Can You Pawn Land – Answered in 2017

Brian McCracken


You can pawn land? That’s a good question and the answer will depend on the laws in your area and how they govern what a pawnbroker does with his or her loans.
So here is one of those question that kind of makes me laugh, but only because it never ceases to amaze me what people will pawn.
So here we go, let’s do this: Can you pawn land?
Well, the answer is that it is going to depend on the state laws regarding pawning where you live.
You see, in some states, in order for a pawn shop to make a pawn loan on something, they actually have to have it stored in their building.
That obviously would be a real problem when we are talking about real estate obviously.
So because of that, in certain states, you are completely unable to pawn loan.
That having been said, in other states, a pawn shop can still make a loan on something (like land) and not have it in their shop with written permission from the owner.
Now, if you were to pawn the deed to your land and provide the pawn shop with written authority to not have it stored in their pawn shop, that might be a creative way to get around this little problem.
Of course, there are other states that don’t regulate at all how pawn shops have to store the items they pawn.
In these states, you can absolutely pawn land without an issue.
Of course, would I recommend doing this? Meh, probably not, but that’s not my call, right?
Can you pawn land? Maybe, but it really depends on your local laws and how they dictate that a pawnbroker maintain the items they have on loan. If you do make a pawn loan on your land, make sure that you understand the terms clearly before you sign anything.
How Do You Know If You Can Pawn Land In Your State
Oh, this is easy. Just call up a pawn shop and ask to talk to the owner if they are available.
Most of the time you will get blown off, but if you think that’s happening, explain to them that you have a very odd question regarding laws and pawn shops in your state.
With this having been said, you will probably really have to elaborate on the fact that you aren’t asking that specific pawn shop if they would pawn land – you just want to know if it’s even legally possible in the state and feel that the licensed pawnbroker would be the only one qualified to answer that for you.
The Best Way To Pawn Land If It Is Legal
If it is legal to pawn land in the state where you live, and you find some pawnbrokers interested in making you a loan on your land, then there are some things that you should expect.
It’s going to take a little time – No pawnbroker that I know of would make a loan on something that doesn’t have a “Clear title” meaning that there are no liens on it, etc.
So you will probably have to work with a title company or other organization that the pawnbroker feels comfortable dealing with to demonstrate that you own the land free and clear.
This whole process might take a week or so, just be prepared for that if it is the case.
Shop it around – We aren’t talking about a TV here. We are talking about real estate and that’s an enormously valuable asset in many cases.
With this in mind, it’s best to get as many offers as possible and compare them to see who will give you the best deal.
Don’t just shop for the best price, but see if the pawnbroker would be willing to negotiate on the interest rate of the loan with you.
You may find that with a pawn loan of this size, pawnbrokers just might move a bit to compete with each other for the loan.
Make sure you clearly understand the terms – This is not something that you want to take lightly.
Make sure you have all of your questions answered before you sign anything. Remember, with a pawn loan, once you forfeit it, it’s gone.
With a lot of items, a pawn shop will work with people to let them get their items back at a discount if they should happen to accidentally forfeit.
With an asset like land though, particularly if it is valuable or in a good commercial area, don’t expect that kind of kindness.
The pawnbroker isn’t there to steal it from you, but they will make sure to do things right and by the letter of the law with this kind of loan.