Texas is a landowner’s state. Whether you’re purchasing acreage for investment, preparing to sell a long-held family ranch, or subdividing land for development, it’s essential to understand the legal landscape. Every stage of a land transaction carries important legal implications that can affect property values, compliance with state and local regulations, and most importantly, your peace of mind. At Braun & Gresham, we’re advocates for you and your land. Our team is here to guide you through these complexities with clarity and confidence.
This legal roadmap for buying, selling, or subdividing land outlines the key considerations our team evaluates to protect your interests and help you realize your goals. Because these transactions often involve intricate legal details and significant financial consequences, we strongly recommend speaking with one of our Real Estate Attorneys to ensure your decisions are informed, strategic, and secure.
Buying Land in Texas: Legal Considerations
1. Due Diligence
Thorough due diligence is essential before making a land purchase and must be holistic. A due diligence review begins by understanding your values, dreams and goals for your land. We then want to see what the market would like you to do with the land. It’s in this second question where we deep dive into your land’s unique characteristics. Title research confirms ownership, reveals liens or encumbrances, and identifies any legal access issues. A floodplain analysis, review of restrictive covenants, and availability of utilities can all make or break your plans.
Working with a real estate attorney ensures proper examination of:
- Your plans, goals and values
- Land characteristics
- Title policy matters
- Utility service and floodplain issues
- Mineral rights and surface use restrictions
- Surveys and plats
2. Zoning and Land Use Restrictions
Land use in Texas is regulated at all levels of local, state and federal government. Zoning ordinances vary widely by city and county. It’s critical to understand who has a say in what you can and can’t do, and how that authority aligns with your plans before you close on a property purchase.
Determine who has regulatory control:
- Federal – Army Corps of Engineers, EPA, Fish and Wildlife, FEMA
- State – Texas Parks and Wildlife, TCEQ, Groundwater Conservation Districts
- County – Most rural land is under county jurisdiction. Platting and development permits will apply.
- ETJ (Extraterritorial Jurisdiction) – If within a nearby city’s ETJ, certain city regulations may apply.
- Municipal – Inside city limits = full zoning, platting, and building code requirements.
Evaluate Highest and Best Use of the land to determine future potential:
- What are your goals, dreams and values? This is most important.
- What does the market want you to do with the land?
- How can we bring those two questions together to create the best outcome?
- Zoning classification (e.g., agricultural, residential, commercial)
- Development restrictions (height, density, setbacks)
- Future land use maps and comprehensive plans
At some point, a zoning change or variance may be needed, and this process requires public notice, hearings, and legal representation.
3. Environmental Constraints:
Many buyers overlook environmental due diligence, but it can significantly impact the land’s usability and value.
Review the land for the potential issues including:
- Floodplain – FEMA maps
- Endangered Species or wetlands – Texas Parks & Wildlife Department or U.S. Fish and Wildlife Service
A Phase I Environmental Site Assessment (ESA) may be needed in order to identify contamination risks or the need for mitigation, especially for agricultural or industrial sites.
Wetlands, endangered species habitats, or floodplain issues may trigger additional permitting or restrictions under federal and state environmental laws.
4. Access and Utilities
Rural land being purchased for the purpose of subdividing, or building a subdivision, requires due diligence on access to the land and the availability of utilities.
Counties may require plans for some or all of the following:
- Access roads (may require road construction or upgrades)
- Drainage plans
- Septic suitability (per lot)
- Water supply: well, co-op, or municipal
- Electricity: arrange easements or service extensions
- Minimum lot size
- Well Regulations
Selling Land in Texas: Legal Preparations
1. Clear Title and Disclosure
Sellers must convey clear title and disclose known issues that could affect value or use. Failure to disclose can result in post-sale liability.
Key steps include:
- Resolving title defects
- Updating surveys
- Disclosing environmental hazards, easements, or pending legal matters
Our real estate attorneys prepare and review contracts, deeds, and disclosure forms to protect your interests and ensure a smooth closing.
2. Tax Implications
Selling land can trigger significant capital gains tax. However, exemptions or deferrals may apply, such as:
- 1031 Like-Kind Exchange
- Agricultural use valuation rollback considerations
Consulting with legal and tax professionals before selling can lead to strategic decisions that minimize your tax burden.
3. Property Owner Associations (POAs)
If the land is part of a subdivision or governed by a POA, the seller must comply with association disclosure requirements and provide relevant documents to the buyer.
Subdividing Land in Texas: Legal and Regulatory Steps
Subdividing land in Texas can unlock value and allow for development, inheritance planning, or sale of smaller tracts. However, it involves a complex set of rules that vary depending on the county, municipality, and purpose of the subdivision.
1. Understand Local Subdivision Regulations
In Texas, landowners intending to divide their property into two or more parcels for sale or development are generally required to file a subdivision plat for approval. This process is overseen by local governments, which ensure that the subdivision complies with relevant regulations and standards.
Key requirements may include:
- Survey and plat preparation by a licensed surveyor
- Compliance with lot size and road frontage minimums
- Drainage and infrastructure plans
- Planning and zoning commission approval
Failing to comply with platting requirements can result in civil penalties and prevent future sales or building permits.
2. Rural vs. Urban Subdivision Rules
In rural areas, counties enforce subdivision rules, often focused on access roads and water availability. Urban areas impose more stringent regulations and often require connection to city utilities and alignment with long-term development plans.
Some exemptions exist for family subdivisions or agricultural uses, but these must be clearly documented.
3. Zoning Changes and Variances
Subdividing may trigger the need for zoning changes or variances to accommodate smaller lots or different uses. This process involves public notice and hearings, and opposition from neighbors or local officials can complicate approval.
Our attorneys assist clients with preparing rezoning applications, attending hearings, and navigating political challenges.
4. Environmental and Infrastructure Concerns
Subdividing may increase impervious cover, affect water runoff, or require stormwater management plans. Texas Commission on Environmental Quality (TCEQ) and local authorities may require permits for:
- Wastewater systems
- Water supply (public or private)
- Road construction
Engineering, environmental, and legal professionals should work in coordination to ensure compliance.
5. Tax Considerations When Subdividing
Subdividing can alter your property’s tax valuation and trigger rollback taxes if the land loses its agricultural exemption. The new tax basis and potential capital gains must be considered in your development plan.
We help clients anticipate and manage these tax impacts with proactive legal and financial planning.
Why Choose Braun & Gresham for Land Transactions
Buying or selling land in Texas requires more than just paperwork. Buying land to subdivide demands legal support to ensure the land purchased will allow you to achieve your goals, provide the highest level of risk mitigation, all in order to ensure the long-term value of your land.
At Braun & Gresham, we bring:
- Decades of experience in Texas land law and development
- Multidisciplinary support from attorneys, planners, and environmental experts
- Personalized service tailored to your property and vision
Whether you’re preparing a family land division, investing in a rural estate, or developing a subdivision, our Real Estate attorneys are here to guide you every step of the way.
Get Legal Help for Your Texas Land Project
Every land transaction comes with its own complexities, especially when it involves rural property in Texas. Whether you’re buying, selling, or subdividing, you’re not just moving dirt—you’re making decisions that impact your financial future, your land’s value, and your legacy. Your property is likely one of your most valuable assets. That’s why it’s essential to work with legal professionals who understand the unique challenges and opportunities that come with Texas land ownership.
At Braun & Gresham, we don’t believe in one-size-fits-all solutions. We provide personalized legal guidance backed by decades of experience in rural land law. From navigating subdivision plat requirements to structuring deals that align with your long-term vision, we ensure that every decision you make is informed, strategic, and protected.
Don’t leave your property vulnerable to costly surprises or legal setbacks. Let us help you build a clear, customized legal roadmap that protects your property, advances your goals, and honors the legacy you’re creating.
Contact Braun & Gresham today to schedule a consultation—and take the next step with confidence.