Check six things before you pay for land in the Valley: that the lot was legally platted, because in border counties utilities generally cannot connect water or sewer to a lot that was not; how water, power and sewer or septic will reach it; the FEMA flood zone; the deed restrictions and easements; road access; and clear title. Buy with a recorded deed and title insurance when you can, and know your rights before signing a contract for deed.
This is general information, not legal advice. For a specific tract, a real estate attorney or a title company is worth the fee.
Is the lot legally platted?
This is the question that matters most in Hidalgo, Cameron and Starr counties, and the one sellers are least likely to raise.
Counties within 50 miles of the border operate under their own chapter of Texas subdivision law. When land is divided into lots of five acres or less, a plat is required, and that includes divisions made by contract for deed or even an oral agreement (Local Government Code section 232.023). A subdivider may not sell lots in a subdivision first platted after July 1, 1995 without an approved plat.
The consequence is practical. A utility may not connect water or sewer service to subdivided land unless the commissioners court has certified the plat, and electricity and gas can only follow a finding that adequate water and sewer are in place (section 232.029). There are narrow exceptions for some older lots, and the person asking for service cannot be the one who subdivided the land.
These rules exist because of the colonias: for decades, lots were sold across the border region with no water or sewer, and families built homes they could not connect. Border counties must also enforce model subdivision rules that require new lots to have water and sewer service meeting state standards, allow one single family home per lot, and make the developer build the infrastructure or bond it, as the Texas Attorney General explains.
What to ask for: the recorded plat, or written confirmation from the county that the tract does not require one, and a letter from the water utility confirming it will serve the lot.
How will water, power and sewer reach it?
- Water. Inside cities, the city or a water supply corporation serves the lot for a tap fee. On rural land, service may be far away or unavailable, which means a well. Drought has made water a planning question here: Falcon reservoir was under 20% full at the end of September 2026 (Water Data for Texas), and several Valley cities now require developers of new subdivisions to secure water rights or pay a fee, the Texas Tribune reported. A lot in an established subdivision that already has water service carries less risk.
- Power. Depending on the area, service comes from AEP Texas, Magic Valley Electric Cooperative or another provider. On acreage, ask for the cost of extending the line to your homesite before you buy; a long run can cost more than people expect.
- Sewer or septic. Where there is no sewer, the lot has to support a septic system. That has its own rules, below.
Will the lot support a septic system?
Texas septic rules are set by the Texas Commission on Environmental Quality and usually administered by the county (30 TAC chapter 285). The basics:
| Rule | What it means for your purchase |
|---|---|
| Minimum lot size with public water | At least half an acre |
| Minimum lot size with a private well | At least one acre |
| Permit | An authorization to construct is needed before any work starts |
| Site evaluation | Done by a licensed site evaluator or a professional engineer |
| Design | Engineered or sanitarian designed for nonstandard soils and systems |
Lots created before 1988 can be treated differently, and a single family home on ten acres or more can be exempt from the permit under conditions the county confirms. Soil is the wild card: tight clay may need an engineered system that costs more than a standard one. Septic is quoted separately from our construction price, after the site evaluation tells us what the soil allows.
Which flood zone is it in?
Look it up on the FEMA map before you make an offer. A high risk zone does not rule a lot out, but it sets how high the slab must sit, adds an elevation certificate, and brings required flood insurance with a federally backed loan. Our guide to building on a lot in a flood zone covers what that means for design and budget.
What do the deed restrictions, easements and access allow?
Read them before you fall in love with a plan:
- Deed restrictions and HOA rules can set a minimum square footage, require masonry on the facade, limit metal buildings or barndominiums, and restrict casitas or outbuildings.
- Setbacks come from the city’s zoning, the county’s subdivision rules or the restrictions themselves, and they decide where the house, the septic field and the driveway can go.
- Easements for drainage, utilities or irrigation districts can cross the best part of the lot.
- Access should be a public road or a recorded easement. A handshake path across a neighbor’s land is not access a lender will accept.
A current boundary survey shows all of it on one page, and it is typically required before permits can be filed.
What if the seller offers a contract for deed?
A contract for deed lets you pay the seller over time while the seller keeps the title. Texas law gives buyers on residential property real protections (Property Code chapter 5, subchapter D):
- Before you sign, the seller must give you a survey or plat, documents showing any liens, a tax certificate, proof of insurance, and a written notice listing whether the property has water, sewer or septic, electricity, road access and floodplain status. The notice warns that if items are not checked, you may not be able to live on the property.
- In Spanish if the negotiations were mainly in Spanish.
- Recording and statements. The seller must record the contract within 30 days and send you an annual statement by January 31.
- Conversion. You can convert the contract to a recorded deed at any time, without penalties or charges.
- Platting. You may cancel if the land was not properly platted.
- Default protections. You get time to cure a missed payment, and after you have paid 40% or made 48 payments, the seller must go through a trustee sale instead of simply taking the land back.
For building, the key fact is that construction lenders need you to hold title. If you bought on a contract for deed, plan to convert it to a recorded deed, with title insurance, before your construction loan closes.
How does the land become your down payment?
Once the land is yours, its appraised value can often count toward the down payment on a construction to permanent loan, and land owned free and clear works best. Land with an agricultural valuation can trigger a rollback tax when you build on it; our guide to property taxes on a new home explains it. For the rest of the process, see our guide to building on land you already own and our loan comparison.
Your checklist before you sign
- The recorded plat, or the county’s written confirmation that none is needed.
- A will serve letter from the water utility, and the cost of bringing power to the homesite.
- Sewer service, or a septic feasibility check against the lot size rules.
- The FEMA flood zone and the required finished floor height.
- Deed restrictions, HOA rules, setbacks and easements, in writing.
- Legal road access.
- A current survey, a title commitment and title insurance.
- Tax status, including any agricultural valuation.
We will walk a lot with you before you buy it, at no charge, and tell you what it will support. If the lot is wrong, we would rather say so before you own it. Schedule a free site evaluation, and see build on your lot for how the rest of the process works.
