How to Buy Land
Building a Custom Home

Want to buy land? Considering buying a lot?
Planning on building a custom home?

Do you dream about living in an environmentally sensitive house built from renewable resources? Or even going off the grid by generating your own electricity, heat and air conditioning? And drinking fresh, clean water from your own well?

Of course, there are ways and means to fulfill your dream, but not without considerable time, effort, expense and ...

Sometimes Frustration

Prior to starting your search to buy land, you must obviously decide whether to buy land in the country or if buying a lot in the city is more to your liking. Click this link to learn more about the pros and cons of rural and city life, whether or not it's a good idea for you to buy land in the city or country.

A significant difference is the type of municipal services available, like water supply and sewage disposal.

Keep in mind that you may be just trading city exhaust fumes, smog and traffic noise for the unique sounds and odours of the countryside. You'll also be trading city convenience for wide open spaces and free parking. Unless you're in a small town, there'll be no more walking to the corner Italian restaurant, or strolling to your local pub, or making a quick trip for groceries. Could you handle farm animal and equipment noise and smells? There's no poop-and-scoop rules on a country road or in the back forty. Utilities aren't always reliable in the middle of nowhere, hence the popularity of electric generators as back-up when utilities fail. And wood stoves come in handy when the power goes out.

There are advantages and disadvantages to both life styles.

If it snows and blows - and it does - and the roads aren't promptly cleared of the big white drifts (yes - it's white in the country), you could be snowed in for days. The kids probably won't mind missing school, but you might feel differently.

Before buying land, you must find it first. This is maybe the ...

Toughest Challenge

How much acreage do you want? How much city frontage? How large a home do you want to build?

The usual considerations are price range, location, topography and size. If you want a water feature, like a river or lake frontage, or a ravine at the back, the price will be higher. If you want your own mixed bush, ditto. Want rocky outcroppings or a view for miles? Prestigious neighbourhood? Dig into your pocket a little deeper. If a flat corner of a farmer's field, or a typical building lot squeezed between two city homes is to your liking, the price will be more reasonable. It's mostly about location though.

Your little chunk of green Gaia will be cheaper the further away from the city you travel.

After you finally find your dream land, you and your REALTOR® must do your ...

Due Diligence

Before you buy land, check out the area for gravel pits, garbage dumps, industrial manufacturing, unpleasant agricultural uses like pig or poultry farms, planned road widening, air traffic flight paths, shopping centres and public transit. Is the land in a greenbelt or subject to a conservation authority? Any local environmental problems? Is any portion of the land subject to conservation control? Will you be allowed to remove any trees? This could affect where you will be permitted to site your custom home.

Any wetlands close by? You can imagine the beautiful song of red wing blackbirds, but how about the buzz of voracious mosquitoes?

Before you buy land in the country, it's wise to investigate if the land is accessed by private road across land owned by someone else. Make sure you can obtain a right-of-way if one doesn't already exist. Who maintains the road and what would be your prorated share of the cost for maintenance? Do neighbours have any rights to cross your land? What are the exact boundaries of the parcel you're considering?

Is there an existing ...

Survey?

If not, it could be quite expensive to acquire a new one. Title insurance is a great idea. Click here to learn more about Title Insurance.

Buying a lot in the city is fairly straight forward when it comes to a water supply. But if you choose to buy land in a rural area, it's a little more complicated. You'll need a ...

Well

... which will be another expense. Check with a local well driller to get an estimate of the cost. To reach the water table, if he must drill deep through solid granite, the fee will be high. If you plan to be a city dweller and buy land in town, you'll just have the cost of connection to the municipal water supply.

The well water must be potable, that is suitable for drinking, and must provide a minimum volume or flow rate. If you choose a dug well, which is not very common these days, the recovery rate is also a factor. This means how quickly the well re-fills with water after you've pumped some out for use. This info isn't just for you. Your mortgage lender will usually insist on accurate details on this subject before they agree to advance your funds.

When planning your ...

Septic System

... ensure it'll be installed a considerable distance from your water supply. Reasons - obvious.

When buying land in the wide open spaces, it's important to seek assurance that you'll not have any difficulty installing a septic system. In areas with municipal sewers, the disposal of sewage is not something home owners often think about. In rural areas, however, sewage disposal is the responsibility of each home owner. They must treat and dispose of both sanitary sewage and waste water on their own property. An exception is if you buy land in an estate subdivision where the building lots are fully serviced already.

Buying a lot in the city will involve connection to the municipal sewer system. For other ...

Utilities

... in the city, you'll just have to connect to the local natural gas line, the electricity system, telephone line, and cable if it's available in the area. If you buy land in the countryside, however, natural gas probably isn't an option. So, factor in the cost of a propane tank, or some other method of providing heat and air conditioning. Geo-thermal is a great (but expensive) option. Or a high-efficiency oil furnace.

Before breaking ground and beginning the construction of your custom home, you'll need a ...

Building Permit

... as well as an entrance permit, from the local municipality. No driveway - no construction.

Any other restrictions on the lot will need to be addressed when planning your project. Is the ground level or sloped? The grade will have an effect on the style of house you can build. Is the lot large enough to accommodate your new home plans? Will the architectural style of your home esthetically suit the neighbourhood? If you want friendly neighours, you'll not want to build a mansion in a cottage area, or an ultra-modern style in a heritage district. The local municipality may have restrictions in place to control size and architectural style.

I suggest you ensure that the lot you're considering meets the requirements for what you want to build. What is the setback requirement from the road? Are there any easements that'll affect the location of your construction? What maximum footprint is permitted for the lot size?

These issues must be addressed before you act.

Not only must you comply with the requirements of the Building Code Act, you'll also benefit by having your plans and the actual construction of your house reviewed and approved as it progresses. This ensures the minimum construction standards established by the provincial or state Building Code have been met to protect your health, safety and welfare.

If you buy land in an area regulated by a conservation authority, and your project is either new construction or work that is not wholly contained within an existing building, then you may need a permit from that authority. You may still apply for a permit prior to obtaining this approval, but a permit cannot be issued until such approval is obtained.

Development Charges

... often referred to as lot levy's, must also be paid at the time the permit is issued. They're typically collected on behalf of the local municipality, possibly the province or state, and boards of education.

They can be substantial, but are a one-time charge. Any previous payments, that is for previous buildings on the site, will be taken into account by way of a re-development allowance. Proof of demolition is required before a credit can be allowed (i.e. demolition permit). Top-ups may be required to bring the total payable up to the current development charge rate.

With your permit application form, you usually must provide 2 sets of drawings with the fees, along with the following:

• Site Plan (this doesn't apply if the proposed work is confined to the interior of the building)

• Floor Plans

• Elevation Drawings of each side of your proposed home (doesn't apply if the work is interior only)

• A roof framing plan or truss layout (including truss drawings)

• Mechanical drawings including heat loss/gain calculations if a HVAC (heat, ventilation, air conditioning) system is being installed or altered

• Number and type of plumbing fixtures being installed (i.e., sinks, bathtub, toilet, etc.)

• Septic system plans

• If the property is under the jurisdiction of a conservation authority or commission, then proof of approval from these authorities is required.

Your Building Designer

... who'll prepare the plans, may be required to be registered and/or have specific qualifications. If not, your plans may not be approved, and you'll not get a building permit.

Building in the country could present another practical challenge ...

Finding a Builder

... who is willing to travel.

Check out the neighbourhood builder, if there is one. He may personally know someone in the local building department who might facilitate your plans a little more easily. Your city builder might not appear when expected at your rural lot, or want higher fees to compensate for the greater distance. Getting your building supplies may cost you more too if you're miles from civilization.

And if you plan to buy land on an island or a heavily wooded cottage lot, be prepared for higher construction coats. The cost of shipping materials to your island paradise is increased because of the added labour and expense of barging and extra handling. And clearing your building site, and access to it, is not inexpensive.

If you plan to hire a custom builder, they'll likely take care of the permits and details on your behalf, and include this in their written estimate of cost for the project.

When you want to buy land, it would be a good idea to ...

Seek Expert Assistance

... from a rural or city REALTOR® who is experienced in the entire process.

Before buying vacant land, or at least prior to removing your conditions from your offer to buy land, you should seek answers to all of these questions. Satisfy yourself that everything will be fine, and there'll be ...

No Surprises

So, still want to buy land? Does building a custom home still hold allure for you?

You don't want to turn your dream home project into a nightmare that will haunt you forever.

If you're planning to buy land and build a custom home, and wish to consider Caledon real estate, Halton Hills real estate or King Township real estate, and you'd like to learn more, visit the respective municipal websites by clicking The Town of Caledon, The Town of Halton Hills, The Township of King.

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