Category: Sample Documents

Seller financing of land in Nova ScotiaOne of the most common questions I hear is “How does the seller financing work?” When it comes to purchasing land in Nova Scotia, particularly in rural or undeveloped areas, buyers may find traditional bank financing challenging to secure. This is where seller financing comes in as a useful alternative. In a seller-financed land deal, the seller essentially becomes the lender, allowing the buyer to pay for the land over time, directly to the seller, rather than securing a loan from a bank. 

How does Seller Financing Work?

Here’s how seller financing (sometimes called owner financing) typically works:

  • Agreement on Terms: The buyer and seller negotiate terms such as the interest rate, loan term, and any down payment required. These terms can be more flexible than those offered by traditional lenders.
  • Legal Documentation: A Purchase & Sale Agreement is created, outlining the buyer’s obligation to pay the agreed-upon amount, the loan term, the interest rate, and any conditions on their use of the land during the loan term. This document is legally binding, and both parties can involve legal representation to ensure everything is in order. You can find a sample purchase and sale agreement here.
  • Title Transfer: Typically the seller will retain the title to the property until the loan is paid off, at which point the deed is transferred to the buyer with the help of a lawyer. 

Seller financing can be structured in various ways, depending on the needs of both parties. In my case, I keep it simple:

  • I look at the current interest rates for the big banks and set a similar interest rate for the loan
  • I share a loan calculator (like this one from Lari.ca or this one from The Globe & Mail) with the potential buyer so they can look at the cost of payments over multiple timeframes (3 years, 5 years, etc.). Once they find a loan duration and a monthly payment amount that suits them, that gets recorded in the purchase and sale agreement
  • An initial downpayment is sometimes included
  • The agreement includes the ability for the buyer to make additional payments at any time in order to reduce the loan term
  • All payments are recorded in a shared online document, which also functions as a receipt for the buyer

Advantages of Seller Financing

Seller financing offers a range of benefits for both buyers and sellers, making it a flexible and appealing option for land transactions in Nova Scotia.

  1. Easier Qualification Process One of the biggest advantages of seller financing is that it’s often easier to qualify for than traditional bank loans. Buyers who may have difficulty securing financing through a bank—whether due to a lack of credit history, unconventional income, or other reasons—can still purchase land through a seller-financed deal. 
  2. Flexible Terms Seller financing allows for more customized terms than conventional loans. The buyer and seller can negotiate the interest rate, the size of the down payment, the length of the loan, and the repayment schedule. This flexibility can be particularly helpful for buyers who need creative solutions to make the purchase feasible. For example, a buyer and seller may agree on a smaller down payment or a longer repayment period, making the purchase more manageable for the buyer.
  3. Faster Transaction Because seller financing bypasses the need for bank involvement, the transaction process can be significantly faster. There’s no need to wait for bank approvals or jump through the hoops required by traditional mortgage providers. Once both parties agree on the terms, the deal can close quickly, allowing the buyer to take possession of the land without any delay. 
  4. Potential for Lower Purchase Costs By arranging a financial agreement directly between buyer and seller, the buyer can avoid paying realtor fees, resulting in savings that are typically reflected in the asking price of the land.

How to Structure a Seller Financing Deal for Land

When structuring a seller-financed deal for land in Nova Scotia, there are a few key components to consider. 

  1. Down Payment In some cases, sellers may ask for a down payment as a show of commitment from the buyer. This is negotiated as part of the Purchase and Sale agreement.
  2. Interest Rates In a seller-financed deal, the interest rate is often negotiable. It may be higher than the rate offered by traditional lenders because the seller is taking on more risk by financing the deal directly. However, with negotiation, buyers and sellers can arrive at a rate that is fair for both parties. Interest rates in seller-financed agreements can vary greatly, and they may be influenced by factors such as the size of the down payment and the length of the loan term.
  3. Term Lengths and Repayment Plans Seller-financed land deals often have shorter terms than traditional mortgages. Five years is a common choice, but it could certainly be more or less. Most seller financing agreements involve monthly payments of both principal and interest, similar to a traditional loan.

Seller Financing: Risks and Considerations

While seller financing offers flexibility and advantages, it’s important for both buyers and sellers to be aware of the risks involved.

For Buyers:

  • Higher Interest Rates: Interest rates in seller-financed deals may be higher than those offered by traditional lenders, making the purchase more expensive over time.
  • Default Risk: Most agreements will include wording about how missed payments are handled. That could involve additional interest costs for the buyer. In addition, many agreements will stipulate that if a payment is not received over a specific period (say, 6 months), the agreement is null and void. If you’ve paid off half of the property cost but can no longer make payments, you most definitely won’t own half the land – you’ll have nothing.
  • Lack of Traditional Protections: Without the involvement of a bank, some of the safeguards that typically protect buyers in traditional financing arrangements, such as a thorough vetting of the property through an appraisal process, may not be as rigorous.

For Sellers:

  • Misuse of Land: While a purchase and sale agreement typically includes provisions for how the buyer can use the land during the loan term, it is difficult to cover every scenario. Actions such as harvesting timber, or dumping waste on your land, can reduce the value of your property.
  • Management of Payments: Unlike a bank, the seller is responsible for managing and collecting payments over the course of the loan term.
  • Legal Considerations: A poorly structured agreement could leave the seller vulnerable to legal disputes or financial loss. It’s crucial to draft a well-constructed contract.

How to Find Seller Financing Opportunities in Nova Scotia

Seller financing opportunities may not always be advertised, so it’s important to know where to look and how to approach landowners who might be open to this arrangement.

  1. Working with Real Estate Agents Many real estate agents in Nova Scotia are familiar with seller financing and can help connect buyers with sellers who are open to this option. It’s a good idea to work with an agent who specializes in land transactions, as they will have the most relevant contacts and experience. If you are selling a property via MLS, you can have your realtor include details of seller financing options in the listing. You might need to persist on this point – some realtors very much prefer the ease and speed of the traditional lump-sum cheque that closes the deal.
  2. Online Land Listings and Classifieds Several online platforms specialize in land sales and may offer filtering options to find seller-financed properties. Websites like Kijiji, Facebook groups such as ‘LAND for sale in Nova Scotia’, private land sale websites, or even specialized real estate platforms for rural properties can be helpful.

Additional Costs with Seller Financing

There’s no magic method for avoiding the standard closing costs paid to Nova Scotia real estate lawyers for a real estate transaction. Having the deed transferred and registered involves a cost for both the buyer and seller. In my experience this ranges from $400 to $900 for the seller, and typically costs a bit less for the buyer. Here is what the lawyer provides: Preparation of warranty deed, preparing deed transfer tax affidavit, forwarding Warranty Deed to Land Registry Office, receipt of filed deed from Land Registry Office and delivery of report to client.

Example of a Seller Financing Deal

In this scenario, a buyer wants to purchase a 50-acre plot of undeveloped land in Cape Breton for $80,000:

  • Down Payment: The buyer negotiates a 10% down payment of $8,000 with the seller ($8,000).
  • Interest Rate: They agree on an interest rate of 6%.
  • Loan Term: The loan is structured over 7 years, with monthly payments of principal and interest. The monthly payment amount is $1,051.82
  • Cost of Borrowing: Over the 7-year term, the buyer will pay $16,352.54 in interest. That’s significant, but they will benefit from buying now in two ways: a) they’ve locked in the purchase price and any appreciation over the seven years will add to the value of their investment, and b) they can use the land immediately within the boundaries of their agreement
  • Legal Documents: A Purchase and Sale Agreement is drafted and reviewed by lawyers for each party. Once all payments are completed, the deed is transferred to the buyer. The buyer may use the land during the loan term as long as it’s in accordance to the terms of the agreement. 

This arrangement allows the buyer to purchase the land without going through traditional financing, while the seller benefits from earning interest on the loan over time.

Seller financing is an excellent option for buyers looking to purchase land in Nova Scotia. It provides flexibility, faster transactions, and an opportunity for buyers who may not qualify for traditional bank loans. However, both parties must carefully structure the deal, be aware of the risks involved, and seek proper legal and tax advice to ensure the transaction is successful and beneficial for both sides.

 

Dont forget! While seller financing is a useful means for obtaining funding for a land purchase in Nova Scotia, you’ll still want to follow all of the best practices on this site for finding high-value land. That includes topics such as: 

 

Since launching BuyLandNS.ca, I’ve had several people reach out to me for help in the process of either buying or selling plots of land in Nova Scotia. Most of my advice is captured in the buyer’s guide to buying land in Nova Scotia, but I do get questions on things it doesn’t cover. Many times people are interested in the process of buying land through a private sale agreement between the two parties. There’s good reason for private sales:

  • The seller can usually save at minimum $3,000 in realtor commissions, savings they can choose to share with the buyer through a lower purchase price  
  • The buyer and seller might choose to arrange seller financing, where the buyer pays for the land in installments over time according to the terms of the purchase and sale agreement
  • Vacant land sales are often less complicated than commercial or residential buildings, requiring less of the professional support and advice that a realtor provides. 

I will say this: realtors can offer amazing value on land transactions. I’ve sold both privately and through realtors. Realtors can bring a lot of wisdom to the process, deal with a lot of inquiries from prospective buyers, and potentially get you top dollar for your land through the great reach of MLS listings which appear on sites like Viewpoint.ca and Remaxnova.

If you feel a private sale is right for you, there’s some things you should be prepared to do:

  1. Have a good Nova Scotia real estate lawyer available to review your documents and to complete the closing process. There are steps like deed transfer and title registration that you need a lawyer to help with. In my experience this costs about $600-800 for a typical parcel of land. Also, if your property needs to be migrated, you’ll need their help for that prior to sale – add another $1,200-$1,400 to your selling cost.
  2. Document your sales terms carefully in a Land Purchase & Sale Agreement. This is the most important document and you want to be sure it’s defensible if the deal goes awry. I worked with a good lawyer to create a purchase and sale agreement. On the next property I sold, I added additional terms based on things I’d learned. I’ve included a generic version of that Land Purchase & Sale Agreement below. It also includes a very simple payment schedule for seller financing.

IMPORTANT NOTE: I am sharing this document as a sample only. I am not a lawyer – in fact, 10 out of 10 lawyers agree I am not a lawyer 🙂  This post and the sample purchase and sale agreement do not constitute legal advice, which only your  Nova Scotia real estate lawyer can give.

SAMPLE PURCHASE AND SALE AGREEMENT – VACANT LAND IN NOVA SCOTIA

THIS PURCHASE & SALE AGREEMENT dated the XXth day of (Month), (Year) 

BETWEEN: 

(SELLER’S NAME), of (CITY), in the Province of (PROVINCE) 

(hereinafter called the “Vendor”) 

– and – 

(BUYER’S NAME), of (CITY), in the Province of  (PROVINCE) 

(hereinafter called the “Purchaser”) 

WHEREAS the Vendor is the Owner in fee simple of certain real property known as ADDRESS – LOCATION, also known as PID (insert #) (hereinafter  called the “Property”); 

AND WHEREAS the Purchaser wishes to purchase the Property from the Vendor on the terms and  conditions contained herein (hereinafter called the “Agreement”). 

NOW THIS AGREEMENT WITNESSETH as follows: 

  1. The Vendor agrees to sell to the Purchaser and the Purchaser agrees to purchase from the Vendor  the Property for the sum of XXXX Thousand Dollars ($XXXX.00) of lawful money of  Canada (hereinafter called the “Purchase Price”): 

(a) The Purchaser agrees to pay the Purchase Price for the Property in three separate installments  directly to the Vendor as follows: 

  1. First payment: $XXXX.00 upon signing of this agreement by the Purchaser; 
  2. Second payment: $XXXX within thirty (30) days of the signing of this  agreement by the Purchaser; 

iii. Third and final payment: $XXXX.00 within ninety (90) days of the signing of  this agreement by the Purchaser; 

(b) In the event that the Purchaser fails to provide any of the above-mentioned payments on or  before the deadlines set out therein, the Purchaser shall incur a five percent (5%) interest  penalty on all late payments, calculated monthly. 

(c) In the event that the Purchaser fails to provide the minimum amount of $(FIRST PAYMENT AMOUNT) by  (DATE), (YEAR), then this agreement is null and void. 

(d) The payments made by the Purchaser shall be non-refundable at the absolute discretion of the  Vendor in the event that the Purchaser does not complete the Agreement. 

(e) The payments made by the Purchaser shall be made to the Vendor by method of electronic  transfer (e-transfer), bank draft or wire order to the Vendor. 

  1. Upon the signing of this Agreement and the first payment referred to in Clause 1(a)(i), the  Purchaser shall have the right to enter upon the property to inspect the Property for building or  logging. 
  2. The Purchaser shall have no right to conduct any operations, including logging or obtaining  building permits, on the Property until the Closing Date, unless approved in writing by the  Vendor.  
  3. This Agreement shall be completed on or before ninety (90) days of the signing of this agreement by  the Purchaser (hereinafter called the “Closing Date”), or any other date as agreed in writing between the parties in the event that the Purchaser fails to provide payments in accordance with 1(a) or 1(c). 
  4. The Vendor and the Purchaser agree that they are each responsible for their own separate legal  fees and disbursements. 
  5. The Vendor agrees to migrate the Title to the Property from the Registry System under the Registry  Act to the Land Registration System under the Land Registration Act prior to the Closing Date.  However, if any valid objection to title is made in writing to the Vendor, which the Vendor is  unable or unwilling to remove, and which the Purchaser will not waive, this Agreement shall be  null and void.  
  6. The Property is vacant land and is being purchased as is/where is with the Vendor making no warranties or representations to the Purchaser, except those referred to in this Agreement. 
  7. The Vendor is to furnish the Purchaser with the applicable PIDs for the Property, after receipt  whereof the Purchaser is allowed seven (7) days from the date thereof to investigate the title to the  Property, which they shall do at their own expense. If within that time any valid objection to title is  made in writing to the Vendor, which the Vendor shall be unable or unwilling to remove and which  the Purchaser will not waive, this Agreement shall be null and void. 
  8. The conveyance of the Property which is subject of this Agreement shall be by Warranty Deed,  drawn at the expense of the Vendor, to be delivered on payment of the purchase price on the Closing  Date. The Property is to be conveyed free from other encumbrances, except as to any easements,  registered restrictions or covenants that affect the Property and do not materially affect the enjoyment  of the Property. 
  9. All lands, buildings, fixtures and all other Property being purchased hereby, shall be and remain at  the risk of the Vendor. Pending completion of the sale, the Vendor will hold all insurance policies  and the proceeds thereof in trust for the parties as their interests may appear and in event of damage  to the said Property, the Purchaser may either have the proceeds of the insurance and complete the  purchase or may cancel the Agreement and have all monies theretofore paid returned without  interest. 
  10. Interest, rentals, taxes, rates on the premises and assessments are to be adjusted to the date of closing. The cost of municipal improvements, (including, but without limiting the generality of the phrase  “municipal improvements”, betterment charges and capital charges for utility or municipal services)  completed as of the date of this Agreement, are to be paid by the Vendor on or before the Closing  Date, unless otherwise stated. 
  11. Except as otherwise provided in this Agreement, if this transaction is subject to the Harmonized  Sales Tax imposed in the Province of Nova Scotia, and hereafter referred to as “HST”, then such HST shall be included in the Purchase Price and will be remitted in accordance with the applicable  legislation. If this transaction is not subject to HST, the Vendor agrees to provide, on or before  closing, to the Purchaser, a certificate in a form reasonably satisfactory to the Purchaser, certifying  that the transaction is not subject to HST. 
  12. Any tender of documents to be delivered or money payable hereunder may be made upon the Vendor  or the Purchaser or any party acting for them and money to be legal tender. 
  13. All warranties and representations contained in this Agreement shall survive the closing unless  otherwise stated in this Agreement. 
  14. Time shall in all respects be of the essence in the Agreement. In the event of a written Agreement of  extension, time shall continue to be of the essence. 
  15. This Agreement shall enure the benefit of and be binding upon the parties hereto, their respective  heirs, executors, administrators, successors and assigns. 
  16. This Agreement may be executed in counterparts, each of which when delivered will be deemed to  be an original and all of which together will constitute one and the same document and each party  will be entitled to rely on delivery by facsimile machine or by scanned email of an executed copy of  this Agreement as proof that the original has been executed by a party in the manner shown on the  faxed or emailed copy so as to create a valid and binding Agreement among the parties whose  execution is so evidenced as if such parties had delivered an originally executed Agreement in the  manner shown on the faxed or emailed copy. 
  17. This Agreement is to be read with all changes of gender or number required of the context. 

DATED at (CITY), in the Province of (PROVINCE) on the XXth day of (MONTH), (YEAR). 

SIGNED, SEALED AND DELIVERED 

in the presence of: 

(SIGNATURE)

________________________________________ Witness to (Seller) SELLER’S NAME

DATED at _________________, in the Province of (PROVINCE) on the ____ day of (MONTH), (YEAR). 

SIGNED, SEALED AND DELIVERED  in the presence of: _____________________ ___________________________________ Witness to (NAME) 

 

I hope you’ve found this information helpful. If you’re looking for more on buying plots of land for sale in Nova Scotia, check out our buyer’s guide. 

 

Contents

 

Cape Breton Island

Buyer’s Guide: How to Buy Land in Nova Scotia

Who is this guide for?

I have driven all over Nova Scotia in search of prize parcels of land, gems tucked away in forests or remote coastlines that few have visited. I’ve seen places I’ll never forget. In writing this guide however, I’m quite aware that not everyone can devote such time and energy to their search for land. So here’s the first bit of good news – 90% of the work can be done from any laptop anywhere in the world. With the range of data and satellite mapping available today, you can get an in-depth view of any land parcel from Barrington to the top of Cape Breton. This document will hopefully be useful to everyone with an inclination to buy acres, but hopefully particularly valuable for those at a distance such as out-of-province buyers.

Why buy land?

Let’s start with the fundamental question of “why?” There are SO MANY reasons that buying land in Nova Scotia is a smart move. I’ll describe some here:

  • Appreciation potential: unlike your car, your TV or your laptop that decrease in value for each year you own them, land is an asset that generally appreciates in value over time. And the best part is this appreciation happens passively through market forces – you can literally do nothing and watch your real estate values increase.
  • Land is a fixed commodity: Money gets printed, new corporate stocks get issued, new cryptocurrencies and NFTs pop up daily – there are no expansion limits to these assets. Land, on the other hand, has a finite supply, No government or billionaire is issuing new land. It has a lasting value that is more durable and predictable than other asset classes.
  • Low carrying costs: Owning a home, whether you live in it or not, involves significant upkeep and maintenance costs, plus taxes and insurance. Land, should you choose to leave it, will hold its value at very little cost to you. Most land owners pay only property taxes to maintain their land. We’ll dive into property taxes and assessments later – but suffice to say, the costs are minimal.
  • Land has many uses: I tend to look for land that has potential for a great residential home or cabin. Others are looking for farmland or pasture. Forestry is a big industry in Nova Scotia as well. You can lease land for hunting or camping. And then there are many commercial / small business uses as well.
  • Environment, sustainability and climate change: Natural land, particularly forested areas, have a beneficial effect on limiting climate change. Forests sequester twice as much carbon as they produce (wri.org). If you’re looking to improve your carbon footprint and achieve net-zero, sustainably managed forest lands can help you achieve that goal. You can also play a role in protecting natural habitats and flora and fauna.
  • Land use opportunities are evolving: Voluntary carbon credit markets are expanding rapidly and the projected value of carbon credits is poised for rapid growth. Initiatives like  the Family Forest Carbon Program are generating new revenue for woodlot owners who simply maintain a healthy forest. This activity generates carbon credits that have commercial value. We have yet to see these programs fully expand to Canada, but expect it will be soon. 
  • Leaving behind a legacy: What better inheritance for your successors than a beautiful place on Earth? Land is often passed down through multiple generations, making it a generous gift that has new potential with the next generation.

Why buy in Nova Scotia?

Appreciation potential: According to Statistics Canada, the average price per acre of “farmland with buildings” in Nova Scotia has increased over 40% in the last 10 years. But this is just an average – hot markets and unique properties (e.g. waterfront) have the potential for very strong return on investment.

Natural beauty: There’s only so much oceanfront in the world, and Nova Scotia certainly has its fair share. Add to that all the lakes and forests and rivers, and the diverse landscapes from the Annapolis Valley to the Cape Breton Highlands, and you’ve got something unique. 

Affordability: Nova Scotia is among the most affordable places to buy land in Canada, according to Statistics Canada, ranking behind only Manitoba and virtually equivalent to Saskatchewan. By comparison, land in Ontario is nearly 5x more expensive. Check out our post on Nova Scotia vacant land sales statistics.

 

Where should I buy?

It’s a critical question. Nova Scotia has so much range in terms of geography, climate, access to infrastructure, land cost, and employment opportunities. So naturally the choice will vary based on your needs. You should start by narrowing it down to a cluster of counties.

You can use some data here to help with your search. Are you looking for urban areas, or remote getaways? Population data provides a clue to that, particularly the last column below “population density”.

As for climate, there are certainly differences between counties, but I find these are overstated relative to the facts. The South Shore municipalities (Shelburne, Yarmouth, etc.) have milder winters due to Gulf Stream currents, whereas the more northern areas like Inverness is slightly colder due to the colder waters of the Gulf of St. Lawrence.

 

I have spent time in most, but not all, Nova Scotia counties. It’s so hard to generalize all those experiences, but here’s a few observations:

  • Halifax is of course the epicentre, and generally land values are highest there and radiate outward
  • South shore municipalities have milder winters, more fog, and are generally more remote
  • Annapolis Valley is the spot of choice for farm produce
  • Inverness and Cape Breton have higher elevation levels, providing the best mountain views

 

How to buy land in Nova Scotia

The most common method is through a realtor, which follows many of the same steps as purchasing a house. I’ll deal more with private sales here, which is what a lot of people ask about.

 

Buying through a Nova Scotia realtor: Local is always best. Find a realtor who lives and works in the vicinity that you’re searching. Talk to a few, and ask questions about their expertise in land, their commissions, and how they will help with your search. Once you’ve found a good fit, they’ll issue a contract. Read it carefully – you’re making a commitment to be their exclusive client for (how many months?) for any land purchases in (how big of an area?). These are boundaries and obligations you need to be aware of. If you’re out of province, a good realtor will do most of the looking for you and filter it down to the best opportunities. If you’re bold and trusting, you can buy the land sight-unseen – my recommendation will always be to visit and walk the property.

 

Buying through private sale: There is a huge hidden market in Nova Scotia of landholders who aren’t marketing their properties through MLS. I’ll dig in to how to find these opportunities later. A private sale is simply the purchase of a good between one party and another. It’s quite simple, but of course there are some important factors to watch for. Done right, it’s quick, painless, and commission-free!

 

Other methods of buying land: There are tax sales and foreclosure sales happening all the time. While I have fairly deep experience with these methods, they are not for your average buyer and I won’t go into detail here. There are also some great methods for buying land that is not for sale that I’ll cover in a future post.

 

Finding land to buy

Here we’ll cover the traditional method of finding land to purchase, as well as some lesser-known methods.

 

Real estate sites/apps: The global real estate sites such as realtor.ca, point2homes, zillow etc. will likely have some listings, but I prefer to use a regionally focused site. I’ll zoom in on the two that I use. Note that I’m almost always looking using a map as my main frame of reference, so for me a good map that plots land for sale is key.

  • Viewpoint.ca: Viewpoint is focused exclusively on Nova Scotia. It’s a website with MLS listings as you’ll find elsewhere, but for me it stands out for the quality of its user interface, the integration of valuable data points, and some handy tools.
  • RemaxNova: ReMax’s Nova Scotia focused web property is far better than those I’ve seen for other provinces, primarily for its quality map view and associated tools. 

I will dive into some power user tips for these two properties a bit later in this document.

 

Classified Listings: You’ll find land for sale in local publications and their online properties. I find these a bit cumbersome and low-value based on my limited experience. Kijiji.ca is a faster alternative and has categories devoted to land for sale. 

 

Facebook Groups: There is at least one Facebook group devoted to land for sale in Nova Scotia. Want to join it – search for “land for sale in Nova Scotia” 

 

If you’ve narrowed your search to some key specifics (e.g. Lunenburg County, 6-10 acres with lake or river access), try posting a “wanted” post in Kijiji or a Facebook Group. It’s an easy way to reach out to private sellers who may have exactly what you need, without the competition of all the potential buyers browsing available MLS listings.

 

What’s in a Land Listing?

There’s a lot of detail in a typical listing of land for sale, so let’s take a look at the meaning and importance of these data points. Here’s a typical listing of land for sale from Viewpoint.ca:

There’s some vital information here, some of which is obvious (e.g. price), and others that may require some explanation:

PID: The Property ID is the most valuable identifier of a land parcel. It’s a unique number that allows you to find that land and the boundaries of it through the various tools I describe in this guide. Sellers will usually include the PID when they reference a plot they have for sale, but if they don’t it should be the first piece of information you ask for. It’s essential – that’s why it’s top of the list for our good questions to ask when buying land.

Assessment value & Tax: These figures show the assessed value of the land, as well as the annual tax that is levied on the owner, which is based on Nova Scotia municipal tax rates. All of Nova Scotia’s property assessments are provided annually by Property Valuation Services Corporation (PVSC). As they explain on their site, assessment value is intended to reflect market value (what it would sell for), but never assume the two are the same. Actual market values can vary widely from assessment values, usually higher in a market with active buying and selling. It is however a useful reference point for looking at the relative value of the land compared to the selling price, and provides a clear indication of what the taxes will be (with some variance year to year).

Like the PID, each parcel of land is attached a unique number that relates to the assessed value. This is the AAN or AANN. In Viewpoint, hovering over this listing on the map reveals the AAN number. It’s important to know this number as well. You can use it to do a lookup on pvsc.ca and find valuable additional information on the property.

PCDS: This stands for Property Condition Disclosure Statement or PDS for Property Disclosure Statement. Here is more info from the Nova Scotia Real Estate Commission. Now here’s my take on it. Buying land vs. buying a home or commercial real estate involves different risks and different forms of due diligence. Some examples:

  • A home may have a leaky oil tank that creates soil contamination. A good home inspector and possibly an environmental assessment may be required.
  • A home may have an under-the-radar extension to it that is not up to code and has no associated permit with the municipality. Again, a good home inspection can help. 

Land, on the other hand, has different types of risks.

  • Coastal properties may suffer from increased flooding or erosion risk due to rising water levels
  • Land that appears nice and dry in good weather may be flooded and soggy 9 months of the year

Most land that I see, have purchased or sold, is as nature built it, with few signs of human influence. With these types of properties, I’m mainly looking for nature-based risks that would diminish the land’s value. If there’s a run-down sawmill on the property, whole different ball game – more due diligence required.

Bottom line is a PCDS or PDS is a good idea if you’re purchasing a building. Land that is unused has less risk, and I would not suggest limiting your search to those that offer PCDS documents as those are exceedingly rare based on my experience.

Lot Size: Fairly obvious, but occasionally you’ll be required to compare square feet against acres against hectares. Square feet is common to most people. There are 43,560 square feet in one acre. Got it? Here’s an easier reference… remember your old high school football field? Include the end zones and now you’re picturing what one acre looks like. So eight acres is 8 football fields. A hectare is 2.47 acres  – let’s just stick with acres!

The smallest lot I have purchased in Nova Scotia was 21,000 square feet, so almost a half acre. The largest was 204 acres. The median size lot for a typical city dweller is 7,700 square feet – but unless you’re looking at something in metropolitan Halifax, you’ll likely want something larger to give yourself room to roam!

A good property search tool like Viewpoint or ReMaxNova will also allow you to see sales history for the lot, as well as tax assessment history and other details. 

So what can you not tell from a listing? Some pretty vital details:

  • Accessibility: Is it accessible by a 4-season, well-maintained road? Is it landlocked?
  • Proximity to…: where’s the nearest gas station, store, town, hospital, school? How far to the nearest lake or ocean?
  • Views: Can you see the ocean? Does it have elevation that allows you to watch the sunset? These can be factors that affect price dramatically.
  • Terrain: what is the land made up of? Forest, meadow, marsh?
  • Timber value: has it been clear-cut recently? Is there commercial value in the standing timber?
  • Zoning uses: Can you build on it? We’ve compiled a complete list of Nova Scotia land use bylaws and zoning maps for each county and municipality.
  • Access to power: are there hydro lines in the vicinity?
  • Sewage and water: The most common method in rural lands is a well and a septic tank, but some areas have access to municipal sewer and water lines

 

Power User tips for reviewing online land listings

Here are the most useful tips I’ve found for reviewing land listings. Hopefully they save you as much time as they’ve save me!

  • Filters, filters, filters: Often the most meaningful method you’ll find for evaluating the market value of land comes from comparable sales of similar land lots in the vicinity. I look for land lots of similar size and quality as close as possible. Two filters are useful here:
    • ReMaxNova has a filter for “Class”, and you can select “vacant land” to see only listings of this type. This is handy, but I don’t use it exclusively – seeing nearby home sale values is also a good indicator of land value.
    • A good map like Viewpoint or ReMaxNova will allow you to toggle on/off listings that are “active”, “pending” or “sold”. Very useful for comparing against land you’re looking at. Active listings are useful, but bear in mind some sell for less than asking price. Pending sales are a better indicator of actual value, and sold listings are genuine money in the bank.

Use filters to compare against similar properties sold in the vicinity.

  • View terrain through multiple lenses: ReMaxNova uses a different satellite imagery system than Google Earth. Why is this important? A view that shows a lush forest in one might be clear-cut in the other. A dry area in one might be flooded in the other. Scanning multiple views gives you more pictures from above and a more accurate picture. You can also see a topographic view of the land, showing elevation, marshy areas and other natural highlights – very useful for spotting swampland!
  • Note the date of the satellite imagery: Sources like Viewpoint that pull in Google Maps imagery will always list the copyright as “Google (current year)”. Viewing that same image in Google Maps will show you the actual year it was taken, sometimes more than a decade ago! I’ll deliberately go to Google Maps to determine how old the satellite photos are.
  • Always look at Street View, when available: Viewpoint nicely integrates Google’s Street View so you can zoom in on listings and get a much closer look. This really gives you a feel for the terrain as well as the quality of the property and other important factors like road conditions, views from the property, etc. There are many rural areas that are not mapped with Street View however. In these cases, you sometimes you can get a view from a nearby road – not as useful but still gives you an impression of the landscape, tree height, forest quality, etc.

Street View is a great way to get a closer look at an area, noting property views, access to power lines, and terrain quality. Viewpoint integrates this view, but go to Google Maps directly to note the actual year of the satellite imagery (in this case 2018)

A handy measuring tool: Viewpoint has a great “measuring tool” feature that allows you to pick points on a map and easily measure the distance in between. Extremely useful. Update: RemaxNova has a handy measuring tool as well! And it works well on the mobile view of their site too. 

Is there room for a driveway? Viewpoint’s measuring tool helps you find out.

 

Things you can’t see on a map

There are of course many important details that a map view won’t illuminate. The two main ones are zoning details and title issues.

 

Zoning Bylaws

Zoning refers to land use bylaws of the local municipality. These are highly localized to the specific area – no one-size-fits-all answers. If there’s a realtor involved on the buying or selling side, they should be able to inform you of the zoning and the relevant uses. For a private sale, searching within the municipality may yield some luck. UPDATE! Search no further my friend… we’ve compiled links to all Nova Scotia land zoning maps and land use bylaws for every region in Nova Scotia.  

 

Let’s use an example. I have a 14-acre lot near the Cabot Trail that falls under the jurisdiction of the County of Inverness. Through our handy list of all Nova Scotia zoning maps I was able to find the zoning map for Inverness and determine that my lot is zoned as RR-1 – Rural-Residential. From there it’s a matter of digging into the relevant local land use bylaw. These are long documents that contain all the ordinances associated with each type of zone. For RR1, for example, the following land uses are permitted: 

  • Single detached dwelling  
  • Duplex and Semi-detached dwellings  
  • Converted dwelling up to two units  
  • Mobile homes subject to setback requirements  
  • Cottages and other seasonal dwellings  
  • Tourist and guest homes  
  • Agricultural uses including barns and stables  
  • Forestry uses  
  • Post offices  
  • Community centres  
  • School, churches, cemeteries and other similar institutional uses  
  • Recreational uses such as parks and playgrounds, golf courses, beaches and associated buildings and uses  
  • Campgrounds and associated uses  
  • Existing Mobile Homes which are located within the 300 foot setback requirement from the Cabot Trail 

The document also contains provisions for minimum yard space and maximum height of buildings. Now, this is an example of when you fairly easily find what you’re looking for. In many cases you won’t – you can always get in touch with the municipality if you need a definitive answer.  Adhering to Nova Scotia’s zoning bylaws is quite important and it’s a good idea to review these provisions in detail, even if you have a realtor summarizing the information for you. If you have a specific plan in mind for the lot (e.g. building a summer campground) talking directly with the person who approves permits could provide you with some vital information for your go/no-go decision.

 

Title Issues

Title refers to the legal documents binding the land to a specific owner, as well as details and provisions specific to that land. It includes, among other things:

  • The various deeds associated with the property over the years
  • A map of the property
  • Easements and rights of way (often included in the deeds mentioned above). These are especially important when land appears landlocked (no road in) or if there are shared private laneways or driveways. You’ll also find that many easements exist for logging operations within Nova Scotia.
  • Claimholders on the property (e.g. mortgage owner)

Title reviews and issues are often the realm of Nova Scotia real estate lawyers, and I’m not one. Typically a title review is a step undertaken by a lawyer late in the purchase process. It ensures the land is indeed owned as indicated and identifies any potential red flags for the buyer. 

 

You can, however, gain access to the database that houses all documents related to properties in Nova Scotia. Access Nova Scotia’s Property Online (POL) database is available to subscribers for roughly $100 monthly (as of March 2023). I pay this fee and use this land registry database as an essential component of due diligence as I research properties. For buyers who are considering a private sale of Nova Scotia land, as an early step in their process, I recommend conducting a title search using Property Online’s Land Registry.

 

Closing the purchase of your land

Much like buying a house, the purchase of land involves the following steps. Usually there’s a series of questions from seller to buyer (directly in a private sale, or through a realtor when one is involved). There are a lot of important things to look into and ask about, which is why we compiled our list of Good (and bad) questions to ask when buying land in Nova Scotia.

Once the potential buyer has all the information they need, the next steps are:

  • Negotiation, or the presentation of a written offer
  • Signed acceptance of the offer and associated terms
  • Deposit delivered by buyer within a specified timeframe
  • Title search and deed transferal / registration conducted by the buyer’s real estate lawyer

I’m not going to dive into a lot of detail on these steps as they are pretty straightforward and likely better explained by a realtor or a lawyer. I will comment however on some differences associated with a private sale of land.

 

Private Sales and Seller Financing

Private sales are typically less formal and more flexible. There is a period of questions and answers between the buyer and seller, warming up to negotiations and an offer. There is room for unorthodox financing methods: I’ve had a potential buyer offer me to trade his truck for land, for example. Seller financing is a flexible option in private sales. When the buyer is willing, they can work with the seller to establish terms of payment on a set schedule. Typically the deed is not transferred until payments are complete. An important discussion point in these agreements is how the land can be used while payments are being made. Can the buyer begin to develop the property? Can trees be cut down? Sellers will be cautious due to liability concerns, so ensure that these points are talked through and jointly understood.

When all factors align, a Nova Scotia real estate lawyer is engaged to draft a sale agreement. This specifies the sale price, deposit amount, terms of payment, and when/how the deed is transferred. As a buyer, you should engage a lawyer to review this document in detail. Most agreements are fairly standard, but you don’t want to regret something later. Below is a fairly basic and standard template of the steps involved in a sale with seller financing. We’ve also added a sample Purchase & Sale Agreement for vacant land in Nova Scotia, with seller financing terms included. It’s important that your agreement includes any loan conditions such as downpayment, interest rates, and payment intervals. You can use an online loan calculator to determine these amounts. 

  Action Owner

Description

1.

 Review confirmation of ownership Buyer

Attached document provided as proof of title ownership
2. Send initial deposit (e-transfer) Buyer

$XXX deposit, refundable if sale agreement is not signed. Once received, owner will pause all advertising and negotiations with other buyers. Receipt provided by Owner.
3.  Lawyer engaged to migrate land and create sale agreement  Owner

(Name of) law firm engaged to migrate property and draft sales agreement. Legal fees paid by Owner.
4.  Review and signing of Sale Agreement Buyer

Sale agreement specifies downpayment, monthly payment terms, conditions of sale.
5.  Downpayment sent to Owner Buyer

$XX,XXX delivered to Owner
6.  Access to land  Buyer

Buyer is granted access to land upon delivery of downpayment, subject to usage terms of sale agreement. 
7. Monthly payments  Buyer

Monthly e-transfers to owner based on sale agreement schedule. Written confirmation of payments provided by owner. 
8. Deed Transfer Owner

Upon completion of final payment, Owner will transfer title of deed to Buyer. 

Do I need insurance on vacant land?

I’ve been asked by land buyers whether they should hold an insurance policy on their land. The short-but-not-terribly-helpful answer is: it depends. I won’t give a prescriptive answer, just my opinion – and of course you might want to consult with your lawyer. I have multiple lots of vacant land, in remote areas. I don’t lease it out for hunting, I don’t grant permission for access to hikers or snowmobilers, I’m not aware of any open wells or … pit mines… someone might fall into, and I’m not located in shared paths that others might tread. So, no insurance for me at this time. Should someone trespass on my land and injure themselves, I’m fairly confident that I won’t be held liable, so I take that risk. There’s no excuse for negligence however, regardless of the insurance you carry – if there are hazards on your land, take appropriate action to ensure no one gets hurt.

On the other hand, if you have a shared right of way on your property, or agree for any reason to allow others to access your land, it’s worth looking into. Also, if your property has value in the form of standing timber, fire insurance is something to consider. 

Is there HST or other tax on land sales?

Most sales of vacant land by individuals are exempt from HST, in Nova Scotia and across Canada. According to the CRA information sheet,  examples of exempt sales are:

  • the sale of land that had been kept for personal use; or
  • the sale to a relative (or to a former spouse or common-law partner) for their personal use of a parcel of land created by subdividing another parcel.

However, there are situations when sales of land by individuals may be taxable. Examples of taxable sales include:

  • the sale of land that is capital property that had been used primarily in a business;
  • the sale of land in the course of a business; or
  • the sale of a parcel of land created by subdividing another parcel into more than two parts.

Based on these definitions, the sale of farm land in Nova Scotia is generally taxable at the HST rate of 15%, but there are some allowable exceptions. 

As a buyer, you don’t need to know the specifics of the tax code re: HST applicability. That’s up the to the seller to determine. Just make sure you know whether HST is included, additional to, or not applicable on the sale of the property in question.

If you are out of province, you should definitely be aware of Nova Scotia’s non-resident deed transfer tax, which is 5%. For more on this, view our blog post on the non-resident deed transfer tax. Lastly, for a full round-up of the taxes that may be applicable on a sale/purchase of land, visit our post on Taxes on Land Sales in Nova Scotia.

 

Conclusion

Owning a portion of Nova Scotia’s natural beauty is something unique and special. I hope you found my tips, advice and information useful, and I hope your search is fruitful in terms of landing you the place of your dreams.  Another piece of advice – don’t get lost! Learn about using Nova Scotia GIS maps and you can never be lost again. Then, finally, once you’ve got that land purchased, you’ll be ready to dive into our Nova Scotia Land Development Guide.

 

I’ll continue to update this document over time, and your feedback can likely make it much better. Please feel free to add a comment below – I will read them all and give them careful consideration.