Step-by-Step Land Due Diligence and Closing Guide

A percolation test measures how quickly water drains through the soil on a property. You need this test to determine if the land can support a standard septic system, which is essential if municipal sewer lines are unavailable. Failing to secure a passing perc test can make the land legally uninhabitable and drastically reduce its value.

You must check the county GIS mapping system and review the property's deed history for recorded, deeded easements. Just because a physical dirt road or path leads to the property does not mean you have the legal right to use it. A title search is the most reliable way to confirm that the land is not legally landlocked.

Zoning is public law established by local governments to control how land is developed and used in specific areas. Restrictive covenants are private agreements created by past developers or homeowners associations that dictate aesthetic and building rules for the property. You must comply with both sets of regulations to legally build on the land.

The buyer typically pays for the survey because they are the party requiring proof of boundaries to secure financing and title insurance. However, this cost can be negotiated in the purchase agreement to be split or paid entirely by the seller. A certified survey is highly recommended to resolve any boundary disputes before closing.