sell inherited farm ground

[allo2]

What is the name of your state? Illinois

I have a question regarding some inherited farm ground. My brother and I have no intentions of keeping the farm ground we inherited. We would rather have the money so we can invest it. The problem is, we have been told we can not sell it for almost a year. The ground is already rented to someone else and he has the rights to farm that ground next planting season. What if I come up with a buyer and in the sale contract it stipulates that this renter has the right to farm the ground this next planting season. I cannot believe that if I hold the title to the property I cannot sell it if I want to, providing I take care of the current renter for his 2005 income.

 

[HomeGuru]

What is the name of your state? Illinois

I have a question regarding some inherited farm ground. My brother and I have no intentions of keeping the farm ground we inherited. We would rather have the money so we can invest it. The problem is, we have been told we can not sell it for almost a year. The ground is already rented to someone else and he has the rights to farm that ground next planting season. What if I come up with a buyer and in the sale contract it stipulates that this renter has the right to farm the ground this next planting season. I cannot believe that if I hold the title to the property I cannot sell it if I want to, providing I take care of the current renter for his 2005 income.

**A: easy, you sell the property subject to the restrictions.

 

[Ciarraine]

What is the name of your state? Illinois

I have a question regarding some inherited farm ground. My brother and I have no intentions of keeping the farm ground we inherited. We would rather have the money so we can invest it. The problem is, we have been told we can not sell it for almost a year. The ground is already rented to someone else and he has the rights to farm that ground next planting season. What if I come up with a buyer and in the sale contract it stipulates that this renter has the right to farm the ground this next planting season. I cannot believe that if I hold the title to the property I cannot sell it if I want to, providing I take care of the current renter for his 2005 income.

A lease conveys with the property. You can sell the property and the new owner would become the new landlord of the tenant. The problem is that with a lease on this plot, you have a less desirable piece of property than one which a buyer might get unencumbered by a tenancy. This can reduce or eliminate your market for the property, or cause you to drastically reduce the asking price.

Have you thought about offering the property to the tenant?

 

[BelizeBreeze]

The problem is that with a lease on this plot, you have a less desirable piece of property than one which a buyer might get unencumbered by a tenancy.

Depending on the structure of the lease agreement (landlease, crop share, or other form) the 'encumberance' can be quite attractive to a potential buyer.

Not only will they benefit from one year increase in appraised value, but a structured income. And, as with most landlease agreements, if the area being farmed is not intoto (the entire acreage) then depending on the purpose the buyer intends for the land, their plans can continue in congress with the lease activity.

While this site is not intended as a discourse for business practices, you should be aware that, as both responses have already told you, the lease goes with the sale, but it doesn't have to be a detraction. In fact, I would advise you to contact the local Ag Extension office for referrals to attorneys who specialize in the above forms of sales and go from there.