longest escrow length for sale of agricultural land

In Selling Property - Asked by Janice R. - Jul 7, 2011
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Answer(s)

Donald E.
Owner/Investor
Freeland, MD

What Country? What State?

Jul 9, 2011
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Chris R.
Broker/Agent
Denton, TX

Negotiable between the parties - depends on many, many factors from both sides of the transaction. If large tract - large $$ - ongoing operations, etc. could be easily 6 - 12 months. But again - all such terms are negotiable.

Jul 22, 2011
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Ross M.
Broker/Agent
American Fork, UT

In my 30+ years the longest escrow is until the crop is harvested. Typically, a Seller wants to be reimbursed for his CIGC (cash invested in growing crops) up to the Close of Escrow. The rub is if the COE is near harvest the Seller may be walking away from a sizable payday if crop prices are high. Here is what I have come up with. So there will be no argument, we base CIGC reimbursement on the current year crop budget. Setting a "point of no return" date is also necessary. Lets say the point of no return is Aug. 1. If we close prior to august 1 the reimbursement will be pro rated per the budget. (Im referring to the Sellers budget per the bank, not one made up that can be padded. or one agreed upon in advance if the Seller is self financed). If it doesnt close by Aug. 1 either delay closing until after harvest or lease back to Seller until harvest. Either way, this eliminates any liabilitiy to the Buyer during harvest. Hope this helps.

May 1, 2012
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