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Real Estate Farmland Agreement

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REAL ESTATE FARMLAND AGREEMENT

Recitals

This Real Estate Farmland Agreement (the Agreement) is made effective as of by and between Seller: and Buyer: .

Seller agrees to sell and convey, and Buyer agrees to purchase, the real property described below on the terms and subject to the conditions set forth in this Agreement.

Parties and Contact Information

Property Identification

Purchase Terms

Purchase price: $ payable as follows: Earnest money deposit of $ to be held in escrow by .

Contingencies and Conditions

Financing contingency: Buyer shall have until to obtain written loan commitment. If Buyer fails to secure financing by such date, Buyer may terminate this Agreement and the earnest money shall be handled per escrow instructions.

Inspection and due diligence: Buyer shall have days from the Effective Date to complete all inspections, soil and agronomic testing, conservation compliance review, and review of water rights. Seller shall provide reasonable access for such inspections.

Agricultural and Resource Matters

Crops and rents: Existing crops, leases, and rents shall be handled as follows. Crops growing at closing:

Water rights, irrigation facilities, and surface or groundwater permits shall be transferred as available. Buyer acknowledges review of water allocations:

Title, Closing, Taxes and Prorations

Title: Seller shall deliver at closing a marketable title subject only to permitted easements and restrictions. Buyer shall obtain a title commitment. Title objections shall be delivered in writing within ten (10) days of receipt of the title commitment.

Representations, Warranties and Covenants

Seller represents and warrants that Seller is the sole owner of the Property, has the authority to sell, that there are no undisclosed leases or liens except as disclosed to Buyer, and that to Seller's knowledge there is no material violation of environmental law on the Property. Buyer acknowledges reliance upon Buyer's due diligence investigations.

Disclosures (Answer Yes or No)

Lead-based paint disclosure (if structures were constructed prior to 1978):

Known environmental contamination or hazardous materials on property:

Property located in designated floodplain:

Prior material damage (fire, flood, sinkhole, earth movement) to improvements:

Default, Remedies and Indemnity

If Buyer fails to close in accordance with this Agreement, Seller may retain the earnest money as liquidated damages or pursue specific performance or other remedies at law or in equity. If Seller defaults, Buyer may elect specific performance or pursue damages. Each party shall indemnify the other for breaches of representations, covenants, and obligations under this Agreement.

Miscellaneous

Governing law: This Agreement shall be governed by and construed in accordance with the laws of the state in which the Property is located. This Agreement constitutes the entire agreement between the parties with respect to the transaction and supersedes all prior agreements and understandings.

The following exhibits are incorporated into this Agreement:

Acknowledgment

Each party acknowledges that they have read this Agreement, have had the opportunity to obtain legal counsel, and understand the terms hereof. Signatures below are the binding agreement of the parties.

Seller - Printed Name:

By:

Date:

Buyer - Printed Name:

By:

Date:

Enter text✕

What a Real Estate Farmland Agreement Is

A Real Estate Farmland Agreement is a written contract that spells out the rights, duties, and payment terms between parties relating to agricultural land. It typically identifies the parties and property, sets the permitted uses, explains rent or crop-share arrangements, defines the lease or sale term and renewals, allocates maintenance and environmental responsibilities, addresses access and utility rights, and specifies dispute resolution and insurance requirements to reduce ambiguity and support enforceability in contract and property proceedings.

Why a Clear Farmland Agreement Matters

A well-drafted Real Estate Farmland Agreement reduces disputes, protects economic interests, and documents obligations for tenants, owners, lenders, and insurers; it clarifies land use, payment mechanics, and liability allocation while supporting title and financing processes under state property law.

Why a Clear Farmland Agreement Matters

Who Typically Uses This Agreement

Landowners, tenant farmers, agricultural managers, brokers, and legal counsel commonly use Real Estate Farmland Agreements to formalize usage, payment, and maintenance expectations.

  • Large landowners managing multiple leases across parcels and seasons
  • Tenant farmers securing access, crop-share terms, and operating responsibilities
  • Lenders and title companies verifying collateral and recorded interests before closing

The agreement also serves lenders, title companies, and insurers that need documented rights and obligations before financing, recording, or underwriting agricultural property interests.

Step-by-Step: Completing the Agreement

Use this checklist to prepare, complete, and finalize a Real Estate Farmland Agreement with minimal errors and timely execution.

  • 01
    Prepare Documents: Gather deed, parcel map, title report, and previous lease documents for reference.
  • 02
    Identify Parties: Use full legal names and verify authority for each signer or entity representative.
  • 03
    Define Terms: Specify rent, crop-share, term, renewals, duties, and insurance requirements clearly.
  • 04
    Sign and Notarize: Obtain signatures from authorized signers and notarize or use RON when state rules allow.

Core Sections to Include in a Professional Agreement

A thorough Real Estate Farmland Agreement groups critical terms into discrete sections so each party understands obligations, risk allocation, and remedies.

Parties & Recitals

Identify each party and state background facts that explain the purpose of the agreement, which helps courts interpret intent and scope of obligations.

Property Description

Provide the full legal description, parcel number, acreage, and any attached exhibits such as maps or soil reports to avoid boundary or scope disputes.

Term & Renewal

Specify the initial term, renewal options, termination notice periods, and the effects of early termination or casualty events on obligations.

Rent and Payment

Describe the payment method, schedule, crop-share calculations if used, security deposits, late fees, and accounting procedures for revenue sharing.

Maintenance & Operations

Allocate responsibility for fences, roads, irrigation, fertilizer, pest control, and compliance with environmental or conservation requirements and permits.

Dispute Resolution

Include governing law, mediation or arbitration clauses, and venue selection; clear dispute processes reduce litigation cost and delay.

Required Information and Fields at a Glance

Parties: Full legal names
Property: Legal description
Term: Start and end dates
Consideration: Rent or crop-share
Insurance: Type and limits
Signatures: Authorized signer names

Penalties and Risks of an Incorrect Agreement

Tax Exposure: Incorrect reporting
Breach Claims: Contract damages
Environmental Liability: Cleanup costs
Unenforceable Terms: Ambiguous clauses
Recording Errors: Lost priority
Trespass Disputes: Access litigation

Common Mistakes to Avoid

  • Omitting the full legal description or relying only on a street address, which can create boundary disputes and recording rejections.
  • Using ambiguous payment language such as 'reasonable rent' without a fixed formula or schedule, increasing litigation risk if parties disagree.
  • Failing to confirm signer authority for entities, which can render the agreement voidable and delay enforcement or financing.
  • Neglecting statutory requirements for notarization or witnesses in certain states, which may prevent recording or weaken enforceability.

Digital Signing and Technical Compatibility

Use eSignature platforms that support PDF and DOCX, audit trails, and integrations with storage or ERP systems to streamline execution and recordkeeping.

  • File Formats: PDF and DOCX supported
  • Integrations: Salesforce, NetSuite, Google Workspace
  • Authentication: Email, SMS, or advanced methods

eSignature Vendor Comparison for Farmland Agreements

Key commercial eSignature options and common plan features; signNow is listed first per vendor comparison conventions.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial Yes, 7-day trial Varies Varies Varies Varies
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Frequently Asked Questions and Troubleshooting

Answers to common execution, notarization, filing, and storage questions for Real Estate Farmland Agreements in the U.S.


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