Don’t Buy Land Without Asking These 10 Question To The Owner

Doing your homework when it comes to real estate is essential before making a purchase. The official term in real estate is doing your Due Diligence. Due Diligence is the process of learning about a property. There are many things you should know about a property before you buy, but here are 10 important questions to ask before buying land.

1. Does the property have clear title?

Before purchasing a property, you should ask the seller to confirm that the property has clear title. Clear title means that there are no liens, and no question as to legal ownership of the property. Clear title status should also be confirmed in writing within the contract.

At Land Elevated, we guarantee clear title on all of our properties. We have title experts that examine the history of each property we sell to ensure there are no title defects. We stand behind our properties 100%.

2. Does the property have legal access?

Legal access to a property means that there is a way to get to the property via public roads or land without having to cross private property. If there is no legal access to the property, it is known as being landlocked.

Dirt roads are a common way to access rural properties. Sometimes these dirt roads can be overgrown if not well-traveled. This does not mean the property is landlocked, this is just access that is not well defined. How defined the access is should also be a consideration when purchasing a piece of raw land.

3. Can I do what I want with the property?

Before you purchase a piece of property, you should confirm that your desired use is allowed per the zoning code. For example, if you desire to put up a single-family home, make sure the property zoning allows it. The zoning code provided by the county is the best place to verify this but it can be a long and arduous process reading through the zoning ordinances.

Our goal is to give you the most reliable information possible when it comes to the uses allowed on every property we sell. We do research up front to confirm what types of structures are permitted and what types of activities are permitted on each property. Although some intended uses can require additional research, we give you the best possible information up front so you can make an informed decision.

4. Does the property have utilities?

Often times raw land does not have utilities. The next question is, can you connect to public utilities or not, and what’s the cost to do so? It’s common to not be able to connect to utilities or to only be able to connect to electric, but not gas.

These days especially, it’s getting easier and easier to reside without public utilities. Even if you have access to utilities, it might make more sense to use your own systems. With technology getting more efficient and affordable, you can set up a fully self-contained system that’s less expensive and more reliable than being connected to public utilities.

5. Does the property have water?

As with gas and electric, getting water to rural properties is a little different than what you would expect in a suburban area. It’s expensive to build the infrastructure for water supplies to be piped into less dense areas and the return on investment is not there for the water companies.

The most common ways of getting water to properties that aren’t served by public water systems are to drill a well OR install holding tanks and have water delivered. Both options have their pros and cons, and it’s best to do your research on the costs and benefits of one option over another.

Alternative technologies such as atmospheric water generators (AWG) are becoming less expensive and could be another option depending on the relative humidity in the region. This could be a great solution coupled with rainwater collection, again depending on the weather patterns in the region.

6. How do I handle sewage and grey water?

Make sure to ask the seller what to do with your sewage and grey water. Like public water service, you’re likely not going to have public sewer at the street that you can simply connect to.

The most common way to handle this is to install a septic system. Septic systems have been around for years and work well. A couple of alternatives include composting toilets and incinerating toilets. Be sure to see what’s permitted in your area and choose what is best for your situation.

7. Is there a time limit to build?

One of the most common questions that we get is whether or not there is a time limit to build. This is more important in high growth areas, but the question should still be asked. In most rural areas, there is no time limit to build. You can simply hold onto the land forever and never lay a brick down.

However, if you proactively pull a permit to build a home or other structure on the property, then a time limit is typically imposed. This is because planning guidelines may change from the time a permit was issued. In most areas, once a permit is issued, you have one year to build. Again, this is only if you applied for and was issued a permit.

8. Can I get internet at the property?

This question used to be higher on our list. These days, it’s not quite as important as it once was. Another case where technology saves the day! At one point the best way to get high-speed internet was through cable lines wired from the service provider directly to your house.

These days, satellite technologies have become as fast (and even faster in some areas) as the hard-wired cable lines. Hughes offers a satellite dish and service you can put anywhere in the US. As long as the dish can see the sky and is not too deep in a canyon, you will have great internet service.

9. Can I get cell phone reception at the property?

Similar to the question about the internet, you will want to make sure you can get cell phone reception at your property. This used to be a higher question on our list too, but with more cell towers being installed every day, this seems to be less and less of an issue.

Some carriers work better than others in certain regions. It’s best to field test a few different carriers and see which one has the best signal. We’ve found that Verizon does really well in rural areas compared to some of the other big carriers we’ve tried. There are cell signal boosters you can install easily and at a cost of just a few hundred dollars. It won’t be long before 5G is covering most rural areas.

10. Is the property part of an HOA?

Last but not least, you will want to confirm if the property is part of an HOA (Homeowners Association). Some properties are part of an HOA which governs the properties within it. This could be a good thing or a bad thing depending on many factors, and ultimately, it’s a personal preference.

If the HOA offers great amenities and it’s well-run by a good group of elected officials, it could make the area much more enjoyable. However, if the HOA is overbearing and restrictive, and has exorbitant fees, it may not be worth it. Be sure to read the HOA by-laws ahead of time if you decide to purchase a property which is part of an HOA.

In the end, there are so many things you could try to find out about a property before you buy it. But, if you have the answers to these questions, it’s a great start. Other questions you could ask may be personal to what you want to do with the property. For example, is it big enough to put my cabin on? Ultimately, Due Diligence is up to you as a buyer to ensure the property is right for you and the more you know the better.