is the BLM office with jurisdiction over the area you're interested in. The BLM State Offices and their jurisdictions are listed here. You may contact the state or field office nearest you and get sale information. You can also reach the U.S. government's online version of BLM here. Sale information will also be published and broadcast in local news media. GSA auctions are also listed online by the Office of Property of Property Disposal.

Where are land sales held?

They are held near the area to be sold, either at the local BLM office or in a suitable public location. Sales by the BLM are not held in Washington, D.C.

Are there any restrictions on who can bid on these parcels?

Federal law states that the BLM can sell public land only to U.S. citizens or corporations subject to Federal or State laws.

Must I appear in person to participate at the sale?

Your personal appearance isn't required, but it's always to your advantage to examine the parcel and know exactly what you're bidding on. Sales can be conducted by oral bid, sealed bid, or a combination of both. However, even if only oral bidding is allowed, you can be represented by an agent.

Details on procedures for a particular sale are specified in the sale notice available from the BLM. The notice will specify type of sale, the percentage of the full price that must be deposited with each bid, and the time period allowed for full payment. The highest qualified bidder is eligible to buy the land; the deposits of unsuccessful bidders are returned.

How is payment made? Is any financing available?

A certain minimum percentage of the full price is required with each bid. If you are the successful high bidder, the balance must be paid in full to the BLM within a set period of time before a deed can be issued. Long-term financing must be arranged through private lenders.

Once the BLM issues my deed, can I do anything I want with the land?

Yes, according to the terms of the deed and subject to State or local restrictions. Restrictions are clearly stated. Possible Federal reservations or conditions of sale that might apply include reserving mineral rights to the Federal Government, or allowing some currently authorized uses, such as grazing, to continue for a certain period of time, or reserving rights-of-way or easements for powerlines, pipelines, etc.

You're advised to review all conditions carefully so that you fully understand what your deed does and doesn't include.

What about local taxes, zoning, etc.?

Once you receive title, the land is subject to all applicable State and local taxes, zoning ordinances, etc.

Are water, power, and sewer service available on all parcels?

You should check with the city or county involved to see if such services are available for the property in question.

Are there roads or easements that guarantee I can get to the property?

Not necessarily. The sale notice will explain legal access to the property or any access restrictions. You're advised to check out the parcel before you buy, including finding out if available access meets your needs.

I'd like to find out what parcels the BLM currently has listed for sale. Where can I obtain that information?

The BLM State Offices are your best contact source. They can tell you what sales are currently scheduled and what prospects are coming up. You can write, call, or visit them periodically for latest details. If a sale is currently scheduled, information can be requested from the BLM describing the property and method of sale.

More detailed information, such as land reports, environmental assessments, etc., is also available upon request from the U.S. Government Printing Office for a small copy fee.

GOVERNMENT TAX DELINQUENCY SALES

This can be a great source of valuable land, made available for a fraction of the real value of the property. If the land has been abandoned by previous owners, you may be able to get ownership by paying back taxes.

Some local governments sell private land on which taxes have been delinquent to satisfy the tax debt. The Federal Government has no involvement in these sales. The best source for information is the local county tax assessor in the area involved.

TIP: Save some time by searching online.

Many states provide an online listing of county assessors, or at least a listing of all county offices in that state. One way to quickly locate such online listings is to do a web search (such as with GOOGLE, MSN Search, YAHOO Search, etc.) using wording that includes the name of the state, plus the words: counties tax assessors.

Tip: place quotes around the words that need to "stay together" if your search results are not specific enough. You can also place a plus sign + in front of words that are most important, to be sure they don't get dropped from the results.

For example, when I type in the words: georgia counties tax assessors (see graphic above), I get the Georgia Department of Revenue's main page (http://www.etax.dor.ga.gov/ptd/index.shtml) as listing #5 on the page of results. So I click on that listing.

When I then select the County Tax Facts from the list on that page, I get the county information ("County Ad Valorem Tax Facts" : http://www.etax.dor.ga.gov/ptd/county/index.shtml) search page I want for Georgia, where I can then select the county and go from there.

Each state will have different ways of listing their information. But at least you have an idea of how to search and what to look for.

STATE LAND PROGRAMS

State governments sometimes sell state-owned land. Information on these types of sales can be obtained through the State Lands Office in the State capital.