Need a checklist when selling your farm?

Here is our Sellers to do list for Sugar Cane/Cropping Properties:

✅ Have the Agent or your solicitor write up the basic terms of the Contract as agreed with the Buyer (ie. purchase price, deposit, conditions the parties want – ie. subject to finance, building and pest, due diligence, subject to sale of buyer’s property, etc, record if the crop and/or plant and equipment are included or excluded from the sale, settlement date);

✅ Contact your Accountant to notify them of the sale – obtain advice on GST treatment of the sale (ie. can you sell the property as a going concern, or use the farmland exemption, or have the price plus GST?)  Also discuss any CGT consequences from the sale and whether your Accountant requires an apportionment to be recorded in the Contract;

✅ Engage your solicitor to review the draft Contract or to draft the Contract and special conditions on your behalf;

✅ If property has a house/sheds - Locate your Building Classification Certificates (ie. Final Building Approvals) and all plans and drawings relating to the construction of the improvements on the property (including for any houses and machinery sheds) and provide copies to your solicitor – if you have none, inform your solicitor immediately so that we can include the appropriate clauses in the Contract in relation to this;

✅ If property has a house – inform your solicitor if it has an approved Safety Switch and Smoke Alarms installed;

✅ If property has a pool – ensure you have a valid and current Pool Safety Certificate and provide a copy to your solicitor and Agent;

✅ Provide your solicitor any information on Forward Pricing Agreements made with your Marketer for the current year’s crop or beyond.  Also advise if your marketer is QCS or QSL;

✅ If Water Allocations included – provide your solicitor with details of the Water Allocations being included;

✅ If Houses or Farm leased out – Provide details of the arrangements and send copies of all leases to your solicitor prior to the Contract being signed;

✅ Your solicitor shall send you the Contract for your signature once the Buyer has signed it.  Sign where indicated and initial the bottom of each page (if able) and return by email, fax or delivery to your solicitor;

✅ Diarise all Critical Dates noted by your solicitor and ensure you can be contacted on these dates;

✅ If the property is mortgaged - Contact your bank, advise them you are selling (and notify them of who your solicitor is), sign any discharge authority for each mortgage.  Provide your solicitor with your banker’s contact details so that they can liaise with your bank to arrange settlement. (Note – you will probably have to give your bank a discharge authority before they will arrange settlement.)

✅ If the purchase price or market value is $750,000 or more – you will need to apply for a Valid ATO Clearance Certificate.  Please ensure you or your Accountant attend to this application as soon as possible as in some instances it can take up to 30 days for the ATO to process;

✅ Provide your solicitor with a copy of your latest rates, water and land tax (if any) notices that you have received.  If you intend on paying them before settlement, make payment well before settlement and forward receipts to your solicitor as evidence of payment so that they can make the appropriate adjustments at settlement (if required);

✅ If any registered vehicles included – arrange safety certificates or for heavier vehicles - ensure Certificates of Inspection are current as at the settlement date and deliver to your solicitor, sign and return Vehicle Registration Transfer forms to your solicitor to hand over at settlement;

✅ If Crop and/or Plant and Equipment included in the sale – you will be required to contact any Secured Party on the Personal Properties Securities Register (“PPSR”) to provide a release of their interest over the assets being sold or a letter from them confirming they hold no interest in the assets being sold.  Please attend to this promptly so any necessary releases are received by settlement.

✅ If Physical Settlement occurring – Your solicitor will send you Transfer documents for you to sign (in the presence of a qualified witness).  Please sign and return original documents to your solicitor promptly along with any other applications or forms in which they have enclosed;

✅ Return your Verification of Identity (“VOI”) documents (if you have not previously provided these to your solicitor in the past 3 years) along with your signed PEXA Authorisation Form (if settlement occurring electronically).  Your solicitor or an authorized representative at your nearest Post Office will need to sight your Drivers Licence and Passport (or other sufficient forms of identification) for your VOI;

✅ Approximately 1 week before settlement contact:

  • Your telecommunications provider - to transfer your telephone and internet if necessary);

  • Energex or Ergon (to cancel your electricity account);

  • Gas company (if applicable);

  • Remove any chattels excluded from the sale (ie. livestock, plant and equipment, crop or personal property) from the property prior to settlement.

✅ Advise your solicitor of your bank account/s in which you require them to deposit settlement monies into;

✅ The Buyer has a right to a final inspection of property on the day of settlement to check the inventory of chattels/plant and equipment, and crop (if any) and ascertain the existence and state of repair of the property;

✅ Move out and arrange for handover of keys to the Agent or Buyer;

✅ Once settlement has been effected, cancel any insurance policies over the property;

✅ Notify the following in relation to new address and contact details (if this is your principal place of residence):

  • State/Commonwealth Electoral Offices;

  • Post Office – redirection of mail;

  • Delivery people;

  • Family, friends and others;

  • Banks, share registries, building societies, insurance companies (life, vehicle, general);

  • Other relevant bodies concerning credit cards, social welfare payments, subscriptions, club membership, vehicle registration/drivers licence, tenants of investment properties, etc;

✅ Check that your solicitor is notifying the Mill of your sale so they can cancel/transfer any supply agreements;

✅ Notify any other organisations - such as your Marketers (QSL/QCS, Canegrowers, MAPS, SRA, etc) of your sale;

✅ Notify the tenants (if any) of the change of ownership by providing them with a Notice of Attornment so they know who the new landlord is. 

When thinking of selling your farm, speak to your advisers early on including your solicitor, accountant and financial planner (if you have one) to ensure a smooth sale process and to ensure you are selling the farm at the right time with minimal tax consequences.

The content of this column is to provide a general guide on this topic. Please contact our team professional advice should be sought about your specific circumstances.

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