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FAQs

What kinds of environmental issues can cause me problems on a purchase or sale of farm property?

If a Seller farmer has used pesticides that have caused any lasting contamination on the property, this may be revealed when the Buyer developer conducts its due diligence environmental and soil testing investigations. If the property has any derelict farm equipment, tires or other debris, these items would need to be removed and possibly may again cause environmental problems. Sometimes water courses, wetlands and the topography of the farmland may result in lands that are not entirely developable. Depending upon the crops planted and harvested, environmental restrictions may ensue if the property is used by endangered species of animals, e.g. birds that nest in hay. Where raw land is being developed, cost-sharing agreements are often in place for services and infrastructure to the area, whereby front-ending costs paid by the initial developers of the area must be reimbursed. All such circumstances may result in a Buyer developer seeking to reduce the purchase price it might have otherwise paid on a straight land acreage basis.

© 2015 Lawrence, Lawrence, Stevenson LLP

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43 Queen Street West, Brampton, ON, Canada L6Y 1L9
Telephone: 905.451.3040 Fax: 905.451.5058 Email: lls@lawrences.com

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