Posted on: 14 November 2022
At first look, real estate listings for large properties may not seem especially different from listings for regular places. However, buyers need to be aware of some specific differences between the two. Buyers should look for these three features when they check listings.
The bigger a property is, the more likely the buyer will take some interest in its rights. Likewise, the odds are higher that a previous owner may have sold or leased some of the rights. These include things like timber, water, natural gas, and oil rights. Some farms and ranches may also sell or rent growing or grazing rights. There may also be easements related to rights to cross the property. On the upside, income streams often accompany the transfer of rights, too.
It is a good idea to determine what the current status of all of the rights will be before you buy. Real estate listings should include detailed disclosures explaining which rights are unavailable due to transfers or easements. It is also a good idea to check with the county's registry to make sure there aren't any lingering rights issues, easements, or liens.
The use of large tracts of real estate also frequently brings property owners into conflict with regulations and even neighbors. Particularly, the presence of bodies of water on or near a property can create concerns about potential runoff and pollution. You should take the time to learn what the applicable regulations will be, especially if you have a specific use in mind for real estate. For example, runoff concerns may require you to limit the placement of agricultural, commercial, or industrial interests on the property relative to outside bodies of water. You may need to engineer solutions and seek approval of the designs to fully comply.
Safety and Insurability
More land means more problems, especially on the safety front. By extension, this can create insurability issues. A large parcel of real estate may need certain features to be insurable. For example, an insurance company may want you to build access roads to ensure that firefighting vehicles can get in and out. Similarly, you may need to construct an artificial pond on the property at a location that facilities firefighting near insured buildings at the location.
It is a good idea to speak with local officials and your preferred insurance provider to determine what the situation will be. They can help you identify and address potential issues on the property to ensure you'll have the necessary coverage once you buy it. For more information on real estate, contact a professional near you.Share