Want to Buy Rural Property?
What's Involved?

What You Need to Know BEFORE You Buy Rural Property

Buying a home in the city or suburbs is usually pretty straight forward. I believe it's a lot simpler than when you buy rural.

There are common things to consider, like rights-of-way, easements, mutual driveways, parking pads, street parking permits, common lanes, surveys, proximity to public transit, trains and subways, land leases, air traffic flight paths, distance to schools, recreation facilities, places of worship, employment and shopping, as well as local development plans. Also, one should take note of the physical condition of the neighbouring properties. Is the back yard next door being used as a garbage dump or as a pad for party animals?

I know - just a few things to think about. If you long for rural life, there are some significant differences between town and country realty. For a country home, there are ...

Unique Considerations

You've found your dream country real estate, and you've determined everything you need to determine when you buy rural - it's nowhere near a gravel quarry, pig farm or other unpleasant country life use. And there's no freeway planned for your back yard.

Any serious buyer thinking to buy rural real estate will plan a personal visit to the local municipal office to ensure there are no plans that would cause you to regret buying rural property in general, or one in particular. You may have approached a neighbour or two in the immediate area to inquire of their thoughts and feelings about the area. They may have some interesting tidbit specifically about your target country home.

When you buy rural, in many cases, there'll not be a survey. If your agent is unfamiliar with buying country property, you might ask the seller to walk the property boundaries with you so you know what you're buying. They might be willing to share interesting anecdotes that might help you develop a good feel for the place. Regardless, your offer should have a clear description of the land dimensions, and acreage if applicable.

You're ready to buy rural and submit an offer through your rural real estate agent, one who's familiar with the area and has assisted you in the search for this great property.

In your offer will be ...

Several Specific Conditions

... that you'd not normally see in a real estate offer for a city or suburban property.

Besides the more common conditions on arranging satisfactory financing, the sale of your present home, satisfactory home inspection, and being able to arrange home insurance if there's some concern about the building, there are a few more to consider when you want to buy rural property.

Is the water potable, and will the well provide sufficient quantity of water for your family's needs? A ...

Qualified Well Driller

... can check the well and equipment.

If it's a dug or bored well, he'll inspect the cap to ensure it's properly sealed. If not, the water may be subject to contamination from insects or worms that creep or slither into the well, die and decompose in the water. Also, the location of the well relative to potential contamination from the septic system or adjacent outbuildings or paddocks where manure is handled is important. And what's the grading like surrounding the well cap? Can surface water run into the well? The inspector will also inspect the pump motor and pressure tank for physical condition and proper operation. The ...

Water Potability Test

... otherwise known as a bacteriological analysis, can be arranged by your country REALTOR® with the local Public Health Laboratory. Using a special sterilized bottle, your rural real estate agent will take a sample of the water after letting it run for a few minutes, and after removing the small screen from the faucet. The well driller will obviously charge a fee for their service, but the potability test will be free of charge.

If the house is newer, chances are that the ...

Septic System

... will be fine. But if you're concerned, especially if it's an old home, you may want to consider having the septic system inspected by a qualified septic inspector. A visit to the local municipal office may provide you with the original application, plan and use permit - maybe not.

At a minimum, you'll want the homeowner to agree to a warranty clause in the agreement that it has been in good operating condition, and will be upon closing. Make sure this warranty 'survives' closing. It'll refer to the condition at the time of closing, so it's not a typical warranty that guarantees good operation over a period of time. But if after a reasonable time after closing, you discover that it's defective, you may have legal recourse against the previous homeowner under the warranty clause.

Both the well and equipment, and the septic system can be very expensive to repair or replace. So, when you buy rural, be sure before you remove your conditions in this regard.

If there's a wood stove or wood-burning fireplace, you may want to make your offer conditional upon a satisfactory inspection called a ...

Wood Energy Technology Transfer (WETT)

This is common for city and suburban real estate as well. I suggest you will want to confirm the safeness and correct installation of the wood-burning unit (fireplace or wood stove). Your insurance company may insist on receiving a copy of this report before they'll insure it. And if you can't get insurance, your mortgage company may not advance the funds to close. Serious problem.

To learn more on this subject, click WETT. Also, when you buy rural, it's important to know that there are no ...

Environmental Problems

... with the property, that there are no hazardous conditions or substances existing on the land. In most cases, there's little cause for concern. A careful visual inspection of the property, along with a simple seller warrant clause in the agreement, can allay any fears in this regard.

But if you suspect a buried oil tank, for example, or a garbage dump, or there was an auto repair shop out back, or the abutting property has a junkyard full of old rusting cars, you may want to include a condition to protect yourself. Or better yet, investigate prior to even submitting an offer. Buried oil tanks should be removed by a qualified technician. And groundwater may be contaminated.

And here's something else to consider when contemplating rural living. Obviously, when buying rural, there are special requirements when it comes to maintaining ...

Animals on the Property

Limits on numbers related to acreage, manure storage requirements and minimum setback distances for outbuildings from your and your neighbour's homes, all must be considered. Is the access to the property from a public or private road, or across a neighbouring property by right-of-way? Are there wetlands on the property or near by? Think mosquitoes. Is there flood potential? Does the zoning suit your needs? What's the potential for future development on abutting properties? Your peaceful country living retreat may be surrounded by cookie-cutter homes in a few years.

Another consideration is whether or not the Harmonized Sales Tax (HST) will be payable on the purchase price. When buying Canadian rural property, you may require a ruling from Canada Revenue Agency (CRA). Normally, if you're buying large acreage, the house and small plot of land immediately surrounding the house will be tax-free, but the larger acreage may be subject to this tax.

If you have any concerns regarding an offer when buying rural property, it's a good idea to have a candid discussion with your lawyer before submitting your offer.

So, you can clearly see that there's much to be considered in buying rural property.

In my experience, most REALTORS® restrict their practice to one of city/suburban real estate, rural real estate or recreational real estate. Having been in the business for nearly four decades, I've enjoyed the opportunity to work many different markets. I've assisted clients sell their Toronto, Mississauga, Georgetown, or Brampton real estate, for example, to buy rural property somewhere in and around Peel, Halton or King in southern Ontario.

I guess you could call me a bit of a hybrid - a REALTOR® who's quite professionally comfortable with all of these specialties. So ...

One Move - One Agent

... to coordinate and facilitate your entire relocation. Feel free to contact me for a free consultation using the contact form on this website.

And for more information on country living, and how to buy rural, click here

If you plan to buy rural property, and would like to visit the municipal websites in my immediate market area, click Town of Caledon, Town of Halton Hills or King Township.

If you're thinking about building a custom home, and would like to learn about buying land or buying a lot in the city, click here.

For active listings of Ontario real estate, or Canadian real estate in general, click here For active listings of American real estate, click here.

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