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Seeling with Agricultural tie.

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I am about to put my small holding up for sale. It has a standard ag tie attached to it.
I have approached an agent who has valued the property etc. He has commented that he has to find a buyer who can comply with the ag tie and satisfy the local council they are a suitable purchaser??


Can anyone advise if this course of action is correct. I took him at his word but am now thinking surely its buyer beware! Why would the council need to be involved in the sale?
I save so I can spend.

Comments

  • Surrey_EA
    Surrey_EA Posts: 2,042 Forumite
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    I believe the advice you have been given is correct.

    The council need to be involved as the occupancy restriction is part of the planning conditions of your property.

    Properties with a agricultural occupancy restriction obviously have a limited market, and therefore frequently sell at a lower price point than if it did not have such a restriction.
  • lincroft1710
    lincroft1710 Posts: 17,643 Forumite
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    If you fail to sell and provided that you have properly marketed the property at a reasonable price, then you could demonstrate there is no demand for such a property and possibly get the ag tie removed.
    If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales
  • Working_hard
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    The Occupancy condition controls who can occupy the property, it does not control who can own / buy the property. If a buyer who does not comply with the condition makes an acceptable offer the seller is quite at liberty to accept the offer. Equally there is quite a high risk that the sale will not go through as getting a mortgage for a dwelling with an occupancy condition can be problematic and the buyers Solicitor might also advise against the purchase.
    The Estate agent might be trying to filter out these offers that are unlikely to complete..
  • Davesnave
    Davesnave Posts: 34,741 Forumite
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    The rigorousness with which agricultural ties are policed depends very much on the particular council, but certainly there is no requirement for the EA to directly involve the council in the marketing. I expect you have chosen an EA who wishes to apply a 'waste of time filter.' Most of them would print an appropriate warning in the advert and direct those interested to consult the council about their plans, but I don't think many would act as a 'go-between.'

    Ironically, about the only people who buy ag-tied properties these days are those who can purchase outright, and ultimately it's up to them whether they consult the local authority, or not. The parish council and local busybodies are more likely to flag up non-compliance than some visiting official from county hall, but in places where it's common, such information may fall on largely deaf ears. Frankly, in those areas, the council would rather not know, as they haven't the money, time and staff to enforce every breach.

    Because they tend to represent particularly good value, ag-tied properties create good interest, much of it from people who need mortgages. If these are very restricted, or only available to them at punitive rates, sales then fall through. There are also dreamers who think they'll keep a few chickens and a pig by way of compliance and then discover that plan is flawed, so they bottle-out.

    By attempting to filter interested parties, your agent may simply be trying to save you a lot of aggro and frustration. I would clarify what, exactly, they mean by "satisfying the local council." When we bought our ag-tied property, the agent asked us to speak with the appropriate bod on the council, but there was no compulsion, introduction or reporting-back on the outcome.
  • beefster
    beefster Posts: 736 Forumite
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    Thanks for the replies.
    I have been living in the property in breach of the tie since inheriting the property in 2011. Nobody queried the passing of the property to me.

    The tie relates to occupancy as said. So my thoughts are similar to some above as in anyone can buy it but not anyone can legitimately occupy the property.

    I am forever thinking someone is having me over after a bad experience years ago. One bitten and all that...

    We have had one offer already and lots of views since going on sale a week ago. One viewer was blatantly on first name terms and knows the agent who came with him to visit. No mention of the tie etc then but when the agent has come with others it’s really thrust into conversation. Do agents generally come to viewings when the vendor is there anyway?
    It is there in big letters on rightmove for all to see as it should be.

    Paranoia maybe... :0)



    Feel like he is putting some interested parties off but can understand points above as to why.
    I save so I can spend.
  • Davesnave
    Davesnave Posts: 34,741 Forumite
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    beefster wrote: »

    We have had one offer already and lots of views since going on sale a week ago. One viewer was blatantly on first name terms and knows the agent who came with him to visit. No mention of the tie etc then but when the agent has come with others it’s really thrust into conversation. Do agents generally come to viewings when the vendor is there anyway?

    Feel like he is putting some interested parties off but can understand points above as to why.
    There are no hard & fast rules, but smallholding viewings tend to be owner-led because of the questions that are likely to be asked about the land etc and the time it takes to walk it all. Sometimes, the agent will accompany for the house and then leave, rather than get their shoes dirty.

    Agents will know locals on the look-out for a smallholding or a re-development property, not necessarily ag-tied. I have been subject to a couple of unsophisticated attempts to put me off a property. Sometimes, however, it's the owner who is behind this, if their intention is to market and 'prove' there's no interest, with the idea of having the tie removed. I experienced that once.

    Why not get a friend or friends to ring and enquire about your property and see what the agent's response is?
  • beefster
    beefster Posts: 736 Forumite
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    That’s exactly what I started putting into place this evening Dave...
    today we had a letter popped in the postbox from an interested party who has not been contacted by the agent since requesting a viewing.

    One person who has viewed cane round and said the agent was really pushing the agricultural tie and said they where surprised at how he was trying to put them off when they where going to set up a small holding with Farm shop! He told them they have to be in agricultural employ now!! They “thought we should know”.....

    We signed the contract 11 days ago. It has a 14 day opt out I believe! Seriously considering doing just that.
    I save so I can spend.
  • Davesnave
    Davesnave Posts: 34,741 Forumite
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    beefster wrote: »
    We signed the contract 11 days ago. It has a 14 day opt out I believe! Seriously considering doing just that.
    What you have discovered certainly sounds worrying.

    You may well find your contract with the agent requires you to give 2 weeks notice to them in writing, but that will be after the expiry of whatever minimum term the contract runs for. That is always negotiable, but typically not less than 8 weeks.
  • beefster
    beefster Posts: 736 Forumite
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    That is unfortunately correct dave.... 14 days after initial 3 month period! We are in a pickle!


    Apparently he was going to call the interested party today!


    I am getting a solicitor on board to keep an eye on things.... Not sure what else I can do.
    I save so I can spend.
  • DaftyDuck
    DaftyDuck Posts: 4,609 Forumite
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    Someone will surely correct me...

    If you signed the contract at home, you should have a 14 day cooling off period. You may have signed to waive this, but they can only charge you fair (hah!) costs, not the full fee. So, photographing and marketing costs. That's not to say there isn't a minimum term, and only after then can you serve notice to end the contract.

    One is statutory contractual rights to cancel, the other the cancellation term in the contract.

    Now, go read your contract carefully while others correct wot I rit... I always admit legal stuff is foreign territory for me! :D
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