Contractual considerations when entering into Agreement for Sale & Purchase of Farms – ‘Proper Farming’


March 17 2014


If you are entering into contractual arrangements for the purchase of a farm, there are some important considerations you need to keep in mind.
A purchaser will always expect a vendor to continue to properly farm the property from the date of signing the agreement until the date of settlement. A proper farming clause should always be inserted into an agreement. Any agreement should set out provisions for the following:

  1. Is fertiliser to be applied by the vendor? If so, how much is applied, when and what type?
  2. Is the vendor to provide autumn-saved pasture based on areas being closed up? Is this defined by round or by kilograms of dry matter?
  3. Should supplements remain at the property on the settlement date?
  4. How are summer or autumn crops to be dealt with, and is any regrassing required?
  5. Is there a weed problem that requires attention prior to the settlement date?

If these provisions are set out in the agreement, this should ensure a smooth transition over the period of the sale.


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