An associate of mine was about to purchase what seemed to be a great deal on a building parcel in Tennessee. He asked me to check it out for him. After a short investigation, I learned that past due Association Fees would almost double the purchase price for him, making the purchase a much less attractive offer. These fees must be current for your parcel to be "free and clear."

Find out if the land you intend to purchase is within a Homeowner's Association Subdivision or Neighborhood. The seller will most likely include this information and fees in the listing. You need to know if any amount is due from previous years or billing cycles. Contact the revelant Homerowner's Association and give them the parcel identification number and/or legal description. They can give you the most accurate run down of any fees due or past due. They can also be helpful in other ways to help make you an informed investor.