Buying Texas Rural Property - What You Need to Know
There is no perfect property, whether in the city or county. To find the best property you must be informed and do your due diligence. This guide will give you insight into purchasing rural property and the concerns and issues affecting a rural purchase that you may not have considered.
A Realtor specializing in rural property is your best bet! Seek professional advice and get further clarification from experts in their respective fields.
The three most important considerations you will have are
- The type of property desired based on your intended use
- Financing
- The choice of real estate contract.
After that, there are a vast number of other things to consider as detailed after these three main items are discussed.
Property Type, Financing
and Contracts
Property Type Concerns
Do you need or want trees, creeks, ponds, rolling terrain or flat ground?
(Possible flood, clearing, trimming, maintenance and building issues)
How much acreage do you want? One or two acres may be too little to use and too much to mow. Larger amounts can have tax advantages based on use,
Everyone wants a creek in their backyard until it becomes a river. Creeks are naturally located in flood plains and can bring debris, dams from treefall and unwanted wildlife on your property.
Be sure the acreage is suitable for your uses. Flood plains are good for crops and running livestock (when adequate shelter or high ground is available) but not where you want to build a dream home or other structure.
Heavily wooded is always in demand but be aware that you may become very familiar with a chainsaw, especially after a storm. Also make sure you own the timber rights and are not allergic to certain trees like Cedar!
Rolling terrain is wonderful until the guy quoting your new barn says his price is based on flat, level ground or you have run off issues.
The flip side is if you buy flat pasture that is mostly clay, don’t be surprised if water just sits in your yard for a few days after the last rain.
Is there a current survey available that the title company will accept?
A survey on a large plot with trees and creeks may be very expensive. If buying from a private owner, a survey won’t be required but you might want one to ensure you are buying the proper acreage, where easements are, flood plains and other features or concerns.
Get several estimates because there can be a big difference between surveyors. A good title company often knows who is inexpensive and responsive. Ensure that you verify any possible flood plain, easements, encroachments, etc.
Finance Concerns:
Where will you obtain financing, and at what terms? (Land Bank, Rural Lenders, Local Community Bank, Owner finance)
For traditional lenders, normally the value of a house must be at least 35% of total. This is what I call the large acreage penalty.
Buying an old farmhouse on 100 acres because it’s cheap may be more of a finance problem than an expensive new home on 20 acres.
Raw land is normally financed over 10 years vs 30. Often it is amortized over 30 years with a balloon at 10.
Are you prepared for an eventual balloon payment?
Due to the above, a lot of land is owner financed or cash. You will probably pay a higher rate and if conditions change, you may not be able to easily refinance. You will be paying taxes and insurance separately vs by escrow.
Owner financing will likely require a higher down payment but a quick close and less hassle. Private attorneys or title company lawyers can draw up owner financing documents.
Most Urban Mortgage brokers will not finance land over a few acres and expect a higher rate if they do. A simple Google search will help you find rural lenders. Don’t forget local community banks because they know the area and finance rural housing frequently. Expect higher rates, larger down payments and shorter terms with rural property.
Acreage normally takes longer to sell due to the finance differences & less demand vs homes on cookie cutter lots in the suburbs. If you must sell later, be sure you have a desirable property!
Properties that have log cabins, dome homes, in ground homes, barndominiums or other unique construction can be a challenge for comps, appraisals and financing, depending on the lender. Local banks or owner financing may be your best choice.
Real Estate Contracts:
There are three main purchase contracts used in Texas when purchasing rural property. These are:
- The Unimproved Property Contract
- Farm and Ranch
- The standard 1-4 Residential Contract.
There are no hard and fast rules to which should be used but common sense and the type of property being bought should be your guide. If there is doubt, seek legal advice.
Contract Addenda, Notices and additional attached information is very important to eliminate possible problems
Never assume something is included or excluded from the purchase. It may be specified in the contract but have these discussions anyway.
Ensure gates, panels, chutes, windmills, pens, etc. are included or excluded with the property. Driveway Gates and fence panels frequently have a habit of disappearing before closing!
Unimproved Property Contract- TAR-1607:
Normally used for small lots or tracts of land with no structures or other improvements.
There is some confusion about what is considered an improvement. Is a fence, water meter, building pad or septic tank an improvement?
TREC(Texas Real Estate Commission) states –“This contract form is for property that does not have physical buildings, additions or fixtures on the land. It is generally used for property that has been platted (has a recorded Lot/Block legal description).”
Option Period?
Yes, you should include an option period to enable proper due diligence.
Even on unimproved property there are items you should address such as any buried tanks, flooding, past use, ETJ restrictions, annexation, road expansion, neighboring activities and any other factors that could affect the property value. Two examples are in Collin County there is a Collin County Outer Loop planned and the North Dallas Tollway will be expanded through Collin all the way to Sherman in Grayson County. These roads will affect use and property values. You should check with County planning departments and the Texas Dept of Transportation for future improvements or projects. You don’t want to buy a 10 acre parcel for your quite dream home to discover a Toll Road will be next door.
Seller’s Disclosure?
To be safe from liability, the seller should complete a Seller’s disclosure even on vacant unimproved land. It may be full of “Unknown” Check Boxes, but it could also detail known items like buried tanks, trash, environmental or other issues affecting the land. As always, the rule is disclose, disclose, disclose. Unimproved property is no different! Recent updates to contracts may include some disclosure sections but its always good to verify.
Buyer’s should ask about these issues if no disclosure is provided.
Inspection?
You won’t be hiring an inspector in the traditional sense because there are no structures. You could hire experts during the option period to evaluate possible fencing types and cost, soil for crops, soil test for foundations or septic, cost of clearing, saving diseased or damaged trees, and other buyer intended uses.
Have your builder evaluate the site for possible home sites, best facing direction for energy efficiency, possible drainage issues and other building considerations.
Investigate any past uses and how they may affect the buyer’s use.
Farm and Ranch Contract TAR-1701:
This is a much more detailed purchase contract that is really geared to actual working farms and ranches by specifying items like gates, fence panels, chutes, tanks, windmills, storage sheds, farm equipment, disposition of crops, continuing leases and price adjustments for acreage discrepancies identified per survey.
This should be used for properties where those type of details are required, inclusions important to the buyer and generally is used on larger acreage. As always, your Realtor should advise you concerning the proper contract to protect your interests.
1-4 Family Residential Contract TAR 1601:
In most cases this contract will suffice when there are homes on land like hobby farms or weekend getaways on small acreage used as residential vs ranching or farming.
It is well known and can be used where there is a home, outbuildings and acreage. A judgement should be made concerning if the amount of land and use requires the more detailed Farm and Ranch Contract but there is no hard and fast rule on the amount of acreage dictating contract type.
In lieu of Lot and Block, simply give a detailed description like 64 acres per CAD parcel or Geo ID#, also known as xxxx or note and attach an addendum describing by meets and bounds, per survey or other method.
(*Note on all Real Estate Contracts)
All the traditional Addendums and Notices should be made part of the contract you choose, especially General Information and Notice to Buyers and Sellers -Tar 1507, including but not limited to:
Mineral Rights Reservations – TAR 1905, Third Party Financing -TAR 1901, On Site Sewer- TAR 1407, Seller’s Disclosure -TAR 1406, Information About Special Flood Hazard Areas- TAR1414, IABS – TAR 2501, Information About Property Insurance – TAR 2508 and any documentation concerning verbal or written leases, Non Realty Items Addendum to the Contract. (TAR# 1924)
Multi-Parcel/Multi Tax District/Multi School District:
It can be very common to find multi parcel, multi tax district and multi school district properties Be sure you detail on the purchase contract all parcel numbers, acreage or other descriptions making up your purchase.
Research the taxing entities and school districts. Don’t assume! There can be roads where parcels at both ends are in one school or tax district and parcels in the middle are in another or both!
The following items are things you may not have thought about as you consider a more rural environment.
Addressing (911)
Each county may have their own procedures but in general, once you improve land, you will need a 911 Address so police, fire, mail and emergency services can find your property quickly. Obviously, it will also make it easier for package delivery, MLS, GPS location, contractors and others to find you too.
Examples –Collin and Grayson County:
Alcohol:
Is the area zoned wet? A minor thing until you wish you had a cold beer on a summer day! There are still four completely dry counties in Texas as of 2023 and many others that are partially wet. See the TABC website for current status!
Animal Control:
Dogs often run free in the country, are dropped off and may be a problem for livestock. You may be left on your own to catch and take to a shelter. Be aware that if you own a loose dog, and it attacks livestock it may be legally or disposed of. Check with your county for legalities.
Wild animals that may take up residence are racoons (very destructive), skunks, wild boar, coyotes, snakes, predator birds and the occasional deer. The county doesn’t normally provide help removing these creatures since this is their natural environment. Check with the county game warden for the laws and hunting seasons.
When a family of skunks moves in under your home or in your barn, you get the fun of removal. Trail cameras and live traps are very useful!
Estray animals are livestock like horses, cows, goats and the like that get out on the road. Be aware that FM Roads in some counties are considered Open Range meaning livestock can legally roam freely. The farmer may not be responsible if your car hits a cow. You may owe the farmer. Drive accordingly.
Stray Livestock Rules- Estray Law
Example: Grayson County Estray Info:
Appraisals- Comps:
Properties that have log cabins, dome homes, straw bale, in-ground homes, barndominiums or other unique construction can be a challenge for comps, appraisals and financing depending on the lender. Local banks or owner financing may be your best choice.
When doing CMAs, you may have to go much further out, even to adjacent counties for very unique structures like dome homes as well as increase the time frame for similar sales.
You may not be able to find similar homes of similar size or acreage. In some cases, resorting to comping the home stand alone and then comping similar acreage is the only way to determine value.
Keep in mind that rural homes and especially acreage doesn’t change hands as often as homes in the suburbs, making value determination more difficult.
While tax values are mass appraisals and can be dated since last evaluated, they can give you a starting place for acreage values. A look at several years tax (market vs AG production) value per acre will tell you if demand is increasing values. CAD parcel maps are very useful. Always look at adjacent CAD values for nearby parcels as they can differ significantly. Rural counties may be slow to update recent sales and owners.
Do not forget to adjust for high quality barns vs old wooden and tin structures, quality and amount of fencing, workshops with power and water. Fencing on rural property is worth its weight in gold! A property with proper fencing in place is extremely valuable. Fencing like steel pipe that was very common in the past is becoming rare due to the cost.
Livestock facilities like quality stall fronts, partitions, stall surfaces, round pens, arena lighting, squeeze chutes, and head gates are more valuable than just an old barn.
These may not be major appraisal adjustments but will go a long way in buyer, seller perceived value and salability. Knowledge of these things will make you a better choice over other agents. Market these things accordingly!
AVM Inaccuracy:
AVM sites like Zillow will often be way off base on rural property values for all the normal reasons but more so on country property due to no or poor data availability less similar comparables and slow rural county CAD updating.
It is not unusual for them to show the wrong acreage due to incorrect parcel selection or subdivision, wrong sf due to additions, still show a mobile home that was replaced by new construction or an old home built in 1940 that has long since been replaced.
Buildings And Equipment Concerns:
Will the current buildings meet your needs & be incorporated into your plans?
Can they be relocated and will future building locations work considering floodplains, utilities easements, access requirements, deed restrictions and typography?
Most barns and outbuildings are located exactly where it makes sense. If marginal, can they be used while replacements are built, relocated or will they have to be torn down to make room first?
Barns close to the house can cause rodent, odor and fly issues. Barns far away can be inconvenient. Ensure that trucks, hay wagons, trailers etc. can move in and out of the barn area efficiently. Watch for overhead obstructions like power lines and driveway stanchions.
What type of equipment will you need? Even a small acreage property will need a tractor and various other equipment for grading driveways, mowing pastures, post hole digging, livestock trailering and various other chores.
Much of this equipment can be purchased used, rented, borrowed, negotiated privately or as part of the sales contract via the Non-Realty Items Addendum to the Contract. (TAR# 1924) or may be already specified in the Farm & Ranch Contract (TAR#1701). Small tractors are always in demand and maintain their value. The pictured Massey Ferguson 135 was purchased used 29 years ago and would sell for the same price today!
Get a Bill of Sale. Verify inclusions to avoid problems.
Note: Lenders generally don’t like to include these items in contracts so seek your agent and/or attorney’s advice on the best way to handle them if important to the purchase.
Building Codes:
There may be no building codes in the outlying areas except for septic systems or driveways. You may have some limitations by deed or EJT. Example: Grayson County Development Services
This gives you the freedom to quickly build what you want without detailed plans, and not be held up waiting for an inspector but is something to be aware of when buying property with existing structures, especially owner built.
Your new country home may never have had a framing, foundation, roofing, plumbing or electrical inspection so do your due diligence. Be especially careful of homes built on pads made from pond construction to be sure they were properly compacted.
Have a professional inspection done and hire specific trades to evaluate important components like HVAC, wells and sewer systems. Home warranty service contracts are beneficial but investigate availability and response times.
Burning:
You may be buying acreage with large brush piles from land clearing, old firewood or just debris from general land maintenance. Negotiate and document how they will be handled.
Texas weather and drought conditions change rapidly. Before doing any type of burning, be sure to check for local burn bans and plan for emergencies.
Example: Grayson County Burn Ban Info
Buried Surprises:
Ask about any buried items from old septic and propane tanks to animal and waste burial sites. It was common years ago for people to bury their trash, fuel tanks, livestock or pets when they passed away. Always be aware when mowing and keep an eye out for surprises!
Depending on past use, you may find old auto parts, bedsprings and railroad or farm implements long forgotten. Old bed springs were often used as gates & fencing. Railroad rails were used to drag behind a tractor to level pastures.
Client Use:
Buyers requirements will depend on use. For example, horse and livestock owners will feel the barns, fencing, alleyways, cross fencing, drive access, topography, outside lighting, trailer storage and turn-round, water and pastures are more important than the home.
Seller’s should include pictures that highlight barns, wash racks, stalls, shops, tack rooms and outbuildings as well as the home features.
Some may just want a week-end getaway but still have must haves like high speed internet and location to town. Even in 2023, many rural areas will have limited high speed internet, tv and cellular signals. Always check your cell phone for signal strength on properties you are considering!
Market accordingly if selling and if buying, determine what is most important to you.
Closing Gifts:
If you give your buyers closing gifts, think on the practical side. Gift certificates to the local Tractor Supply, feed store or restaurants are always appreciated.
Mud boots, rain gauges and high-powered flashlights are appropriate. When my future wife bought her farmhouse, I gave her a shotgun and a porch swing. Be creative!
You can find custom made wooden and plasma cut metal signs and door mats on the internet that are a nice touch.
Always ask if your buyer has a farm name in mind. Learn what your clients like or need.
Commute:
Country roads can have long stretches of lonely asphalt, gravel roads, curves, hills, slow moving vehicles and less maintenance. It’s a slower pace, enjoy it!
Think about where you will obtain fuel and groceries. Fuel (gas or a charging station) can be important if you have a long commute or need fuel for farm equipment.
Are alternative routes available? Roads may not be sanded during winter weather or only maintained occasionally.
see Video on Farm to Market Roads
Be aware that your will encounter slow moving vehicles, school busses, tractors, debris and even livestock on the roads. People move at a slower pace in the country. If you are a Type A person always hammer down to get to work, rural living may not be right for you!
Contractors, Scam Artists:
Several times a year you may be visited by fly by night contractors wanting to paint your barns, fences or pave your driveway. Often, they will use the old, “we have extra material from our last job” line and want to make you a special deal. Often they will have out of state licence plates.
While some may be legitimate, you should wonder if the “material” will wash away in the first rain or how long someone will remain in business if they can’t estimate their materials properly!
It is not unusual to get a quote and a promise to return but never see the contractor again. Contractors from the city will probably charge for drive time and availability may be limited due to drive time and cost.
In small towns, the local trades people and farmers hang out for coffee at local hot spots. Your best bet may be to go there to ask who knows a plumber or whatever labor your need. You know they live in the area, are normally less expensive and have a reputation to maintain.
Co-Ops:
Buyers sometimes have a fear of Co-Op water, electric and other rural organizations looking down on them as inadequate. This is far from the case.
In the outlying areas residents banded together to obtain utilities and other services. These are your neighbors, and they are generally easier to reach and much more responsive to rural needs.
Often, they provide free or reduced fee services like power pole relocation, help running utilities or troubleshooting services because you are a member.
You will be required to join the Co-Op to obtain services. This membership can be transferable on a sale saving the buyer the fee if desired.
Creeks and Ponds:
A year-round pond (sometimes called a tank) of adequate size and depth is an asset. Ponds will silt up after years of run off and livestock use.
Check satellite views for different seasons if past views or years are available.
Are creeks and ponds year-round or seasonal? What are the normal levels and depth? This is not only important for aesthetics, but capacity is important for livestock or crop watering. Do they have fish?
Are the ponds Spring fed or run-off fed? When overfull, how are they drained?
Creeks and ponds can attract some wildlife that you may not want as well as debris. Check maps for the source and potential polluters of any creeks
Crime:
While crime is normally less in rural areas it does occur. The majority is property or livestock related but as the suburbs encroach the type of crime will change.
What type of crimes are typical for the area? (Livestock, equipment or tack theft, break-in, mailbox terrorism?)
Check online sources and the local police departments. Get to know your neighbor even if they are acres away. Neighbors can easily spot strangers or out of area vehicles and can watch your property in your absence.
Doctors and Vets:
Where is the nearest hospital, doctor’s office, Vet, feed store, Police and Fire station?
Working on your hobby farm or horse ranch may be fun until you have an injury and need a doctor or vet. Consider what activities you will be doing and the potential for medical services.
The availability and cost for these services will be directly affected by where you live. You may have to learn how to do some animal care chores due to the expense or location.
A veterinarian’s office, hardware or feed store nearby can be a big selling point!
Driveways & Access:
Is the driveway or the property access adequate (wide enough, firm enough) for your use? Long driveways require re-rocking every few years and other maintenance.
Culverts should be of adequate size and subject to certain requirements if located on County or State (Farm to Market) Roads.
Are the driveway stanchions high enough to permit trucks and tractors to pass under and enough room between the gate and road?
This is important when the cement truck arrives to start your new house and can’t get in or the delivery or driver refuses to come the 1/8th mile up the driveway.
Are there overhanging trees or other obstructions along the driveway that would hinder delivery drivers or tractors? Is there more than one access?
If your driveway floods or deteriorates, can you get in and out another way? Your home may not be in a floodplain, but your driveway might be. Confirm by survey.
Loading and trailering animals for vet or farrier service or bringing in trucks and motorhomes may be troublesome. Consider how you will load and drive trailers into and around your property.
Multiple gates are also access points for others and are security risks. Keep Locked and/or monitored.
Note that the F&R contract mentions gates are included twice under improvements and accessories but sometimes owners have special entry gates with an emotional attachment. Be sure you discuss any driveway gate exclusions.
Power and pipeline gates will have multiple locks. Yours will be cut off if not affixed properly. Make sure strangers leave gates open or closed as found.
Is electricity available for automatic gates or an alternative power supply required? Are gates strong enough, wide enough and placed appropriately? If you buy a ten-foot grain drill and have eight-foot gates you will have a challenge.
Are there cattle guards (dangerous to horses) and proper culverts to prevent washouts? Is the driveway in a floodplain?
TXDOT Driveway info excerpt:
“A typical design for a private farm/ranch driveway should provide a 25-feet return radii and a 20-feet throat width. The distance from the edge of the highway pavement to a gate must be sufficient to store the longest vehicle, or combination of vehicles anticipated for use of the property. At a minimum, this distance should accommodate a pickup truck with a trailer.”
Be aware that land fronting a FM road may be controlled by the state Department of Transportation. They have special rules for distance between driveways, culverts and entrances. Before buying a parcel, be sure you can get a driveway approval. There may not be enough distance between your neighbor’s driveway and where you want yours.
Easements – Access & Use:
Yes, there could be an old family cemetery with access rights on the property. The title search should discover this if it isn’t obvious or disclosed.
Chances are you won’t have a Cemetery but you could easily have an electric, Gas, Oil, Power, Water Pipeline, Conservation Easement or other easement allowing access or limiting your use.
You don’t want a gas pipeline running under where you intend to build your barn or dream home. Some easements expire while others run with the land in perpetuity like cemetery or conservation easements.
Easement holders have access rights, may come and go at any time without notice and have other rights like tree trimming, road building and use investigation.
This is a great handbook from The Texas Law Blog on Eminent Domain in Texas with a comprehensive section on Easements.
Info on Cemeteries on private property
Good source of information on Easements and other land matters
ETJ (Extra Territorial Jurisdiction):
.Verify if the property is in the city limits or ETJ?.
(Extra Territorial Jurisdiction – Subjectto future annexation, zoning, building codes and control)
ETJ Informational Link
https://www.tml.org/DocumentCenter/View/1336/ETJ—September-2019-update-to-2019-05-PDF
Farm to Market and Country Roads:
FM (Farm to Market) roads were created for just that purpose so expect slow moving farm equipment, hay haulers, dangerous blind curves, double lines, steep berms and big trucks.
Other than Estray animals be aware that there may be people on horseback riding the shoulder or the occasional suburbanite thinking it’s a great place to ride a bike, 4 wheeler or run in the country on a narrow road.
Country roads can be dirt, gravel or chip and seal with ruts and potholes. The county may be responsible for maintenance or private owners if a large tract has been cut up and a road cut through it.
Drive Friendly and Don’t Mess with Texas!
Fencing
When considering properties, fencing in place is worth its weight in gold! Even if not adequate for your needs, you will be many dollars ahead with fencing already in place.
Some owners get attached to their special gates and fence panels! Be sure you are clear what fencing is “permanently attached” and included or excluded!
Is the fencing adequate and of a type, age and condition for your needs? (Pipe fencing is very expensive and normally not painted by the installer, barbed is not the best for horses, wood rots, hot-wire fences ground out) and fencing can be easily damaged during flooding)
Excellent information on Texas fence laws
Five Strands – A landowners guide to Texas Fence Law,(21 page download)
Fencing adjoining roads is subject to accident damage. Have contingencies for quick repair in the event someone comes through your fence. Cross fencing is valuable of grazing rotation and when you need a place for your livestock temporarily due to an accident.
Firearms:
Firearms are as common in rural areas as pickup trucks.
Many people are armed to protect themselves from snakes, wild boars and other dangerous animals as well as for hunting and general personal protection.
Newcomers from the city often complain during Dove season because they are not used to hearing gunshots not gang related in the morning! It is also not unusual to hear hog hunters hooting at night.
There are also those who feel they need to practice shooting for hours or shooting exploding targets called Tannerite that will rattle the windows and send your dog under the bed.
While this can be very annoying, it’s just part of living in the outlying areas where people have the freedom to legally do things they would never consider in the suburbs.
You can ignore them or join them but always consider your potential neighbor’s activities.
If you don’t have one, consider a shotgun for snakes, varmints and skeet shooting for fun! It’s one of the pleasures of living outside the city limits.
Fireworks:
As soon as some people move from the city to the country, they seem to go crazy about shooting fireworks. There are numerous fireworks stands just past the city limits and they can be hard to resist.
Before spending your last paycheck trying to impress your friends with your fireworks, consider that they scare and stress livestock, pets and veterans with PTSD.
In addition to being dangerous to yourself and others, there is a serious risk of starting a pasture or old wooden barn on fire.
After the initial thrill from the freedom of being able to blow yourself up wears off, and your dog hides under the bed, you will probably learn to hate fireworks.
Floodplains:
Acreage often is affected by floodplains, especially if there are creeks, ponds or soil conservation lakes. This is not necessarily a bad thing depending of course on your use, although they can bring in weeds and debris.
Flooding can replenish ponds and bring in nutrients and diversity to fields. It will also attract migrating birds and other wildlife looking for wetlands.
“Bottom land” is normally great for hay and crop production as well as grazing. This assumes of course that you get your hay put up before Spring storms!
Verify via FEMA Maps, Survey, Insurance Agents, MLS, CAD or other methods. You should consider anything other than FEMA maps approximate.
Are there any year-round or seasonal springs, seasonal wet areas or bogs?
What locations does water stand for any length of time?
Where are the floodplain boundaries in relation to roads, gates, buildings, etc.? Note that there are floodplain regulations concerning building and fill cannot be brought into a floodplain but can be obtained on site by digging a pond or ditch
Where does the run-off from your property and adjacent property go? Are there swales, terraces or drainage systems in place to control it?
Government Programs:
Are there any current government programs effective on the land and restricting use? Has a portion been granted for conservation?
Verify types with the local extension office and/or USDA
Grasses & Trees:
Grasses
What kinds of grasses are planted? (Coastal, Native, Bluestem, Johnson, ect. – Cedar or Mesquite can be a management issue.)
Fescue and Johnson grass can be infected and toxic to horses under certain conditions
Restoring pastures to native grass can limit cost, attract wildlife and maintain your Ag Exemption.
Be sure to coordinate with your county appraiser to ensure you have the proper AG classification:
Trees:
Everyone thinks they like heavily wooded until they have to cut firewood, discover they are allergic to Cedar or Mesquite takes over their pasture faster than they can barbeque.
Consider the type of trees, where they are and how good your chainsaw skills are.
Trees frequently are grown as windbreaks on fence lines but can become a fence maintenance problem when they fall on the fence or obstruct a view.
High Lines:
Power has to get to the city somehow. Highlines are not the issue to people in the county that they are in the suburbs. There are wide easements, so homes are not normally placed nearby.
There are some people concerned about the effect EMF has on humans but consider how long people have lived nearby them and how many mutants you have seen from living near highlines.
Ever notice lightning rods on old barns? You won’t need them if you have Highlines! Highlines are well grounded making them the best lightening rods around!
They will require fence access for occasional maintenance and are an esthetic issue so consider if that is good or bad to you. Also be aware that some easments allow for multiple uses. The highline easement may have a clause allowing a pipeline to be included. Check your title easement documents.
Hunting:
Hunting season may affect your peace, quiet and safety. You may experience trespassing or vandalism of gates, fences or signs.
As developers move into rural areas, new subdivision residents are often shocked to wake up to Dove Season as hunters blast away in the early morning hours close to their new homes. Buyers should be made aware of this possibility.
Hunting can also be very beneficial as both a sport and to eliminate destructive wildlife like wild boars, coyotes and other predators.
If buying a property susceptible to unwanted or past hunting, you should secure it and put up proper no hunting, no trespassing signs and marks (purple paint).
Leases on Property or Crops:
(Crop, Boarding, Hunting, Fishing, Oil/Gas, etc.)
Who has them and how long do they run? Depending on the lease, it may continue after the property has changed hands.
A farmer may have a crop or hay lease either in writing or by gentlemen’s agreement. They may have the right to harvest after your purchase or the mineral owner can exercise rights to extract minerals affecting your property.
Many people have a local farmer cut hay on their property to maintain the Ag exemption and save the cost of expensive equipment. Be sure to find out who these people are and the agreement.
Often these are handshake agreements without monthly fees. The farmer cuts and sells the hay or crop. The landowner gets a small quantity of the harvest or can protect the Ag Exemption by maintaining production in lieu of a fee.
Consult an attorney if concerned but generally these are not big issues!
Livestock Restrictions:
Can you have the type and number of livestock that you want on the land?
(Some animals are not allowed on soil conservation dams or are limited by a minimum amount of acreage per deed). Check the deed restrictions carefully. If the Ad says, “Bring Your Horses” and its only an acre property, the agent probably isn’t that knowledgeable.
Mail & Package Delivery:
Is a P.O. box required and is a box available? (Small towns may have limited box availability) Where will a mailbox be required to be located, the size and mounting requirements? Check with the post office before installing.
What will be your mailing address? When running a business from home, this can be an important image concern)
Where is mail distributed from? Delays may occur depending upon routing distribution center locations. Do you need a special size mailbox for your needs?
Vandalism of mailboxes in the county is commonplace. Can you see the mailbox from your home?
Package Delivery Issues:
Will next day package service be guaranteed? In some cases, next day will not be available or delayed until later in the day.
Will the delivery truck fit under the driveway entry? Some drivers will not go up long driveways, especially with overhanging trees.
They will leave packages by the gate, mailbox or road. Do you have a secure storage place in the event of this situation?
Mineral Rights:
Are there any mineral rights on the property and will they be conveyed?
Most urbanites picture oil wells and the Beverly Hillbillies. These rights can also include surface, water, timber, gravel and many other minerals, along with oil and gas.
You don’t want your heavily wooded property to suddenly become clear cut by someone else owning the timber rights. Seek legal advice concerning mineral rights and how they affect your surface use. In Texas, the mineral rights owner is the dominant estate, meaning that person or enitity has the legal right to extract minerals from your land. They may or may not be required to restore the land and could use water from your pond to accomplish the goal without any compensation.
Most mineral rights were reserved many years ago in large sections. If you find a property that still has mineral rights, it is more valuable.
Mud Rooms:
Unless you are lucky enough to buy property in one of the few sandy loam areas of North Texas you will be dealing with plenty of mud during the rainy season.
Mud rooms become hugely important. The larger and more storage the better.
Ideally, they will also have a bathroom with shower or at least a sink nearby and a place for your rubber boots!
Neighbors:
There is no HOA (except some rural subdivisions), zoning or a lot of regulations in unincorporated areas. You should always consider what is being done on property around you as well as what could be done.
Driving and walking the property borders is a good idea as well as looking at satellite views and talking to your potential neighbors.
Look for berms or other features on your neighbor’s property. You could have a neighbor with a shooting range or other undesirable activity.
Don’t forget to check with the closest cities and county government for any permits or knowledge of future projects like cement and power plants, roads,
reservoirs, landfills or recreation areas that could be your new neighbor.
Visit the property at different times and check maps for flight paths to area airports. Your peaceful acreage could be less than peaceful during certain times.
Besides uses mentioned above, your neighbor might like to race or work on cars, 4 wheelers, dirt bikes, build his own shooting range with exploding targets, practice motocross, have wild parties, have an exotic animal sanctuary, practice religious or other large group activities or any number of commercial or hobby activities from dog hotels to ham radio operation affecting your enjoyment.
The potential is endless for your activities as well as your neighbors! I always tell people you can generally do anything you want on your land but remember, so can your neighbors!
Be particularly aware of shared resources like driveways, ponds, gates, wells and roads for potential problems.
Pipelines:
You will find gas, oil or water pipelines throughout unincorporated areas going through some of the most scenic land available. While they may be of concern for some people, there is little to be afraid of.
They will have easements and access gates just like highlines. In fact, they may be in the same easement. Some easement agreements allow both highlines and pipelines use.
The original owner may have given the easement in exchange for power or gas at a reduced rate or completely free.
These agreements can run with the land or expire at some date. If buying property with a pipeline, look over the pipeline agreement carefully and seek legal advice if necessary. Try to obtain some or all mineral rights if possible.
Pipeline Easement Negotiation Checklist
Environmental activists will sensationalize problems, but most pipelines are trouble free and seldom cause problems for landowners.
Pipeline Safety Info – Where They Are
Pipe Lines – Digging
Digging Warning – State Law
Call at least 48 hours prior to digging. As of Oct. 1, 1998, it is Texas state law that you contact a one-call system before excavating!
One- Call System of Texas www.onecalltexas.com
1-800-545-6005
Call before you dig
Texas 811 www.texas811.org
Federal law states that any person who engages in excavation activities without first using an available one- call notification system to determine location of underground facilities; or without heeding location information or markings and subsequently damages a pipeline facility shall be subject to a fine, imprisonment, or both.
Restrictions & Regulations:
Will any federal, state or city regulations affect the land?
(Endangered Species, Wetlands, Flood Plain, Easement, Soil Conservation, etc.)
Bring your horses sounds good in an Ad, but you may be limited to how many per acre by deed, HOA if one, city or county.
Deed restrictions may exclude certain animals or use. No one wants a pig farm next door!
It is not uncommon for a farmer to survey off smaller acreage and outlaw specific animals, commercial use and become a one-man architectural committee concerning you home construction.
These restrictions can be problematic to enforce as the seller (architectural committee for example) moves on or passes away.
Deed Restrictions run with the land but enforcing them is another matter. An example is temporary permission by deed to site a manufactured home (example for one year) while a conventional home is being built.
If an owner overstays the restriction, never builds the home and there is no property owners association, the surrounding owners will have to go to court. This can be expensive, especially if there are owners not interested in contributing or care about the cause.
Schools:
What is the school district, rating and distance to schools? Does it have the special programs you or your children require?
Where are the school district lines in relation to your property? Real estate value is very much affected by desirable school districts, room sizes, programs, available sports and policies.
Always verify the school district lines and policies directly. Do not take the owners or listing agents’ word for it as lines and policies frequently change.
Showing Tips:
Showing rural property is a little different. Buyers with rural property knowledge will know exactly what to look for and how to act, the less educated will appreciate your Green Acres experience showing them what to look for, keeping them comfortable and safe.
As in any sales situation, ask questions and show why hiring you was beneficial! The following should be helpful to those just starting this journey.
If viewing more than a rural lot, you could be walking fence lines and across barn lots or pastures dealing with mud, chiggers and livestock. High heels or dress shoes won’t cut it. Don’t blindly cross a pasture without checking for a bull or obtaining permission when livestock are present.
Dress accordingly or be prepared just in case. Have or wear boots, chigger spray, flashlight, toilet paper, bottled water and personal safety devices when appropriate.
Leave all gates as you found them and double check them before leaving if livestock are present.
Suggest viewing the home before barns, workshops and pastures. This way you won’t track up the house and if they hate it, you will avoid getting muddy or chigger bit!
Barns and workshops can have dangerous equipment, tools and DIY electrical connections. Be sure children don’t touch things. Use your common sense and ensure your buyer’s children do too!
Be prepared to get lost so give yourself plenty of time. GPS can be less than perfect and cell signals poor in the country. Check and have your clients check for cell phone signals. Make a test call to them if the signal is marginal. Tall antennas are a tell that off the air TV reception may be challenging.
Buyers will typically spend more time inspecting rural property and considering how their use fits in. Point out any positives they may have missed and ask what their concerns are. Schedule showings appropriately.
Stop and listen to the quiet, discuss the location and how their hobby, recreational activity or occupation will work. Reinforce why they wanted rural property & enjoy the sunset or view if possible!
Sellers of rural property have often lived there a long time, grew up there or acquired in an estate and can be very emotionally attached. They may not leave for showings. Engage them, ask why they bought or acquired the property . They will be a wealth of information about the property and the immediate area.
They may be used to a slower pace. Some older owners like to do business face to face, may not use email or won’t trust electronic signatures. Be prepared to hand deliver contracts, amendments and be patient when waiting for a response.
Security:
Who provides police, ambulance, and fire service and where do they come from?
(local city, county Sheriff or other?)
Sometimes the local police will respond to accidents but investigations are done by State Troupers if on a Farm to Market Road or County Sheriff, in the event of a crime. The response time can be long due to location and manpower.
Multiple access points like driveways, gates and paths may require locks, barriers, monitoring or alarms to prevent break-ins or trespassing especially if the property is for weekend or occasional use.
Hunters and people doing recreational activities like 4 wheeling sometimes cut gate locks, fences or use other means of trespassing if access was a past use.
You may want to stock up on purple paint, post notices, get a dog and invest in security cameras. Remember, a nosy neighbor can be a great form of security!
Purple Paint, Orange Jumpsuit
Septic and Waste Issues
What regulations are there for septic systems in the specific county? Check with your county sanitarian for requirements, permits and past installation plans.
Is there enough property to support a new septic system? On acre is normally considered the minimum but it can depend on soil type and topography.
Has the existing system ever been inspected, serviced, under a maintenance agreement, abandoned, pumped and when? How old is it?
Is there adequate capacity if service needs to be expanded like a bath addition or a barn with living quarters added? Where are the lateral lines or spray heads? Are there any gray water lines?
Who provides garbage/trash service, how often and how much? It could easily be an independent contractor with one truck and requiring barrels for containers.
Where is the nearest landfill? Items no longer useful have a habit of accumulating behind barns left for buyers to dispose of, including old cars!
Can you burn brush? How will any brush piles on the property be handled before closing?
Shared Agreements:
There may be shared road maintenance agreements, driveways, gates, ponds and wells. These may or may not be specified in the deed or in writing so ask questions!
The owner at the end of the road always complains about the road condition, while the owner at the front often thinks it is fine and doesn’t want to contribute to maintenance!
There may also be unwritten permission to cross land to get to hunting, fishing or other areas. Depending on how long this use has been allowed may affect your rights and create an undocumented easement by adverse possession.
Soil Conservation Lakes:
Acreage properties can have beautiful soil conservation lakes. They were designed for flood control and will silt up, conserving the soil.
There are restrictions on use including animals allowed on dams, outboard motor size and your ability to deepen. This should be identified in the deed.
A Google Search of “soil conservation lakes” will pull up the sites or refer to this source by the county.
For more information contact The Texas Water and Conservation Board.
Soil Type:
What are the soil types? (clay, sand, rock) and will they be appropriate for your use? A simple google search for county soils will bring up plenty of resources.
This is a soil map of Grayson County
Has a soil test been done? (septic, crop or building)
Has any fill been brought in or relocated? There are many homes in the country overlooking small ponds. Often the pond was dug to provide fill for the building pad. This pad may or may not have been compacted or prepared properly.
Subdividing:
Will you want to sell a portion of the property? There can be restrictions against subdividing by deed restriction or controlled by regulation)
Large parcels can be subdivided into smaller parcels for sale or to add to an adjoining property. In the good old days, you simply contracted with a surveyor and then filed the survey with the county.
It is not so simple anymore. Check with the county planning department for their requirements. You may be required to get approval and name as a subdivision as well as donate a portion for road/utility easements or other purposes based on the size of parcels. In general, 10+ acres can be surveyed out without major issues but anything less will likely require meeting the counties subdivision requirements. Always check with the planning department.
When subdividing for building purposes, keep in mind the minimum acreage required for septic systems, Ag Exemptions and livestock. Other possible considerations are 911 addressing, water meters, power and driveway culverts.
State roads have specific requirements for driveway entrances, mailbox location/installation and culvert construction.
Surveys:
Try to use the seller’s survey if available and acceptable to the title company and lender. Rural land is often bordered by creeks, heavily wooded or has other typography challenges making a new survey very expensive.
If needed, schedule after the appraisal, inspection and option period. You don’t want to buy an expensive survey and not the property!
Get several quotes or try to negotiate with the seller to pay or share the cost.
Using the previous company may be beneficial in time and cost.
A good title company will know who is inexpensive and responsive. Ensure that you verify any possible flood plain, easements, fence lines encroachments, etc. and verify the survey includes all parcels per contract.
Since acreage is not done by lot and block like in the suburbs, always check the survey deletion coverage will be amended to read shortages in area at the expense of buyer or seller.
Tax Concerns:
What are the current taxes and your exposure to rollback or new taxes?
Verify with the tax authority exemptions in place and possible new taxes.
Learn more about rollback taxes
What are the criteria for continuing or a new AG exemption in this county?
Horses don’t normally count unless a breeding operation, must be something you eat or crop/hay/food, prairie restoration or other allowed function.
Be aware of what the taxes could be if you lose your Ag Exemption
Tip – Check with the county tax department to ensure taxes have been paid and what the rollback tax will be if you change the use. The title company will verify but doing this prior to contract may give you a negotiating advantage. For instance, if behind significantly and on market a long time, the property could go to a tax sale soon, making a low offer more acceptable.
If owner financed, you probably won’t have an escrow. Be prepared for the yearly property tax bill.
Every County has different rules on the minimum acreage required for an Ag Exemption (1-D-1 Open Space) and other exemptions.
As an example, this is Grayson county
Title:
It is always important to look over your title commitment, survey and documentation but even more so with rural property. Rural property has often been in one family for many years resulting in many possible heirs, prior marriage interests or other agreements.
Title companies will identify these issues before issuing title insurance, but you should understand them so you are not surprised by something previously undisclosed. Strongly consider Survey Deletion Coverage.
Inspect the title to ensure legal description accuracy per contract and go over documentation on leases, easements, floodplains, restrictions and encroachments.
Note: Mineral Interest searches are complex and not normally researched by title companies. If mineral rights are important to you, hiring a “landman” is recommended to ensure ownership, percentage of ownership, terms and any expiration of those rights. Landmen specialize in mineral rights searches.
Tornado Shelters:
You will often find Tornado Shelters on country property. There is good reason due to the limited warning sirens and media availability. Buying a property with an existing Tornado Shelter is an important benefit if in good condition.
Shelter locations may hinder plans for additions, pools, sheds, driveways or septic tanks. If the shelter is inside the home, it’s a huge plus not to run out in the yard during storms and may make great wine storage!
Tip: – Some counties maintain a list of properties with storm shelters to use to verify no one is trapped by debris or a home collapse after an emergency.
Uses – Past & Future
How will the buyer’s desired use work considering the past and future uses? Does the property allow for desired modifications and how will the buyers use fit in with neighboring property?
Past Uses:
What is the land’s history – past use? You want to know if it was a dumping ground, environmental, cemetery or a historical site that could limit future use and liability. These things are not common but possible.
Landfill Check
Check with TCEQ to see if the property was a previous landfill. You can download a map showing the location of abandoned landfills.
Check this list – Don’t assume the pasture you are looking at wasn’t at one time the city dump.
Future Use:
Are there any proposed or potential projects affecting the land?
(Any future roads, power or cement plants, easements, landfills)
Check with the closest cities, county, state and utility companies for five- year plans. Ask neighbors! Can a variance be granted to enable a particular use?
For instance, Collin County has a 50-mile outer loop planned which affects many properties depending on the eventual actual location. https://www.collincountytx.gov/mobility/Pages/outerloop.aspx
Outer Loop Map
https://www.collincountytx.gov/mobility/Documents/outer_loop/OuterLoopOverview.pdf
Utilities (Electric, Water, Phone, Internet, TV, Propane):
Be sure to call Texas One Call 811 before any digging
Electricity Concerns:
Is electricity available? (who supplies?) (Will alternative energy sources be required?)
If not available, what will it cost to bring power to the home site?
Bringing power several hundred yards can be expensive – contact the supplier for a quote and availability.
Is there enough electric capacity available for your needs?
(Service panel capacity, 220 VAC in barns or shop?) DIY wiring is very common. Remember, electric inspections are seldom required during building so be sure to have a good home inspecror.
Water Supply Concerns:
Where is the water source? (city, water supply company, lake, well, quantity, how deep & who supplies?) This becomes a chore as there are many independent water suppliers in the unincorporated areas.
The Seller’s Disclosure is supposed to have the info but often is left blank, there are exemptions to the Seller’s disclosure requirement and Realtors may not be comfortable giving a supplier without an authority to reference.
You can try the PUC (Public Utilities commission) website for suppliers but I have found it to be difficult to use. Your best bet may be to require a previous bill or
simply ask a neighbor. PUC Utilities Map
Is there a water meter available on the property and will it convey? (If not available, the cost is often $4K or more) Depending on the water line size another meter may be impossible without an expensive upgrade of the line.
An upgraded line requires expensive engineering studies to determine the requirements for installation and future growth Large water lines (6 inch) are an asset for subdividing or development.
New Owners will be required to join a Co-Op in many locations, requiring a membership fee and monthly base charges regardless of use. This membership can be transferred to save the new owner the membership fee and should be specified in the contract.
What is the membership, base, engineering and transfer fees?
Example: Rates and fees for South Grayson SUD
Where is the main water line? If on the opposite side of the road, boring under the road may be required. What water pressure should be expected? To high can be as bad as to low, requiring meter regulators or expansion tanks
Is there water available at the barn, workshop, fence line or pastures? Are the faucets freeze proof hydrants?
Are there any wells that could be used for drinking water or livestock?
Have they been tested for quality and refresh rate and when? What does the water taste, smell and feel like? (softness)
Phone/Internet/TV Concerns:
If cell signals are poor you may still need a landline! Can the current cable support additional users?
Are phone lines, cable and/or high-speed internet service available for working from home?
Never assume there is quality cell signal or “high speed internet available. One of the biggest surprises when moving to unincorporated areas is that the phone and internet service will be the same.
High Speed Internet in the city and the country can be vastly different things. (DSL, fiber, Broadband, Line of Sight, Cellular, Satellite) Which company supplies?
Where are the nearest cell towers? Verify you have good signal! There may be only one supplier, a poor signal or even no service.
Check your phone and Apps like Signal Check, OpenSignal, Network Signal Info, Meteor and others to determine strength, speed and towers.
TV:
What TV Channels can be received? (DFW vs others). TV reception may be limited to over the air due to inadequate internet services, requiring a satellite dish, tall antenna and possibly a booster amplifier.
Streaming may be impossible. Your favorite weather or news channel may not be available. You may be forced to watch a station covering a different area.
Besides local news and weather, this becomes important for sporting event black outs. For example, you may be close to a county line and depending on your address, the provider may offer local DFW channels or outlying area channels. This can be a positive if sporting events are blacked out in the metro areas and you can get them!
Both cellular and TV reception may be affected by trees, low lying areas and/or the distance to the nearest transmitter.
Propane Tanks:
Many rural homes use Propane for heating and cooking. Propane tanks can be owned or leased. When purchasing, be sure to clarify ownership, transfer and how any remaining gas will be handled.
The owner may give it to the buyer, remove it or want compensation for the remaining gas. Document in the contract!
Wells
Water Wells
You may find old hand dug waterwells when buying Texas rural property.
These were often used for livestock with windmills for pumps or may even be under a farmhouse kitchen or yard with a hand pump.
If you are considering use, they should be tested for water quality, refresh rate and GPM (gallons per minute) capacity.
You should also consider possible liability and safety issues so secure them. or follow the proper procedures to abandon, test, maintain or plug them if no longer used.
A well driller or other water well expert should be consulted concerning any questions prior to purchasing Texas Rural Property with a hand dug or conventional well.
Information on plugging abandoned water wells.
Water Wells in North Texas has a lot of good information and further resources concerning wells in our area.
Oil Wells
Before buying any Texas rural property with a working or non-working oil well, seek legal advice. Gas and Oil lease agreements, maintenance, restoration requirements and land owner rights can be limited and complex.
Remember, surface and mineral rights are different and in Texas the mineral rights owner is the dominant estate. There are even cases of property being subdivided in small acreage parcels where the owner retained the mineral AND a percentage of the surface rights.
While the mineral owner has implied use of the surface to extract minerals they also further reserved partial surface rights.
How would you like to own 10 acres with only 50% of the surface rights? Why would you pay full market price for half ownership?
Check your title commitment and deed carefully! Do not rely on hearsay, seller, or agent advice without an attorney experienced in these matters .
Miscellaneous Additional Information:
Dive bombers:
People that are surprised by dove hunting are also surprised and concerned about yellow airplanes buzzing nearby doing kamikaze like maneuvers. They will call the police reporting terrorist activities or crazy pilots.
These are simply what are called Air Tractors – aka crop dusters! https://en.wikipedia.org/wiki/Air_Tractor
If the police have a radar gun aimed your way, an Air Tractor may swoop down beside you and save you a ticket! (personal experience)
Freeze Hydrants
Having water available at fence, barn and pasture locations is an asset. Those faucets sticking out of the ground near water troughs are not water pumps!
They are designed with the mechanism below ground so when shut off, they drain down preventing freezing. Don’t leave the hose in the water trough or it could possibly backflow, draining all the water out that your just filled.
Note: Buy a hose timer because I guarantee you will leave the water running sooner or later!
Gossip:
If moving to a small town be aware of what you say as people can be related! You don’t want to call the water service receptionist and complain about the barber because they could be related!
In these small towns many people grew up together, they tend to hang out at the local coffee shop, barber, restaurant or feed store. They are a great
source of information on local contractors, available services and area knowledge so learn where the locals congregate!
Don’t be surprised when you first move in if people come up your driveway to introduce themselves or inquire what you are doing at the old family place.
They may be neighbors genuinely welcoming you, wanting to lease your pasture or concerned about what is going on. Think of them as rural security!
Lighting:
It gets dark in the county away from all the city lights, but you may have a security light as part of your electric service.
There will be things that go bump in the night from wildlife to livestock that you will want to investigate away from any on site lighting. Get at least one good battery-operated light with as much candlepower and range as possible.
Marketing TIP:
Use all your normal marketing but get things posted to the Internet FIRST before the MLS! This allows search engines to index your blog post, pictures and posts before being scrapped from the MLS giving you a better chance of coming up ahead in searches. You can always go back and add MLS#s after going active.
Buyers of rural property are interested in more than the home. Include many shots of barns, ponds, typography and livestock or crop use but be careful about spooking livestock when using drones.
Drop flyers at local stores, post to local FB groups and any rural livestock organzations.
Write a blog post and ensure all pictures have Alt Text and or titles with the address. If using a posting marketing service like Realbird, upload all information before posting on MLs. Go back later and add the MLS # when available.
Pier and Beam Homes:
Many older homes in the country were built on pier and beam, including stump piers simply placed on the ground. They may move with the seasons and if not skirted properly, you could have skunks or other wildlife take up residence.
During freezing weather, you can have pipes freeze. To prevent this, install pipe insulation, heat tape or covers where possible. Drip faucets, open kitchen cabinet doors, dump the ice from the ice maker, run your dishwasher, clothes washer and occasionally flush toilets to keep water moving.
Weather Radio:
You may want to invest in a weather radio to get alerts on dangerous weather like tornadoes and severe storms.
