The Ranch Post

In our last two Colorado ranches for sale articles we discussed critical issues that buyers and sellers should not overlook. The four issues we focused on were: (1) location and access, (2) leases and permits, (3) Water, and (4) mineral rights.

Today we want to discuss the last three critical issues buyers and sellers should be familiar with. These include fences, environmental and personal property issues. Let’s start with fences.

Fences

Colorado ranches for sale typically have established fence lines based on historical uses, grazing patterns and impacts caused by the surrounding terrain such as hills, drainages or streams. These fence lines may not match the legal descriptions and an owner may find they own more or less than that which they bargained for. Properties in the west are based upon a surveyed grid system without any relationship to the geographical limitations.

Ultimately, a survey is the only definitive way to disclose these discrepancies; however, sometimes the timing of the transaction or especially on large Colorado ranches for sale, costs to survey a ranch can be prohibitive and are rarely performed. In these situations, sellers and buyers must take steps to protect themselves from claims between themselves and third parties.

Environmental Issues

As with all real property, liability under federal, state and local government laws can be significant, and therefore environmental audits utilizing environmental engineers to assess the physical condition of a property may be required. Most Colorado ranches for sale involve agricultural operations which raise concerns involving the use, storage and disposal of fertilizers, pesticides and petroleum based products.

The use of these materials may require permits and corrective actions, and clean-up may be required for the use and misuse of these substances. Other issues to look into relate to asbestos or lease based paint in buildings, underground storage tanks, transformers, dump sites, impacts to surface and groundwater, and potential mining activities, to name a few.

Personal Property

The amount of due diligence regarding personal property depends primarily upon the value of the personal property being acquired. Colorado ranches for sale may involve vehicles such as trucks and farm equipment, livestock, brands, crops and other personal property which can be covered in the contract or outside the contract by a separate agreement or private treaty.

Issues such as condition of livestock, titles to vehicles, records searches, bills of sale and warranties, will need to be addressed before executing any agreement.

Colorado ranches for sale, throughout the years, have proven to be a solid investment. Beyond the investment, ranches in Colorado also provide owners the opportunity to recreate and seek sustenance from the land. The use, enjoyment and future value can be preserved so long as some simple steps are taken in performing adequate due diligence on the purchase. For a more in-depth discussion on any of the seven critical issues we’ve covered in this three part series, please feel free to contact the Mirr Ranch Group at (303) 623-4545.

In our last Colorado ranches for sale article we discussed critical issues that buyers and sellers should not overlook. The two issues we focused on were location and access, as well as leases and permits.

While these issue are critical, it’s also important to understand issues dealing with water rights and mineral rights. Let’s discuss both of those now. We will cover fences, environmental and personal property issues in our next article on this topic.

Water Rights

Perhaps one of the more critical property interests that can be acquired on Colorado ranches for sale are water rights. In many situations, the value of the water rights can exceed the value of the real property. Water rights can take the form of direct flow interests such as water passing through a ditch for irrigating hay fields, or storage rights that allow the owner to impede the flow of water and retain it for use at a later time. There are also rights in tributary and non-tributary ground water.

Title insurance does not cover water rights and opinion is generally acquired through an attorney. Water rights represent part of the bundle of rights that can be sold separately from the land, and there is an entire legal system set up in most western states that deal with water interests. Generally, it is recommended that these rights be separately identified in any contract or deed.

Water rights can also be represented by stock certificates, which are personal property and are generally conveyed by delivery of the certificate, accompanied by an endorsement of the certificate as well as the deed. Buyers should assess the status of title and adequacy of the water rights acquired. There are numerous records that can be obtained as well as officials contacted to assist in this research.

Mineral Rights

Mineral rights can be conveyed by a seller, reserved by a seller, or held by third parties by prior reservation. If mineral rights are reserved by the seller or a third party, it will be important to assess the prospects of mineral development on the property, especially in mineralized areas.

Mineral owners can install equipment, gain access to, and otherwise impact the surface estate of Colorado ranches for sale. These impacts can substantially interfere with the use and enjoyment by ranch owners and should be understood.

Colorado ranches for sale, and the vital issues sellers and buyers should be aware of, are specialties of Mirr Ranch Group. In the next and last article on this topic, we will discuss fences, environmental and personal property issues. For more information on water and mineral rights issues, please feel free to contact Mirr Ranch Group at (303) 623-4545.

When considering Colorado ranches for sale, it’s critical to understand the purchase of a farm or ranch involves issues that are not typically confronted by the buyer of a residential, commercial or just about any other type of property. Particularly in the West, there are many complex issues and particularities of western water real property laws and local customs that need to be considered.

The purpose of this series is not to provide an exhaustive list of all issues, but to highlight some of the most significant issues and serve as a guide to areas in which a higher level of due diligence should be performed. We will cover the most critical Colorado ranches for sale issues in this article and two that will follow.

Location and Access

As with any property, a physical due diligence should be conducted by properly trained personnel. Particular concerns involve the location of the ranch and advantages or disadvantages of abutting public lands. The Interior West is a tangled web of overlapping jurisdictions and is divided up by a number of federal agencies that own millions of acres of public lands. The overlapping authority of municipal, county, state and federal agencies places each piece of land, and its resources under the jurisdiction of up to a dozen agencies, each with its own regulatory authority.

There are many issues involving access to the property and rights of others to access the ranch. For instance, other property owners may have access to maintain and operate irrigation ditches that cross a particular ranch, or the right to drive their cattle through a portion of the ranch at particular times of the year. Some of these easements may not be recorded or show up on a title commitment and therefore it is very important to conduct a physical inspection of the property to see if these conditions exist. In addition, certain conditions such as wetlands, ditches, and ponds may limit the use and involve other local, state, and federal agencies such as the Army Corps of Engineers.

Leases and Permits

Many Colorado ranches for sale are encumbered by leases to a third party for grazing, farming, oil, gas, mining, or for recreational activities. Some of these leases can provide additional sources of revenue to the buyer and need to be reviewed to determine if they will interfere with the buyer’s intended use. For instance, some properties along rivers may be leased to fishing clubs or land leased out to other ranchers for grazing cattle or cutting hay. Of particular concern are the issues dealing with termination and the duration of the existing lease and conditions imposed on both parties in maintaining the lease.

Of substantial importance are state and federal permits which may allow grazing, timber or recreational uses on public lands to graze their livestock on and these permits may add some underlying value to the property owner. Any buyer should investigate the status of these permits and determine their assignability, duration, months of use and the conditions imposed on the landowner in maintaining the permits such as limitations on the number of animals. In recent years, these permits have come under greater scrutiny by the public land agencies and the continued availability and use to ranch owners of such land is no longer a given. In most situations various forms will need to be filed with the respective agencies and fees paid in order to transfer or acquire such permits or leases.

Colorado ranches for sale and the critical issues buyers and sellers should not overlook is an expertise of the Mirr Ranch Group. In the next two articles we will cover water, mineral rights, fences, mineral rights and personal property issues. For more information on location and access, or leases and permits issues please feel free to contact the Mirr Ranch Group at (303) 623-4545.

A timely topic on this snow day is skiing and its proximity to Colorado ranches for sale. Did you know that seven ski areas are near Glenwood Springs? This includes Aspen, Aspen Highlands, Buttermilk, Beaver Creek, Snowmass, Sunlight and Vail. The resort town, counted as the No. 5 “Best Ski Town” and “Most Fun Small Town” in the US by Rand McNally, is known for its famous hot springs and affordable lodging.

“Our positioning is a big factor in their designation. When you look at where we’re located, right between all these world-class ski resorts, and with Sunlight in our backyard, we are a real gateway community,” explains Lisa Langer, Glenwood Spring’s tourism marketing director in a recent Glenwood Springs Post Independent article.

Adjoining Sunlight Ski Area is the Sunlight Ranch, one of the largest Colorado ranches for sale in the Roaring Fork Valley. The 1,115-acre property includes over one mile of creek frontage, water rights, irrigated hay fields, stocked ponds, nice improvements, tended gardens and manicured landscaping. In addition to Sunlight Ski Area, the ranch also adjoins the White River National Forest. Whether skiing, horseback riding, or enjoying the hot springs, there’s something to do for everyone.

Nearby is the off-the-grid hunting retreat, Black Bear Ranch. This 902-acre recreational ranch, with its lush alpine woodlands, offers a wilderness setting adjoining public lands. Fed by two streams, the 20-acre private lake has valuable water rights and is a sanctuary for wildlife including the resident swans, moose, trophy elk and deer. The home provides southern exposures and panoramic views of Mount Sopris and the Raggeds Wilderness, affording direct access to thousands of acres of forested lands for summer and winter recreation.

The next time you’re skiing in the area, think about how nice it would be to own one of these Colorado ranches for sale.