Signing an agreement for the purchase or sale of rural or lifestyle property is essentially the same as the process of signing a residential property agreement.
What does the agreement include?
Like residential and business agreements for sale and purchase, a rural agreement for sale or purchase should contain details of exactly what is being bought or sold including:
- The legal description of the property
- Its area
- Current ownership details
- The purchase price including G.S.T (Goods and Services Tax) if applicable
- When the funds are to be paid
- Any conditions that either party may have
- Details of any chattels or goodwill included in the purchases
Likewise, special conditions may include time for:
- The purchaser to raise finance
- A builder’s report to be obtained
- A Land Information Memorandum (LIM) to be produced
- A lawyer and/or accountant to check and approve the agreement
Purchase and sale agreements for dairy farms, orchards, horse studs and other rural properties, may also need to consider:
- Existing sharemilking agreements
- Water reticulation and covenants for water usage
- Existing leases that apply to the land
Buyers also need to pay particular attention to the suitability of the land for the intended purpose. Topography, climate, soils and natural vegetation as well as improvements such as road access, sheds, yards and fences, water and power supply are all important factors to consider.
Once the agreement is signed
Your agreement for sale or purchase is binding once you’ve signed it. Generally, it can only be broken if the conditions of the agreement aren’t met. So, you should have any agreement checked by your legal professional before you sign it to ensure that it meets your needs – as a buyer or seller.
Your legal professional should also check the details of the title and discuss with you the nature of the title, or right of occupancy that you are purchasing. There may also be related documents that need to be inspected or prepared before the contract is completed.
How can Property Law Service help?
To have your rural or lifestyle agreement checked before signing or to get advice on the legal process of signing an agreement, please contact us for rural property advice or speak to one of our property law specialists on 0800 PPTYLAW (0800 778 952) or +64 6 3705102.