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I have seen this in a contract. The house had eight acres of avocados. The trees are slow growing and after ten years Sellers expected a decent crop. The contract specifically stated buyer had to irrigate the trees a certain amount of gallons per week, the Seller would be allowed access to the property four times to inspect before harvest and again staggered. I had them set up a seperate insurance policy as seller and labor would be on ladders - it all went well. The buyers wanted seller's ongoing input to make a little money from the trees and they have a barbeque at harvest when all are invited. I'm a fan of organic gardening and even have rose patents - I always attend the BBQ
I don't have a good answer. It has never been an issue. But I wonder if we have anyone that does agricultural real estate that might have an answer as to how it is done on a large scale. I think all of it comes down to negotiations.
sounds like a good question for those who handle a lot of farmland.
my thoughts are that all assets are negotiable
Stevens Point, WI
One more subject that we have to remember to address in writing to avoid a disagreement later. I'm sure someone in the AR community has developed a good list of all the ways a good agent will bullet-proof a transaction. It would be a great tool to have on hand when the commission-ectomy subject comes up. I'd love NAR to do a better job of educating the public on all the things a great agent will do that never gets noticed, we just prevent bombs from going off right up through the closing.
Stevens Point, WI
They are personal property and belong to the previous owner.
San Diego, CA
The new owner is the real owner.
Not an issue for me.
It all depends what is negotiated in the contract. Most sellers are glad to leave it for the new buyers.
parked and reading
im just clicking back through some of the old Q and A's, looks like this one got lots of good answers.
Interesting topic. I am thinking that I should learn more about crops in my area. We are in "wine country" and harvesting the grapes could add to the sale price.
It depends on what is growing in the garden, doesn't it? In Colorado or Washington, a challenge could arise yet we won't know until it occurs.
I have never thought of this situation before...probably b/c I don't sell farmland/large property! Interesting question to ponder, learn something new every day here at AR!
William, great question and of course I have three answers.
If the new buyers don't like veggies, seller is in luck.
Get it agreed on upfront.
And lastly.... totally UN PC... sneak in and steal them if all else fails?
Just kidding. I would say agree/get it in writing and hope for a good crop!
Great question and some good answers. . All things can be negotiated of course. I would think it would remain with the property after closing date if there is a home involved. If there is just land, then the purchase and sell (TN) (when listing the property) gives you an option to specify what happens to the crops
If a home is involved and the buyer agrees to sellers picking, there will certainly be a time limit of how long it will take and condition of property to be left in. Seller may just want to take what he can before closing and leave the rest behind.
Then again maybe the Seller is just happy to go and let's the fruits of his labor go with the purchase.
Either way the contract should state what will happen to the "fruit". So everyone is on the same page.
In California, the plants belong to the new owner, but the harvest can be collected by the previous owner. It always needs to be agreed upon ahead of the close of the sale.
While after the close of escrow all property that conveys belong to the the Buyer, it would be more prudent to negotiate this issue out from the onset.
Produce from the spring garden should be canned/frozen and presented to the new buyer. Unless the seller just wants to split it. How is the negotiation going so far?
Great question! One could argue that produce is "attached" to the property, particularly if it is produced by a perrenial plant, shrub or tree, so it arguably conveys with the sale. A "spring" garden sounds like something grown from seeds - still, given the roots, in my mind it's attached. But who would pay for the costs to argue this? In either case this would be Much better to have both parties agree to as part of the contract!
William, what does the contract say? Usually the fruits and veggies convey, don't they?
William Feela - now that's interesting! Could this be 'pro-rated' for derived income from this produce?
(Very rare occurance in suburbs of Boston)
I have never had this happen but now watch it occur!
We have a paragraph that would address this situation, but have never had a Seller say they want to keep their produce.
We do have paragraph in our purchase contract that addresses this issue. The original owner can retain the crops or not...depends on how you write the contract.
What a fun question. I like Ron Marshall 's answer. A
Chief Cook had this issue. once the house was closed on, the new owners got the pick of the garden.....the old owners had to get what they could before closing.
I agree with Anna.
The produce belongs to the new buyer unless it was negotiated prior to the sale. Personally, I will take it off the buyer's hands if they don't want it!