Buying land

General information, not tax or legal advice. Rules and rates change, and every situation is different. Talk to your lawyer and accountant before you act on anything here.

What sets the value

• Zoning and the official community plan: what you can build now and what the city might allow later.
• Servicing: water, sewer, storm and power, and who pays to bring them in.
• Access and shape: frontage, lane access, slope and setbacks.
• The ground: geotechnical issues, floodplain, trees and environmental history.
• Agricultural Land Reserve: land in the ALR has strict limits on non-farm use.

Holding costs

Land often earns little while you wait. Budget for property tax, interest, insurance and security.

Conditions to consider

Zoning confirmation, environmental and geotechnical reports, financing, and enough time to talk to the city. Long conditional periods are common on land.

Land in detail

What drives value

• What the zoning and official community plan allow, and how long approvals will take.
• Servicing: water, sewer, storm and road access.
• Soils, slope, environmental history and any streams or setbacks.

Due diligence

• Title, charges and covenants, plus any rights of way.
• Zoning, the official community plan and any rezoning or development applications.
• Geotechnical and environmental reports. A seller may need to give a Site Disclosure Statement for some past uses.
• Holding costs: property tax, interest and insurance while you plan.

BC and Vancouver specifics

• Land in the Agricultural Land Reserve is limited to farm use unless the Agricultural Land Commission approves otherwise, including most subdivision.
• Vacant land is classed by BC Assessment according to its use and zoning. See BC Assessment property classes.
• Development cost charges and community amenity contributions can add a lot to the cost of building.

Questions to ask

• Is the land in the ALR?
• What can be built today without a rezoning?
• Who pays for servicing to the lot line?

GST. The sale of commercial property is generally subject to GST. If the buyer is registered for GST, the buyer usually self-assesses instead of paying it to the seller. See the CRA guidance on real property and GST/HST and talk to your accountant.

Check the ALR first

About 4.6 million hectares, roughly 5% of BC, is in the Agricultural Land Reserve. Non-farm use and subdivision there need approval from the Agricultural Land Commission. Check the ALC’s maps before you price land or plan a use for it.

What to check before you value land

• ALR applications go through the local government first. It reviews the application and decides whether to forward it to the Agricultural Land Commission.
• Zoning and planning: the zoning, the official community plan designation, any development permit areas, and servicing for water, sewer, storm and road access. Value the land on what you can build, not what you hope to.
• Streams: in most of Metro Vancouver outside the City of Vancouver, development near fish-bearing streams falls under the Riparian Areas Protection Regulation, which can require an assessment and setbacks.
• Site limits: floodplain, slope, geotechnical conditions and known archaeological sites can all cut the buildable area.
• Costs to build: development cost charges, amenity contributions and the rezoning timeline often decide whether a land deal works.
• Contaminated land isn’t automatically a dead deal. Price the clean-up, then decide.
• Watch the agendas: Metro Vancouver is mostly infill and redevelopment. Council and planning agendas show what’s coming.

Questions people ask

Can I build what I want on the land?

Only what the zoning and the city’s plans allow. Check with the city and a planner before you remove conditions.

What is the Agricultural Land Reserve?

A provincial zone that protects farmland. Land in the ALR has strict limits on non-farm use and subdivision.