Farm settlements are looking busier than last year, but fewer in number and higher in value. Alana Crampton, partner at Tavendale & Partners, says getting compliance paperwork right before the June rush is as important as ever.

Farm contracts often open with whose financial year will take preference, Crampton says.

“There’s usually a wee bit of debate – will it be the vendor in May or will it be the purchaser in June?”

She says the items that cause the most trouble at settlement are often those agreed in the contract months earlier, then allowed to slip.

“Farmers are probably a wee bit prone to sticking up some sheds or buildings and not quite having the final sign-off from council, so it might be a code of compliance certificate for the dairy shed that just wasn’t quite obtained,” she says.

Insurance companies are less forgiving than they once were.

“They are a lot more on the heels of a purchaser to make sure that everything’s great and lined up ready for when their insurance is going to kick in.”

The tightening follows a series of natural disasters, with standards that were acceptable 10 to 20 years ago no longer passing, she says. This means farm transactions now require expertise across multiple disciplines.

“Life has become a lot more complicated and a lot more compliance-based.”

She says resource consents do not automatically pass with the land, and whether they need to be split in a partial sale or how forestry interests are handled requires specialist input well before settlement day.

Crampton says the best transactions run as a coordinated team effort, with vendor due diligence completed before the purchaser begins their own.

“It’ll be the agent, the seller, the lawyer, and the accountant; everyone needs to be in the know as to what they’re selling.”

Crampton says RMA reform is creating planning challenges for buyers and sellers alike.

“There is still a bit too much ‘what if’ of what might happen because they’re all just still sitting as bills in Parliament.”

CountryWide CONNECT with Andy Thompson & Sarah Perriam-Lampp is our daily rural show livestreamed from 11am-1pm. Visit country-wide.co.nz on how to watch/listen or download the CountryWide CONNECT mobile app, available on Apple iOS and Android.