Purchase and sale of agricultural properties
When buying or selling an agricultural property, it is essential to inspect all conditions regarding the property and the agricultural holding in order to prevent any new challenges from occurring after completion of the transaction.
This ensures that the buyer has knowledge of the property, and that the seller knows for sure that he will not be met with any subsequent claims.
Agricultural properties are very different, however, one thing they share is that they all require an individual and thorough inspection in connection with a sale.
In addition to the usual problems involved in the purchase of property, you should have special focus on the following:
- The revenue limitations implied in the Danish Agricultural Holdings Act, primarily the residence requirement
- The production basis, including environmental permits
- Environmental regulations in general, including storage capacity and drainage conditions
- Any (future) investments to be expected
- Any reductions in the use of land (so-called section 3 areas in pursuance of the Danish Nature Protection Act, BNBO zones, etc.)
- Potential sources of support, primarily under the Basic Payment Scheme (BPS), green supplements, and transfer of rights
- Tax related consequences for both parties in relation to the distribution of the purchase price etc.
- Problems about cross compliance
Full-service advice on all aspects of your agricultural transaction
HjulmandKaptain has extensive experience within the sale and purchase of agricultural properties. Not only do we review all documents required; we also offer sparring ensuring that your specific property meets all your present and future requirements for your business and your farm.
We are a full-service law firm, meaning that our counselling comprises not only the usual agricultural advice but also all kinds of associated advice following in the aftermath of any agricultural transaction, e.g. in relation to questions of environmental permits, BNBO, tax, lease of farmhouses, etc.
If you are about to buy or sell an agricultural property, we can help you to see the broader perspective, ensuring that all things are being considered, and that you get the best outcome.
