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Do's and Don'ts For Buying Land

Thinking about buying land to build a home on? Make sure you follow this list of what to do and what not do so you don't end up unwanted frustrations.

DO:

• Inspect your property before you buy.
• Be well informed about the land and the developer.
• Know your contractual rights.
• Ask questions.
• Get any verbal promises in writing.
• Ask if the developer has registered the subdivision with HUD and, if not, if the developer is operating under an exemption.
• Use common sense.
• Check any advertising materials to ensure that all promised amenities and utilities are incorporated into the Property Report and contract.
• Notify the developer in writing if you wish to cancel.
• Call HUD, the Office of your state Attorney General, and the Better Business Bureau, and ask if any complaints have been filed against the developer or if any investigations are in progress.

DON'T

• Purchase any land site unseen.
• Rely on any verbal promises that are not incorporated into the terms of your contract.
• Sign any papers until you have read all of them.
• Sign any receipt for a Property Report unless you have received and read it.
• Succumb to high pressure tactics used during a personal visit, a telephone call or through advertising materials.
• Assume that the developer is registered with HUD.
• Assume that the government has endorsed or inspected the land development even if it is a registered subdivision.
• Assume that HUD has the authority to force a developer to complete promised amenities or utilities.
• Attempt to cancel your contract without putting the request in writing.
• Be tempted by investment pitches that seem to be too good to be true. Many times if it seems too good to be true, it usually is.

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