Buying Land: Extended Checklist

Detailed recommendations and a step-by-step review for acquisition teams: search strategy, liquidity assessment, legal and technical due diligence, utilities and logistics, regulatory constraints, deal economics, and closing structure. The goal is to reduce uncertainty and purchase sites with predictable risk.

How to use: work top to bottom. Any point without a confirming document is a hypothesis and requires a specific risk owner and contingency. Decisions move through formal gates.

0) Roles & Decision Gates

Core roles

Acquisitions Lead — pipeline coordination, seller relations.
Real-estate attorney — title, encumbrances, contracts.
MEP engineer — capacities, connection points, schemes.
Geotech/Surveyor — topo, borings, hydro notes.
Architect — footprint, setbacks, orientation.
QS/Estimator — CAPEX + contingency.
Finance — model, P50/P80, DSCR thresholds.
PM — build logistics and schedule windows.

Decision gates

DG-0: Screening. Site enters shortlist.
DG-1: Utility intent letters. Preliminary confirmations.
DG-2: Topo + Geotech/Hydro + Zoning verified. Buildable footprint exists.
DG-3: Financial model with P50/P80. Project clears targets.
DG-4: Deal terms agreed. Proceed to closing.

1) Strategy & Search Criteria

Objective: define site parameters that deliver target returns at acceptable risk.

Location: access, views, noise sources.
Zoning: permitted use, max height/density, setbacks.
Size/shape: minimums for footprint and truck manoeuvres; “flag lots” with caution.
Utilities appetite: indicative capacity/points from providers.
Terrain/slope: tolerable retaining/drainage scope.
Market: sale/rental demand; comp set and seasonality.
Schedule: contractor availability, weather windows.

2) Screening & Scoring the Pipeline

Score each candidate on a 0–5 scale across key criteria. Minimum shortlist threshold: 3.5.

Criterion	Description	Metric/Document	Score
Title/encumbrances	clean title, no arrests/liens	registry extract + statement	0–5
Access	public or registered easement; widths/turn radii	plan + legal doc	0–5
Utilities	capacity/points/timelines	letters/terms	0–5
Zoning	height/setbacks/density fit brief	maps/regulation	0–5
Terrain/geotech	earthworks magnitude, foundation type	topo/geotech	0–5
Market	liquidity/demand/comps	market memo	0–5

Tip: with equal scores, prioritise sites with fewer unresolved unknowns (lower “risk inventory”).

3) Legal DD (Title/Boundaries/Access)

3.1 Title & chain

Current title/registry extract + ownership chain for ~10 years.
No arrests/liens; no active litigation.
Consents from co-owners/spouses/beneficial owners where applicable.

3.2 Cadastre & boundary

Plan with coordinates; neighbour boundary consents for recent surveys.
Area by documents vs on-site reconciled; no overlaps.

3.3 Legal road access

Public access or registered easement; avoid “informal track” reliance.
Widths, turn radii, truck turnaround feasibility.

4) Utilities: Capacity & Options

Power

Available capacity, reliability class, nearest transformer/line.
Provider letter/terms with indicative cost and timing.
Risk floor: provision for temporary supply (generation/storage).

Water & Wastewater

City / well / delivery; water quality and seasonal yield tests.
City sewer / package plant / septic; groundwater constraints and outfalls.
Service model for treatment plants; maintenance truck access.

Stormwater & Drainage

Discharge points and capacity; upstream/downstream flows.
Engineering for peak rainfall; erosion protection.

Connectivity

Fiber availability; mobile signal level/latency.
Smart-home and remote-work requirements.

5) Topography, Geotechnics, Hydrogeology

Topographic survey 1:500: contours, breaks, trees/structures, spot elevations.
Geotechnical: bearing capacity, strata, soil aggressiveness; foundation recommendations.
Hydrology: groundwater by season; backflow paths; need to raise grades.
Hazards: landslides, floodplains/coastal set-backs, wind/seismic zones.

Practice: at least three borings across distinct terrain; pre-size retaining and water management for sloped sites early.

6) Regulatory Constraints & Design Frame

Confirm height, setbacks, density; place actual footprint on the topo plan.
Protected/sanitary zones (shorelines, powerlines, roads, reserves, water bodies).
Community/HOA rules: facades, materials, fences.
Required permits: process, timing, review list.

Design-to-Budget: lock a target cost per m² before concept; all design develops within this envelope.

7) Surroundings, Market & Demand

Future development in pipeline: potential loss of views/insolation.
Noise/odors/traffic sources: roads, venues, dumps, substations.
Local market: sale/rental comps, depth of demand, seasonality.
Build logistics: heavy-vehicle access; seasonal restrictions.

8) Economics: P50/P80 Budget & Scenarios

8.1 Budget & contingencies

P50: median forecast for cost/schedule.
P80: conservative level; P50→P80 delta = contingency.
Disaggregate reserves: materials, logistics, MEP, retaining, drainage.

8.2 Scenarios & sensitivity

Base / downside / upside; key drivers feed the tornado chart.
Test IRR/NOI/DSCR sensitivity to utilities, earthworks, timeline, sale/rent prices.
For high uncertainty, run Monte Carlo (5–10k trials) on core inputs.

DG-3 pass rule: project meets minimum return/liquidity in the downside scenario with the P80 contingency in place.

9) Negotiation, Deal Structure & Closing

9.1 Tactics

Price rationale via risk factors: utilities/slope/geotech/constraints = discount.
Make written utility letters a condition; lack thereof justifies price move or exit.
Set deadlines and “stop-lights” (conditions after which the deal terminates).

9.2 Structures

Outright purchase / option / instalments / deferred closing upon conditions.
Escrow for payments; holdbacks against hidden defects.
Currency and tax treatment reflected in the model from day one.

9.3 Closing

Signing checklist; final boundary/access reconciliation.
Transfer of title; registration of easements/beneficial restrictions (if needed).
Handover of source survey/geotech/hydro data.

10) Red Flags: When to Walk Away

No documented legal road access.
Boundary overlaps or area discrepancies.
Protected/sanitary zones consume critical footprint.
Utility providers refuse letters/terms or timing/costs are unacceptable.
High groundwater with no viable drainage/outfall.
Steep slopes requiring retaining/piles that break economics.
Active disputes, arrests, unclear chain of title.

11) Artifacts & Working Templates

Requests & letters

Utility letter template (capacity, point, timing/cost).
Water/sewer request (connection or on-site treatment terms).
Public access/easement request with approach plan.

Checklists

Legal: title, encumbrances, consents, history.
Technical: topo, geotech, hydro, drainage, connectivity.
Design frame: setbacks/height/footprint, target cost per m².

Control table

Suggested columns: Area, Check, Document/Source, Status, Due/Owner, Notes/Cost.

Area	Check	Document/Source	Status	Due/Owner	Notes
Title	Encumbrances/liens	Registry extract	Needed	Attorney, 3 d	—
Utilities	Capacity/point/timing	Provider letter	In progress	MEP, 7 d	Alt. temporary supply
Geotech	3 borings + report	Geotech report	OK	Contractor, 10 d	Piled strip

FAQ

What should be checked first — legal or utilities?

Always legal and access first. Without clean title and documented access, any spend on utilities/geotech is at risk.

Are verbal confirmations from providers enough?

No. Only written letters/terms with indicative costs and timelines are accepted in the model.

When is a conditional closing acceptable?

After DG-0…DG-3 are completed and commercial terms are agreed, with remaining risks covered by escrow/holdbacks and explicit conditions precedent.

How to choose between city utilities and on-site systems?

Compare total cost of ownership (CAPEX+OPEX), timing, reliability. If city utilities are unavailable or uneconomic, plan on-site systems with maintenance and backup capacity.

What if groundwater is high?

Raise grades, design drainage/stormwater, select appropriate foundations, and site tanks/treatment units to avoid flotation and leaks.

Minimum artifacts for DG-3?

Utility letters, topo + geotech + hydro notes, confirmed setbacks/footprint, financial model with P50/P80 and tornado analysis, and a risk register with owners.

Next actions

Assemble a shortlist and complete the scoring table.
Send utility and access/easement request letters.
Order topo and geotechnical work for top candidates.
Build the financial model with P50/P80 and defined contingencies.
Bring candidates to DG-3, align negotiation plan and deal structure.