What to do after the purchase contract is accepted

1. Utility Line Right-of-Way

Contact the company that owns the pipeline or power line that runs through the property and find out what it can or cannot do in your right-of-way. Some companies, like Colonial Pipeline, will fly these rights-of-way almost daily by plane or helicopter. If you start disturbing the ground in this right-of-way without their knowledge, they’ll shut down the job.

2. Percolation test

If you don’t have access to a sewer line, you’ll probably have a septic tank. If you have a septic tank, it will perform, in conjunction with the county health department, what we call a leak or “benefit test.” Most county health departments will allow you, the owner, to take this benefit test. Due to my busy schedule, I usually hire the surveyor to do it. The health department will provide you with instructions on how to perform the perk test – it’s simple. If you don’t pass this benefit test, it could mean you can’t have a septic tank. Make sure you have completed proof of benefits and that the property is approved for a septic tank. If the property does not pass a benefit test, many people think it is “unbuildable” for a home because they are of the opinion that it cannot have a septic tank, it is not! There are other alternatives; For example, you could use what’s called an aerobic treatment unit. This system is more expensive than a conventional septic tank, but would allow you to build on what some would consider an unbuildable lot. Be sure to check with your health department because the aerobic system may or may not be approved for your area.

3. Soil test

In North Georgia we have “good old” red clay. If you’ve never been to Georgia, it’s really red and a real pain to get your clothes and rug off. However, this red clay is very stable for a base. There are many parts of the country and Georgia where the ground is too unstable for a foundation. In those areas where the soil may not look “adequate”, you may need to do soil testing and/or engineering to properly install a home’s foundation. If you fear a problem with the soil, I recommend that you call a “soil engineer”. A soil engineer can analyze the soil and tell you whether or not it is stable enough to support your home. If it is not stable, the soil engineer can tell you what can be done to stabilize it. You may also need a “structural engineer” to design the foundation for any unstable ground. You can find these engineers in the Yellow Pages under Engineer – Geothermal and Engineer – Structural. Building a house is basically the same across the country. The base is what changes a lot from one place to another due to the soil. If you install the foundation correctly, the chances of anything major happening to your home, structurally speaking, are very slim. You don’t want a base problem. So get your floor checked and seek professional advice if the floor doesn’t test well or doesn’t look “perfectly” right.

4. Wetlands

Wetlands can be a real and serious problem. The department that oversees and regulates wetlands is the US Army Corps of Engineers. The Army Corps of Engineers has mapped many wetland areas and can provide you with brochures to help you determine if your property contains wetlands. What is confusing are those areas that appear high and dry that are designated wetlands. If you unknowingly build in these areas, your home may be shut down because it is illegal to disturb a wetland environment. If you have any questions, check with the Army Corps of Engineers and find out if there might be a problem. For more information on the US Army Corps of Engineers, visit their website.

5. Floodplain

A floodplain is another type of land area designated and regulated by the US Army Corps of Engineers. The Corps of Engineers will designate an elevation point called the “100 Year Floodplain Mark.” In theory, only once every 100 years would there be a floor where the water level would exceed this elevation point. Your surveyor may indicate this 100 year mark on your survey. Most cities and counties will not allow you to build in an area designated as a floodplain. In some floodplain areas, you may be allowed to add fill soil to raise the elevation of the home above the flood mark. However, in many flood prone areas, you may not be allowed to do this, because if there is not adequate drainage, it will exacerbate the problem if there is a flood. It is like putting a stone in a glass of water; you will raise the water level. I remember a property that I put under contract for a subdivision and there was a small creek on the property. I didn’t think there was any problem. It turned out that more than half of the property was in a designated floodplain. It was also the kind of flood area you couldn’t fill. The seller was surprised; they said they had lived there for 30 years and had never seen the creek flood. If the owner was correct, he could possibly do the necessary paperwork to have his property removed from the designated floodplain. It didn’t matter to me, it was a dead deal. You can view these designated flood areas by purchasing copies of the flood insurance rate maps. [FIRM]. The easiest way to get a copy of a FIRM map for your area is to visit the Federal Emergency Management Agency website. [FEMA]. It is not uncommon for part of a parcel to be in a floodplain. The problem arises when any part of the home structure is within the designated floodplain. If the house is in the floodplain area, your lenders will require you to purchase flood insurance. The maximum amount available for flood insurance is $285,000.00 and the flood insurance premium can be expensive. Many lenders won’t even make a loan for a home where part of the structure is in the floodplain.

6. Tax delays

If there is a creek or creek on the property, even if it is not in a designated floodplain, there may be restrictions on how close you can build to that creek or creek. These restrictions are federally mandated to minimize sediment runoff into a particular creek or creek. Check this with your city or county building department.

7. Hydrology study

Some houses I build are very expensive; I treat them like a commercial job and hire an engineer to do a “hydrology study”. The hydrology study will indicate if there will be a runoff problem after the house is built. If there is a problem, this engineer will design a solution to the problem. The type of engineer to do this is a “civil engineer.” If you ever have a problem with water drainage and need to correct it, contact a civil engineer. You will find them in the Yellow Pages under Engineer – Civil. Some areas of the country may require a hydrological study in each home. The Building Department of the city or county in which you will be building should be able to tell you. Don’t be put off by the fact that I recommend these engineers. If anything, you should be afraid if there are no engineers involved in the project. Don’t spend a ton of money on these engineers and shop around, you’ll see a huge variance in price from engineer to engineer. Don’t be afraid to hire these engineers; I would rather spend some money up front to find and fix a problem than spend a lot more money later to fix a problem.

8. Hazardous waste and buried garbage

I am starting to see more and more builders being required to submit a certified document stating that there is no buried trash or hazardous waste on the property. There are engineering companies in a certain area that can perform these tests and provide these documents if you need them.

9. Rock Test

Even if you don’t see any rock on the surface, if you have serious doubts about the rock, you can hire companies to check for rock. Contact a soil engineer to find out who to use. They can drill or dig test holes in the ground to tell you how far below the surface the rock is. This way you’ll know if you’re going to have trouble installing a driveway, basement, swimming pool, sewer line, or septic tank.

10.Survey

After you have the property under contract to purchase, I recommend that you go ahead and get a current survey (not older than 6 months) by a licensed surveyor. The survey will clear up many potential problems. For example, the survey will show any easements on the property that you cannot see with the naked eye. The survey will also show any areas of the property that are in a floodplain. I know people who thought their lot was 200 feet wide at the road and 2 acres in size. Their dad even told them it was 2 acres with 200 feet on the road. They would sell the property based on this information, only to have the new owner order a survey and discover that the property is 1½ acres in size, not 2, and is only 150 feet on the road, not 200 feet. The deal could fall through right there. If you have an old survey, it may be upgraded by the original survey taker for as little as $50.00. If there is a flat subdivision registered with the courthouse, find out who did the original subdivision and they may be willing to inspect the lot for a cheaper fee. Remember to shop around; You will see a large variation in price from surveyor to surveyor. One last item, ask the surveyor to provide a legend on the survey for clarification. A person new to the industry may not understand that “IPF” on a corner of the property stands for “Iron Pin Found”.

11. Topographic map

The topographic map or “topo” will show the contour of the terrain. If your property is relatively flat, you may not need to spend money on a survey. The surveyor is who we hire to do the topo. Just like the survey, to get the best price you’ll have to shop around.

If you are designing a house for a certain lot and/or working on steep or undulating terrain, a topographical map will be very beneficial. The ideal mole is what we call a “2 foot mole” (as opposed to a 4 foot mole). What this means is that the distance between each line represents a 2 foot drop or rise in the ground. In the grading world, a slope of 2% or less can have problems with drainage and a slope of 15% or more can cost you money to fill in the soil, remove any excess soil, or build retaining walls. The topographic map can show you if you will need $10,000 in fill soil or a $20,000 retaining wall. These are issues you want to know about before you buy a lot. If you are in a major metropolitan area, check with your county highway or engineering department. They may have a mole on file for the property you are interested in buying.