How do you buy agricultural property?
Buying agricultural property involves completing the conveyancing process, which transfers legal ownership from the seller to the buyer. Although the process follows the same basic principles as any property transaction, agricultural conveyancing is usually more complex because it may involve not only agricultural land but also a farmhouse, farm buildings, rights, environmental issues, and sometimes agricultural tenancies.
How does the process begin?
The process begins when the buyer instructs an agricultural law specialist, who investigates the legal title to the property to ensure the seller has the right to sell it. The lawyer examines the title deeds and HM Land Registry records to identify any easements, restrictive covenants, public rights of way, sporting or mineral rights, agricultural occupancy conditions, or other matters affecting the property. Searches are then carried out with the local authority and other organisations to identify planning restrictions, environmental designations, flood risk, drainage arrangements, contaminated land, compulsory purchase proposals, and the location of public utilities.
For farmland, additional enquiries are often required to establish whether the land is subject to agricultural tenancies, environmental management schemes, grazing licences, private drainage systems, or environmental liabilities such as slurry lagoons or oil storage facilities. The buyer should also inspect the farm to assess the condition of boundaries, buildings, water supplies, access routes, and any equipment or fixtures included in the sale.
Once your agricultural lawyer is satisfied with the title and the buyer has secured finance, contracts are exchanged and the completion date set. At this point the transaction becomes legally binding. On the day of completion, the purchase money is transferred to the seller, ownership passes to the buyer, and the buyer takes possession of the property. Following completion, the agricultural lawyer discharges any Stamp Duty Land Tax due, registers the buyer as the new owner at HM Land Registry, and ensures that any mortgage is registered against the title.
If you are considering buying a farm or agricultural land, please contact Tracy Neal, Partner & Head of Department, using the details below.
Tracy Neal FCILEx Practitioner, FALA – Mogers Drewett