What should I check before buying raw land in Canada for development?

Buying raw land for development requires thorough due diligence. Here's what to check:

1. Zoning and Official Plan

• Contact the municipal planning department to verify zoning allows your intended use
• Check the Official Plan for future development plans that might affect your property
• Ask about minimum lot sizes, setbacks, and density restrictions

2. Environmental

• Order a Phase I Environmental Site Assessment (ESA) — costs $2,000-$4,000
• Check for floodplain designation through conservation authorities
• Look for wetlands, endangered species habitat, or other environmental constraints
• In Ontario, check if the land is in the Greenbelt or Agricultural Land Reserve

3. Servicing and Utilities

• Is municipal water and sewer available, or will you need a well and septic system?
• Is there electrical service to the lot line?
• What are the costs to bring utilities to the site? ($10,000-$50,000+)
• Is there road access? Is it a municipally maintained road?

4. Site Conditions

• Soil conditions (clay, rock, sand) affect building costs significantly
• Topography — steep slopes increase development costs
• Water table level — affects basement/foundation options
• Percolation test for septic suitability

5. Legal and Title

• Title search for easements, rights-of-way, or restrictive covenants
• Survey to confirm boundaries
• Check for any outstanding building permits or orders

6. Costs to Budget For

• Land purchase price
• Servicing costs (utilities, road, well, septic)
• Development charges and permit fees ($10,000-$50,000+)
• Legal and survey costs ($3,000-$8,000)
• Environmental assessments ($2,000-$10,000)

Financing note: Raw land loans typically require 35-50% down. Serviced lots may qualify for 25% down. Consider seller financing as an option.

Always make your offer conditional on due diligence — typically 60-90 days — so you can investigate and walk away if issues arise.