How to Build a Home - Lesson 2 - The Building Lot - Part VI - Due Diligence

What To Do After The Contract To Purchase Is[FEMA]. It's not unusual for part of a parcel to be in a
Acceptedflood plain. The problem arises when any part of the
1. Utility line right-of-waysstructure of the home is within the designated flood
Contact the company that owns the pipeline orplain area. If the home is in the flood plain area, your
power line crossing the property and find out whatlenders will require you to purchase flood insurance.
you can or cannot do on their easement. SomeThe maximum amount available for flood insurance is
companies, like Colonial pipeline, will fly these$285,000.00 and the premium for flood insurance can
right-of-ways almost daily by plane or helicopter. Ifbe costly. Many lenders will not even make a loan on
you start disturbing the ground on this right-of-waya home where part of the structure is in the flood
without their knowledge they'll shut the job down.plain.
2. Percolation test6. Tributary setbacks
If you do not have access to a sewer line you willIf there is a creek or stream on the property, even
probably have a septic tank. If you have a septicif it's not in a designated flood plain area, there could
tank you will perform, in conjunction with the countybe restrictions on how close you can build to that
health department, what we call a percolation, orcreek or stream. These restrictions are federally
"perk test". Most county health departments will allowmandated to minimize sediment runoff into a
you, the owner, to do this perk test. Because of myparticular creek or stream. Check this out with you
busy schedule, I normally hire the surveyor to do it.city or county building department.
The health department will provide you with7. Hydrology Study
instructions on how to do the perk test - it's simple.Some homes that I build are so expensive; I treat
If you fail this perk test, it could mean you cannotthem like a commercial job and hire an engineer to
have a septic tank. Make sure you've completed theperform a "hydrology study." The hydrology study
perk test and the property is approved for a septicwill indicate if there is going to be a water runoff
tank. If the property fails a perk test, many peopleproblem, after the home is constructed. If there is a
think it is "unbuildable" for a home because they areproblem, this engineer will design a solution to the
of the opinion you cannot have a septic tank - notproblem. The type of engineer to do this is a "civil
so! There are other alternatives; for example, youengineer." If you ever have a problem with water
could use what is called an aerobic treatment unit.drainage and you need to correct it, contact a civil
This system is more expensive than the conventionalengineer. You'll find them in the Yellow Pages under
septic tank but it would enable you to build on whatEngineer - Civil. Some areas of the country may
some would consider an unbuildable lot. Be sure torequire a hydrology study on every home. The
check with your health department because theBuilding Department of the city or county you will
aerobic system may or may not be approved forbuild in should be able to tell you. Don't let the fact
your area.that I recommend these engineers scare you. If
3. Soil testanything, you should be afraid if no engineers are
In North Georgia we have "good ole" red clay. If youinvolved in the project. Don't spend a ton of money
have never been to Georgia, it is truly red and a realfor these engineers and shop around, you will see
pain to get out of clothes and carpet. However, thisquite a variation in price from one engineer to
red clay is very stable for a foundation. There areanother. Don't be afraid to hire these engineers; I
many parts of the country and Georgia where thewould rather you spend some money up front to
ground is very unstable for a foundation. In thosefind and solve a problem than spend much more
areas where the ground may not look "just right,"money later on to solve a problem.
you may be required to do soil testing and/or8. Hazardous waste and buried trash
engineering to properly install a foundation for aI'm beginning to see more and more builders required
home. If you fear any problems with the soil, Ito furnish a certified document stating that there is
recommend you call a "soil engineer". A soil engineerno buried trash or hazardous waste on the property.
can test the soil and tell you whether or not it isThere are engineering firms in any given area that
stable enough to support your home. If it's notcan do this testing and supply these documents if
stable, the soil engineer can tell you what can beyou need them.
done to make it stable. You may also need a9. Rock test
"structural engineer" to design the foundation for anyEven if you don't see any surface rock, if you have
unstable ground. You can find these engineers in theserious doubts about rock, you can hire firms to
Yellow Pages under Engineer - Geothermal andcheck for rock. Contact a soil engineer to find out
Engineer - Structural. The construction of a home iswhom to use. They can bore or dig test holes in the
basically the same throughout the country. Theground to tell you how far below the surface the
foundation is what changes quite a bit from onerock exists. This way you'll know if you are going to
location to another because of the soil. If you installhave a problems installing a driveway, basement,
the foundation correctly, the chances of anythingswimming pool, sewer line or septic tank.
major happening to your home, from a structural10. Survey
standpoint, are very slim. You do not want aAfter you have the property under contract to
foundation problem. So check your soil and seekpurchase, I recommend that you go ahead and get a
professional advise if the ground doesn't test well orcurrent (no more than 6 months old) survey by a
does not look "just" right.licensed land surveyor. The survey is going to clear
4. Wetlandsup a lot of potential problems. For example, the
Wetlands can be a real and serious problem. Thesurvey will show any easements on the property
department that oversees and regulates wetlands isthat you may not see with the eye. The survey will
the U.S. Army Corps of Engineers. The Army Corpsalso show any areas of the property that are in a
of Engineers have mapped many wetland areas andflood plain. I know people who believed their lot was
can give you the pamphlets to help you determine if200 feet wide on the road and 2 acres in size. Their
your property contains any wetlands. What'sdaddy even told them it was 2 acres with 200 feet
confusing are those areas that look high and dry thaton the road. They'd sell the property based on this
are designated wetlands. If you unknowingly build ininfo, only to have the new owner order a survey
these areas, they can shut down the construction ofand find out the property is 1½ acres in size, not 2,
your home because it's illegal to disturb a wetlandand there is only 150 feet on the road, not 200 feet.
environment. If you have any doubts, check with theThe deal could fall through right there. If you've got
Army Corps of Engineers and find out if there couldan old survey, you might be able to have the original
a problem. To learn more about the U.S. Army Corpssurveyor update it for as little as $50.00. If there is a
of Engineers, visit their web site.subdivision plat recorded at the courthouse, find out
5. Flood plainwho did the original subdivision and they may be
A flood plain is another type of land area designatedwilling to survey the lot for a cheaper fee.
and regulated by the U.S. Army Corps of Engineers.Remember to shop around; you will see a large
The Corps of Engineers will designate an elevationvariation in price from one surveyor to another. One
point called the "100-Year Flood Plain Mark." In theory,last item, ask the surveyor to provide a legend on
only once in 100 years would there be a floor wherethe survey for clarification. A person new to the
the water level would go above this elevation point.industry may not understand that "IPF" at a corner
Your surveyor can indicate this 100-Year mark onof the property stands for "Iron Pin Found."
your survey. Most cities and counties will not let you11. Topography map
build in an area designated as a Flood Plain. In someThe topography map or "topo" will show the contour
flood plain areas you may be allowed to add fill dirt toof the land. If your property is relatively flat, you
raise the elevation of the home above the floodmay not need to spend money for a topo. The
mark. However, in many flood areas, you may notsurveyor is who we hire to do the topo. Like the
be allowed to do this, because if there's notsurvey, to get the best price you will need to shop
adequate drainage, you would accentuate thearound.
problem, if there were a flood. It's like placing a rockIf you are designing a home for a given lot and/or
in a glass of water; you will raise the level of theworking with steep or rolling terrain, a topography
water. I remember some property I placed undermap will be very beneficial. The ideal topo is what we
contract for a subdivision and there was a smallcall a "2-foot topo" (as opposed to a 4-foot topo).
creek on the property. I didn't think there was anyWhat this means is the distance between each line
problem. It turned out over half of the property wasrepresents a 2-foot drop or rise in the terrain. In the
in a designated flood area. It was also the type ofworld of grading, a grade of 2% or less may have
flood area you could not fill in. The seller wasproblems with drainage and a grade of 15% or more
shocked; they said they had lived there for 30 yearscould cost you money for fill dirt, hauling away of
and had never seen the creek flood. If the ownerany excess dirt, or building retaining walls. The topo
was correct, he could possibly do the necessarymap can show you if you are going to need $10,000
paperwork to have his property removed from theworth of fill dirt or a $20,000 retaining wall. These are
designated flood area. For me it didn't matter - it wasproblems you want to know before you purchase a
a dead deal. You can see these designated floodlot. If you're in a major metropolitan area, check with
areas by acquiring copies of flood insurance ratethe county engineering or highway department. They
maps [FIRM]. The easiest way to get a copy of amay have in their files a topo for the property you
FIRM map, for your area, is to go to the web siteare interested in purchasing.
for the Federal Emergency Management Agency