FAQs

If I sell, do I have to finance the buyer's purchase? In short, no. In years past, recreation property sellers frequently took back some portion of the purchase price on an installment note. This was due to the lack of ready financing sources for these second home or recreation lot sales. Today, 95 percent of our sales occur all cash to the sellers. Occasionally, we have a cash buyer that simply uses their savings for the purchase. More frequently, the buyer will use (a) a home equity line or second mortgage against their primary home; (b) a second home loan, now readily available from most banks (at attractive rates, I might add); or (c) a loan from their credit union. Credit unions are particularly aggressive on loans for vacant recreation property. Unless you have a tax planning need to carry paper on the sale of a parcel, expect to receive all cash at closing.

If my lot does not have water service, can I drill a well? At the present time, it is the policy of the State of Utah Division of Water Rights to approve applications to drill wells in Area 21 (the North Slope area) for culinary purposes only. The permit is limited to 1/4 acre feet of water per year. The state agency recently implemented new rules which will impact the cost of future water well drilling in Utah. In order to prevent ground and surface water pollution of future wells, the state will require the drilling contractor to install larger casing to a greater depth than before. In addition, there are new requirements for the materials that surround the casing. In Utah, before you buy, be sure to check with the state Division of Water Rights at the number below to verify the availability of drilling permits and their current regulations. I am told they get very busy in the summertime and permits can take as long as six months to obtain. State of Utah Department of Natural Resources, Division of Water Rights 1594 West North Temple, Suite 220 Salt Lake City, UT 84114 (801) 537 3101

Is a survey important? Buyers looking at mountain property frequently ask us if a survey is important. While a survey is helpful, what is really important is the independent verification by a professional surveyor of the location of the property corners. Most of the mountain subdivisions on the North Slope were platted during the sixties, when mountain surveying was much more of a challenge. This office has seen several instances of surveyor errors, which, while minor in nature, were a surprise to both the buyer and seller. We have also seen several instances where roads were built not to the plan, but where the developer felt the road was easiest to grade. Additionally, most of the monuments used to mark property corners back then have long since disappeared due to the adverse weather. Given this, we always recommend that the property corners be staked by a reputable surveyor appropriately licensed in the state in which the property is situated. The staking benefits not only the buyer, because he will enjoy the property knowing where the corners are, but also the seller, who will avoid any future liability for the errors of others. The costs of corner staking in the mountains vary, but usually run $500 to $1,500. Most often, the buyers and sellers agree to split the cost. In the event you are fortunate enough to have your property corners monumented, it will save you money to annually freshen the stakes or rebar set by the surveyor. Every fall, my wife and I make it a point to re-flag the property corners of our mountain property just prior to closing the property for the winter. Surveyor’s tape is readily available at hardware stores.

Can I subdivide my parcel after purchase? This is a question that is probably best left to the Summit County Planning Staff, but I will make a best effort attempt to answer this question here. In May of 1996, Summit County passed a comprehensive Development Code, General Plan and Zoning Map. These documents are available in the Planning Office in Coalville. The effect of the Development Code, General Plan and Zoning Map was to rezone everything east of the Henefer-Coalville-Oakley-Kamas areas AG-160, or no more than one home for every 160 acres. Exempted, of course, are those parcels that were lawfully created prior to the implementation of the code. The good news is that since most of the parcels in the various mountain subdivisions were created in the sixties, prior to the implementation of the code, they are exempt and, therefore, suitable for the construction of a single-family home. The bad news is that any parcel less than 160 acres in size cannot be further subdivided. We continue to caution our customers to carefully research this issue with Summit County prior to their purchase of a recreation parcel. The effect of the downzone to one home per 160 acres was predictable: it has virtually stopped the construction of new lots on the North Slope of the Uintas. For this reason, we continue to believe that recreation lots and cabins will continue to increase in value given the current high level of demand.

I have had my lot now for 30 years and seldom use it. Is it time to sell? You bet. The simple reason is supply and demand. While this has not often been the case, at the present time, demand exceeds supply. The primary driver for this demand is the excellent economy, particularly in the Wasatch Front. Lots that were selling for $16,000 to $18,000 three years ago are now selling for $25,000 to $29,000. History tells us that the excellent economy will cycle downward at some point and this could have a cooling effect on recreation property demand. If you have an interest in selling, please give me a call. Since each lot or cabin is different, it is hard to give estimates of value over the phone. After visiting your cabin or parcel, I would be pleased to give you a broker’s opinion of value. If you need a professional appraisal for financial or estate planning purposes, I would be pleased to refer you to one of several appraisers who work on the North Slope.