When you are wanting to purchase land on which to build a dream home or construct a business, it can be an exciting experience. However, just like any type of business transaction, there are certain things you should always keep in mind. Since real estate purchases can be some of the most complex people deal with in their lives, it is important to know the steps necessary to make sure all goes well leading up to the finalization of the deal. If you are preparing to purchase a parcel of land that is being sold, here are some key tips to keep in mind.
Water and Sewer Service
Once you find a parcel of land you would like to purchase, always make sure it is possible to have connections for sewer and water service. If they exist, this will make it very easy when building a new home or business. But if they are not available, you may have a variety of problems. For example, in some situations, water rights do not automatically convey with the land purchase, meaning you won’t be able to dig a well. Therefore, before finalizing your purchase, make the deal contingent upon your capability to have wells and septic systems on the property.
Road Maintenance Agreements
Whether you are building a home or business, you naturally want to make sure a road will be available to make the area easy to reach. But in many land purchases, a public road may not always be in place at the time of the purchase. If this is the case, always insist on a road maintenance agreement. This document, which will state all those using the road will be responsible for its upkeep, can be crucial should problems arise regarding the road’s condition.
Easements and Deed Restrictions
To make sure no unexpected surprises await you after you make your land purchase, always check to see if there are any easements and deed restrictions attached to the land. For example, if the land you purchase is not immediately accessible by a public road, a deeded right-of-way must be in place. With this, you and future owners will have legal access to the land, which is known as an easement. Also, an extremely important step before purchasing a parcel of land is to check on deed restrictions. By doing so, you can be sure whatever type of structure you want to build is legal on your property. For example, some situations may not allow for manufactured homes or other types of structures or businesses be built on a piece of property.
Inquire about Construction Loans
If you’re planning to build a new home or structure on the property, inquire about various construction loans that may be available. Depending upon the type of project you have in mind for the land, there may be many special deals and incentives you can take advantage of along the way. In addition to making the rounds of your local banks, do an online search as well to see what may be waiting for you.
Zoning Laws and Changes
Since zoning laws vary from one locality to another, always check with your city or county planning commission and other related officials and organizations to make sure you are not only clear about current zoning laws pertaining to your land, but also of any potential zoning changes that may be in the works. By doing so, you will save yourself plenty of headaches later on, as well as quite a bit of money should you find yourself entangled in a legal battle.
By keeping these tips in mind during the land purchase process, you can be sure all details will be revealed to you before the transaction is completed and money exchanges hands. However, before making your final decision on the purchase, make sure you clearly understand everything contained in the contract and other documents. If there are any details that are still confusing to you, speak with an attorney who specializes in real estate law before proceeding with your plans.