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Farm transactions with M-Bovis

M. bovis continues to be a real concern. If you are thinking of buying or selling rural land, it’s important that you consider adding into the sale and purchase agreement certain clauses that address M. bovis. 

There are a number of standard issues that should be addressed. For example, the parties will need to think carefully about what warranties should be included in the event that M. bovis is discovered on the land, as there is the possibility that livestock on the subject property may test positive for M. bovis between the date the sale and purchase agreement is signed and the date of takeover. 

Another issue to consider is whether the purchaser should have the ability to terminate the agreement to purchase if M. bovis is discovered after the agreement is signed, or at the very least be able to delay takeover until such time as MPI confirms the property is cleared of M. bovis. There are M. bovis related clauses that are now starting to pop up in sale and purchase agreements for rural land up and down New Zealand. 

However, these clauses are not all created equal and some are better than others.

Please feel free to get in touch if you are looking to buy or sell a farm and want to discuss these issues further.