What Should I Know About Buying Land in Texas?

Texas has more private land than any other state — and buying a piece of it requires a different kind of due diligence than buying a house. Here is what every land buyer in the Lone Star State needs to understand before they sign anything.

Water Rights: The Most Critical Issue in Texas Land

In Texas, water rights are not automatically conveyed with land ownership. Surface water belongs to the state; groundwater belongs to the landowner under the rule of capture — but that right is regulated by local Groundwater Conservation Districts, which can impose pumping limits and well permitting requirements. Before purchasing any rural land in Texas, buyers should determine what water source serves the property (municipal, well, rainwater harvesting, or none); whether an existing well is present and what its production rate and water quality look like; and which Groundwater Conservation District has jurisdiction over the property. In Kendall County, the Headwaters Groundwater Conservation District regulates groundwater use. Texas Farm Credit identifies water rights as the single most important due diligence item in any Texas land transaction.

The Agricultural Exemption

The agricultural exemption — commonly called the ag exemption — is one of the most powerful property tax tools available to Texas landowners. Rather than taxing land at its market value, an ag exemption values the land at its productive agricultural value, which is dramatically lower. The result can be a property tax reduction of 80% or more on qualifying agricultural land. To qualify, the land must be in active agricultural use for at least five of the preceding seven years, including grazing, crop production, wildlife management, or other qualifying activities. Buyers purchasing land that currently carries an ag exemption should confirm with the seller and their agent that the exemption will transfer and what steps are required to maintain it after purchase.

Access and Easements

Before purchasing rural land in Texas, buyers must confirm legal access to the property. Not all rural parcels have road frontage on a public road — some are accessed via private easements across neighboring properties. A property without legally documented access is effectively landlocked and may be extremely difficult to use, develop, or sell. A licensed land surveyor and a title company conducting a thorough title search will identify access issues before closing. Any easements — utility easements, pipeline easements, road easements — affecting the property should be identified and reviewed before purchase.

Mineral Rights: Do They Convey?

In Texas, mineral rights can be severed from surface rights — meaning the person who owns the land above may not own the oil, gas, and mineral rights below. When purchasing Texas land, buyers should determine whether mineral rights are included in the sale or have been previously severed and retained by a prior owner. Owning surface rights without mineral rights means a mineral owner could have the legal right to access the surface of your land for mineral extraction, within limits governed by surface use agreements and Texas law. Confirm mineral rights status with the title company before closing on any Texas land purchase.

Due Diligence Unique to Land Purchases

Land purchases require additional due diligence beyond what a home inspection covers: verification of legal access; water source and quality testing; identification of all easements and encumbrances; flood zone and drainage review; soil composition for any planned construction or agricultural use; utility availability (electric, gas, telecommunications); county and city zoning or deed restriction review; and any environmental assessments relevant to the property's history or planned use. An experienced land agent and title company are essential partners in navigating these steps correctly.

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