Selling a farm is a long process, often with months between listing, accepting an offer, and final settlement. During this period, farm husbandry must continue as usual to ensure a smooth transition for the buyer. But what exactly does that mean, and how can sellers protect their interests while meeting their obligations?
Maintaining Farm Operations Until Settlement
When selling a farm, you’re expected to continue routine farm management until the buyer takes possession. This is not just about keeping the property in good condition—it ensures a seamless handover, prevents livestock welfare issues, and avoids financial disputes.
Most agreements for sale and purchase specify that the seller should carry on as they normally would if they were staying. In many cases, this means:
✅ Pasture & Feed Management – If you’re harvesting supplement feed paddocks, you may need to lock them up for a second harvest the buyer will manage. Clear agreements on who benefits from each harvest prevent misunderstandings.
✅ Livestock Welfare – Whether the buyer is purchasing your stock or bringing their own, maintaining animal health, nutrition, and routines is crucial. Poor feed management or neglected paddocks could impact the buyer’s operations and lead to disputes.
✅ Customary Practices – Every farming district has its own norms. In the absence of specific clauses, buyers and sellers should generally follow what is customary in their region.
Financial & Legal Considerations
Both parties have financial responsibilities tied to the property until settlement day. Poor farm husbandry could lead to losses that the seller may be held liable for, particularly if agreed conditions aren’t met. To avoid complications:
🔹 Clarify Responsibilities in Your Agreement – Ensure the contract specifies ongoing farm care expectations, including any shared responsibilities for supplement feed, fertilization, and stock management.
🔹 Communicate With the Buyer – Keeping open discussions about seasonal farm tasks can prevent last-minute issues.
🔹 Get Legal Advice – A well-structured agreement protects you from unexpected financial liability. Regent Law can review your sale and purchase contract to ensure your obligations—and protections—are clear.
Final Thoughts: Smooth Transitions Start With Good Planning
Your buyer wants to pick up where you left off, with healthy paddocks, well-managed stock, and a farm ready for its next chapter. By continuing normal farm husbandry, aligning with local customs, and securing clear legal agreements, you’ll ensure a hassle-free settlement.
🔹 Selling your farm soon? Need guidance on your legal responsibilities before settlement? Contact Regent Law today for expert advice on farm sales, purchases, and ownership transitions.
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