Design Process

Potential Issues When Purchasing Land

If we are searching for land, it is important to know which needs and requirements are most important to avoid potential issues when purchasing land.
Publicado el 27 October 2018
Posibles problemas al comprar un terreno

Searching for and purchasing land are the first steps in the adventure of building your own home, but as with all adventures, there are certain risks we must be aware of to be well prepared. Today we discuss all the potential issues when purchasing land.

Setting aside the fact that this is typically a slow process, as future owners of the plot we must be very attentive and cautious, as we may encounter potential issues when purchasing land that, had we been better informed, we might have avoided.

It is important to have certain aspects very clear before purchasing land, to understand your most pressing needs and requirements.
Let us examine which aspects we cannot overlook to avoid potential issues when purchasing land.

 

Steps to Purchase Land

 

First, we must be very clear about the steps to follow when we decide to purchase land—an aspect that will help us minimize potential issues when purchasing land.

1. The first step will be the land search process, typically divided into three phases that are explained very well in the article 7 Tips for Purchasing Land, which you can consult on our blog.

 

2. Second, we would proceed to the review of the technical and legal status of the land, the aspects of which are explained in more detail later in this article.

 

3. The third step in this initial process refers to financing regarding the purchase of the plot.

It is important to remember that if we can pay 100% of the land with our savings, the bank will finance 100% of the house, including the architectural project.

If, on the other hand, we do not reach 100% of the land value, we will need to finance it in installments through a personal loan, as banks do not mortgage land. Personal loans have much higher interest rates than mortgages.

Another option would be to mortgage the total of land and house. In this case, the bank will require 20% of the total investment, but we must bear in mind that, in this case, the bank will not provide the money for the land until the architectural project is ready, approved, and budgeted. To pursue this route, the land seller must agree and sign a deposit contract with us with a longer purchase period than usual.

 

4. The signing of the deposit contract (reservation) is a type of private contract with the land seller.

It functions as a deposit that guarantees the reservation of the land while we secure the necessary funds to complete the purchase before a notary. Typically, deposits are signed with a period of approximately 2 or 3 months. If the land must be partially financed by the mortgage, this period of 2 or 3 months may be extended (6 or 8 months), but in any case, the land seller must agree to the terms.

When signing a deposit contract, we must understand that if we, as buyers, withdraw from the purchase, we will lose the money paid to the land seller, whereas conversely, if the land seller changes their mind and decides not to sell the land, they must return double the amount paid (which typically ranges between 10% and 20% of the total cost).

 

5. The final step to legalize and complete the purchase would be to visit a notary and the property registry to submit and accept the papers for the change of ownership and rights over the land.

We must not forget that at the time of completing the purchase, we will need to pay 10% Property Transfer Tax (ITP) if it is a sale between private individuals, or 21% VAT if the seller is a company or bank.

Additionally, notary, agency, and property registry costs amount to approximately 2% of the total land value.

 

Fence on land available for purchase

Checks Before Purchasing Land

 

Below, we will list the checks that must always be performed when we want to minimize potential issues when purchasing land.

They are divided into four sections depending on whether they relate to the location of the plot, proximity to shops and industries, land characteristics, and regulations and legal status of the land.

 

Plot Location

 

The first aspect to consider would be the location of the plot or land we are purchasing.

We must pay attention to a whole series of factors regarding its location and the elements that surround and affect it to avoid potential issues when purchasing land.

These factors would be:

 

– The neighborhood or built urban environment

– Social composition

– Sun exposure

– Access by private and public transport

– Availability and condition of bike lanes

– Pedestrian paths (proximity, condition, gradient)

– Distance from schools

– Distance from workplace

 

Children playing on land available for purchase

Let us examine some of these in detail to better understand their importance and what we must consider to avoid potential issues when purchasing land.

 

Built Urban Environment/Neighborhood.

The fabric and typology of houses that predominate in an area are determined by the municipal urban planning ordinance, which will determine what is permitted in each location, regulating the parameters of the constructions that can be built.

Therefore, it is important that we review the characteristics of the constructions in the area, in the neighborhood that interests you. Analyze whether they are detached single-family homes, whether they have gardens or communal green spaces, whether there are quality public spaces and buildings nearby, what typology of buildings exists, as well as the condition of the connecting routes to the more central areas of the locality.

 

Profile/Social Composition.

Another aspect to consider to avoid potential issues when purchasing land would be the social composition or profile of the people who inhabit the neighborhood.
Assess the average age range, whether they are families or students, whether there are children in the neighborhood or whether the population is rather elderly, etc.

Considering this aspect, you can assess whether your needs at a social level adapt to or fit into that environment or whether, on the contrary, you prefer another area with a different social profile in which you feel better integrated.

 

Public and Private Transport.

As mentioned earlier, it is vital to consider and analyze the connectivity of the land in terms of both public and private transport before purchasing it.

Typically, the most critical or determining aspect will be public transport, especially if we are talking about families or working couples who are considering expanding the number of family members. Public transport will become particularly important as it can facilitate or hinder the mobility of all members.

Good public transport service is a guarantee of independence both at a personal level and from private transport.

Calculating distances on foot or by bicycle to areas relatively close to the house and to public transport stops is something we often overlook, but ultimately, as already mentioned, it can reduce potential issues when purchasing land.

 

Pedestrian Accessibility.

Assessing accessibility at the pedestrian level is essential to understand the condition of pedestrian access to our land, study the possibility of walking to shop, and even check the condition of sidewalks so that it is easy to maneuver a stroller or shopping cart.

Comfort must be prioritized, as many of the potential issues when purchasing land appear later when we become regular users of a place. If it has not been thoroughly studied, we may encounter difficulties over time.

 

Sun Exposure.

This point is very important, especially at a climatic level for the construction of a house.

We must consider sun exposure, that is, the solar radiation incident on the land.

It is not the same to purchase land located on a north-facing slope as one facing south, especially if what we seek is to build an ecological house with zero or near-zero consumption. Direct sun exposure for most of the day will be essential to ensure that our house heats naturally.

Furthermore, to cool the house it is also beneficial to have a south-facing façade, as air currents are generated between cold and hot façades. Thus, a south-facing house with one south façade and one north façade can achieve cross ventilation that will cool the house in summer.

The sun is a source of life, heat, and light. It is essential to secure land with good sun exposure; we can always protect ourselves when it is hot.
The amount of existing vegetation around the land or the shade that neighboring buildings may cast also influences this.

 

Proximity to Shops and Industries

 

Thoroughly examining the surroundings before purchasing a plot is necessary to understand the availability of shops, industries, traffic levels, and electrical networks that exist in the location.

In the case of checks to be performed to avoid potential issues when purchasing land related to the immediate surroundings, these would be:

 

– Noise

– Pollution

– Traffic (especially assess truck/heavy vehicle traffic)

– Mobile phone or radar antennas

– Electrical substations

– High-voltage power lines

 

Commerce and Leisure:

This involves determining the existence of shopping centers, shops, bars, nightclubs, or restaurants that may attract a large number of people to their surroundings and immediate exterior.

On one hand, it is positive and useful to have these services nearby, although on the other hand, if they are too close they can cause disturbances, risks—especially if you have small children—and other potential issues when purchasing land.

 

Noise Pollution and Traffic:

Considering the degree of noise pollution in the area is very important as it will determine the acoustic insulation of the dwelling to achieve appropriate comfort.

Furthermore, we must take it into account when designing outdoor spaces, as failing to do so would put the comfort and health of its occupants at risk.

The source of noise may come from nearby industries, leisure establishments, or means of transport, infrastructure such as railways, airports, highways, etc.

 

Mobile Phone or Radar Antennas:

It is also very important to avoid potential issues when purchasing land by checking whether there are mobile phone or telecommunications network antennas nearby.

It is known that prolonged exposure to the waves produced by this type of antenna can negatively affect human health, and although the limits are still being discussed—and in fact there are controversies between maximum exposure regulations at Spanish, European, and international levels—we advocate applying the precautionary principle and positioning ourselves at a prudent distance from mobile phone antennas.

If in doubt, you can opt to conduct an electromagnetic measurement study to verify the incidence of waves on your plot.

There is also an online resource you can consult. It is the Spanish map of mobile phone antennas and shows the exact location of mobile transmission antennas in Spain.

 

Electrical Substations and High-Voltage Power Lines:

The same applies to electrical substations and high-voltage power lines.

In the case of electrical substations, we must verify that the alternating magnetic field has a low flux density, below 20 nanoTeslas (nT).

Between 20 and 100 nT we will consider the magnetic field not very alarming, and above 100 nT the construction of a dwelling will be very dangerous, primarily due to the risk they would pose to both workers and future occupants of the house.

For their part, high-voltage power lines are equally dangerous despite sometimes being hidden or buried.

These lines produce ionization of the surrounding air, increasing humidity, emitting noise, interfering with radio frequencies, or generating tropospheric ozone.

Furthermore, this process also causes the attraction and concentration of pollutant aerosols and radon gas.

In the case of 132 kV high-voltage lines, their effect extends up to approximately 200 m in the wind direction, and for 275 kV lines up to 500 m.

Again, we can commission a measurement study to verify the level of fields on the land.

 

High-voltage towers on land available for purchase

Land Characteristics

 

Regarding checks on land characteristics, we must consider:

 

– Slope and topography

– Sun exposure

– Presence of trees

– Other vegetation

– Water runoff

– Degree of dryness/moisture of the land

– Access routes to the plot

– Available infrastructure and services

– Subsoil characteristics

– Proximity/boundaries with neighbors

– Street urbanization status

Let us detail below some of the most important aspects that we cannot overlook to save ourselves potential issues when purchasing land if we plan to build a house.

 

Topography and Morphology:

We must know the actual boundaries as well as the slope of the land we wish to purchase. If in doubt, it is advisable to request a study by an expert surveyor.

A very steep slope can lead to future complications in terms of excavations and construction of retaining walls that can increase the cost of foundations and the total construction.

Generally, the slope of the land is also closely linked to the morphology of the subsoil. It is not the same to have sloping land whose subsoil is resistant (there is rock or a sufficiently resistant substrate at shallow depth) as if the subsoil is soft and cannot support weight.

However, in some cases, the slope can also become an advantage as it may allow us to build a stepped house adapted to the terrain, attaching part of the dwelling to the natural ground and thus achieving better thermal performance.

 

Vegetation and Trees:

The existing vegetation on land can play a very important role in the design of a house.

It can be a project feature if we try to respect it and use it to our advantage without cutting it down or replacing it.

It can act as an acoustic or visual barrier or natural filter against excessive solar radiation.

Therefore, it is interesting to know the location and health status of trees and other types of vegetation on the land.

Taking a look at the immediate surroundings can also be useful, as trees on neighboring land may prevent or hinder sun access to key areas of our land.

Vegetation will also give us clues about the presence of water and land runoff, as surely where there is a greater presence of vegetation is where there is likely to be a greater presence of water in the subsoil.

Finally, vegetation—in this case lack of it—is a symptom of another important aspect: the presence of rock in the land’s subsoil. This type of subsoil is very resistant and therefore ideal for building.

Rustic land available for purchase

 

Current Regulations and Possible Modifications

 

This is the most bureaucratic part of the entire land purchase process. The checks we must perform to ensure obtaining a building permit will be:

 

– Verification of charges or debts

– Rights of way

– Municipal plans

– Permitted buildability/land occupation

– Boundaries and relationship with the street and neighbors

Verification of Charges or Debts:

Typically, land located in non-urbanized areas is subject to urbanization charges by the municipality.

Likewise, it is sometimes necessary to verify that the previous land owner has not left outstanding charges with the bank or municipality, as these would be transferred to the new buyer.

This information is easy to obtain. It is only necessary to request a simple note in person or online from the property registry.

 

Easements:

Easements are permits of various types that we can also learn about through a property registry inquiry.

The most common are: drainage easements for a neighbor, a utility company, or the municipality itself.

Municipalities also have their own easements, whether for the location of a green area or a future path or street, which are generally located at the land boundaries.

To avoid problems during construction, it is important to be well aware of these easements and assess the land purchase based on their location, which is sometimes difficult to determine.

 

Municipal Plans:

These are future urban planning projects determined by municipalities, and it will be important to consider them to anticipate future impacts on land as well as potential issues when purchasing land.

For example, street re-urbanization may be planned to renovate sewerage or lighting, and for this reason an assessment may be anticipated for each neighbor based on square meters of land and façade length.

 

Buildability and Land Occupation:

These are two factors determined by municipal regulations that we must be clear about to know in detail the dimensions that the future dwelling we build can occupy.

 

Boundaries with the Street and Neighbors:

The final check to avoid potential issues when purchasing land that we will discuss today refers to boundaries with the street and neighbors.

These are two aspects that are also determined by municipal regulations and establish the minimum distance between street–building and building–building.

 

People discussing land purchase issues in an office

 

Potential Issues When Purchasing Land

 

To conclude this lengthy article, we could not do so in any other way than by speaking directly about potential issues when purchasing land.

 

Issues Related to the Cadastre

 

First, there could be potential land classification issues. To avoid this, it is necessary to always check beforehand what type or classification applies to the land we are going to purchase.

It could also occur that the plot exceeds or has fewer square meters than those registered by the cadastre. Should this occur, we should verify the actual dimensions and boundaries of the land with the municipal plan and deeds.

 

Issues Related to the Property Registry

 

Something similar to what was mentioned earlier could happen with the property registry and would constitute potential issues when purchasing land.

It could be the case that a plot is registered in the registry with more or fewer square meters than the actual ones.

It could also have been registered as company property, in which case during the purchase process, instead of paying the ITP (property transfer tax, 10%), you would pay VAT (21%).

We have already mentioned this, but it is worth repeating: if the land has debts with the bank or municipality, these would pass to the new owner.

Finally, as a reminder, it is important to monitor the easements established in the registry that may affect construction.

 

Issues Related to the Municipality

 

Studying future municipal plans is vital to understand outstanding urbanization charges imposed by municipalities. We always recommend visiting the municipal technician before purchasing any plot.

Likewise, taking advantage of the visit, we should consult the regulations and understand their restrictions to ensure what and how we can build on the land we purchase.

Finally, having all services available is not always 100% guaranteed. Therefore, to avoid potential issues when purchasing land, we must know the availability of services such as water, electricity, gas, sewerage, or even fiber optics.

 

Issues with the Land Itself

 

The land must have sufficient sun exposure, both in winter and summer, so that our future dwelling can ensure the comfort of its inhabitants.

Verifying that neighbors have respected the plot boundaries is also important and will save us many years of difficult confrontations over unlawful appropriation of land.

We must verify and assess the level of urbanization of the surroundings.

Regarding the morphology and topography of the plot, we will verify that it does not have an excessive slope, and the composition of the subsoil (with the help of a geologist) to determine whether or not it is resistant.

Finally, locating and assessing the proximity of possible high-voltage power lines should be a final check to decide whether or not to purchase a plot that will ensure there will be no potential issues when purchasing land.

At Slow Studio we value proximity with our clients, and to ensure that the result and satisfaction with us is optimal, we recommend that you contact us from the very first steps of searching for land.

Together we can better assess its characteristics and, as experts in the field, we assist you with everything related to the technical and legal assessment of land at no cost to reach the project phase with complete guarantees.

Do not hesitate to contact us!