Services offered by Formbys for Rural Clients
- Term Sales
- Everything needed to ensure the sale is enforceable
- Auction contracts – simplifies the sale process, protects the sellers potential liability, so far as reasonably can be, is excluded by the Contract
- Agistment Contracts
- Share Farming Agreements
Things to watch for:
- Are there any leases or licenses affecting the property, water licenses, fixed improvements excluded from the sale, contaminated areas under the Contaminated Sites Act?
- Is the Seller in a position to give title?
(We recently had a sale where there was an annuity registered which had never been discharged, despite the last payment being payable 30 years ago.)
- Does the Option include everything that is required for the eventual contract once the Option is exercised?
- Again, like an auction contract, can dictate the terms of the Contract to protect the Seller or if a tender is thought to be too off-putting for the market, expressions of interest which effectively is a tender by a different name. It sets the boundaries and it is easier to protect the seller.
- Are the parties correctly described? What is excluded? What are the Lessee’s obligations under the Lease? It is important with the preparation of the Lease that the asset is protected. Should it be registered under the Personal Property Security Act?
- At law, the land owner’s obligations under an agistment Contract are quite strict. It is better to have a purpose drawn agistment contract to protect the owner of the land and shift the onus onto the owner of the livestock. Also, the livestock owner must register under Personal Property Security Act.
- There are many variations to the standard share farming arrangement, it is important to document the exact terms to protect the parties as even the simplest litigation quickly burns up $15,000-$30,000.