How to Buy Vacant Land in British Columbia: Checks Before You Commit

An empty lot can look simple: no house to inspect and no repairs to worry about. In practice, vacant land carries its own risks. Whether you can build, where your water will come from, where sewage will go and whether the land is restricted all matter more when nothing is on the lot yet.

This article walks through the main checks to make before you commit to a purchase in British Columbia. Zoning, permits and servicing vary from one municipality or regional district to the next, so treat this as a list of questions to ask and confirm the details for your specific lot.

This article covers the law of British Columbia.

Start with what you are allowed to do on the land

Zoning, building permit requirements and servicing rules are set locally. Do not assume a lot can hold the house or garage you have in mind just because other lots nearby do. Ask the local government what the zoning permits, which permits you would need and whether any conditions are attached to the parcel. A lawyer can help you build these questions into your contract as conditions.

Also find out whether the lot is inside the Agricultural Land Reserve. Land in the reserve cannot be subdivided unless the Agricultural Land Commission allows it or a regulation permits it, even for parcels under 2 acres. Local zoning compliance does not guarantee Commission approval.

Check access as well. Confirm from the title and survey documents that the lot has legal access, not just a track that people happen to use. If access crosses someone else's land, ask what right allows it.

Water: a well, a licence or a connection

If the lot is not on a municipal water system, you will likely need a well. A person may divert and beneficially use groundwater from an aquifer for domestic purposes, subject to the regulations. Households using well water for domestic purposes are exempt from licensing and from provincial water fees and rentals.

Non-domestic use is different. All users of groundwater for non-domestic purposes, such as irrigation, commercial or industrial use, need a licence. A licence application carries a one-time application fee (minimum $250) and annual water rental fees that depend on the purpose and quantity.

If the lot already comes with a water licence, remember that its rights and obligations, including rental payments, are tied to the land, so a buyer takes on the licence and its rentals. Rights under a licence that is appurtenant to land pass with a conveyance of that land, and the owner must give written notice of the conveyance to the comptroller or a water manager before completing the disposition. Ask your lawyer to confirm who handles that notice.

If there is an existing well, have the water tested. Health Canada guidance says to test well water for microbes at least once every 6 months, and any E. coli in a sample means the water is unsafe to drink. Nitrate can only be found by a lab test, and a neighbour's well result cannot be relied on.

Sewage and septic

Without a municipal sewer connection, you will need an onsite system. Under the Sewerage System Regulation, an authorized person, a registered onsite wastewater practitioner for Type 1 and 2 systems or a professional who can also handle Type 3 systems, files with the health authority before construction. A letter of certification is due within 30 days of completing construction. Health authorities are not given an approval role over these filings, though health officers may review them.

What this means for you: a filing is not the same as an approval, so ask who will design the system and whether the lot's soil and size can support one. A site assessment before you remove subjects is worth considering.

Taxes, foreign-buyer rules and reporting

Property transfer tax is calculated on the fair market value of the property. The base rates are 1% of fair market value up to $200,000, 2% on the portion over $200,000 up to $2,000,000, and 3% on the portion over $2,000,000. A further 2% applies to residential value above $3,000,000. When the tax is payable on your purchase is worth confirming with your lawyer.

Foreign nationals, foreign corporations and taxable trustees may pay an additional tax of 20% of the fair market value of their share of the residential portion of property in a specified area. The specified areas are the Capital Regional District, Fraser Valley Regional District, Metro Vancouver Regional District, Regional District of Central Okanagan and Regional District of Nanaimo. Where title is shared with a Canadian citizen or permanent resident, only the foreign buyer's share is taxed. Whether a bare lot has a taxable residential portion depends on the facts, so confirm this before you rely on it.

The federal ban on purchases of residential property by non-Canadians has been announced to run to January 1, 2027. Property outside a census agglomeration or census metropolitan area is excluded from the definition of residential property. Vacant land is not listed as its own exception. Confirm the current status of the ban and whether your lot is covered.

Two other items may apply. A transferee applying to register an interest in land (a transfer of fee simple, transmission to a personal representative, or transmission to a surviving joint tenant) must file a transparency declaration under the Land Owner Transparency Act, and a transparency report is required only if the future registered owner is a reporting body such as a corporation, a trustee of a relevant trust or a partner of a relevant partnership. No transparency declaration is needed where the land is treaty land, self-governing First Nation land or reserve land; the applicant instead submits a Declaration of Exclusion from the Land Owner Transparency Act with the application. And in taxable areas, owners must make a speculation and vacancy tax declaration every year by March 31, even if nothing has changed.

What to do next

• Ask the local government about zoning, building permits and any conditions on the parcel.
• Check whether the lot is in the Agricultural Land Reserve.
• Confirm legal access from the title and survey documents.
• Plan for water: a connection, a well or a licence, and test any existing well.
• Plan for sewage: a sewer connection or an onsite system designed by an authorized person.
• Ask about property transfer tax, any additional tax and transparency filings.
• Build your findings into conditions in the contract before you remove subjects.

Because the checks above can take time, ask your lawyer early about realistic condition dates. Once subjects are removed, it is much harder to walk away.

Frequently asked questions