The questions to ask when buying land fall into a short list that protects you from the problems raw ground hides: what you’re legally allowed to build, how you’ll reach the parcel, what utilities will cost, where the boundaries actually sit, what the title carries with it, what the soil and environment will allow, what the taxes really are, and how your contract lets you walk away if any of it goes wrong. Work through them in that order, before you sign, and you’ll catch almost everything that turns a cheap parcel into an expensive mistake.
What Does the Zoning Allow You to Do
Start at the local planning or community development department and get the parcel’s zoning classification in writing. Designations like R-1 (single-family residential) or A-1 (agricultural) control what you can build and how densely. If your plans don’t match the current zoning, you need a variance or rezoning before you break ground, and neither is guaranteed.
Ask for the specific restrictions that come with the classification. Most jurisdictions impose minimum setbacks (the distance a structure must sit from each property line), maximum building heights, and sometimes minimum square footage for new construction. Some add bulk regulations that cap how much of the lot a building can occupy. Violations can mean fines, forced modifications, or demolition. Request the relevant ordinance pages and read them before you make an offer.
Ask whether the parcel sits inside an overlay district, such as a historic preservation zone. Overlays add a layer of review on top of standard zoning, and a local board may require specific materials, architectural styles, or design features. Approval can take months and raise costs substantially.
Then ask about private restrictions. Homeowners associations and recorded covenants, conditions, and restrictions (CC&Rs) often cover more than the zoning code does, down to roof color and fencing material. They’re legally binding and enforceable through civil action. The county recorder’s office or a title search will surface recorded CC&Rs, but asking the seller directly is the fastest first step.
Variances and Special Use Permits
If your intended use doesn’t fit the existing zoning, there are two paths. A special use permit covers activities the ordinance already contemplates as conditionally allowable, like a home-based business in a residential zone, provided you meet specific conditions. A variance is harder. It’s permission to deviate from a rule that would otherwise apply, and you typically have to demonstrate a unique hardship tied to the property’s shape, topography, or dimensions. Wanting to build bigger or closer doesn’t qualify. Ask the planning department how often similar variance requests get approved, and if the honest answer is rarely, treat that as part of the price.
Can You Legally Reach the Property
Confirm that the parcel has direct frontage on a publicly maintained road. If it doesn’t, you need a legally recorded easement giving you the right to cross someone else’s land to reach yours. Without one, you may own a parcel you can’t legally drive to, and most lenders won’t finance a landlocked property.
If access runs over a private road, ask whether the owners who share it have a recorded maintenance agreement. These agreements set how upkeep costs are divided and what surface standards get maintained. Some loan programs require a recorded private road maintenance agreement as a financing condition. Even paying cash, you want to know whether you’ll be sharing the cost of gravel, grading, and drainage, or absorbing it alone.
What Will Utilities Actually Cost
The listing price tells you almost nothing about what it will take to make the land usable. Utility connections are often the biggest hidden expense.
Call the local electric utility and ask whether lines reach the property boundary or whether an extension is required. Overhead line extensions typically run $5 to $15 per linear foot; underground runs $10 to $25 or more per foot. On a rural parcel a quarter mile from the nearest transformer, the bill grows fast. Get a written estimate before committing.
Water is next. If municipal water service doesn’t extend to the parcel, you’ll need a well. A standard residential well typically falls between $3,000 and $9,000, with deeper or more complex sites running higher. In regions where water is allocated by permit, confirm that rights are available for appropriation at your site and that your intended use qualifies.
For waste disposal, ask whether a sewer connection is available. If not, you’ll need a septic system, which depends on the soil passing a percolation test. Ask the seller about tap fees and impact fees as well. Municipalities commonly charge upfront connection fees for new water and sewer hookups, ranging from a few hundred to several thousand dollars.
Don’t forget telecommunications. Check provider coverage maps for the specific parcel. Rural properties frequently sit in dead zones or areas served only by satellite internet, which affects both livability and resale value.
Where Are the Boundaries, Really
Don’t rely on old fence lines, tree rows, or what the seller tells you. Commission a boundary survey from a licensed surveyor. The surveyor marks corners with physical monuments and produces a plat matching the legal description.
A current survey also catches encroachments: a neighbor’s driveway, fence, or outbuilding sitting on the parcel. Finding one after closing leaves you to tolerate it or pay to resolve it. Boundary surveys typically cost $1,200 to $5,500 for a standard residential-sized parcel, with larger or heavily wooded tracts higher. It’s cheap compared to a boundary dispute.
One risk surprises many buyers. If a neighbor has openly and continuously used part of your land for long enough, they may have a legal basis to claim ownership through adverse possession. The required period varies widely by state, from as few as five years to twenty or more. A fresh survey paired with a thorough title search is your best defense.
What Does the Title Carry With It
Ask for a preliminary title report early. It will show recorded easements (rights granted to utility companies, neighbors, or government agencies to use portions of the land), outstanding liens, unpaid property taxes, and judgments against the current owner. Anything unresolved before closing becomes your problem.
Pay particular attention to unpaid property taxes. Delinquent taxes can produce a lien and eventually a tax lien sale. Clearing them is the seller’s responsibility; verifying it has actually happened is yours.
Ask what kind of deed the seller will provide. A general warranty deed gives you the strongest protection: the seller warrants title back through the full chain of ownership. A special warranty deed only covers problems that arose during the seller’s own ownership, leaving older defects on you. For land, where the chain of title can stretch across many owners and decades, the distinction matters.
Consider owner’s title insurance. The policy covers claims and defects the title search didn’t catch, including recording errors and undisclosed heirs. Premiums are typically a one-time cost at closing, often around 0.4% or more of the purchase price. On raw land, where title histories can be more complicated than on improved property, it’s usually worth it.
Mineral and Water Rights
In many states, mineral rights can be severed from surface rights. Someone other than the surface owner may hold the right to extract oil, gas, coal, or other subsurface resources, and mineral rights are legally dominant over surface rights. A mineral owner can lease or develop subsurface resources without your permission and may be entitled to reasonable use of the surface to do it.
Ask the seller directly whether mineral rights have been reserved or previously conveyed, and verify through the title search. The same analysis applies to water rights in western states where surface water and groundwater are allocated through permit systems rather than attaching automatically to the land.
Will the Ground Support What You Want to Build
Two tests matter most for undeveloped land: the percolation test and the geotechnical report.
A perc test measures how quickly water drains through the soil. Most health departments require a passing result before issuing a septic permit. Soil that drains too slowly or too quickly can disqualify the site for a conventional septic system, which may make the property unbuildable for residential use. Perc tests typically cost between $150 and $3,000 depending on the number of test holes and the equipment required. Ask whether one has been performed, request the results, and check whether the health department requires a current test.
A geotechnical report evaluates soil stability, load-bearing capacity, and conditions that affect foundation design. Expansive clay, collapsible soils, and shallow rock can force specialized engineering solutions that raise construction costs significantly. If you plan to build anything with a foundation, commission one during your due diligence period.
Environmental, Flood, and Species Risks
If the parcel has any history of commercial or industrial use, order a Phase I Environmental Site Assessment. The assessment reviews historical records, aerial photos, government databases, and interviews, and includes a walkover. The goal is to identify recognized environmental conditions. This matters because federal law under CERCLA (Superfund) can hold current landowners liable for contamination they didn’t cause. Completing a Phase I that meets the All Appropriate Inquiries standard is how buyers establish an innocent landowner defense if contamination surfaces later.1eCFR. 40 CFR Part 312 – Innocent Landowners, Standards for Conducting All Appropriate Inquiries Skipping it on land with any questionable history is one of the most expensive mistakes a buyer can make.
Check FEMA’s flood maps to see whether any portion of the parcel sits inside a Special Flood Hazard Area, zones designated with an A or V prefix that carry a 1% annual chance of flooding.2National Flood Insurance Program. Understanding Flood Maps and Zones If you take a federally backed mortgage on property in one of those zones, federal law requires flood insurance.3FEMA. Understanding Flood Risk – Real Estate, Lending or Insurance Building there also means meeting elevation requirements and obtaining elevation certificates, which add cost and complexity.
Wetlands are separate. The U.S. Fish and Wildlife Service maintains a National Wetlands Inventory mapper, but the agency warns that mapped wetlands don’t necessarily correspond to the regulatory definition used by the Army Corps of Engineers.4U.S. Fish & Wildlife Service. Wetlands Mapper If the parcel may contain wetlands, contact your local Army Corps regulatory office before planning development. Filling or grading wetlands without a permit can trigger serious federal penalties.
Endangered or threatened species can halt development entirely. Under the Endangered Species Act, it’s illegal to “take” a listed species, which includes significantly modifying habitat in ways that harm it.5Office of the Law Revision Counsel. 16 US Code 1538 – Prohibited Acts If listed species are present, you may need an incidental take permit and a habitat conservation plan before any land-disturbing work. For parcels in ecologically sensitive areas, searching Fish and Wildlife Service databases during due diligence is prudent.
What Will the Taxes Be, Including the Trap
Call the county assessor and ask for the current annual tax bill and the parcel’s assessment classification. Raw land is generally assessed at market value, but land classified as agricultural, timber, or open space is often taxed at a much lower rate based on productive use rather than development potential. The gap can be large.
Here is where buyers get caught. If you buy land that carries an agricultural or similar use-value classification and then change the use, most states impose a rollback tax. It’s a retroactive charge equal to the difference between the reduced taxes paid and the full taxes that would have been owed, typically calculated over several years. In most cases, the new owner who triggers the change pays. Ask the assessor whether the parcel benefits from a use-value classification now and what the rollback liability would be if you convert it.
Also ask about special assessment districts. These charges fund specific local improvements like road paving, drainage, or fire protection, and they appear on the tax bill separately from the general tax rate. They can persist for years. A parcel that looks cheap on the listing may carry recurring assessments that change the real cost of ownership.
How Will You Finance It, and Can You Back Out
Financing raw land is harder and more expensive than financing a home. Conventional lenders treat undeveloped land as higher risk, which means larger down payments, higher interest rates, and shorter terms. Raw land purchases commonly require 20% to 50% down, compared with as little as 3% to 5% for a primary residence. If the parcel is already improved with road access and utilities, some lenders will accept down payments closer to 20%.
Look at alternatives before assuming conventional financing is the only option. Seller financing is common in land deals and can offer more flexible terms. Local banks and credit unions that lend in the area where the land sits often have more appetite for land loans than national lenders. USDA loans may be available in eligible rural areas, and some state programs offer favorable terms for veterans or agricultural buyers.
Build in a Due Diligence Contingency
Your purchase agreement should include a due diligence or feasibility contingency that gives you a defined window to investigate before you’re locked in. The clause lets you walk away and recover your earnest money if you discover zoning, title, soil, environmental, or other problems that make the property unsuitable.
For land, 30 to 90 days is common, and you should push for as much time as the seller will accept. Unlike a home inspection that wraps in a few hours, land due diligence involves scheduling surveys, soil tests, environmental assessments, and government record requests, each with its own lead time. If the contingency expires before your investigation finishes, you lose your exit. Negotiate the timeline carefully and start scheduling inspections the day the contract is signed.
Insure the Parcel From Day One
Even before you build, you can be liable if someone is injured on your land. Trespassers, hikers, hunters, and neighborhood kids don’t need your invitation to create exposure. A vacant land liability policy covers bodily injury and property damage claims arising from your ownership. Premiums are relatively modest, often starting around $265 per year for basic coverage. A lender financing the purchase may require proof of insurance as a loan condition, and carrying a policy from the day you take title is a small cost against the risk of an uninsured injury claim.