Buying a rural property or farm involves more considerations than buying a residential home in town.
Before purchasing rural land, a careful buyer should complete the usual pre-contract inspections on the home and any buildings on the property. These inspections should include a timber pest inspection and building inspection to identify defects beyond normal “wear and tear”.
If these reports identify any concerns, you should arrange further advice from licensed tradespeople where necessary.
Like any property purchase, buyers must take care when purchasing rural land. Failing to complete the right investigations before signing a contract can lead to significant financial loss.
One of the most important factors when buying rural property is confirming that the land suits your intended purpose. Local councils and state government departments regulate how you can use rural land.
For example, buying a property for aquaculture in an area that does not allow this type of agricultural activity could become a costly mistake. Similarly, chemical residues in the soil could prevent you from using the land for organic farming.
Completing searches and enquiries before signing a Contract for Sale can help you identify potential issues and avoid unexpected problems with your rural property.
Chemical Residues, Livestock & Plant Diseases, Noxious Weeds & Animals
If you plan to grow crops for sale or raise livestock commercially, you should investigate the condition of the land before purchasing.
Chemical residues in the soil can affect your farming operations. For example, farmers previously used organochlorines such as DDT to control pests. These chemicals can remain in the soil for decades and may affect plants and animals.
Some diseases can also remain on rural properties long after livestock leave the land. Protection zones may restrict farming activities or prevent you from keeping certain animals if a significant risk exists.
A Local Land Services (LLS) search can provide information about some of these risks.
Certain crops can also face specific pest issues, including fruit fly and nematodes. If you plan to grow crops, you should consider obtaining advice from an experienced horticulturalist. Local councils may also have officers who can provide assistance.
A soil test can help confirm whether chemical residues affect the land and whether it suits your intended use.
Noxious weeds and pests can create further challenges for rural landowners. A search through Local Land Services (previously the Rural Lands Protection Board) can identify any notifications or orders affecting the property.
Survey
A survey identifies the property’s true dimensions and boundaries. This makes it particularly important when purchasing rural land.
Existing fencing may not accurately show the legal boundaries of the property. Without a survey, you may assume you are purchasing land or access rights that do not actually form part of the property.
For example, a water source may appear to sit within the property boundaries but may not legally belong to the property. A survey can identify this issue before you proceed with the purchase.
If that water source is the only available supply on the land, failing to obtain a survey could have serious consequences.
Land Use
Local councils and state government agencies, including the EPA (Environmental Protection Authority), regulate rural land use.
These rules cover activities such as development, agricultural use, irrigation and clearing. You should check these requirements before purchasing rural land, especially if you intend to use it for a specific purpose.
You should also investigate farm infrastructure requirements, including roads and bridges. Environmental requirements may affect how you develop and use the land.
Access
You must confirm legal access before purchasing rural property.
What appears to be a road may actually be an easement or stock route. These access arrangements can change and may leave you unable to reach your property.
This issue requires particular attention near Crown Land areas. Some “enclosed roads” may look like public roads but are actually government-owned land that can potentially close in the future.
Easements
You should carefully review the current property plan for any existing, proposed or intended easements or rights of way.
An easement may not physically exist when you inspect the property but could still affect your future use of the land if it appears on approved plans.
Water Entitlements
Water access can significantly affect the value of rural land.
Before purchasing, you should confirm that all water resources comply with local and state requirements. This includes irrigation licences, river access and water bores.
The contract for sale should include details of any relevant water approvals. You should also check whether dams comply with local requirements.
Native Title
A native title search can confirm whether a current claim affects the property and whether it may impact your farming activities.
Taxation Issues
If you plan to operate a business from rural land, you should discuss the purchase with an accountant who understands rural taxation.
An experienced accountant can advise you about GST, CGT and other tax issues that may affect your purchase and business operations.
Conclusion
Every rural property has different considerations. Before and after signing a contract, you should obtain the right advice to protect your investment.
A legal professional experienced in rural conveyancing can help you investigate the property, identify potential risks and make an informed decision.
If you or someone you know needs advice about buying rural property, please email us at [email protected], or contact one of our offices:
Lismore: 02 6621 2481
Ballina: 02 6686 2522
Byron Bay: 02 6680 8525