Form-of-the-week: Purchase Agreement – Farm and Ranch – Form 158-1
first tuesday publishes a wide selection of purchase agreements which cater to different types of property sales and situations, such as short sales and nonresidential property acquisitions. [See first tuesday Forms 150-159]
first tuesday’s newest addition to its library of 400+ forms is the Purchase Agreement – Farm and Ranch. This purchase agreement was developed to specifically meet the needs of detailed farm and ranch real estate sales transactions. Such transactions include but are not limited to:
- agricultural farms;
- poultry and dairy farms;
- livestock ranches; and
The form is designed with buyers, sellers and agricultural lenders, escrow officers and appraisers in mind. [See first tuesday Form 158-1]
The farm and ranch purchase agreement incorporates a new “improvements and accessories” section particular to farm and ranch transactions. This series of provisions includes:
- farm and ranch improvements, such as fences and barns;
- farm and ranch accessories, including game feeders, irrigation equipment and portable buildings;
- crops; and
- crop production records.
If the agricultural property contains a habitable one-to-four residential dwelling to be included in the sale, a separate Farm and Ranch Purchase Agreement Addendum – One-to-Four Residential Dwelling addendum is attached. [See first tuesday Form 158-2]
A seller carryback financing provision with UCC-1 coverage has also been incorporated as its own addendum, known as the Farm and Ranch Purchase Agreement Addendum – Seller Financing. [See first tuesday Form 158-4]
Agricultural property is distinct from both residential and commercial property in its man-made hazards. An environmental conditions disclosure statement was added to the form’s library as a supplement to the farm and ranch purchase agreement. The Farm and Ranch Purchase Agreement Addendum – Seller’s Environmental Conditions Statement allows the seller to describe all the known man-made conditions that exist on the property. This includes:
- knowledge of use permits and government notices pertaining to the property;
- existence and description of storage tanks on the property;
- collection sites including pits and ponds on the property;
- existence of drums and containers on the property and their contents; and
- means of irrigation. [See first tuesday Form 158-3]
Farm transactions are highly particular and distinct from one another. Thus, the use of the Farm and Ranch Purchase Agreement Addendum – General Use allows the form user to tailor-make the form series to conveniently fit their transaction. This addendum allows for additional explanations and descriptions to:
- the property description;
- farm and ranch improvements;
- farm and ranch accessories;
- excluded crops; and
- seller reservations. [See first tuesday Form 158-5]
Editor’s note – first tuesday’s series of Farm and Ranch forms were crafted in conjunction with the tireless assistance of agricultural real estate agent Joshua-Joaquin Mello.
Joaquin has submitted the following autobiography:
It seems that as I look back on my life, I have come full circle with respect to farming. As a kid, I spent my weekends at my grandparent’s dairy ranch in Tulare, CA, which instilled a deep respect on the land and the people who spend their lives working it.
Employment started with restaurant work and went on to general construction, flipping fixers, logging and real estate. I have been licensed in real estate since 1996 and work out of Clovis, in the heart of the Central Valley. I now plan to run a 50,000 acre farm in Africa.
I felt that the publishing industry had not given due respect to the farmer and rancher. Previously, there was not a comprehensive set of forms that pertained specifically to their agricultural transactions.
I am extremely thankful to first tuesday to be what I believe is the first publisher in California to publish real estate transaction forms tailored not only to the lender, appraiser and escrow company, but clearly for the farmers and ranchers of California.