Buying a piece of land is an essential part of having your dream home built. However, the process of buying land can be rather complicated, which can make it easy for individuals to make oversights when making this purchase. If you are about to start the process of buying your first piece of land, you should make sure to keep these three tips in mind to help you to avoid some potentially serious issues.
Understand The Threat Of Buying Property With A Lien
When buying real estate, it is always wise to invest in title insurance. This type of insurance is designed to protect you against the financial liabilities involved with buying property that is under a lien. A lien is used to force a person to pay a debt, and if this debt is not satisfied, the property may be foreclosed. Sadly, if you buy property that is under a lien, you may be responsible for paying this debt. When buying title insurance, the insurance company will thoroughly investigate the background of the property to ensure that there are no other claims to the title. In the event that it is revealed that a lien is present on the property, the insurance company will settle the debt to have the lien lifted.
Invest In A Survey
When you are planning on building a custom house, it is important for you to have any potential land for sale professionally surveyed. By having the property surveyed, you will be able to have its boundaries confirmed so that you will know that it can comfortably accommodate the house you are wanting to build. While having the property surveyed prior to buying it can add to the cost and time needed to close the deal, it should be noted that many local communities will require a survey prior to issuing a building permit. Luckily, you will likely be able to submit the pre-sale survey results to satisfy this permitting requirement, but the exact rules governing this can vary from one community to another.
Get A Quote From The Local Utility Companies
If the property does not currently have utility connections, you should consider having the utility companies inspect potential properties and provide you with quotes for connecting them to the utility grid. The costs of having these lines installed can be a major expense when building a home, and having this quote will help you to make sure you are choosing a property that has manageable development costs.