Before You Buy a Lot in Toronto: 15 Things a Custom Home Builder Should Check

Aerial view of one of Toronto’s premier custom home neighbourhoods, showcasing large residential lots, mature tree-lined streets, and the type of established community many homeowners seek when planning a new custom home or luxury rebuild.

Buying a Toronto property for a custom home can be an excellent investment—but the size of the lot does not tell you how much house you can legally or practically build.

A property may appear perfect while hiding restrictive zoning, easements, protected trees, ravine regulations, inadequate services, poor soil conditions, difficult equipment access or a Committee of Adjustment process that could add significant cost and time.

Before buying land to build a house in Toronto, the property should be reviewed by a coordinated team that understands architecture, zoning, engineering, permits and construction—not only real estate value.

Quick Answer: What Should You Check Before Buying a Toronto Building Lot?

Before purchasing a Toronto lot for a custom home, confirm:

1. Whether it is a legal and independently buildable lot

2. Property boundaries, easements and rights-of-way

3. The current survey and topography

4. Zoning and site-specific exceptions

5. The actual buildable area

6. Committee of Adjustment risk

7. Heritage restrictions

8. Protected and boundary trees

9. Ravine and TRCA regulations

10. Water and sewer services

11. Hydro, gas and overhead utilities

12. Grading, drainage and groundwater

13. Soil, bedrock and environmental conditions

14. Demolition, excavation and construction access

15. The complete project budget and approval timeline

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The most important principle is simple:

You are not only buying a piece of land. You are buying the legal and physically buildable envelope permitted on that land.

The City’s online zoning map is a useful starting point, but it does not replace a current survey, concept design or formal zoning review. Most Toronto properties are governed by Zoning By-law 569-2013, while some remain affected by former municipal by-laws, site-specific exceptions, amendments, appeals or conditions. (toronto.ca)

1. Is It a Legal and Independently Buildable Lot?

The first step is confirming that the property is a legal lot that can support the intended custom home.

A vacant parcel appearing separately on a real estate listing or municipal map does not automatically confirm that it is independently buildable.

A lawyer, surveyor and design-build professional should investigate:

• The legal description

• Registered ownership

• Whether the parcel has legally separate status

• Whether it was created through an approved severance

• Whether parts of the property have merged on title

• Registered easements

• Rights-of-way

• Restrictive covenants

• Shared driveways

• Access rights

• Utility easements

• Encroachments from neighbouring properties

Ontario’s land-registration system allows property records, registered documents and survey plans to be searched. These documents should be reviewed by a real estate lawyer before the purchase becomes firm. (Ontario)

Why Easements Matter

An easement may give another party the right to use part of the property for:

• Vehicle access

• Pedestrian access

• Water or sewer infrastructure

• Hydro equipment

• Drainage

• Shared driveways

• Maintenance

• Telecommunications

An easement running through the preferred building footprint may restrict where the house, garage, pool or foundation can be placed.

The City’s Zoning Applicable Law Certificate submission requirements specifically call for a survey or site plan showing property lines, lot area, rights-of-way and easements based on a current survey prepared by a licensed Ontario Land Surveyor. (toronto.ca)

2. Is There a Current Boundary and Topographic Survey?

Do not design a custom home from a real estate listing, MPAC dimensions or an old photocopied survey.

A current survey should accurately identify:

• Property boundaries

• Lot frontage and depth

• Existing buildings

• Fences

• Retaining walls

• Driveways

• Easements

• Rights-of-way

• Encroachments

• Utility structures

• Major trees

• Existing grades

• Adjacent building locations

For design purposes, the project may require both a legal boundary survey and a topographic survey.

Why Topography Matters

Two lots with identical dimensions may have completely different construction potential because of their elevations.

A topographic survey helps identify:

• Whether the lot slopes toward or away from the street

• Changes in elevation across the property

• Existing drainage patterns

• Neighbouring foundation elevations

• Retaining-wall requirements

• Potential walkout-basement opportunities

• Reverse-sloping driveway risks

• Excavation and export requirements

Toronto’s formal zoning-review process requires a properly dimensioned survey or site plan showing property lines, setbacks, building dimensions and grade information used to confirm building height. (toronto.ca)

3. What Zoning Applies to the Property?

The zoning designation determines what may be built, but the zone label is only the beginning of the review.

Toronto zoning can regulate:

• Permitted building type

• Lot frontage

• Lot area

• Floor space index

• Gross floor area

• Lot coverage

• Building height

• Building length and depth

• Front-yard setback

• Rear-yard setback

• Side-yard setbacks

• Parking

• Driveway width

• Platform and balcony dimensions

• Ancillary structures

Most Toronto properties are covered by Zoning By-law 569-2013. However, former municipal zoning by-laws may still apply in whole or in part, depending on the property’s location, site-specific provisions, prevailing permissions, amendments or appeals. (toronto.ca)

A proper zoning review should examine:

• The complete zoning label

• The relevant residential-zone chapter

• Policy-area overlays

• Site-specific exceptions

• Prevailing by-law provisions

• Former municipal by-laws

• Existing minor-variance decisions

• Applicable-law restrictions

Do Not Rely Only on the Interactive Map

The Toronto Interactive Zoning Map is useful for initial research, but it should not be treated as final confirmation of development potential.

The concept must be compared against the actual zoning text and the property-specific exceptions linked to the parcel.

4. How Large a House Can You Actually Build?

Lot size and buildable house size are not the same thing.

A 40-foot-wide lot does not automatically permit the same house as another 40-foot-wide lot in a different Toronto neighbourhood.

The buildable envelope is affected by the combined application of:

• Floor space index

• Lot coverage

• Setbacks

• Maximum height

• Building depth

• Building length

• Roof design

• Established grade

• Parking requirements

• Trees

• Easements

• Neighbouring buildings

• Ravine or conservation regulations

The City provides separate zoning illustrations explaining how established grade, building height, floor space index, lot coverage, setbacks and building depth are measured. (toronto.ca)

Gross Floor Area vs. Lot Coverage

These measurements are related but different.

Gross floor area or floor space index controls the amount of qualifying floor area that may be constructed.

Lot coverage controls how much of the lot may be covered by the building footprint.

A design may comply with the permitted gross floor area but still exceed lot coverage, building depth, height or setback requirements.

Basement Area

Basement floor area may be treated differently from above-grade floor area depending on the applicable zoning provisions and how the basement relates to grade.

A sloped lot can affect:

• Whether parts of a basement are considered above grade

• Building-height calculations

• Walkout conditions

• Exposed foundation walls

• Grading approval

• Overall massing

This should be calculated during preliminary architectural design—not after the property has been purchased.

5. Has a Concept Plan Been Prepared?

The best way to test a lot is to place a preliminary custom-home design on a current survey.

A concept plan does not need to contain every construction detail. It should be developed enough to test:

• Proposed house width

• Building depth

• Floor area

• Lot coverage

• Setbacks

• Height

• Garage and parking

• Driveway

• Basement layout

• Main entrance

• Mechanical spaces

• Outdoor amenity space

• Tree-protection zones

The concept should reflect the purchaser’s actual requirements.

For example, a property that can accommodate a 3,500-square-foot house may still be unsuitable if the owner requires:

• A three-car garage

• A main-floor office

• An elevator

• A walkout basement

• A large rear pool

• Five bedrooms

• A wide open-concept main floor

• A secondary suite

• A garden or laneway suite

What Is a Zoning Applicable Law Certificate?

A Zoning Applicable Law Certificate provides a detailed preliminary review of submitted plans to determine zoning compliance and confirm compliance with other applicable laws.

An issued certificate can then support a complete building-permit application. The City requires dimensioned drawings, a survey and a zoning summary covering matters such as lot area, gross floor area, lot coverage and grade elevations. (toronto.ca)

A Zoning Applicable Law Certificate is stronger than relying on an informal opinion because the City reviews a specific design placed on the specific lot.

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6. Will the Design Require a Minor Variance?

A house that does not fully comply with zoning may require approval from the Toronto Committee of Adjustment.

Common custom-home variances can involve:

• Gross floor area

• Floor space index

• Lot coverage

• Building height

• Building depth

• Front-yard setback

• Side-yard setbacks

• Rear-yard setback

• Exterior platforms

• Parking-space dimensions

• Driveway width

The Committee of Adjustment has authority to decide minor-variance and consent applications, including applications to vary zoning rules or divide and adjust property lines. (toronto.ca)

What Does the Committee Consider?

The Committee assesses whether the requested variance:

1. Is minor

2. Is desirable for the appropriate development of the property

3. Maintains the general intent of the zoning by-law

4. Maintains the general intent of the Official Plan

All four tests must be satisfied. (toronto.ca)

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Review Nearby Applications

A builder or planning consultant should examine:

• Recent Committee decisions on the street

• Similar lot sizes

• Approved house dimensions

• Refused applications

• Planning-staff comments

• Urban Forestry concerns

• Neighbour objections

• Appeal history

Nearby approvals can help establish local context, but they do not guarantee that a new application will be approved. Each proposal is assessed on its own design, impact and requested variances.

A purchaser should understand the difference between:

• A zoning-compliant design

• A design needing minor relief

• A proposal requiring major redesign

• A proposal that may require rezoning rather than a minor variance

7. Is the Property Listed or Designated as Heritage?

Heritage status can affect demolition, exterior alterations, additions and new construction.

Before purchasing, search the property address using the City’s Heritage Property Search tool and review whether the property is:

• Individually designated

• Listed but not designated

• Located in a Heritage Conservation District

• Subject to a heritage-easement agreement

• Located within an area under heritage study

The City identifies its Heritage Property Search tool as the most up-to-date method for confirming whether a property is included on the Heritage Register. (toronto.ca)

Owners of properties designated under Part IV or Part V of the Ontario Heritage Act may require a heritage permit before altering, demolishing, removing or constructing buildings or structures. (toronto.ca)

Questions to Ask

• Can the existing house be demolished?

• Must part of the façade be retained?

• Are additions restricted?

• Are specific materials required?

• Is a heritage-impact assessment needed?

• Will Heritage Planning review the permit?

• Does the property sit within a Heritage Conservation District?

• Could heritage approval affect the design schedule?

A property’s heritage status should be investigated before valuing it as a straightforward teardown.

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8. Are There Protected, City-Owned or Boundary Trees?

A mature tree can reshape the entire building footprint—even when the tree is located next door.

Toronto regulates the injury and removal of protected trees.

The City’s permit process applies to City-owned trees and private trees measuring at least 30 centimetres in diameter. Applicants are responsible for confirming property boundaries and tree ownership, and an up-to-date survey may be required when boundary-tree ownership is disputed. (toronto.ca)

The review should identify:

• Trees on the subject property

• City-owned street trees

• Boundary trees

• Neighbouring trees

• Tree diameter

• Species and condition

• Tree-protection zones

• Roots within the proposed excavation

• Canopy conflicts

• Equipment-access restrictions

Why Neighbouring Trees Matter

A neighbouring tree may have roots extending beneath the proposed excavation or driveway.

Even when the trunk is outside the property, the project may need:

• An arborist report

• Tree-protection fencing

• Root-sensitive excavation

• Alternative foundation design

• Air-spading

• Pier or helical-pile solutions

• Revised grading

• Written neighbour coordination

Do not assume that purchasing the property gives the owner unrestricted authority over a boundary or neighbouring tree.

9. Is the Property in a Ravine or TRCA-Regulated Area?

Ravine and conservation regulations can be more restrictive than ordinary zoning.

Toronto’s Ravine and Natural Feature Protection By-law can regulate:

• Tree removal

• Tree injury

• Excavation

• Filling

• Changes to topography

• Retaining walls

• New structures

• Replacement structures

Within designated ravine-protection areas, trees can be protected regardless of size. Excavation, adding soil, dumping fill and constructing or replacing structures may also require authorization. (toronto.ca)

A separate review may be required by the Toronto and Region Conservation Authority.

TRCA regulates development within or near:

• Valley corridors

• Stream corridors

• Wetlands

• Flood-prone areas

• Erosion hazards

• The Lake Ontario shoreline

Where a property is regulated, a TRCA permit is required before new development activity proceeds. (TRCA)

Why This Must Be Checked Before Purchase

Ravine and conservation restrictions can affect:

• House location

• Basement depth

• Rear-yard construction

• Pools

• Retaining walls

• Walkouts

• Grading

• Tree removal

• Construction access

• Stormwater management

• Foundation design

A large lot can have a surprisingly small development area once setbacks, hazard limits and protected natural features are considered.

10. Are the Water and Sewer Services Suitable?

Existing water and sewer lines may not be suitable for the proposed custom home.

Before purchase, determine:

• Whether water and sewer services exist

• Their approximate location

• Pipe material

• Pipe diameter

• Connection depth

• Whether services are shared

• Whether the sanitary and storm systems are separate

• Whether the lines can be reused

• Whether replacement is required

• Whether road excavation will be necessary

A sewer or water service card may show pipe material, pipe size, connection location on City property and distances from the curb or nearby infrastructure. However, the City warns that available records can be incomplete or unavailable. (toronto.ca)

Will New Services Be Required?

Toronto generally requires new water and sewer service connections for new construction and substantially demolished buildings. Reuse may be considered for qualifying residential connections that meet current standards and receive City approval. (toronto.ca)

Potential servicing costs can include:

• City application fees

• Road excavation

• New water line

• New sanitary connection

• Storm connection

• Backwater valve

• Sump system

• Water meter

• Road restoration

• Private-property plumbing

• Decommissioning shared services

A low purchase price may be less attractive when major municipal servicing work is required.

11. Are Hydro, Gas and Overhead Utilities Available?

Utility availability, location and capacity should be confirmed before the home’s mechanical and electrical systems are designed.

Review:

• Existing electrical service

• Overhead versus underground supply

• Utility poles

• Transformers

• Hydro easements

• Overhead-wire clearances

• Gas availability

• Gas-meter location

• Telecommunications

• Temporary construction power

• Future EV charging

• Heat pumps

• Pools and hot tubs

• Electric heating loads

Toronto Hydro provides connection guides for new houses, rebuilds, upgrades and temporary construction services. A new permanent connection requires a formal service request, design review, quotation, customer construction obligations and ESA authorization. (Toronto Hydro)

Natural-gas availability for a new construction project requires a project-specific review through an Enbridge Gas service application. (Enbridge Gas)

Overhead Wires Can Affect the Design

Overhead infrastructure may interfere with:

• Excavator access

• Crane operations

• Roof design

• Second- or third-storey construction

• Balconies

• Service relocation

• Temporary scaffolding

Utility relocations can be expensive and should not be assumed to be quick or automatically approved.

12. Can the Lot Be Properly Graded and Drained?

The new house must be designed so that water does not create drainage problems on the subject property or neighbouring lots.

Toronto requires lot-grading plans for applicable new infill housing projects. (toronto.ca)

A grading review should consider:

• Existing and proposed elevations

• Front, side and rear-yard drainage

• Swales

• Foundation elevations

• Basement walkout

• Window wells

• Retaining walls

• Driveway slope

• Garage elevation

• Neighbouring grades

• Roof-water discharge

• Catch basins

• Sump discharge

• Storm-service availability

Warning Signs

Potential concerns include:

• The lot sits below both neighbours

• Water currently ponds in the rear yard

• The street is significantly above the property

• A reverse-sloping driveway is proposed

• The rear yard drops toward a ravine

• Retaining walls cross property lines

• The desired basement is below the local groundwater level

Solving drainage after the house is designed can require expensive changes to foundation elevations, entrances, landscaping and mechanical systems.

13. What Are the Soil, Bedrock and Environmental Conditions?

The visible surface of the property does not reveal what is beneath it.

Depending on the property and proposed design, due diligence may include:

• Geotechnical investigation

• Boreholes

• Test pits

• Soil-bearing analysis

• Bedrock-depth confirmation

• Groundwater monitoring

• Environmental site assessment

• Soil testing

• Underground tank investigation

A geotechnical study examines soil and bedrock composition, structural stability and the ability of the ground to accommodate development. (toronto.ca)

Conditions That Can Increase Construction Costs

• Weak or uncontrolled fill

• High groundwater

• Shallow bedrock

• Buried foundations

• Underground oil tanks

• Contaminated soil

• Former commercial or industrial use

• Excessive excavation depth

• Poor soil-bearing capacity

• Difficult soil-disposal classification

Where a property has a commercial or industrial history, environmental due diligence becomes particularly important. Certain changes to a more sensitive land use can trigger Ontario Record of Site Condition requirements. (Ontario)

A standard residential lot may not require every available investigation, but the project team should determine what is appropriate before the construction budget is finalized.

14. Can the House Be Demolished and the New Home Constructed Efficiently?

A lot can be legally buildable but still be extremely difficult or expensive to construct on.

The contractor should evaluate:

• Excavator access

• Truck access

• Bin placement

• Crane access

• Side-yard width

• Overhead wires

• Mature trees

• Neighbouring foundations

• Street-parking restrictions

• Laneway access

• Material-storage areas

• Temporary fencing

• Hoarding

• Shoring

• Dewatering

• Winter construction conditions

Teardown-Lot Considerations

Where an existing house is present, investigate:

• Demolition permit requirements

• Asbestos and designated substances

• Utility disconnections

• Existing foundation depth

• Shared walls

• Party-wall conditions

• Underground tanks

• Existing additions

• Detached garages

• Pools

• Retaining walls

• Foundation removal and disposal

The City allows prior building-permit records and drawings to be requested, although some records may be unavailable or restricted. (toronto.ca)

Neighbouring-Property Protection

On tight Toronto lots, the project may require:

• Pre-construction condition surveys

• Temporary shoring

• Underpinning

• Vibration monitoring

• Dust control

• Hand excavation

• Engineered demolition sequencing

• Access agreements

The buildability review should account for how the house will physically be constructed—not only whether it fits on an architectural site plan.

15. What Is the Complete All-In Project Budget?

The land price is only one part of the investment.

Before making the purchase firm, prepare an initial budget that includes:

Property Acquisition

• Purchase price

• Legal fees

• Land-transfer taxes

• Financing

• Appraisal

• Title insurance

• Carrying costs

Due Diligence and Design

• Survey

• Topographic survey

• Architectural design

• Structural engineering

• Mechanical and HVAC design

• Energy-efficiency documentation

• Arborist report

• Geotechnical investigation

• Environmental assessment

• Planning consultation

Municipal and Approval Costs

• Zoning review

• Committee of Adjustment

• Building permits

• Demolition permit

• Tree permits

• TRCA review

• Heritage review

• Municipal deposits

• Right-of-way permits

• Utility applications

Construction

• Hazardous-material removal

• Demolition

• Utility disconnections

• Excavation

• Shoring

• Soil export

• Foundation

• Full home construction

• Landscaping

• Driveways

• Fencing

• Service connections

• Professional inspections

Financing and Risk

• Construction financing

• Interest during approvals

• Temporary accommodation

• Insurance

• Design contingency

• Construction contingency

• Schedule contingency

A less expensive lot with extensive servicing, shoring, tree and approval challenges can cost more overall than a higher-priced property with straightforward construction conditions.

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Should Your Offer Be Conditional on Custom-Home Due Diligence?

Where possible, the purchase should provide enough time to investigate the property before the agreement becomes firm.

Depending on the transaction, appropriate conditions may include review by:

• A real estate lawyer

• An architect or designer

• A custom-home builder

• An Ontario Land Surveyor

• A planner

• An arborist

• A structural engineer

• A geotechnical consultant

• An environmental consultant

• A mortgage or construction lender

The due-diligence period may be used to:

• Review title

• Obtain or update the survey

• Complete a zoning analysis

• Prepare a concept plan

• Search heritage status

• Review trees and ravine restrictions

• Inspect municipal services

• Review previous permits

• Estimate demolition and construction

• Confirm financing

Purchase conditions should be drafted or reviewed by the purchaser’s real estate lawyer and real estate representative.

Vacant Lot vs. Teardown Property: Which Is Better?

Neither option is automatically better.

A Vacant Lot May Offer:

• No demolition cost

• No tenant-vacancy process

• Easier early site access

• Fewer hazardous-building materials

• Faster visual site review

However, a vacant lot may contain:

• Old foundations

• Uncontrolled fill

• Former underground services

• Contaminated soil

• Unconfirmed legal-lot status

• No reusable utility connections

A Teardown Property May Offer:

• Existing municipal services

• A recognized residential use

• Existing access

• A house that can be occupied during design

• Financing options unavailable for vacant land

However, it may add:

• Demolition costs

• Asbestos abatement

• Utility disconnections

• Foundation removal

• Heritage concerns

• Tenant or occupancy complications

The correct choice depends on total development cost and buildability—not simply whether a house already exists.

Red Flags When Buying a Toronto Custom-Home Lot

Investigate carefully when a property has:

• No current survey

• Unclear legal frontage

• A shared driveway

• Easements through the building area

• Large boundary trees

• Ravine-protection mapping

• A reverse-sloping driveway

• Significant grade changes

• Very narrow construction access

• Overhead hydro wires

• Former commercial or industrial use

• An underground oil tank

• Unverified water or sewer services

• A history of refused variance applications

• An unusually low asking price compared with surrounding land

A red flag does not always make the property unsuitable. It means the issue should be investigated and priced before purchase.

Why Hire a Design-Build Company Before Buying the Lot?

A traditional sequence often looks like this:

1. Buy the property

2. Hire an architect

3. Discover zoning limitations

4. Apply for variances

5. Obtain engineering

6. Receive construction pricing

7. Learn that the original budget is insufficient

A coordinated design-build review reverses that risk.

416 Construction can examine the property from the perspectives of:

• Architectural design

• Zoning

• Engineering

• Permits

• Excavation

• Servicing

• Construction access

• Scheduling

• Realistic construction costs

The objective is to determine whether the owner’s desired home can be designed, approved and constructed within the intended budget.

Planning to Buy a Lot and Build a Custom Home in Toronto?

416 Construction Design Build provides coordinated pre-purchase and custom-home services throughout Toronto and the GTA.

Our services can include:

• Preliminary property review

• Zoning analysis

• Concept drawings

• Buildable-area calculations

• Survey coordination

• Architectural design

• Structural engineering

• HVAC and mechanical design

• Energy-efficiency documentation

• Committee of Adjustment applications

• Zoning Applicable Law Certificate submissions

• Building and demolition permits

• Arborist and tree-protection coordination

• Utility and servicing coordination

• Demolition

• Excavation and shoring

• Complete custom-home construction

• Inspections and project management

Contact 416 Construction before making a Toronto building-lot purchase firm so the property can be reviewed from both a design and construction perspective.

416 Construction Design Build

Phone: 647-624-8110

Email: construction416@yahoo.com

Design Build

Frequently Asked Questions

How do I know whether a Toronto lot is buildable?

Review its legal status, survey, zoning, easements, setbacks, heritage status, protected trees, servicing, grading and conservation restrictions. A concept plan and formal zoning review provide stronger confirmation than a listing description.

How much house can I build on a Toronto lot?

The answer depends on the property’s zoning, gross floor area or floor space index, lot coverage, setbacks, height, building depth, trees, easements and other applicable restrictions.

Is the Toronto zoning map enough to confirm what I can build?

No. It is an initial research tool. The applicable zoning chapters, exceptions, former by-laws and property-specific conditions must also be reviewed.

Can I obtain zoning confirmation before purchasing?

A preliminary design and zoning analysis can be completed during due diligence. A formal Zoning Applicable Law Certificate generally requires dimensioned plans and a current survey.

Can a protected tree prevent a custom home?

It can restrict the building footprint, excavation or access. In many cases the design can be modified, but the tree should be reviewed by an arborist early.

Can I remove a tree after purchasing the property?

Ownership does not automatically authorize removal. City-owned, qualifying private, boundary, neighbouring and ravine-area trees may be protected.

What happens if the proposed house does not comply with zoning?

The design may be revised to comply, or the owner may apply for a minor variance. More significant changes may require a zoning by-law amendment.

Do nearby Committee of Adjustment approvals guarantee mine?

No. They can provide useful context, but each application is considered based on its own variances, design and impacts.

Can existing water and sewer services be reused?

Possibly, but reuse is subject to City standards, inspection and approval. New construction commonly requires new connections.

Should I complete a soil test before purchasing?

It may be advisable where the project involves deep excavation, unusual grading, suspected fill, high groundwater, former commercial activity or environmental concerns.

Is a vacant lot cheaper than a teardown property?

Not necessarily. A vacant lot can still contain poor soil, buried foundations, service problems or legal restrictions. Compare the complete development cost.

Who should review the property before purchase?

The team may include a lawyer, architect, builder, surveyor, planner, arborist and engineers, depending on the property’s conditions and the proposed house.