Curt
Epperson,
Attorney at Law
P.O.
Box 627 Manson,
WA.
509
687 6236
|
Attorney at Law P.O.
Box 627 Manson,
WA.
|
|
Introduction
Information herein is for general purposes only and cannot be used or applied to any specific legal situation or relationship. The information contained in these Web pages is designed to provide information in regard to the subject matter covered. This Web presentation is not a legal, financial or accounting service, nor legal, financial or accounting advice. If legal advice or other expert assistance is required, the services of a specific professional advisor should be obained. |
Buying Rural Real Estate: Some Special Considerations and Problems The closing went without a hitch and I rode with the seller back to my car at our newly purchased ranch. Sam tightly gripped the wheel of the white pick-up with his 84-year-old hands and maneuvered carefully up the gravel road. About one mile from our destination Sam pointed to his left, glanced at me and said with a wry look, “That’s where Harry lives. I don’t talk to him much since he shot Kyle. But you can talk to him if you want.” This true story illustrates an important point. Buying rural property outside established, developed neighborhoods is different. Not every canyon has a neighbor who shot someone in a dispute but there are some special considerations. All are important and should be dealt with before you own the land. v Water rights. The right to use water from a river, stream or lake for irrigation is established by long-term use, which is registered with the Department of Ecology, or a written permit granted by the agency establishes the right. (There’s an exemption for domestic use of up to 5000 gallons of water per day from a well with irrigation of less than ½ acre.) If you intend to use water from a surface source make sure there is an existing right to do so or that you can get a permit. If you intend to drill a well (even if no permit is required) be sure there is a suitable spot to drill. Most property has substantially less value if water is not available. Before you buy make sure that all the water questions are adequately answered. v Boundaries. Many rural properties do not have readily apparent boundaries. Even if there is a pre-existing survey the markers may be missing or worse yet, moved. Have you ever heard of a “drift fence”? It’s a fence that “drifts’ along the boundary and follows land contours or tree lines. Don’t rely on a fence alone as a boundary marker. If you have important unanswered questions about boundaries hire a surveyor to prepare a new record of survey. Then make sure that adjoining owners don’t have a major dispute with the new markers. The worst (and most expensive time) to find out about boundary disputes is after the closing. v Access. Property in established neighborhoods rarely has major access problems but rural parcels may have significant uncertainties about ingress and egress. Be especially cautious when the property doesn’t lie along a public road. That means the property either doesn’t have access or it is served by an easement. Easements should always be in writing. An easement may be established without a written agreement by long-term continuous use but that may require expensive and time-consuming litigation. Therefore, if the land doesn’t abut a public road and there is no recorded easement it’s definitely an issue to resolve before closing. v Land Use Restrictions. We live in an age of environmental protection and complex land use regulations. Some of the “critical areas” are areas around streams, rivers, and lakes, wildlife habitat, and threatened or endangered species habitat. Some of the “resource lands” are agricultural areas, mining areas, and forests. The restrictions on these lands are intended to protect from development or encroachment. A full and clear understanding of the restraints is very important. Buffer zones and setbacks may be easy to deal with prior to making plans for your new property but they may also create expensive surprises for the unwary. v Sewer Services. One characteristic of many rural areas is lack of sewer service. The alternative is a septic tank and drainfield. These work fine and will give many years of service but septic systems must have a county permit (usually from the health department) and must be located in an area with specific, appropriate soil types. Prior to purchasing a property for a home there should be a “perc test” to be sure a septic system will be permitted. The results of the test will determine the specifications of the system that must be installed. Then, check with a licensed, experienced installer and find out how much it will cost to put in a system that meets the requirements. v Electricity Service. If power is not available to the property line contact the Power Company or PUD to see how much it might cost to run a line to the boundary. (The lack of available electricity should be reflected in a lower price for the property.) If the existing power line is a substantial distance from the property, electric service may not be economically possible but solar power may work just fine. Some new solar power systems are surprisingly affordable, at least for smaller structures. Alternatively, a generator (propane or diesel are best) may be an effective substitute, especially for part time occupancy. The proper way to deal with considerations like those outlined above is to get answers and solutions before you close the transaction. Your Purchase and Sale Agreement should specify which issues need to be dealt with, how they will be resolved, who will be responsible for the job, and how much time is allotted. Usually, such matters are written into the Agreement as contingencies. If the issues are not satisfactorily resolved, the transaction stops. If they are taken care of, the closing goes forward and the buyer and seller will both enjoy the fruits of a successful transaction without future problems. |