We found it! We found our dream land two years ago. A 16,000 square foot lot that was ready to accommodate a home. Of course, the process of buying vacant land is no easy feat. You need to ask yourself the right questions before pulling the trigger. In addition, there are certain elements that I believe are essential before going to the notary. Here are some relevant steps to consider and the questions you need to ask yourself...
Step 1: Inspect the plot of land
First things first: do your research. As soon as there was a piece of land we liked, we piled into the car and were on our way to take a look. We looked not only at the land for sale, but also at what was around it. I think at this point it's really a matter of feeling. It’s either love at first sight or it’s not. After visiting several lots, we finally fell in love with the fourth. To give you an idea, this land-buying process took a few months. Our number one criterion for finding the perfect land was tranquility.
Step 2: The four main questions to ask yourself when considering a plot of land
1. Does the location of the land meet your criteria?
It’s essential to pay particular attention to the neighbourhood, the infrastructures that are nearby; in short, to take the time to learn about this new location. This avoids you running into any unpleasant surprises later down the road. Having lived it, believe me, there's nothing pleasant about it.
2. What are the limits of the property?
In other words, where are the boundary lines located? Have in your possession the certificate of location to be able to properly establish the boundaries of the land and, by the same token, figure out if there is an easement area on it. Being aware of the facts before buying a plot of land is undoubtedly a necessity.
3. Are there any restrictions on the architecture of the house?
If you already have a good idea of your house plan, it’s best to check with the city to find out if there are any regulations regarding the construction of a house on the land you’re considering. It's not uncommon for some cities to require X percentage of masonry on your home, for example.
4. Is it land with water service or with a septic tank?
These are important elements to take into consideration since there will be significant costs related to the installation of a septic tank as well as the leaching field. So you’ll want to include such costs in your budget!
Now that you’ve addressed these questions, the land you’re looking at ticks all the boxes, you’ve fallen in love with your future property, and have all the information you need to move forward . . . there are just a few costs you should consider once the offer to purchase has been accepted by the seller.
Step 3: Expenses related to the purchase of land
- Just like buying a house, notary fees are necessary for the purchase of land.
- In order to build a building/house, you need to hire a company that specializes in soil testing to ensure that the right materials are used during construction.
- A down payment is required if the land is acquired by bank loan. You must plan for a minimum of 20% of the price of the land if you do not want to go through CMHC.
- Again, just like buying a house, you have to pay the welcome tax for the purchase of land.
- You might have to include some additional costs in your budget if you want the electrical entrance to be underground. In our case, it was really a question of aesthetics since the Hydro Québec poles are located at the front of our house.
- A large part of the budget will have to be set aside for the costs of clearing the forest as well as the backfilling of the land.
And there you have it—the top elements that I think are very relevant to take into consideration before embarking on this big project. Being thorough will help you avoid some unwanted or unexpected surprises during the land-buying process.
