Business and Policy August 2025 – Sector Focus: Thinking of Selling your Farm? What you Need to Know
31 July 2025For whatever the reason, if you have found yourself in a position of looking to sell your farm, it is not quite as straight –forward as giving the sales agent a call and popping it on the market. In order to make it as smooth a process as possible, there is quite a bit of ground work to do…
Solicitors and Title Deeds
The first and most important thing is to ensure that you have a Solicitor engaged in the process from the start as you need to check that your Title Deeds are all in order, particularly if land has been bought at different times, or if it has been inherited.
To undertake a conveyance, your solicitors now require digital maps to comply with the Registers of Scotland. If land underwent a transaction since 2000, there is a chance it may already be digitally mapped, and can be checked here. However, if the deeds are older than this, then your Solicitor will need to engage the services of a mapping team to prepare the required maps for registration. In more complex cases, where there are deeds without maps or disputes over deeds, this can take years to finalise.
Taxes
At the earliest opportunity, it is advised that you should meet with your Accountant to review the taxes that may be incurred from a farm sale, such as Capital Gains, and how best to mitigate these. If you are buying a property to move to then you should make them aware of this too to avoid second property taxes known in Scotland as the Additional Dwelling Supplement (ADS). The ADS supplement was increased by 2% to 8% in December 2024.
Engaging a sales agent
Once you are satisfied that there are no legal matters which may delay a sale, you will then want to start contacting sales agencies. Initially, you would be looking to enquire after the following items:
- An estimated value of the property.
- The fee from the agency, and any add-on’s such as brochures, drone footage, website listings.
- How the market has been performing in your area over the past year.
- How viewings would be undertaken – would you be expected/comfortable showing prospective buyers or would you prefer accompanied viewings?
It is worth engaging with at least two agencies to compare the services that are being offered and the associated fees.
A big factor is also how you, as the seller, engage with the agents. Ask yourself – would you feel comfortable working with them? They should explain the whole process clearly prior to entering in to a sales contract.
You should also be aware of the arrangement to terminate with the agency should you not feel happy with the relationship, or if there is no movement on the sale and you wish to try another agency. Usually, there is a time period after which both parties can walk away, but there can be financial penalties to terminate the contract early. Equally, there may be a clause that if you sell your farm with a second agent within a specified time period of engaging the first agent, you may still be liable for the first agents fees.
Ask your selling agent for marketing advice. Smartly presented farmhouses and tidy steadings can have a big impact on demand and can help to stimulate competition for a property. Have a look at how other farms are being marketed by your potential sales agent – does one have the edge over the other in terms of how the properties are being marketed?
Home reports and EPCs
If you are a selling property/properties with land, you are not required to provide a Home Report. But in some cases, home reports can be instructed to allay any concerns a buyer may have with the property/properties. Equally, a stand-alone Energy Performance Certificate may be instructed on individual buildings.
Once you pass ‘Go!’
When the farm goes ‘live’ on your agent’s website, there may be a flurry of interest, or it may be a slower burner. Either way, regular contact with your sales agent, plus keeping your Solicitor up to date helps keep the sale moving forward.
Due to the intricacy of farms, and the position of buyers, the reality is it can take over a year from first making the decision to sell to actually having the farm sold. But if you can be prepared, are realistic with time scales and have a property already to move on to, these can all contribute to a positive experience during a major life change.
Jennifer Galloway, jennifer.galloway@sac.co.uk
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