Buying
a home on acreage can be much more complicated than purchasing a home in a
development. Spending the
extra time upfront to become informed can save the buyer many dollars and
heartache. The Seller is
responsible for providing a property disclosure form that answers all
pertinent information known to the Seller.
But is that enough? Maybe
they don’t know all there is to know, maybe they were mis-informed, and
they may not know all of the intended uses and expectations that you have
of the property.
Where to Start…
Review the Title Report
If a copy has not been ordered
yet, make your offer subject to your review and approval of the title
within a reasonable amount of time.
Be sure to ask for all referenced attachments (often indicated by a
recording number). If you have questions, contact the Title Officer who’s name
appears on the report.
Conditions, Covenants & Restrictions
(CC&R’s)
Platted communities always have
these attached to the land; but often they exist on larger parcels, as
well. Ask if there are any
and how actively they are enforced.
Talk and Drive
Talk to the neighbors and drive
the surrounding area. Neighbors
often are willing to talk about the neighborhood.
They may know of seasonal streams that disappear in the summer or
unique flooding patterns that don’t show up on the local maps.
Drive the area – take notice of the 4-foot high white signs
advising of changes in a proposed land use designation.
Check for alternative accesses to the property.
Next Step…
Visit the County
If the property is located in
King County, visit the County’s web site for preliminary information.
A good site is www.metrokc.gov/ddes/. If you’re buying 5 or more
acres with the home, it is imperative you visit the County in person. In
King County it is the Department of Development and Environmental Services
(DDES) in Renton (206-296-6600). Ask
to meet with a technician who will walk you through every aspect of the
property.
Zoning
Even if you are not planning on
dividing the property, it will speak to the value and potential of the
property. Find out if your
property can be subdivided and under what conditions.
Just because the zoning would indicate that you can get additional
lots, does not automatically mean you will be able to.
The conditions under which you will be able to do that, will be the
deciding factor. For example, conditions may exist that would prevent
you from widening or paving the road for access, thus preventing you from
sub-dividing your property. Since
you may be paying a price that would reflect the ability to divide in the
future, you will want to be sure, in fact, you can.
Do not rely on the Sellers or their Real Estate agent to be
completely informed. The
County is the best authority on the matter.
Ask if there is an application for a re-zone; a new subdivision or
a variance in the neighborhood. Ask
about the Comprehensive plan designations, which can tell you how the area
plans to grow and how it will affect your property.
Environmental Concerns and Restrictions
Be sure you understand all the
abbreviations listed on the Site Plan; i.e. NPGA means Native Growth
Protective Area and will have setback requirements.
Even though you may not be planning on changing anything, it’s
important to fully understand the potential and restrictions on the
property in case you change your mind in the future.
Expansion
If you are planning to expand
beyond the existing “footprint” of the home, or building additional
structures, find out what restrictions the land has; i.e., well set backs,
steep slopes, protective areas setbacks, height restrictions, etc.
Animal/Livestock Considerations
If you’re planning on having
animals, such as horses or llamas, obtain a copy of the Livestock
Management Ordinance, which will tell you things like how many horses you
can have per acre and what the rules are specific to that property; i.e.,
sensitive streams or wetland setbacks.
If you have multiple animals, you may want to investigate the
option of having a “Farm Management Plan”.
Some helpful numbers to call are:
King
County Conservation District (206-764-3325)
King County Dept. of Development
& Environmental Svcs. (206-296-6600)
Entrepreneuring
If you’re thinking of growing
plants, operating a kennel or running a small business, ask if there are
any restrictions or zoning regulations.
Clearing for a View
Typically on steeper sites,
there is potential for gaining a view or improving on an existing one.
If your slope falls into a sensitive areas act (slopes greater than
45 degrees), there may be conditions you must meet when cutting or
removing trees. The fines, if
violated, are significant, so check first.
Wet or Dry
If you are buying in the summer
months, beware! Wetlands can
masquerade as nice dry pasture land and can be difficult to spot.
Clues to a wetland include standing water, specific wetland plants,
dark organic soil, slow percolating soil.
It may not be mapped on the County maps as a wetland, but may be
classified as such when you go to get a permit for a barn addition or
extra buildings you are going to add.
If your land does contain wetlands, it doesn’t mean you can’t
do anything, but you may have to adhere to conditions that cost more or
may make that addition less feasible; i.e. setbacks of 25-100 ft.
Access to the Property
What kind of access does the
property have? Is there more
than one? If the road to your
property is narrow or steep, making it difficult for a fire truck to reach
the house, you may be required to install ceiling sprinkler system to any
addition/remodeling plans you have.
Also, does the existing structure have a ceiling sprinkler system?
Make sure you have legal and recorded access regarding easements if
you are crossing over someone’s property(s).
This information should be recorded on the title.
If several property owners use the same access road, is there a
current road maintenance agreement and how well is it enforced?
While you may not be concerned, your lender may make it a
requirement of closing. Knowing
ahead of time, will save time at closing.
Water Source and Quality
If the property is not connected
to public water or a community well system and are buying property with a
well, be sure to ask for a well and water quality well test, as a
condition of the sale. Many
contracts will specify the Seller to warrant the well; however, without
proper testing a Seller may not know of existing problems.
Therefore, a buyer should never rely on the Seller to warrant a
well. Verify the proper
functioning and installation of the well, by making the offer subject to a
King County Health Department (Seattle-King County Department of Public
Health – 206-296-4932) inspection prior to closing. This is commonly ordered and paid by the Seller, which is
approximately $115 and includes water quality testing.
Should you want a more thorough testing of the water, AM Test Lab
in Redmond (425-885-1664) is fast, reasonable and reliable.
State health regulations require a 100’ protective radius between
the well head and septic field, which could affect the placement of an
additional building or an addition to the home.
Find out if an existing well is in violation of this setback.
Septic System
Most homes on acreage have
septic systems. If properly
maintained and left undisturbed, they should never have a problem.
Ask to see an “as built drawing”.
If the Seller does not have one, it can easily be obtained from the
Seattle-King County Department of Public Health (206-296-4932) in Eastgate.
This drawing shows the location of the system and tank as it was
installed. This is helpful in
locating the tank to have it pumped, which should be done every three
years. Many lenders will
require the tank to be pumped and certified as a condition of the loan. The Seller will need to have the tank pumped and inspected
and certified prior to closing or show proof of it being done within the
last 6 months. The cost
of pumping is approximately $300-350.
The inspection can be performed by the Health Department for
approximately $90 and takes between 1-2 weeks.
Many times, for a nominal charge, the company that pumps the tank
is qualified to inspect; and this may be of more value since they actually
look into the tank and check the baffles, which the Health Department
doesn’t do.
Septic systems are bedroom specific.
Certain site conditions, such as soils and setbacks will dictate
how many bedrooms you will be allowed to build.
If the home was remodeled, find out how many bedrooms the septic
was originally designed for. If
you want to add a bedroom, you will need to know if your site can support
expansion to your system.
There are typically three kinds of systems that are dictated by the
absorption rate of the soils. Gravity
flow system is the least expensive and easiest to maintain.
Pressure systems require a pump and extra tank.
There will often be an alarm located in the garage that will sound
off when the system is malfunctioning.
However, this system requires electricity to operate, so in times
of power outages you will not be able to use the bathroom facilities.
The third system is a mound system which is the most expensive to
install. A mound in the yard
easily identifies these. In rare cases, where the ground percolates too fast, a sand
infiltration system can be used.
Know where the entire septic field is located, including the
reserve area, which is an area set aside for future expansion, or in case
your system should fail. You
can landscape over it, but will damage the system if you rototill or use
heavy equipment, that will compact the soil or damage piping.
In addition, you will be restricted from building or paving over
the area. If you are thinking about clearing or disturbing the reserve
area, you will not be able to use it for expansion in the future!
If there has been recent clearing or logging on the site, inquire
as to where the drain field is and whether it has been disturbed.
Also, be aware if horses have been left to roam over drainfied
areas.
Property Lines
One of the most fought after
issues in real estate are property lines.
Homes on larger parcels often have unclear boundary lines.
Existing fences are not always on the property lines and one should
never rely on the Seller identifying property lines, unless they are
pointing to survey stakes in the ground.
One could ask the Seller to provide a survey as a condition of
sale, especially if they purchased the property without one.
However, surveys are very costly and most Sellers are reluctant to
provide one. You need to
evaluate how important it is to you to know where the property lines are.
If the property has been short platted in the recent past, then
there should be a survey available.
If
there are easements, encroachment issues or anticipated boundary disputes,
it probably is wise to call for a survey or maybe just identify one or two
lines.
If
setbacks for additions are a concern to you, make your offer conditioned
on verifying the likelihood of feasibility.
If
you are making an offer conditioned on an “Extended Title” policy,
then a survey will be required. Again,
the Seller may not be willing to incur the extra expense which can be
several thousand dollars. Ask
your Buyer’s agent or call the title company for advice on whether an
extended title policy is warranted.
Extended
Title covers, in addition to the standard policy:
unrecorded liens, survey and boundary questions, claims of parties
in possession not disclosed by the public record and easements or claims
to easements not disclosed by public records.
For
general questions about title, call Chicago Title at 206-628-5666.
Hazardous Materials
The most common environmental
hazard is underground storage tanks.
If the home is older, where the original heating source was oil,
find out if the tank has been removed or look for indicators, such as a
cut of copper pipe. If there
is still one in existence, you will want the Seller to be responsible for
removing it. The cost will
vary, but most cost about $750-$1000, if there has not been a leak
detected. The tank should be
removed before closing.
If horses or cows have been present and any manure piles exist, you
may want those removed prior to closing, since this can be an unexpected
costly expense later on. In
general, one should have any junk piles removed, since some of them
contain toxic material resulting in costly dump fees later on.
Final Consideration
As mentioned in the
beginning, property owners will be offering a “Property Disclosure” to
potential buyers, which is only to the best of their knowledge and does
not warrant anything. Further, they may hold different values on the property’s
features than you do, with totally different uses and visions in mind.
With that in mind and all the other issues discussed, it is to your
advantage to be diligent in pursuing answers to your questions, observant
of the property and totally dedicated to research – especially if you
have plans to modify the property in any way.
I hope this information
will be helpful to you. It is
not all inclusive, so I would be pleased to discuss your ideas and
concerns for any acreage property you may be interested in.
