*Do Buyers Need Proof of Ag from Sellers?**
There are several components that make up your taxes on rural property (this post will address land that has acreage associated with it) I'll address the land only component.
(Ag = agricultural valuation or exemption as it is commonly known) Ag land has to have an ag use (livestock, crops etc.) 5 out of the 7 preceding years to be qualified as ag land.
I have suggested to rural Realtors® and buyers that it may be wise for the seller to provide some sort of written proof to the buyer validating that the seller of the land has been performing the ag use he/she filed with the county.
The history of the land goes with the NEW buyer.
For example: if the land has been appraised for an ag valuation in 2007, the buyer bought the land in 2008 and in 2010 the COUNTY APPRAISER sends a notice asking the NEW BUYER to PROVE that the property has been qualified for ag in years 2010, 2009, 2008, 2007 and 2006 (what do you, the NEW BUYER, do?)
Remember, the new buyer bought the land in 2008. IT DOESN'T matter to the county that you have owned it for 2 years. The lands history is now the NEW BUYER'S history.
That's why it is important to get something in writing from the previous owner validating the ag activities for 5 years previous to the purchase date. This way you have something to show the county if asked.
If the property has been appraised for the wildlife management tax valuation (same tax valuation as ag land JUST another variation of ag) it will offer the buyer more options compared to traditional ag exemptions. Because the buyer will not have to make any LARGE capital investments in livestock, tractors etc. Why? The property will be managed for native Texas wildlife. In this scenario, the new BUYER may request a copy of the written WILDLIFE PLAN submitted to the county from the seller as proof.
For more information about the WILDLIFE MANAGEMENT TAX VALUATION
If you're interested in selling or buying RANCHLAND please feel free to contact me @ 877.439.7262
Gregg Collum, Realtor®
TREC MCE Instructor