How to buy country property

Sunset, March, 1999 by Les Scher

In some respects, buying land for your dream cabin is no different from the purchase of a primary residence. For instance, you should have a lawyer review the contract, title documents, and escrow papers. However, buying a getaway spot may introduce some additional, novel considerations. Here are some points to keep in mind.

1. Get to know the area. You want to be sure, for example, that the climate and environment will be something you can live with.

2. Buy near enough to your first home to make the weekend and holiday commute reasonable, so that you don't spend all your time on the highways.

3. Make sure that your title company insures your access rights, both for ingress and egress and for public utilities. Fighting over access rights is the most common area of litigation in rural areas today. Any time you need to cross another person's property to get to your property, you must have the right to do so in writing and recorded in the county recorder's office.

4. Never buy land without a proven source of adequate water, which means a plentiful, potable supply (a family of four needs at least 350 gallons per day) that is available year-round. Ideally, you want to have your own water source; if possible, avoid well-sharing arrangements. If the property has a well, have a pumping yield test performed to be sure it will provide enough water. If your land has no visible water, then consider putting a contingency clause n your contract making your purchase subject to the seller drilling a well that produces a sufficient amount of water. If your water comes from someone else's land, be sure your water rights are recorded. And whatever the source of the water, have it tested for potability

5. Be certain of where your boundary lines are by having the property surveyed, at the seller's expense. Only a state-licensed surveyor or civil engineer can legally determine the location of your boundaries; a real estate agent with a compass cannot accurately tell you this information, Your contract should have a contingency that allows you to approve the location of your boundaries prior to the close of escrow.

6. Your contract should have a contingency clause that makes your purchase subject to your obtaining a permit or approval to construct a house on the land, together with a permit for installing a septic tank. This will require a positive percolation test - if the ground does not allow adequate seepage, you may not be allowed to install sewage facilities or to construct a home - and perhaps a consultation with an engineer. If there is a public sewer system available, be sure you can hook up to it, and determine what the cost will be.

7. Check with the local planning department about the zoning of the property, to ensure that you can use your property as you intend.

8. Determine the legal status of any other uses of the property, such as roads crossing the land, water being taken from the site, or grazing on it. Such uses may become permanent rights - in California, for instance, after five years of continuous nonpermissive use, the user may acquire prescriptive rights. Have the seller remove any trespassers prior to the close of escrow. In addition, you and your lawyer should talk to the trespassers; if they believe they have prescriptive rights, they may file a lawsuit against you.

9. Review all documents referred to in a preliminary title report or abstract of title - not just the descriptions of what your property includes, but also any documents covering gravel, mineral, timber, water, and other resource rights. The close of escrow must be subject to your approval of a preliminary title report.

10. Don't be pressured into paying more than you feel the property is worth, Have it appraised if you do not know the values in the area.

11. If you are buying in a subdivision, read all the covenants, conditions, and restrictions (CC&Rs) to see if you are comfortable with the rules that apply to your property, Read the public report if the developer had to prepare one as part of the subdivision process.

12. Don't get buyer's fever. If something is not right, cancel the deal and keep looking. There are new properties coming onto the market every day. Keep looking and you will eventually find the property of your dreams.

Les Scher is the coauthor of Finding & Buying Your Place in the Country (Real Estate Education Company, Fourth Edition, Chicago, 1996; $25.95).