Finding the right solicitor for agricultural property transactions
What sort of solicitor do you need to help with a property transaction? Laura Hyam, a conveyancing solicitor, considers the options.
Typically, solicitors specialise in specific areas however there is some crossover when it comes to agricultural property.
Residential farms are properties where the house is of primary importance, with the land used mostly to provide privacy and enjoyment.
This includes the farmhouse, which is to be used as the main residence of the property owner. There must be clear evidence of the historic residential use of this property and there can be no future plans for trade.
It also includes the land which forms part of the garden and grounds of the farmhouse. This land must not have a self-standing function, being purely intended to be used by the new property owner for their own enjoyment.
For these, the focus is on ensuring that the house and land is fit for purpose and has the requisite rights to allow for the enjoyment of the property.
For these types of transactions, a solicitor specialising in domestic property is required.
These are primarily businesses focussed on the growing of crops and/or the rearing of animals for raw materials or food, particularly for profitable reasons.
As with a residential farm, there is often a farmhouse and land, but these are not to be occupied solely for a residential purpose but also as a premise on which business is conducted from.
In a commercial farm purchase, the land is often the main driving force behind the transaction. The trade, business plans or future business plans often include grazing agreements, the rearing of livestock, growing of crops or production of milk. For the majority of these uses, the land requires several utilities including a water supply, waste management, access etc. Consideration also needs to be given to additional schemes which can also affect the land and income of the business.
A commercial farm purchase also often includes the purchase of a business. This therefore involves the review of the books, records, tax returns and business agreements.
For these transactions a solicitor specialising in commercial and agricultural property is required.
As you can see, there is a difference in how commercial and residential properties operate and so they need to be dealt with as such in a sale or purchase.
It should be noted, however, that a commercial farm can be turned into a residential farm, often by dividing it for sale into lots, while a residential farm can be turned into a commercial farm when the buyer owns neighbouring land.
If you need help with the purchase or sale of agricultural land, get in touch with our expert agricultural property law team.
Contact Laura to discuss this further.
