When Does the Buyer Get Possession?

Top 50 Questions about Farmland

Possession of farmland typically transfers to the buyer when the money changes hands, unless otherwise specified in the purchase agreement. However, leases and other factors may impact the timing of full possession.

Key Factors for Possession

1. Purchase Agreement Terms:

   • The exact possession date is outlined in the purchase agreement.
   • This is the legally binding timeline for when the buyer can take control.

2. Existing Leases:

   • If the property is leased, the buyer may not have immediate operational control.
   • In Iowa, many farmland leases expire in March, meaning possession of the land’s use may be delayed until then.

3. Access to the Land:

   • Buyers can typically walk the property once the sale closes and funds are exchanged.

Key Takeaways

1. Possession is usually granted when the sale closes and funds are transferred.
2. Active leases may delay operational control, even after ownership changes.
3. The purchase agreement dictates the specific terms of possession.

Need help navigating farmland transactions? Contact David Whitaker – Iowa Land Guy for expert advice and support!

David Whitaker | Iowa Land Guy