Buying (or selling) agricultural property or land can a complex process. Here are some essential
considerations when purchasing agricultural property or land.
What is the access to the land?
Does the land you wish to purchase adjoin a public highway or will you require rights of access over surrounding land to access the highway?
It is important to consider what you intend to use the agricultural land for and whether you will have the required access to and from the land via foot or vehicle.
A highways authority search would reveal whether the land abuts a public highway. However, if there are private rights over another’s land, this is likely to be noted on the title deeds and in most cases detailed on the title plan.
Are you buying a farmhouse, if so, is there an agricultural tie on it?
An agricultural tie also known as an agricultural occupancy condition or agricultural restriction, is a planning restriction or condition that is often placed on a property to ensure that it is used
primarily for agricultural purposes. These ties are common in rural areas where there is a desire to maintain the viability of agricultural land and support the local farming community.
The purpose of an agricultural tie is to ensure that the property is occupied by someone employed or retired from agriculture or horticulture, or someone who has a genuine and essential need to live in the rural area for agricultural work. This restriction prevents the property from being used for non-agricultural or residential purposes, such as being converted into a regular residential home or used for commercial purposes unrelated to agriculture.
Agricultural ties are intended to maintain the availability of housing for agricultural workers, support agricultural activities in the area, and prevent urban sprawl into rural areas. They are often imposed by local planning authorities as part of the planning permission granted for a property, and breaking or violating the agricultural tie without proper permission may result in enforcement action or penalties.
Are there clear boundaries?
Are there clear boundaries separating the land you are considering purchasing? When reviewing the title plan, it is essential to compare it against the sale particulars and any plan provided by
the seller.
Additionally, you should examine the maintenance responsibilities associated with the boundaries. These responsibilities may not be outlined in the Land Registry titles but could be documented in pre-registration deeds and other related materials noted on the title. Reviewing these documents will help determine who is responsible for the boundary’s maintenance and whether there is a requirement to contribute to its upkeep.
In the event that you are purchasing only a portion of the land, new boundaries will need to be established. The specifics, such as the type of boundary, who will erect it, and the timeline for its completion, should be agreed upon by both the seller and the purchaser. The plan should clearly indicate the boundary lines and where the new boundaries will be located.
What is the usage of the land?
You should find out what the current use of the land is.
Are there any existing restrictions on the land that could hinder obtaining planning permission or carrying out redevelopment?
You should also verify whether consent will be necessary for changing the land’s use.
Are there any agricultural land leases and tenancies
When buying agricultural land, you should consider whether the land is currently occupied and if so, by whom.
You will need to consider whether or not the lease or tenancy agreement has security of tenure and whether or not they have been registered at the Land Registry. If the tenant has security of tenure, then you are bound to accept the agreement and its terms. If the tenant does not have security of tenure, you may consider agreeing to the lease or tenant agreement but there is no requirement to do so.
Any Easements?
An easement is a legal right that grants a third party access or passage over a property.
When purchasing land, it is important to consider whether any easements exist over it.
Easements are established through a deed and are typically recorded on the property’s title deeds. it is important to review the deeds to determine any access or right of way granted to the third party. The deeds may also specify any obligations for repairs and maintenance and identify the party responsible for contributing to these costs.
Are there any restrictive covenants on the agricultural land?
A restrictive covenant is a legal right that imposes certain limitations or obligations on the use of the land and binds the property.
If there are any restrictive covenants on the land you are considering purchasing, these will be recorded in the title deeds. It is essential to obtain and review the registered deeds that contains the restrictive covenant to understand specific terms and conditions. For instance, a restrictive covenant might prohibit certain types of development on the land, and this restriction would continue to apply even after the property is sold to a new buyer.
To release a restrictive covenant, a deed of release is required, but this must be agreed upon by the parties who have the authority to enforce the covenant.
Before finalising the purchase of the property, it is essential to carefully consider any existing restrictive covenants and seek legal advice to understand their implications fully.
Is there an overage on the land?
An overage (sometimes known as an uplift) is a contractual agreement which allows a seller of land to potentially benefit from any subsequent increase in the land’s value after having sold it, if a trigger event occurs in the future.
The trigger event is a future event that enhances the value of the land, such as the grant of Planning Permission. This allows the seller to benefit from the enhanced value after the sale has completed.
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