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Purchasing a vacant parcel of land can be an exciting investment full of potential. For some, these lots are ideal for building new homes. For other buyers, vacant land is perfect for commercial development. But while this type of real estate presents many opportunities, buying it can be much different than purchasing a developed property. If you’re interested in becoming a landowner, here are a few common vacant lot questions that real estate agents receive from clients.

5 Questions About Buying Land Real Estate

What can be built on a lot?

When you look at land for sale, always ask your real estate agent what the property is zoned for. Zoning laws are local regulations that determine what types of projects can be built on the land. For example, some may be reserved for residential construction while others may be limited to commercial development or agricultural use.

How are lots taxed?

As with other types of real estate, vacant land typically requires owners to pay property taxes.

In Minnesota, the property tax rate is determined by the type of real estate and the assessed value of the land. However, Minnesota offers several programs to reduce these rates for specific types of land—such as those that support managed forests or agricultural use.

What are conservation easements?

real estate agentConservation easements are legally binding orders that restrict a landowner’s use of the property. These restrictions are designed to protect environmental resources connected to the property—such as a lake, river, or forest.

Easements can vary considerably, so it’s always important to clarify what restrictions are in place and what specific areas of the land they affect before making a purchase.

What are rights and titles?

Landowners typically receive a series of benefits, or rights, when they purchase a property. For example, rights may be given to the owner for minerals or road access on the property. These rights can be sold to another party without the owner losing the land.

Titles outline the collective rights passed onto the owner. However, since these stipulations can involve outdated language and inaccurate details, it’s best to have the document reviewed by a title attorney.

How should buyers address potential environmental risks?

Always ask the seller what environmental hazards may affect the land, as these details may not always be disclosed upfront. If you’re unsure of these risks, have the property evaluated by a professional assessor that understands EPA regulations.

 

Supporting the Saint Paul, MN, area and beyond, Justyna Johnson – ExP Realty is a leading resource for buying or selling vacant lots in Minnesota. With a deep understanding of all the factors that affect land ownership, Justyna is a top local Realtor® who will provide all the important details that may impact your deal and future use. Remember to ask about her TRUSTimate! Just text HOME to (651) 501-2345 to receive a free online property report. To learn more about current land and homes for sale, check the listings online.

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