Questions About Buying Vacant Land for Hunting

I was wondering if anyone has looked into buying vacant land for hunting purposes?
I have been looking into it recently to see what is out there.
I was wondering if this type of transaction is just like buying a house?
- get your lawyer to review everything - do the title insurance, search for liens, etc?
- would you get a real estate agent to help you through the purchase?
- how would you go about making an offer without a real estate agent?
I know you have to pay HST on vacant land and I assume land transfer tax as well.
Property taxes are generally very low on vacant land.
Are there any other hidden costs I should consider? Maybe such as road maintenance if there is one.
Any other things I should look for and consider?

Would appreciate some thoughts and perspectives.

Cheers!

Pretty much. Look the property over, submit an offer, and for a lawyer to close the deal. Check with the bank first if you need ti borrow.

Like any other real estate deal,it depends on three things-location,location and location. Will this purchase be an abandoned farm on a rural road that's completely serviced or bush property well off the beaten path without hydro or water? Working with a realtor has many advantages. They know the area and the market and are usually very familiar with any nuances accompanying a purchase in the specific area. They also know what "deals" have been cooked up behind the scenes by the "locals" as is typical in most rural areas that the ordinary purchaser would have no way of obtaining without an "insider" being on the team as opposed to finding out after the deal is closed. Good,accurate information is powerful. Paying a realtor can save mega bucks at the end of the day. Of course,the services of a lawyer being absolutely indispensible is a given.

I am going through the same process myself, there are a new(er) set of land ownership rules which are more in the favour of the landowner to reduce squatters rights. Someone can chime in but your lawyer should know the names, ask for the transfer to be done under the new(er) rules.

Real estate agents may not always give the correct answer, keep in mind their job is commission based and they try and push the sale just as any other commission based salesperson would. Have all your questions answered in the contract (ie land taxes, property size etc) so you have something to go back on if required, something I have had to do in the past.

A friend of mine purchased land which had a 50 yr. title search, turned out there was a land claim prior to that for an Indian treaty, he managed to get out of the deal but its only a few more dollars to go back 100 yrs. which could have saved him the headache.

Be aware that banks will NOT mortgage 'land'....you will have to buy it with a loan or cash.

Don't be in a rush and find the right realtor. You can do quite a bit of online searching but a really good agent will find what you want. When we bought our property 27 years ago, I was fortunate enough to find an agent that did cross country horse racing and was very familiar with rural properties in the area I was looking. Prior to this, I visited 4 agencies and they told me I would never find what I was looking for ( large property, permanent water, hardwood woodlot, etc). This agent showed me 5 different properties that met my needs. Good luck!

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Originally Posted by Sam Menard

Pretty much. Look the property over, submit an offer, and for a lawyer to close the deal. Check with the bank first if you need ti borrow.

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REALLY hard to get a mortgage on property without a building.

I see you're in Peterborough. I have a camp in the far end of the Ottawa Valley. Be mindful of the Agreement In Principle for the Algonquin Land Claim. The FN have stated they won't confiscate any private property and I believe them but they do have plans for development of cottages etc in the area. You're nice quiet, private property may change in a few years.

depending on where the land is located if you put 50% down we will sometimes do a mortgage, also depends on how much banking you do with that specific bank. I did a few that were strictly land purchase.

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Originally Posted by MikePal

Be aware that banks will NOT mortgage 'land'....you will have to buy it with a loan or cash.

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How much are you looking for?? And what is your budget. I am in the Peterborough area.

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Originally Posted by greatwhite

depending on where the land is located if you put 50% down we will sometimes do a mortgage, also depends on how much banking you do with that specific bank. I did a few that were strictly land purchase.

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When I bought this farm, the bank would only mortgage the house and buildings and 5 acres....the remaining 95 acres was not part of the mortgage and I had to get a loan to buy it.

Nice to find out the day your signing the papers, at least they were happy to 'lend' me what I needed.

As other posters have pointed out, do a little homework. I've bought and sold a lot of vacant recreational land over the years. be aware of zoning regs, as well. Depending on what you plan on doing with it, it may be your benefit to seek a parcel in an unorganized township.

Land purchase can often be financed with 50% down, depending on your bank. You can actually also go through a process, whereby you can buy the land, and then enter into a financing agreement to build, which will convert to a conventional mortgage once the construction is complete.

There is a company out of Barrie called the H.M.Dignam Corp. I bought many of my parcels off them at first. They also will hold the financing on the land.

Good luck.

Look into who the neighbours are, zoning-bylaws, possible outdoor activity restrictions etc. Some funny things have been happening with more people moving up north, out of the city & getting restrictions made in some areas. Reason being one item south of parry sound. Even though the law has been amended to allow ATV/UTV along the side of roads. One fella had council stop the allowance in one of the townships.

Road Allowances can be a real problem.
If your property is divided by a road allowance it may not be possible to build a road connecting the two.
You may have to apply to the township to purchase part of the road allowance.

Also, anyone can access, walk, ATV, etc along an unopened road allowance that is owned by the municipality- might be some safety and privacy issues to be aware of.

Real Estate agents are most definitely conflicted with the pending transaction.
They only get comp'd if the deal goes through. Commissions seem higher on rural properties.

Let your insurer know you have the land; you will want to carry liability or an umbrella policy at a minimum to protect yourself against injuries and damage that someone might incur while on your property; Friend or trespasser,,,,

Make sure there is a survey. Having to eventually get one on your own is very expensive.

Look at title insurance if no survey is available or completed. Depending on what size of parcel and where it's located can really make the cost of a survey sky rocket...

Be sure local Municipal Bylaws permit construction of storage buildings even if there is no permanent housing. That was a huge hassle on my property-- although I eventually prevailed-- it was a difficult fight.

Get a survey done, even at your own expense. Do it close to finalizing the deal. It's rare for the property on sale to not fit the description of the legal boundaries. But the last thing you want is to spend a lot and find out your boundaries are less than you expected.

Are you on permanent road access? If not be prepared to someday have to maintain a road in at considerable expense or effort.

Hopefully you are in a Google Earth High Resolution Zone.
You can learn a lot about your land and the neighbouring land before buying.

Think about how far away it is from your home for doing stuff like trail work and fieldwork. If you have lots of projects for the property, you want to live close or have a lifestyle flexible enough to be away from home for several days in row.

Hope u guys realizing u starting to scare the hell out of him :)

Some vacant land has been that way for hundreds of years without spoiling. The neighbours may use some, but they normally leave a bit to avoid having the owner put up signs. They will often treat it as their own and look after it as such. Once a PRIVATE sign goes up, then it's a new ball game....

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Originally Posted by sawbill

Make sure there is a survey. Having to eventually get one on your own is very expensive.

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If you are buying an entire lot, its not really needed.

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Originally Posted by CanadienBoy

Hope u guys realizing u starting to scare the hell out of him :)

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Better to know what bases one has to cover, than to start the process, and realize you missed something.

I really appreciate all of the responses. It helps when you hear about other people's experiences with it and and helps with things to keep in mind as I continue to explore the options out there.
I am definitely in no rush as you have to consider it as an investment - got to find the right property for the right price in the right area.

Some areas are easier to put a deal together with than others. If I may ask,which area are you interested in?

Also, I'm not sure if they 'legally' have to disclose it, but make sure that if your looking at a parcel that no 'Conservation' group has it's hooks into the property. My buddy came across a few when he was looking that had land development restrictions due to wetlands on the property.

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Originally Posted by MikePal

Also, I'm not sure if they 'legally' have to disclose it, but make sure that if your looking at a parcel that no 'Conservation' group has it's hooks into the property. My buddy came across a few when he was looking that had land development restrictions due to wetlands on the property.

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Sometimes this can drop the price though too. I know of areas where the original homestead or a certain part of high ground is open for building but the rest is protected, often the price an be lower but you are restricted in what you want to do.

I live in Peterborough so I am looking for something within an hour to hour and half away at the most.
I am fairly new to hunting but I would like to target grouse, turkey and deer. Possibly ducks and geese if possible but they aren't priority.

[/QUOTE] There is a company out of Barrie called the H.M.Dignam Corp. I bought many of my parcels off them at first. They also will hold the financing on the land.

Good luck.[/QUOTE]


I subscribe to Digman as well. the properties are generally small 1 - 10 acres. they offer a cash price as well as a finance option. mostly less than 50k with lots between 15 and 30k

Good luck!!.

I bought 12 acres on a lake with 5000 acres of crown across the street. about to hunt it for the first time in two more sleeps!!!

Make sure you check township bylaw that I have permission to build small cabin but township turn us down due size require building and permit so I am stuck and didn't built anything!!

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Originally Posted by wolf5

Make sure you check township bylaw that I have permission to build small cabin but township turn us down due size require building and permit so I am stuck and didn't built anything!!

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Most organized Townships have a minimum construction size of 700 SqFt. Unorganized townships further North are more lenient with their requirements.

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Originally Posted by MikePal

When I bought this farm, the bank would only mortgage the house and buildings and 5 acres....the remaining 95 acres was not part of the mortgage and I had to get a loan to buy it.

Nice to find out the day your signing the papers, at least they were happy to 'lend' me what I needed.

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I would never have guessed that banks would not mortgage vacant land....does anybody know the logic behind this ?

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Originally Posted by 73hunter

I would never have guessed that banks would not mortgage vacant land....does anybody know the logic behind this ?

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Vacant land is not very liquid. Also very hard to put a precise value on it.

Did this myself last year. Lots of work and lots of good advice here. MLS not very useful for anything under say $150k-$200k. Realtors relatively small commission means they don't do anything other then just list them. Check Kijiji and other sites. Maybe place a "looking for land" ad and even post flyers in local stores. Access is also important. Is it legal right of way or road or road allowance, or just a neighbourly "its ok to drive on my trail to your place" (until I change my mind). Also check with the town how much land you need if you intend to build.