Business Clinic: Advice on managing probate sale of farm
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Below, Andrew Chandler, head of rural agency at Carter Jonas, advises on the ins and outs of selling a farm through probate.
About the author
Andrew Chandler is head of rural agency at Carter Jonas, leading the team responsible for delivering Farm and Rural Agency across the country.
He advises on the disposal and acquisition of rural assets including country houses, equestrian property, farms, estates and bare land.
Q: A relative has recently passed away and left a farm to a family member and me. Neither of us has any real knowledge of the property or how it has been run.
The farm will need to be sold through probate, but we are unsure where to start. It comprises about 200 acres, two houses and a number of agricultural buildings.
What should we be doing now to prepare for a sale? Is a probate sale any more or less complicated than a typical transaction?
A: Selling a farm through probate can be a very different experience to a conventional sale, particularly where those responsible for the estate are removed from the day-to-day running of the property.
In many cases, executors or beneficiaries simply do not know the farm in detail.
They may not be aware of historic agreements, compliance issues or physical constraints, and that lack of familiarity can create risk if not properly managed.
Uncertainty is one of the biggest threats to value, and it’s also worth bearing in mind that probate can take a long time to be granted, so timing the sale is not as straightforward.
That said, a lot of the principles of preparing a farm for sale are the same whether probate is an issue or not.
Reviewing title, boundaries, tenancies, rights of way and any informal arrangements that may exist may seem obvious, but it is important.
Alongside this sits the physical condition and compliance of the property.
Issues such as private water supplies, septic tanks, asbestos, or unauthorised works are all common in rural assets and do not necessarily prevent a sale.
They must be understood early, though.
We have seen examples where a septic tank does not meet current regulations and needed certification before a transaction could proceed, and where a private water supply needed upgrades to bring it to current standards.
In probate situations, executors have a duty of care and cannot simply ignore these issues if they create a legal or practical barrier to sale.
That does not mean every problem needs to be fully resolved before going to market. Our advice is to investigate and evidence the issue, rather than leave it as an unknown.
Obtaining quotes, surveys or professional reports can often be enough to frame the problem and prevent buyers from overestimating the cost.
We frequently see situations where buyers assume worst-case scenarios and reduce their offer accordingly, when in fact the remedial work is relatively modest.
The process of marketing the farm is no different to normal, but the timing does matter.
It is possible to begin marketing activity ahead of probate being granted, but a sale cannot complete until probate is granted.
Timelines can be unpredictable, so launching too early can lead to frustration, delays, and the risk of losing committed buyers.
Where appropriate there may also be opportunities to strengthen value through relatively straightforward steps, such as securing planning permissions or formalising existing uses.
These measures are not always essential, but they can help underline value and make the property more attractive to a wider pool of buyers.
Ultimately, selling a farm through probate is about managing the grey areas.
Where knowledge is limited, the focus should be on asking the right questions, gathering the right information, and working with advisers who are prepared to take a hands-on approach.
Very few farms are perfect, and most will carry some level of issue or legacy.
The difference between a successful sale and a problematic one is not whether those issues exist, but whether they are understood, evidenced and presented clearly to the market.
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