Questions to Ask Before Purchasing Undeveloped Land

• Undeveloped land can be an excellent investment if properly researched. Jupiterimages/Comstock/Getty Images

  Purchasing undeveloped land for future construction or as an investment can be an expensive investment. Failure to take some precautionary measures prior to agreeing to any sale can leave you stuck with a worthless or even dangerous piece of property. If judicial intervention is necessary to recoup any losses, even more expenses can arrive. Never purchase land without seeing it first, and follow a few important preliminary steps.

Access

• Obtain zoning information and a title report from the town or city where the land you plan to purchase is located to insure that your land is accessible via public road. Because undeveloped land is often remote, the only access to the public road system could be via a private road on a neighboring property. You may need to obtain legal rights to access that private lot to gain access to your own. Additionally, many private roads have restricted access to heavy equipment and construction vehicles. You'll need to know if you can gain entry to your property with such apparatus, particularly if you plan to develop it down the road.

Utilities

• Water and sanitation systems can be expensive to install. Ask the seller if your lot is served by public water and sewer systems, and if those systems have the capacity to serve your future development needs without any upgrade. If water and sewer systems are not available on the premises at the time of sale, contact the water and sewer departments at the local government level to ensure that such installation would be possible. If adequate sewer and water systems are available, there may be connection fees associated with a transfer of ownership. Also insure the property can be accessed by phone, electric and gas utilities.

Permitting & Restrictions

• Building permits will likely be required for any new construction developments on your undeveloped land. Undeveloped land is often not developed due to restrictions preventing development to protect historical properties, environmental protection zones, or hazardous sites. The building inspection department of the city or town where the property is located will have information on any restrictions or permits necessary to commence development projects on private lands in the region. If development is restricted on a property, action may need to be taken through legal negotiations or through hearings with the local government.