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.
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.
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.
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.