What to Know When Buying Vacant Land

Purchasing vacant land can be an exciting investment, whether you are building your dream home, developing a project or just holding it for the future. Buying land comes with its own set of risks and complexities. Here is a summary of some important due diligence checks which should be made before buying vacant land.

Zoning and land use

The zoning of the land will determine how the land can be used; whether for residential, commercial or industrial purposes. If the current zoning does not allow you to use the land for your intended purpose you may face legal issues and costly delays.

Resolution: Check the Council Planning Certificate or NSW Planning Portal to confirm the current zoning of the property. This will allow you to verify whether your intended use aligns with the permitted land use.

Easements, restrictions and covenants

The title search will reveal several important items, including how the land is owned and whether there are any easements, restrictions or covenants that may affect how the land is used or what can be done with the land.

Resolution: Engage a property law specialist to review the title of the property and advise you of any potential issues.

Building

If you are buying land with the intention to build, careful planning should be undertaken specifically in relation to the land to ensure that any potential building issues are considered and resolved.

Resolution: Have your builder and planner take an active role in the purchase including reviewing any document relevant to the land such as the Council Planning Certificate and Geotechnical Report.

Access and services

Not all vacant land has direct access to public roads or connection to services like water, electricity, sewerage and internet. Lack of access or connection can make development difficult or more expensive and living at the property undesirable.

Resolution: Check the registered plan for road frontage or any rights of way relevant to the property to see how it will be accessible. If the land is part of a new subdivision, check whether the developer is arranging connection to services, or otherwise contact local providers to confirm availability and the costs to connect services yourself.

Soil and site conditions

The land’s topography, soil composition, and risk of flooding or bushfire can affect building costs and approvals.

Resolution: Request a Geotechnical Report and check NSW Planning Portal for flood and fire risk maps. It is also advisable to confirm no fill has previously been placed on the land. Sloping or unstable land may require costly excavation or reinforcement.

Planning and building restrictions

Overlays, heritage listings, or other orders made by the local authority can limit what and how you can build, even where the land is zoned appropriately.

Resolution: Review any planning overlays or development controls with a town planner or through the local authority. Look out for building envelopes and design guidelines.

Future development in the area

Future infrastructure or developments can impact the land’s value—positively or negatively. Nearby roads, airports, or industrial zones might cause noise or traffic issues.

Resolution: Research current planning proposals or developments in the area. Council websites are good starting points.

Subdivision of land

If the land is being created by subdividing a larger parent lot, there may be delays in purchasing the land and you may not get exactly what you had planned for.

Resolution: Engage a property law specialist to review any proposed plan of subdivision and negotiate safeguards on your behalf in case the registered land is not as expected.

Before buying vacant land, careful investigations such as those mentioned above should be undertaken. By conducting thorough due diligence, you can avoid costly surprises and make a well-informed decision aligned with your goals. Baker Love Lawyers has a team of property law specialists who can guide you through the due diligence and purchase process, to ensure you are sufficiently protected.