Tara Dibranou

Top 5 things you must consider before Purchasing land!

I want to throw it out there that this list does not encompass the actual build process; this just gives you a solid start for your search and purchase of vacant land.

1. Consider how you will be Financing this purchase. Land Loans are riskier transactions for lenders and down payments are their way of creating collateral. Therefore, you will often have to deal with higher down payment and interest rates than a typical home loan. Location of the land and its intended use are the other factors that influence the loan process. Bottom line, get your financing in order before you consider this purchase unless you are paying cash.
2. Know your lands Zoning and Restrictions. Ensure you find out if the property is in a special HAZARD FLOOD ZONE OR WETLAND. Knowing the zoning of your property gives incite to what its permitted uses are. This due diligence is necessary to ensure that you can achieve the goals you set out for this property. The Local Municipality and Conservation Authorities are excellent resources to obtain this information. Most municipalities publish interactive GIS zoning maps to get you started.
3. Utilities are a key consideration. WATER, GAS, ELECTRICITY. What is already in place? Is the lot you are considering serviced publicly for Sewage by the city or will you need to install a septic system? If the later is the case, permits must be obtained to do such an install. Same applies to water on the land. Do you have municipal water available, or will you have to install a private well? While you can install all these utilities often it can be a long, expensive process
4. Access to Property. Some questions to research when it comes to road access. Is the property accessible by a travelled municipally (possibly provincially) owned and maintained road? Is the property accessible by a private right of way? If so, who is responsible for the maintenance of the right of way? Finally ask yourself is the property accessible by a forced road (also called trespass or given road) who is responsible for maintenance of the forced road?
5. Easements are all to often not brought up until a title search is performed by your lawyer. Have your Realtor do the research on whether the property you are considering has any easements. An easement is the right of the owner of a benefit (dominant tenement) over another's land (servient tenement). The benefit afforded to the dominant tenement is a right to prevent the servient tenement not to do something, such as, not build a structure on a driveway.

A Few more thoughts… are there nearby nuisances such as unwanted noises, smells, or hazards and are there any building plans in the surrounding that may affect the future of this property.

For more information on buying, selling, or investing in vacant land contact Tara Dibranou or you can check out my Listing Page.