Plan for a Smooth Farm Sale

Here’s a checklist of issues to consider when planning for the sale of your farm:

Ensure there are up-to-date titles available for the property. The nature of any easements registered against the titles must be clarified, eg. rights of way, water rights, electricity conveyance rights.

What informal arrangements have been made with neighbouring properties, eg. joint use of a pump or driveway.

Are the boundaries of the property clearly defined and do the boundary fences conform with them?

Clarify the details of any resource consents, eg. water rights or effluent disposal.

Obtain the advice of a registered surveyor if any subdivision is involved.

GST and taxation issues will need to be considered, eg. what will be the taxation effect of depreciation recovered in a sale?

Shares in irrigation and dairy schemes will need to be transferred.

Access rights to both parties before and after possession will need to be decided.

Method of sale, eg. auction, negotiated treaty, by tender.

Obtain a market valuation from a registered valuer of rural properties.

22nd April 2003
Source: Fine Print, NZ Law Ltd.