What do I need to buy land in Texas?

• Money first. A land loan doesn't work like a home loan. Your lender tells you which program applies and what it needs.
• What you can do on the land. Whether it sits inside a city, in its extraterritorial jurisdiction (ETJ) or only in the county changes the rules.
• What you can't see. Survey, title, access, water, septic and flood zone.
• Taxes. An agricultural appraisal isn't an exemption: if the use changes, an additional tax can come due.
• Your tax preparer, your lender and the title company confirm your situation.

Buying land isn't the same as buying a finished home. Many lenders don't finance raw land, or they do it with different rules and paperwork. Things also change depending on whether you plan to build soon, build later, or buy land that already has a house.

So the first conversation is with the right lender, before you fall for a property:

• Do you lend on land with no house, or only land with a home on it?
• What changes if I want to build?
• What documents do you need if I'm self-employed?
• How long does your process take for land?

If the down payment sits in a business account, here's how to use business funds for a down payment. There are options for self-employed buyers; your lender confirms which one fits.

Before you offer, answer one question: what do you want to do there? A home, a shop, animals, equipment storage, splitting it later?

Then find out who sets the rules:

1. Inside a city, the city has zoning and permits.
2. In a city's ETJ (a band around the city defined in the Texas Local Government Code), the city may apply some rules, like subdivision rules. Ask both the city and the county.
3. Only in the county, the county has its own rules for roads, permits and septic.
4. With recorded deed restrictions or an owners' association, those apply even outside city limits. The title company shows them to you.

"No restrictions" in a listing doesn't mean no rules. It means no private restrictions; the county and the city still apply theirs.

• The survey. A drawing by a licensed surveyor that shows where the land starts and ends and which easements cross it. On a large tract it can take weeks.
• The title. The title company checks who owns it, any liens or claims, and which easements or restrictions exist. Also ask whether the mineral rights convey with the land; the title company tells you what the record shows.
• Access. Do you reach it by a county road or a private road? A private road needs a recorded right to cross.
• Water. Is there a rural water supply corporation or a city line, or do you need a well? Texas water well drillers are licensed by TDLR, and a groundwater conservation district may have its own rules. The TWDB keeps a public database of drilling reports worth checking for nearby wells.
• Septic. Nearly every system needs a permit before it's built, and the permitting authority depends on the county. TCEQ tells you who it is for each county. If the land already has a system, ask for the permit record.
• Flood zone. Look up the address on FEMA's official map (msc.fema.gov). Part of a tract can be in a flood zone while another part isn't.
• Utilities. Electricity, gas or propane, internet. Find out who provides each and what it takes to connect.

On the land purchases Veronica Yeary guides around Dallas-Fort Worth, this list gets done before the offer is written, not during the option period.

If you'd like to walk through a tract together before you offer, book 30 minutes here.

Look the land up at the county appraisal district and check two things:

• Whether it has an agricultural or open-space (1-d-1) appraisal. The Texas Comptroller explains it's a special valuation based on what the land produces, not an exemption. If the use changes, the owner who changes it can owe an additional tax for prior years, plus interest. Ask the appraisal district what you'd need to do as the new owner to keep qualifying, if that's your plan.
• Which exemptions the seller has today. The seller's bill may not be yours. More in why the tax bill on the listing won't be yours.

Your tax preparer confirms the tax effect for you.

1. Choosing the land before the loan. People used to buy first and figure out financing later; today the lender comes first, because not every lender finances land.
2. Trusting the listing without checking. "No restrictions," "water available," "road access." Each one gets verified.
3. Checking the flood map only where the house sits. Look at the whole tract, including where you plan to build.
4. Forgetting the ag appraisal. Changing the use without knowing it can bring an additional tax.
5. Leaving the well and septic for "later." If the land needs both, find out before you offer who permits them, what the county requires and what a specialist says.

Picture a business owner who wants a few acres in Denton County to build a home and a shop. He finds a tract he likes, listed as "no restrictions."

Before he offers, he talks to a lender that finances land and construction. We check the FEMA map and see a strip of the tract is in a flood zone, away from where he plans to build. The title company shows an easement for the electric company. We ask the county about septic rules and the appraisal district about the ag appraisal. With all of that, he writes an offer with enough time for the survey and the inspections.

This is an example to explain the process, not a real client or a promised result.

• Lender: do they finance land, and what do they need?
• City, ETJ or county: who sets the rules?
• Survey and title: boundaries, easements, restrictions, mineral rights.
• Access: county road or a recorded right to cross.
• Water and septic: groundwater district, TDLR, TCEQ and the county.
• FEMA map: the whole tract.
• Appraisal district: ag appraisal and exemptions.
• Official school district map: with the exact address.

If you're looking at land with a home near Fort Worth, see also what to check before you offer on a home with land.

What do I need to buy land in Texas?

The right loan, a clear picture of what you can do on the land, and a check of the survey, title, access, water, septic, flood zone and taxes. Each item has an official source.

Can I get a loan to buy land?

Some lenders finance land, with different rules than a home loan. Ask first whether they lend on land with no house, what changes if you plan to build, and what they need if you're self-employed.

Do I need a permit for a septic system in Texas?

Nearly every system needs a permit before it's built, and the permitting authority depends on the county. TCEQ has a county lookup that shows who issues it.

Who can drill a water well in Texas?

A driller licensed by TDLR. A groundwater conservation district may also have its own rules for new wells.

What happens if the land has an ag exemption?

It's actually a special valuation, not an exemption. If the use changes, an additional tax for prior years can come due. Ask the appraisal district what you'd need to do as the new owner.

Land is a big decision and a very personal one. It's bought best when the money, the rules and what you can't see all get checked before you offer.

Here's what happens next: we talk for 30 minutes about what you want to do with the land and how you plan to pay for it, and out of that comes the list of what to check first.

Let's talk for 30 minutes about your situation, not houses: veronicayeary.com/en/book

Call or text 469-441-8890 · veronica@veronicayeary.com