Skip to main content
Advertiser Disclosure
We do receive compensation from some partners whose offers appear on this page. We have not reviewed all available products or offers. Compensation may impact the order in which offers appear on page, but our editorial opinions and ratings are not influenced by compensation.

Ascent-logo

  • Credit Cards
  • Banking
  • Brokerages
  • Loans
  • Mortgages
  • Knowledge
  • Latest Picks
  • Search Icon Click here to search

Credit Cards

Top Picks
  • Best of February 2021
  • Cash Back
  • Balance Transfer
  • Travel
  • 0% APR
  • Rewards
  • Bad Credit
Knowledge
  • Beginners Guide to Credit Cards
  • How to Rebuild Your Credit
  • Maximize Your Credit Card Rewards
  • Learn More About Credit Cards
Credit Card Tools
  • Compare Cards
Looking for a new credit card?

Explore the best credit cards in every category as of February 2021.

Get started!

Banking

Top Picks
  • Best Savings Accounts
  • Best Bank Accounts
  • Best Money Market Accounts
  • Best CDs
  • Best Checking Account Bonuses
Knowledge
  • Beginners Guide to Banking
  • Everything You Need to Know About Savings
  • Money Market Accounts Made Easy
  • Learn More About Banking
Looking for a place to park your cash?

Check out our top picks of the best online savings accounts for February 2021.

Get Started!

Brokerages

Top Picks
  • Best Brokers of February 2021
  • Best Online Brokers for Beginners
  • Best Options Brokers
  • Best IRA Accounts
  • Best Roth IRA Accounts
  • Best Robo Advisors
Knowledge
  • How to Open a Brokerage Account
  • Beginner's Guide to Brokerages
  • Learn More About Brokerage
Just getting started?

Explore our picks of the best brokerage accounts for beginners for February 2021.

Get Started!

Loans

Top Picks
  • Best Loans of February 2021
  • Best Personal Loans for Bad Credit
  • Best Loans for Debt Consolidation
  • Best Low-Interest Personal Loans
  • Best Personal Loans for Good Credit
  • Best Personal Loans for Fair Credit
Knowledge
  • Personal Loans Made Easy
  • Debt Consolidation Guide
  • How to Pay Off Debt
  • Learn More About Loans
Thinking about taking out a loan?

Before you apply for a personal loan, here's what you need to know.

Get Started!

Mortgages

Top Picks
  • Best Mortgage Lenders of February 2021
  • Best Mortgage Lenders for Poor Credit
  • Best Refinance Lenders
  • Best VA Mortgage Lenders
Knowledge
  • First Time Homebuyers Guide
  • Home Loans Made Easy
  • The Complete Guide to Refinancing
  • How to Get a Mortgage with Bad Credit
  • Learn More About Mortgages
Tools & Calculators
  • Mortgage Calculator
Compare Rates
  • Today's Mortgage Rates
  • Refinance Rates
  • 15-Year Mortgage Rates
  • 20-Year Mortgage Rates
  • 30-Year Mortgage Rates
  • Jumbo Mortgage Rates
  • VA Loan Rates
  • 5/1 ARM Rates
  • 7/1 ARM Rates
  • FHA Mortgage Rates

Knowledge

Knowledge Section
  • All Articles
  • Credit Card Articles
  • Banking Articles
  • Brokerage Articles
  • Personal Loan Articles
  • Mortgage Articles
  • Personal Finance Articles
Recent Articles
  • How I Make Money Paying Taxes With a Credit Card

    Credit Cards

    How I Make Money Paying Taxes With a Credit Card
  • The 4 Best Ways to Use Your Amex Membership Rewards Now (B.Myers)

    Credit Cards

    The 4 Best Ways to Use Your Amex Membership Rewards Now (B.Myers)
  • The 5 Best Ways to Use Your Chase Ultimate Rewards Points Now

    Credit Cards

    The 5 Best Ways to Use Your Chase Ultimate Rewards Points Now
  • I've Earned Over 10,000 Points on Everyday Spending With Chase Rewards Cards

    Credit Cards

    I've Earned Over 10,000 Points on Everyday Spending With Chase Rewards Cards
  • The Ascent
  • Knowledge
  • Mortgages

Thinking of Buying Land? Be Sure to Get Answers to These Questions

by Christy Bieber | Jan. 18, 2021

The Ascent is reader-supported: we may earn a commission from offers on this page. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation.

Wooden cutout of house surrounded by home improvement tools.

Image source: Getty Images

You could regret your land purchase if you don't know the answers to these questions.

If you're interested in building a home, you need a plot of land. Many builders have land for sale, or you can find a plot on your own.

Before you apply for a mortgage and buy land, though, be aware that there are sometimes considerable restrictions on what you can do with a property -- even if you own it. You don't want to find yourself with a plot you can't use for your intended purpose, so get answers to these five questions first.

1. Are there deed restrictions on what you can build?

Sometimes there are restrictions attached to the deed for a piece of land. Also called "restrictive covenants," deed restrictions limit how you can use the plot.

For example, deed restrictions in my neighborhood mandate that houses be above a certain square footage, and limit construction to just one home per plot of land.If I wanted to build a smaller home or an in-law apartment or rental property, I wouldn't be allowed to.

Get $150 off closing costs with Better.com Mortgage

Get $150 off closing costs with Better.com Mortgage

This is one of the top lenders we've used personally to secure big savings. No commissions, no origination fee, low rates. Get a loan estimate instantly and $150 off closing costs.

Learn More

Sometimes, deed restrictions are even more restrictive. They can specify everything from how tall you can make your fence to the number of vehicles you can store on your property. It's important you understand how these restrictions impact your usage of the property.

2. Is the property on wetlands?

If any part of your property is designated as wetland, you need special permission to build. The process for this depends on your state's rules, as well as on whether the federal government has jurisdiction.

It can be extremely time-consuming and expensive to build on wetlands -- especially if you have to pay wetland impact fees because you're disturbing a substantial area. My husband and I purchased 16 acres in Florida last year, and a small part of our driveway crosses a tiny area of wetlands -- around .36% of an acre. It took over a year and several thousand dollars to secure a permit, and we had to hire an engineer and two environmental consultants.

While wetlands properties can be attractive, be aware of what you're getting into. Your cost and timeline to build may get thrown out the window.

3. What are the zoning rules?

Zoning rules also dictate what you can do with your property. If your area is zoned residential, you can't run a business out of it. But the rules can go beyond specifying whether you can operate a company from your home. They can also control things like property density, building height, the percentage of the lot you can pave, and how far your home must be set back from property lines. Find out what the zoning rules are before you buy to avoid problems.

4. Can you use any builder?

If you are building a home in an established development, you may be restricted to builders on an approved list. We ran into this when shopping for Florida property -- several planned communities would have required us to pick from just three or four approved builders.

If you want to choose your home builder without limitations, or if you plan to act as your own general contractor, make sure you understand whether you're allowed to do that with your chosen plot of land.

5. Is there a time limit for development?

Finally, there may be a requirement that you start construction of your property within a certain time frame. If you're trying to save money to build before you begin, you may find that this poses a problem.

You don't want to be caught off guard by limitations that come with your land. So ask all of these questions before you commit to buying. Be sure you can build the home of your dreams in that perfect spot you've chosen. Otherwise, it may turn out it's not so perfect after all.

A historic opportunity to potentially save thousands on your mortgage

Chances are, interest rates won't stay put at multi-decade lows for much longer. That's why taking action today is crucial, whether you're wanting to refinance and cut your mortgage payment or you're ready to pull the trigger on a new home purchase. 

Our expert recommends this company to find a low rate - and in fact he used them himself to refi (twice!). Click here to learn more and see your rate. While it doesn't influence our opinions of products, we do receive compensation from partners whose offers appear here. We're on your side, always. See our full advertiser disclosure here.

About the Author

Christy Bieber
Christy Bieber icon-button-linkedin-2x

Christy Bieber is a personal finance and legal writer with more than a decade of experience. Her work has been featured on major outlets including MSN Money, CNBC, and USA Today.

Share This Page
Facebook Icon This icon shares the page you are on via Facebook
Blue Twitter Icon Share this website with Twitter
LinkedIn Icon This image links to share the page over LinkedIn.
Email Icon Share this website with email
The Motley Fool has a Disclosure Policy. The Author and/or The Motley Fool may have an interest in companies mentioned.

The Ascent is reader-supported: we may earn a commission from offers on this page. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation.

Related Articles

"Rates" on a stick note on a house image for Find the Best Mortgage Rates

Find the Best Mortgage Rates

Cardboard cutout house on a desk image for Best Mortgage Lenders for 2021

Best Mortgage Lenders for 2021

Money bags and a model house sit on a balance beam image for Best Mortgage Refinance Lenders for 2021

Best Mortgage Refinance Lenders for 2021

Change on a desk image for Mortgage Payment Calculator

Mortgage Payment Calculator

Featured Articles

Find the Best Mortgage Rates

Best Mortgage Lenders for 2021

Best Mortgage Refinance Lenders for 2021

Mortgage Payment Calculator


We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.

The Ascent Logo

The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters.

btn_facebook-yellow btn_twitter-yellow btn_instagram-yellow

Copyright © 2018 - 2021 The Ascent. All rights reserved.

About The Ascent
About Us Contact Us Newsroom How We Make Money Editorial Integrity Ratings Methodology
Legal
Terms of Use Privacy Policy Accessibility Policy Terms and Conditions Copyright, Trademark and Patent Information
Learn
Credit Cards Banking Brokerage Loans Recent Articles

By submitting your email address, you consent to us sending you money tips along with products and services that we think might interest you. You can unsubscribe at any time. Please read our Privacy Statement and Terms & Conditions.

Back to The Motley Fool