The sale and purchase of rural real estate — that is land used for agricultural purposes (which may include hobby farms) — is dealt with using the standard form of contract for sale of land. However, that standard form of contract has been devised principally for the use of the sale and purchase of residential property and the standard conditions of that contract do not take into account many of the matters that vendors and purchasers of rural land need to deal with.

Western Australian practitioners should note that the Real Estate Institute of Western Australia has produced a form of Offer and Acceptance Contract which is intended for use in rural land transactions. However, this form is largely in the same form as the Offer and Acceptance Contract used for land transactions generally. It incorporates the standard “Joint Form of General Conditions for the Sale of Land” used in Western Australia.

In the Northern Territory, the sale and purchase of rural real estate may be dealt with by using the Agents Licensing Act (NT) Law Society approved contract of sale although it is important to note that that contract has been designed primarily for use in sales of residential property and as such omits many of the matters that vendors and purchasers of rural land need to deal with in their transactions. It is therefore far more common for lawyers to use their own precedent contract documents in these matters.

There are a number of differences between the sale and purchase of rural land and residential land of which rural practitioners need to be aware.

• First, there may be matters that the vendor wishes to identify relative to the property that he or she is selling. These may include private arrangements with neighbours.

• Secondly, there will be matters that the parties have agreed upon, as part of the negotiations regarding the sale and purchase which need to be recorded. An example of such an arrangement may be the ownership of growing crops.

• Finally, there may be matters that either party may wish to require the other party to fulfill as part of the transaction.

It is important to note that the comments made here are specific to the sale and purchase of rural land. Any practitioner who is acting for a prospective vendor or purchaser of rural land will also need to consult the Sales and purchases topic for the general law of conveying land.

The following list is not exhaustive, however the matters listed below are frequently included in the contract for sale of land between a farming vendor and an intending farming purchaser.

It is not uncommon when a rural property is sold that a crop has been planted but the crop is not yet ready to be harvested or grazed. The vendor and purchaser will, in the course of their negotiations, determine who will have the benefit of the growing crop. Irrespective of who will have the benefit of the crop, arrangements will need to be included in the contract for sale as to the manner of the use of the crop if it will not be ready by the completion date. That is, if the vendor is to have the benefit of the crop, he or she will need to have access to the property after completion for that purpose. If the purchaser is to have the benefit of the crop, he or she will need to have access to the property before the completion date to be able to maintain the crop. There will usually be other issues which need to be dealt with in the contract for sale, such as the storage of harvested grain, the right to graze crop stubble, etc. See Growing crops.

There are specific requirements in the Australian Capital Territory in respect of genetically modified crops. See Growing crops.

A purchaser will want to check if any stock or plant diseases have been brought on to the property which would mean the land needs to be quarantined, and will be seeking some warranty from the vendor that the property is free of any such diseases.

A property that has been quarantined because of reportable stock diseases or because livestock have unacceptable levels of chemical residues will have a significant effect on the viability of a farming property. See Stock and plant diseases.

Most farms will have, or have had:

• an overhead or underground fuel tank;

• chemical drums which, when empty, may have been inappropriately disposed of; or

• a sheep or cattle dip.

A purchaser will want to know if any of these possible contamination sites exist, or have existed, and how they have been managed.

See Contamination issues.

A good guide for a prospective purchaser is to ask a series of pre-purchase questions about the property which will identify most, if not all, the concerns that the prospective purchaser may have about the property.

There will likely be the following issues that a purchaser should consider:

• the holding of a clearing sale;

• fencing arrangements;

• soil conservation matters;

• the manner and right of access to the property;

• whether the on-site sewage management system (septic tank) is approved;

• native vegetation clearing;

• the control and management of noxious weeds and animals; and

• the presence of native title interests or aboriginal sacred sites (particularly in the Northern Territory).

These issues will be dealt with by the inclusion in the contract for sale of appropriate special conditions. See Other issues for practitioners.