Real estate is bought and sold every day in the United States, encompassing everything from homes to retail businesses to operating farms and ranches. Each type of property tends to have different contractual obligations, so there is no such thing as an across-the-board standard real estate sales transaction. According to many law firms in College Station Texas specializing in real estate, the sale and transfer of farms and ranches is more difficult as there is more involved than the simple transfer of land and buildings; it requires legal considerations about equipment, livestock, property leases, and even the water that flows naturally through such land.
More Than Just A Simple Real Estate Transaction
A typical residential real estate sale involves property that includes a home and structures. With the sale of an operating business, the contract must then serve two purposes: the sale of the property and structures as well as the sale of the business, its equipment, supplies, and stock. Any business property has value above and beyond the land and buildings as well as an ability to generate money, so it is all dealt with like any other business sale. The only difference is that the sale of a farm or ranch does require some specific land and equipment titles changes as well as other legal aspects about the land and its current and continued use.
Property Rights Transfer – Water, Mineral, Grazing and Other
In dealing with agricultural land, there are a number of specific titles and permits that need to be held by property owners having to do with any water or natural material on the property as well as the grazing of livestock on open Bureau of Land Management or BLM land. Each state has different laws and requirements pertaining to this also.
Land transactions are harder when water and mineral rights are involved, each usually being considered as property of the landowner, often dependent on origination of something such as where a stream branches off from a bigger source. Grazing land is usually secured through application and permission re-established when a farm changes hands. This is one of the more complicated areas in the whole real estate transaction, usually needing to be reviewed by law firms in College Station TX that are experienced with such types of sales.
Livestock and Equipment
Livestock produced and sold by the ranch is considered property, as these animals are definitely not pets. They are the necessary supplies of any ranching endeavor and are viewed in most cases similar to equipment in regard to being sold. In either case, the current property owner can sell cattle and equipment separately or include the sale with the property; either way, they are separate parts of the transaction that can be included.
As for vehicles, equipment, and even livestock, a transaction will include details such as titles, registrations, and documentation of each vehicle, machine, and animal’s condition. Purchase prices are generally adjusted according to age and condition just like any other sale of business equipment.
The above are a few of the more prominent areas involved in the sale of farms and ranches â€“ and there are many more, some of which may seem insignificant to a non-professional. Agricultural property must adhere to more rules and regulations than basic residential property, from EPA assessments of the property with its products and waste to confirmation of all property boundaries with a new survey. The process can be quite extensive, so the best recommendation on any such transaction is to rely on the counsel and guidance of real estate law firms in College Station that are experienced in dealing with farm or ranch sales that involve both real estate and business aspects at the same time!
Hoelscher, Lipsey, Elmore, Poole & Turnbill, P.C. – College Station Real Estate Law Firm!
Call the College Station Law Firm of Hoelscher, Lipsey, Elmore, Poole & Turnbill, P.C. at (979) 846-4726 to guide you through the details of buying or selling farm or ranch property!