Things to Know Before Buying Rural Land

Tips for Buying Rural Land & Ranches in TX

Many folks in Texas grew up in rural communities or had family members that did. People dream of getting back to a simpler way of life, out of the rat race of the city and away from the dang HOA! If you’re thinking about buying rural land here are a few things to consider.

Property Exemptions –  In most counties generally a minimum of 10 acres is required to maintain an ag exemption, especially if you plan to have livestock. Each county will have it’s own ag exemption requirements.  If you go the beekeeping route, 5 acres is usually the minimum. Once you’ve identified the county you want to buy in, it’s well worth a phone call to the county appraisers office to find out what you need to do regarding an ag or wildlife exemption. Ask the county appraisal office about property size requirements and how your exemptions are to be maintained. If you intend to maintain your exemption by letting someone else run cattle on your property, it would be best to get your grass lease in writing. I know some counties will want a copy of the lease. If you’re interested in a wildlife exemption, you’ll need to be ag exemption first. Contact the Texas Parks and Wildlife for more information on a wildlife exemption.

Property Use – Is your property going to be a future home site? Is it a place to hunt, fish or a place to get out of the city? If you’re going to keep animals on the property, pay close attention to what I stated above regarding exemptions. If it’s a future home site, you may need to consider schools and how close you are to groceries, hardware or feed stores. One important thing to consider when buying rural land is first making sure you can use the property the way you want. You will need to know if the property is deed restricted. Read more about this below. If it’s restricted, you’ll need to understand the restrictions and see if it prevents you from using the property the way you want. Don’t forget to find out what utilities are available and what the cost would be to bring them to the property.

Restricted or Unrestricted – Most people desire unrestricted land because “I don’t want any one telling me what to do on my land!!” Actually most restrictions in rural areas are usually pretty light and are designed to keep the area looking nice and nice looking areas are great for resale and maintaining property values. I deal with restrictions all the time and they don’t personally bother me. If they seem too restrictive then that property may not be for you. It’s never a good idea to buy a deed restricted property and think you can do whatever you want on the property. You may end up tearing something down or even end up in court!  The most common restrictions I see are no mobile homes, no junk yards, no pig farms, no shooting ranges, no commercial businesses, etc. Think about how miserable it would be if a shooting range opened up next door to you? In that scenario you’d be very grateful to have deed restrictions that prevented that from happening. The moral of this story, not all deed restrictions are bad and most help keep the peace, the community looking nice and property values at or above market.

Utilities – It’s important to understanding where your power is coming from and who the provider is. If you need an easement from a neighbor to run power to a property that you are buying, make sure you can get the easement before signing on the dotted line to purchase the property. Some rural properties are lucky enough to have public water, but if not, get an idea of how deep the wells are in the area and the gpm that is to be expected. You can usually count on using satellite for your TV and internet. Sometimes local rural providers such as S.O.S. or Western Broadband have other internet options. Now days most folks don’t require a land line for their phone but if you need one keep that in mind as well. And always check on your septic costs for your particular county.

What Conveys – It’s very important that your contract clearly states whats excluded and whats included in the purchase price.  If your purchase includes the portable panels, hunting blinds, feeders, troughs, etc, make sure your contract shows these items convey to you. The same works for a seller on items that are excluded. Always be crystal clear on what conveys and whats excluded in a transaction.

Leases – It’s pretty common for rural properties to have grass, farm or hunting leases. In most cases I don’t usually recommend assuming someone else’s lease. When buying a property it’s best to have all leases terminate prior to closing. You can always continue a lease with the same person after closing and you can signup clean with your own lease, with your terms.

Survey – It’s best if you take the survey and inspect your boundaries and be aware of possible encroachments and fencing that’s not on the boundary lines. BTW, fencing is never perfectly on anyone’s boundary but if it’s way off you may want it fixed. A survey will also verify the actual amount of acres you’re buying. A title company will always require a survey to close, if it’s a lot in a subdivision usually a plat will suffice.

Floodplain – Almost all properties with a creek, river or lake is likely to have a floodplain. If you want waterfront or live water,  having some floodplain on the property is just part of the deal. Some properties that you wouldn’t expect to have floodplain can be completely covered with floodplain. Viewing FEMA maps and/or mapping programs can help identify floodplain areas.  Sometimes your survey will show the floodplain, but not always. If you are getting a new survey always request the floodplain be shown. Be aware of the floodplain areas and make sure they don’t impact your build sites or interfere with your intended use of the property. With proper planning, having floodplain on a property does’nt have to be a bad thing.

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