What Restrictions May Affect Your Land Purchase?

Understanding the ways that land use restrictions, easements, and zoning requirements can significantly impact your farmland purchase is crucial to making an informed decision and ensuring that the property you’re considering meets your needs and goals.

The new guide Ag Land Loans 301 from FBN® Finance walks you through these restrictions and requirements as well as explains when a new survey is required and what type of appraisal is necessary for a land loan. Download the free guide here.

Below we unpack who determines these restrictions and requirements, potential challenges, and five steps to take for due diligence.

Land Use Restrictions

Land use restrictions are put in place to regulate how land can be used and to ensure that land development aligns with broader community, environmental, and economic goals. They are determined by various entities, including local, state, and federal government agencies, as well as tribal governments and private parties. Consider the impact of the following on your goals when purchasing land.

Limitations on Activities

Land use restrictions, which can limit the types of activities you can conduct on the property, can include certain agricultural practices or commercial activities.

Development Potential

Restrictions can include building structures, subdividing the property, or making other improvements.

Environmental Protections

Some restrictions are in place to protect environmental features such as wetlands, wildlife habitats, or water resources.

Conservation Easements

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