What to Know Before Buying Vacant Land
Thinking of Buying Land in Malibu, Pacific Palisades, Topanga, or Los Angeles? Purchasing undeveloped land offers exciting opportunities, whether you're planning a custom home or making a long-term real estate investment. These areas are known for their scenic views and high potential value. But buying vacant land also comes with challenges, including zoning restrictions, steep terrain, and complex permitting processes.
Here’s what you need to know before you buy:
Conducting Due Diligence When Buying Land
Before buying land, a thorough investigation is essential. Verify boundaries with a survey, review the title for easements or restrictions, and check for issues like soil contamination, endangered species, or off-site mineral rights. Confirm zoning, permitted uses, and utility access. Analyze market value and potential returns through a comparative market analysis or appraisal. Understand property taxes and long-term costs to ensure the land fits your vision and budget. Doing your due diligence protects you from costly surprises and ensures the property aligns with your goals.
Soil testing is essential before building. It’s often required to get permits and helps determine if the land is stable, free of contamination, and suitable for construction or a septic system. Tests assess bearing capacity to ensure the foundation won’t shift or settle. Understanding these results is crucial in deciding whether the land is safe, buildable, and worth purchasing.
Determine if the land can support a septic system, which is crucial in areas without sewer lines. Malibu and Topanga properties typically rely on septic systems, unlike Pacific Palisades, which is connected to the city sewer. A percolation test is required to measure how quickly water drains through the soil, critical to ensure a septic system can be installed safely and effectively.
Ordinances and Building Regulations
With constantly changing ordinances, it’s essential to review local zoning, Hillside, and Coastal Commission regulations to stay current and make informed decisions. Building on a hillside is costly due to complex site prep, unstable soil, stricter permitting, and the need for specialized construction methods. The city continues to tighten hillside development rules, making due diligence more important than ever.
Property Boundaries and Buildable Areas
Verify property lines with a survey and check for usable buildable space within legal setbacks.
Erosion and Disaster Risk
Evaluate for wildfire zones, earthquake faults, and potential flooding zones.
Utilities and Infrastructure
Confirm access to electricity, water, gas, and internet. If unavailable, budget for installation.
Water Access
Ensure there's a reliable water source, either municipal, well, or natural spring, and confirm quality.
Road Access and Easements
Verify legal access to the property via public or private roads. If landlocked, ensure recorded easements exist.
Neighboring Property Use
Look at the adjacent land use. Nearby well-kept homes add value, while industrial or unkempt areas may reduce it.
Understanding Zoning
Zoning laws dictate what can be built and how land can be used. Zoning is one of the most important factors in determining a property’s potential. Some areas are zoned for rural or single-family use, while others may allow for ADUs, multi-units, or even commercial development under new ordinances. Understanding zoning helps you evaluate what can or can’t be built and directly impacts your property’s value. A small, rundown home might sit on land zoned for multi-units or hotel use, making it far more valuable to a developer. Always investigate zoning to understand your property’s true potential and investment return.
City and Coastal Commission Requirements
If a property falls within the California Coastal Zone, such as parts of Malibu, Topanga, Pacific Palisades, or Santa Monica, you may need a Coastal Development Permit. This means getting approval from both the Coastal Commission and the local city, depending on your exact location. The process is complex and can take 2–3 years, sometimes 4–5 if there are delays or appeals. Knowing whether a property is in the Coastal Zone is crucial, as it significantly impacts timelines, costs, and feasibility. Always research before purchasing.
Environmental and Conservation Restrictions
Protected Trees
Removal or trimming of native trees like oak, sycamore, alder, walnut, and toyon requires permits. Approval is usually granted only for dead or hazardous trees.
Conservation Easements
These legal agreements may restrict land use permanently, even after the land changes hands.
Mineral Rights and Easements
If you buy land where other owners own the mineral rights, it means you only own the surface. The mineral rights owners can access underground resources like oil or gas, which may involve drilling or other activity on your land, even without your permission. Always check if mineral rights are included before purchasing
Also, confirm recorded easements for access or utilities, especially if the land lacks direct road frontage.
Financing Land
Vacant land loans are hard to secure, few lenders offer them:
Land loans usually require 30 to 50 percent down and carry higher interest rates.
Seller financing may be available on hard-to-sell parcels..
Home equity loans can be used if you own other property.
Buy a permit-ready home; Once the land is permit-ready (RTI), obtaining a construction loan is much easier. Construction loans often cover both land payoff and building costs, making RTI land especially appealing.
Most buyers pay cash or negotiate seller financing until permits are approved.
HOA Rules and Fees
Some parcels fall under a homeowners' association. Before buying:
Check for monthly or annual dues.
Review any restrictions on design, materials, or land use.
Evaluating Lot Shape, Size, and Buildability
Larger lots offer more space but require more planning.
Square or rectangular lots are easiest to build on.
Flat lots reduce building costs compared to steep or irregular terrain.
Pacific Palisades Post-Fire Permitting Process
After recent wildfires, both Los Angeles City and County have adopted expedited permitting processes for fire-rebuilds. Governor Newsom’s executive order has further streamlined the process by suspending coastal commission permitting requirements in fire-impacted areas, aiming to reduce delays and support faster recovery for affected property owners.
Why Is Land So Affordable in Malibu, Topanga, and the Santa Monica Mountains?
Many inexpensive lots are steep, remote, or lack infrastructure. Costs to develop them can be substantial. Common issues include:
Deep caisson foundations needed to anchor homes on slopes.
Expensive grading and excavation.
Retaining walls required to prevent erosion.
Complex engineering and permitting processes.
Why Do Malibu and Topanga Land Prices Vary So Widely?
Land prices in Malibu and Topanga can range dramatically due to a mix of factors, some obvious, others hidden.
Location, terrain, and demand are the biggest drivers. Flat lots near multimillion-dollar homes often command top dollar because they’re easier to build on and surrounded by luxury development. By contrast, hillside parcels may appear more affordable but come with costly construction challenges such as deep caisson foundations, grading, and retaining walls.
Other common issues that lower land value include:
Lack of utility access (water, power, sewer, internet)
Landlocked lots with no legal road access
Endangered species or protected habitats that limit development
Mineral rights that are owned by third parties
Zoning or conservation restrictions that reduce buildability
Some parcels may also fall under stricter regulations due to their proximity to the coastline or be impacted by environmental overlays.
Because of these variables, it’s essential to conduct thorough due diligence. Understand what you’re buying, check for any development limitations, and confirm that the parcel aligns with your goals, whether that’s building a home, holding as an investment, or developing for resale.
Contact Us
Buying land involves many twists, reports, and hidden complexities—from zoning and surveys to disclosures and permits. Having the right expert on your side is essential. If you’re considering buying or selling land in Malibu, Topanga, Pacific Palisades, or anywhere in Los Angeles, contact us for a complimentary consultation. Knowing the details upfront can make all the difference—and simplify the entire process.