Sell a Land Note Covering Multiple Parcels in Texas

Selling a land note that covers multiple parcels in Texas adds a layer of complexity that single-parcel notes do not have. When your promissory note is secured by a deed of trust that encumbers two, three, or more separate parcels of land, the evaluation process, the title work, the legal considerations, and the pricing dynamics all become more involved. Multi-parcel notes are not uncommon in the Texas land market — they arise when a seller finances the sale of multiple lots or tracts in a single transaction, when a larger property is subdivided into separate parcels that are all included in one deed of trust, or when adjacent tracts are bundled together in an owner-financed deal. Understanding how to sell a land note covering multiple parcels in Texas — and the unique considerations that apply — will help you navigate the process successfully and maximize your note's value.

The core challenge of a multi-parcel note is that the collateral is not a single, unified property but a collection of separate legal entities. Each parcel may have its own tax account, its own valuation, its own access characteristics, and its own marketability profile. From a note buyer's perspective, this means the collateral evaluation is more complex — they must assess each parcel individually and then determine the combined value, which involves more work, more uncertainty, and potentially more risk than evaluating a single property. For the note holder, this complexity can affect the speed and pricing of the note sale, but it does not make the sale impossible. Experienced Texas note buyers like Longhorn Note Buyers regularly handle multi-parcel notes and have the expertise to evaluate them fairly and close the transaction efficiently.

This guide will walk you through the key considerations for selling a multi-parcel Texas land note, including how buyers evaluate these notes, what documentation you need, how the multiple-parcel structure affects pricing, and what steps you can take to maximize the value and marketability of your note.

How Multi-Parcel Land Notes Are Created in Texas

Common Scenarios

Multi-parcel land notes arise in several common scenarios in the Texas market. One of the most frequent is a seller who subdivides a larger tract into multiple lots and then sells all of the lots to a single buyer with owner financing, securing the note with a deed of trust that covers all of the lots. This is common in rural subdivisions, recreational developments, and agricultural land sales where a larger property is divided into smaller parcels for sale. Another common scenario is a seller who owns multiple adjacent or nearby tracts and sells them together to a buyer in a single transaction, with one note and one deed of trust covering all of the tracts. This can happen when the buyer wants to assemble a larger holding from multiple smaller parcels.

A third scenario involves a seller who originally sold a single large tract but the property was subsequently subdivided into separate parcels by the county or by the buyer for tax or administrative purposes. In this case, what started as a single-parcel note may now be collateralized by multiple separate parcels in the county records, even though the physical property has not changed. Each of these scenarios creates a multi-parcel note, but the practical implications and the buyer's evaluation approach may differ depending on which scenario applies.

Legal Structure of Multi-Parcel Deeds of Trust

A deed of trust covering multiple parcels must legally describe each parcel it encumbers. This is typically done through separate legal descriptions for each parcel within the deed of trust document, or by reference to a plat map that shows all of the parcels. The deed of trust creates a lien on all of the described parcels, and in the event of foreclosure, the trustee can sell all of the parcels (or individual parcels, depending on the deed of trust's terms) to satisfy the debt. Some multi-parcel deeds of trust include a partial release clause, which allows the borrower to request the release of individual parcels from the lien as certain payment thresholds are met. This clause is relevant to note valuation because it affects the buyer's recovery strategy in the event of default.

How Note Buyers Evaluate Multi-Parcel Notes

Individual Parcel Assessment

When evaluating a multi-parcel Texas land note, an experienced buyer will assess each parcel individually before determining the combined value. For each parcel, the buyer considers the location, acreage, access (road frontage, legal access via easement, or landlocked status), utilities and water availability, topography and usability, current market value based on comparable sales, tax status, and any encumbrances or easements. This individual assessment is important because not all parcels in a multi-parcel note are equally valuable. A three-parcel note might include one well-located parcel with road frontage worth 30,000 dollars, one interior parcel with limited access worth 15,000 dollars, and one small residual parcel worth 5,000 dollars. The combined collateral value of 50,000 dollars against a note balance of 40,000 dollars produces a reasonable loan-to-value ratio, but the individual parcel values reveal that the collateral quality is uneven.

Combined vs Individual Value

An important consideration in multi-parcel valuation is whether the parcels are worth more together than separately. Adjacent parcels that together form a larger, more usable tract may have a combined value that exceeds the sum of their individual values — this is sometimes called "assemblage value." Conversely, scattered parcels that are not contiguous may have a combined value that is simply the sum of their individual values, with no assemblage premium. The buyer's assessment of combined versus individual value affects their pricing because it determines the likely recovery strategy in the event of default — selling the parcels together as a package or individually to different buyers. For insights on how various factors affect note pricing, our article on what determines note value in Texas provides a thorough framework.

Title and Documentation Complexity

Multi-parcel notes involve more complex title work than single-parcel notes. Each parcel requires its own title search to confirm ownership, identify liens and encumbrances, and verify the legal description. If the parcels are in different counties, the title work must be conducted in each county separately, adding time and cost. The deed of trust must accurately describe each parcel, and the assignment of the deed of trust when the note is sold must properly cover all parcels. Any errors or omissions in the title work or documentation can create gaps in the buyer's security interest, which is why thorough documentation is particularly important for multi-parcel notes. Having all of your documents organized and available — including the deed of trust with all parcel descriptions, the title policy or search for each parcel, and the county tax information for each parcel — streamlines the buyer's due diligence and supports a faster, more accurate evaluation. Our guide on documents needed to sell a land note in Texas provides a comprehensive checklist.

How Multi-Parcel Structure Affects Pricing

Positive Pricing Factors

Several aspects of multi-parcel notes can actually support pricing. The diversification of collateral across multiple parcels can reduce risk — if one parcel has an issue (a boundary dispute, an environmental problem, or a decline in value), the other parcels still provide security. If the parcels together form a larger, more valuable property, the assemblage value can support a favorable loan-to-value ratio. And if the deed of trust includes a partial release clause that has already resulted in some parcels being released (meaning the borrower has paid down the note in exchange for parcel releases), the remaining parcels may represent a more concentrated and potentially more valuable collateral package.

Negative Pricing Factors

On the other hand, several aspects of multi-parcel notes can negatively affect pricing. The additional title work and documentation review required for multiple parcels increases the buyer's transaction costs, which may be reflected in the pricing. If individual parcels have significantly different values, access characteristics, or marketability, the collateral quality is uneven, which increases the buyer's risk. If the parcels are in different counties, the complexity of managing the lien and any potential foreclosure increases. And if the documentation is incomplete or inconsistent across parcels — one parcel has a clear legal description while another is vague — the buyer must account for the resulting uncertainty. Each of these factors can contribute to a slightly larger discount compared to a comparable single-parcel note.

The Net Impact on Your Note's Value

For most multi-parcel Texas land notes, the net pricing impact of the multi-parcel structure is modest — typically an additional discount of a few percentage points compared to what a single-parcel note with equivalent total collateral value would command. The impact is largest when the parcels are scattered, in different counties, or have significantly different values, and smallest when the parcels are adjacent, in the same county, and of similar quality. An experienced buyer can evaluate the specific characteristics of your multi-parcel note and provide a quote that accurately reflects the complexities involved, without applying excessive discounts based on unfamiliarity or generic risk assumptions.

Partial Release Clauses and Their Impact

What a Partial Release Clause Does

A partial release clause in a multi-parcel deed of trust allows the borrower to request the release of individual parcels from the lien as certain conditions are met — typically a specified payment amount per parcel. For example, a deed of trust covering five parcels might include a partial release schedule that releases one parcel for each 15,000 dollars in principal payments. As the borrower makes payments and requests releases, the number of parcels securing the remaining balance decreases. This is a standard feature in many multi-parcel owner-financed transactions and provides the borrower with the ability to develop or sell individual parcels as the note is paid down.

How Partial Releases Affect Note Value

From a note buyer's perspective, a partial release clause is a mixed feature. On one hand, it demonstrates a structured, professional approach to the multi-parcel transaction, which is a positive indicator. On the other hand, it means the collateral securing the note decreases over time as parcels are released, which can reduce the loan-to-value ratio if the borrower focuses releases on the most valuable parcels while retaining the least valuable ones. A buyer will evaluate the partial release schedule, determine which parcels have been released and which remain, and calculate the current loan-to-value ratio based on the remaining collateral. If the remaining parcels provide adequate equity coverage for the remaining note balance, the partial release clause has limited pricing impact. If the releases have left the note secured by weaker collateral, the pricing may be affected.

Steps to Maximize the Value of Your Multi-Parcel Note

Organize Your Documentation

Thorough documentation is even more important for multi-parcel notes than for single-parcel notes because there is more information for the buyer to verify and more opportunities for errors or gaps. Organize your documents to include the original promissory note, the deed of trust with clear legal descriptions of all parcels, any recorded amendments or modifications, the complete payment history, any partial release documentation showing which parcels have been released, the tax status for each remaining parcel, and any title insurance policies or title searches. Presenting this documentation in an organized, accessible format makes the buyer's evaluation faster and more accurate, which supports better pricing and faster closing.

Verify Tax Status for All Parcels

Because each parcel has its own tax account, verifying the property tax status for every parcel is essential before selling the note. A delinquency on even one parcel can create complications, as tax liens take priority over your deed of trust. Check each parcel's tax status through the county tax assessor-collector's office and address any delinquencies before bringing the note to market. If taxes are current on all parcels, note that in your documentation — it is a positive factor that supports the note's value and demonstrates responsible borrower behavior.

Work with an Experienced Texas Buyer

Multi-parcel notes benefit most from working with a buyer who has extensive experience with Texas land transactions. An experienced buyer understands the nuances of multi-parcel valuations, is comfortable with the additional title complexity, and can evaluate each parcel based on direct knowledge of the Texas market. Longhorn Note Buyers, with over $46 million in Texas notes purchased since 2007, has the expertise to handle multi-parcel notes efficiently and fairly. Their deep knowledge of the Texas land market — spanning every region of the state — allows them to evaluate individual parcels accurately and provide a combined offer that reflects the true value of your multi-parcel collateral.

Ready to Sell Your Note?

If you hold a land note covering multiple parcels in Texas and want to know what it is worth, Longhorn Note Buyers can provide a comprehensive evaluation within 24 hours. With over $46 million in Texas notes purchased, a 100 percent close rate on every deal quoted, and extensive experience with multi-parcel notes, Longhorn brings the expertise and reliability that complex notes demand. Founded by Nick McFadin — buying notes since 1983 — and partnered with Sandy McFadin since 2013, Longhorn Note Buyers is based in San Antonio and works exclusively in Texas. Call (210) 828-3573 or visit longhornnotebuyers.com today for a free, no-obligation quote. Multi-parcel notes are more common than you might think, and Longhorn has the experience to handle yours with accuracy, fairness, and speed.

Frequently Asked Questions

Is it harder to sell a note that covers multiple parcels?

It is somewhat more complex but not significantly harder when you work with an experienced buyer. The additional complexity comes from the need to evaluate each parcel individually, conduct title searches for each parcel, and manage the documentation for multiple properties. An experienced Texas note buyer has processes in place to handle these additional steps efficiently. The note sale process itself — providing documentation, receiving a quote, negotiating terms, closing the transaction — is essentially the same as for a single-parcel note, just with more collateral to evaluate.

Will I get less for a multi-parcel note than for a single-parcel note?

Not necessarily. The pricing for a multi-parcel note depends on the total collateral value, the loan-to-value ratio, the borrower's payment history, and the other standard note evaluation factors. The multi-parcel structure may add a modest additional discount to cover the buyer's increased evaluation and transaction costs, but this is typically small — a few percentage points at most. If the multiple parcels together provide strong collateral value with a favorable loan-to-value ratio, the pricing can be very competitive with comparable single-parcel notes.

What if some of the parcels have already been released from the deed of trust?

If partial releases have occurred, the buyer will evaluate the note based on the remaining parcels that still secure the debt. The released parcels are no longer part of the collateral and do not factor into the valuation. The key question is whether the remaining parcels provide adequate collateral coverage for the remaining note balance. If the loan-to-value ratio on the remaining parcels is favorable, the note can still command a competitive price. If the partial releases have left the note with weaker or insufficient collateral, the pricing will reflect that reduced security.

Do I need separate title searches for each parcel?

Yes, each parcel should have its own title search to confirm ownership, identify liens, and verify the legal description. If the parcels are all in the same county, this is a relatively straightforward process — the title company conducts a single search covering all parcels in that county. If the parcels span multiple counties, separate searches in each county are required, which adds time and cost. Having current title information for all parcels before bringing the note to market streamlines the buyer's due diligence and supports a faster closing.

Can I sell the note covering some parcels and keep the rest?

This depends on the structure of your deed of trust and whether it can be modified to allow a partial assignment. In most cases, the note and deed of trust are sold as a unit — you cannot split the note into pieces secured by different parcels without restructuring the entire arrangement, which requires the borrower's cooperation. However, if the deed of trust has a partial release clause, you could potentially release some parcels (upon receiving appropriate payment) and then sell the note secured by the remaining parcels. This is a more complex scenario that requires careful legal and financial analysis. An experienced note buyer like Longhorn Note Buyers can help you evaluate whether a full or partial approach makes the most sense for your multi-parcel situation.