Yes, in many Iowa farmland transactions, you can choose the attorney you want to represent you during the sale and closing process. However, choosing your attorney and choosing who performs every part of the closing are not always the same thing.
The purchase agreement, financing arrangements, title requirements, and responsibilities assigned to each party can affect how the closing is handled. Therefore, if you already have an attorney you trust, tell your real estate broker early in the process.
For farmland owners, having the right professionals involved can make the transaction easier to navigate from the accepted offer through closing.
What Does an Attorney Do in an Iowa Farmland Closing?
An attorney may handle several important parts of an Iowa farmland transaction. Depending on the sale and the attorney’s role, these responsibilities may include reviewing the purchase agreement, examining title, preparing or reviewing legal documents, addressing title issues, coordinating with other parties, and helping make sure the transaction is ready to close.
Iowa’s real estate title system commonly relies on abstracts and attorney title opinions. Under Iowa’s Title Guaranty system, an abstract is brought up to date and reviewed, and a participating attorney provides a title opinion before a title guaranty is issued.
As a result, attorneys can play an important role in determining whether the seller can provide the type of title required under the purchase agreement.
Can a Farm Seller Choose Their Own Attorney?
In many situations, yes.
If you already work with an attorney who understands agricultural real estate, estate planning, trusts, farm ownership, or other matters involving your property, you may want that attorney involved in the sale.
However, the exact arrangement depends on the transaction.
For example, the purchase agreement may assign certain responsibilities to the buyer or seller. Likewise, a buyer’s lender may have specific requirements. Iowa Title Guaranty requirements can also affect who performs certain title-related services.
Therefore, sellers should discuss their attorney preference with their real estate broker before the closing process gets underway.
Should I Tell My Broker Which Attorney I Want Before the Farm Sells?
Yes. Ideally, you should discuss this before the farm is under contract.
Early communication helps everyone understand who will be responsible for different parts of the transaction. In addition, it can reduce confusion once deadlines begin approaching.
If you already have an attorney you would like to use, provide that information to your farmland broker. Your broker can then coordinate with the attorney and the other professionals involved in the transaction.
What If I Don’t Have an Attorney?
That is also common.
Many farmland owners do not regularly work with a real estate attorney. If you do not have one, you can ask your broker about attorneys who regularly handle farmland and agricultural real estate transactions in the area.
You are not limited to simply accepting the first name you hear. Instead, you can ask questions about the attorney’s experience and determine whether that attorney is appropriate for your situation.
When choosing an attorney, consider asking whether the attorney regularly works with:
- Iowa farmland transactions
- Real estate title and abstracts
- Agricultural leases
- Trusts and estates
- Multiple-owner properties
- Easements and access issues
- 1031 exchanges
- Farm corporations, partnerships, or LLCs
Not every farm sale involves these issues. However, experience with agricultural property can be helpful when one of them appears.
Does the Buyer’s Attorney Represent the Seller Too?
Generally, you should not assume that an attorney working for another party is also representing your interests.
A farmland sale involves at least two sides: the buyer and the seller. In addition, lenders, trusts, estates, family members, and other entities may sometimes be involved.
Consequently, it is important to understand who an attorney represents and what role that attorney is performing.
If you want independent legal advice about your rights or obligations as a seller, you can retain your own attorney.
Why Might a Seller Want Their Own Attorney?
Some Iowa farmland sales are straightforward. Others become more complicated.
For instance, a farm may be owned by several siblings. Another property might be held in a trust or estate. A farm could also have an existing tenant, recorded easements, mortgages, liens, or questions involving access.
Having an attorney familiar with your situation can be particularly valuable when these issues arise.
An attorney may also already understand the history of the farm if that attorney previously worked with your family on estate planning, probate, trusts, business entities, or previous real estate matters.
What Happens If There Is a Title Problem?
Title issues do not necessarily mean the sale cannot close. However, they may need to be resolved before ownership transfers.
For example, an abstract or title examination could reveal an unreleased mortgage, lien, judgment, easement, or another matter affecting title.
When an issue appears, the attorneys and other professionals involved can determine what must be completed under the purchase agreement before closing.
This is another reason why sellers should avoid waiting until the last minute to discuss who they want involved.
Can I Change Attorneys During a Farm Sale?
Potentially, yes. However, changing attorneys after the transaction is underway can create additional coordination.
Documents may already have been prepared. The abstract may already be under review. In addition, deadlines established by the purchase agreement may be approaching.
Therefore, if you are considering changing attorneys, discuss the situation promptly with the appropriate professionals involved in your transaction.
What If My Farm Is Owned by a Trust or Estate?
Attorney involvement can become especially important when farmland is held by a trust or estate.
Before the property is sold, questions may need to be answered about who has authority to sign documents and convey the property.
For example, a trustee may be responsible for a property owned by a trust. An estate may involve an executor or personal representative. In other situations, multiple owners may need to participate in the transaction.
Because every ownership situation is different, sellers should identify these issues early rather than waiting until closing.
Does My Farmland Broker Replace an Attorney?
No. Your farmland broker and attorney have different responsibilities.
A farmland real estate broker can help with pricing, marketing, auction strategy, buyer communication, negotiations, contracts within the scope of real estate practice, and transaction coordination.
An attorney provides legal advice and performs legal services appropriate to the attorney’s role.
The two professionals can work together throughout the transaction. In fact, good communication among the seller, broker, attorney, buyer, lender, abstractor, and other parties can help keep a farmland sale moving toward closing.
How Early Should I Contact an Attorney Before Selling Farmland?
You do not necessarily have to wait until you have a buyer.
If you know your farm has unusual ownership, title, estate, trust, access, lease, or other legal considerations, talking with an attorney before putting the property on the market may be worthwhile.
That gives you an opportunity to identify potential issues before they become closing problems.
Meanwhile, your farmland broker can begin gathering the property information needed to prepare the farm for sale.
Can I Choose the Attorney Who Handles My Iowa Farm Closing?
In many cases, you can choose the attorney you want representing you in an Iowa farmland sale. However, that does not necessarily mean your attorney will perform every title or closing function. The purchase agreement, lender requirements, title requirements, and responsibilities of the parties can affect how the transaction is structured.
If you already have an attorney you trust, tell your farmland broker early. If you do not have an attorney, you can look for one with experience handling Iowa agricultural real estate.
Most importantly, determine who will be involved before closing deadlines begin approaching.
Preparing to Sell Farmland in Iowa?
Selling farmland involves more than finding a buyer. Title work, leases, ownership structure, purchase agreements, closing documents, and communication among the professionals involved can all affect the transaction.
Whitaker Marketing Group works with Iowa farmland owners throughout the selling process, from preparing the property for market through auction or listing and ultimately closing.
If you are considering selling farmland in Iowa, contact Whitaker Marketing Group to discuss your property and the steps involved in preparing it for sale.
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