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The role of a lawyer in 
farmland sale


 

selling your farmland

Selling farmland may prove to be one of the largest decisions of your life.  Using a lawyer throughout the process ensures it is done right.   How may we help you? 

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An initial decision is how the land will be sold.  Selling farmland can be expensive – it’s important to research your options and know ahead of time what you can expect for costs.  Realtors and auctioneers will often charge 3 to 5 percent of your gross sale price (note that the percentage is negotiable).   These options are expensive, but will give your sale national, even international, exposure to ensure top prices are garnered.  

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The less expensive options are land tenders.  A land tender process is facilitated by a lawyer where the sale is advertised locally/provincially, and a deadline set for buyers to submit their sealed bids to the lawyer by.  If you have a buyer close at hand and choose not to list the sale publicly, lawyers can prepare the purchase agreement to document the terms of a private sale, generally at no or minimum extra cost.

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The next important step is preparation and signing of the purchase agreement.  Your lawyer can prepare the agreement, or if you are using a realtor, you can make your acceptance subject to lawyer approval, and allow opportunity for you and your lawyer to review the agreement together.  The lawyer can advise on important elements of the agreement such as whether mineral rights are intended to be included or excluded.  Your lawyer will obtain a title search and can advise on whether there are any registrations against the title that should be addressed in your agreement. 

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Other matters that should be addressed in your agreement include the property tax adjustment, goods and services tax (GST) or provincial sales tax (PST), water rights issues and legislative compliance if there is an above ground sewage ejector. In considering all of this, your lawyer can advise as to whether your sale should include any special conditions particular to your property, and advise as to what, if any, representations and warranties should be made in the sale process.    The purchase agreement is the road map for the entire process, so it is vitally important that it be drafted carefully. 

 

Once the purchase agreement is signed, the lawyer then facilitates the transaction by monitoring completion of conditions, preparing all of your conveyancing documents and conducting due diligence searches, such as a title search and municipal tax search to ensure clear title is transferred to the buyer.  The lawyer facilitates the closing of the transaction with the buyer’s lawyer, to ensure the buyer’s funds are secured and delivered to the vendor in a timely manner. 

 

You should use a lawyer to protect your investment and to know your rights throughout the farmland sale process.   

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DISCLAIMER: This article is written for informational purposes only and does not constitute legal advice. The views expressed are solely the author’s and should not be attributed to any other party, including Meighen Haddad LLP. If you need legal advice, please call our office at (204) 727-8461.

The Author
 

published 17 March 2025 

Laura McDougald-Williams

LAURA MCDOUGALD-WILLIAMS

Partner 

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