Editor’s Note: This is the fifth in a question-and-answer series with land real estate professionals — land agents, mortgage brokers, auctioneers, attorneys, timberland professionals and more. There’s a lot of information about the national real estate market out there, but it’s tough to find answers to your specific land real estate questions — until now. LANDTHINK believes that a lot of the stress of buying, selling, and owning land can be reduced or eliminated with some simple information from some of the best in the land industry.
Landbuyer Question:
I’m looking for information about pre-existing hunting leases when buying land. I’ve been searching online for recreational land in Ohio and have come across a few properties that currently have a hunting lease in place. When a landowner has a hunting lease on their property and they sell their land, does that hunting lease run with the property or terminate with closing/transfer of the property?
Brian Bauer, Owner, Mossy Oak Properties Bauer Realty & Auctions, Fredericksburg, OH
Leasing land for hunting can be a great way for landowners to earn income from the property and contribute to local wildlife conservation efforts. Many farmers offer hunting leases to specifically mitigate crop damage. A hunting lease typically runs for a “season,” which in most areas is sometime in the fall through mid to late winter. Normally, the hunters pay the landowner upfront at the beginning of the season and then have the hunting rights throughout the season.
It’s wise for both the lessee and the lessor to have a written lease in place that addresses issues like a property sale, liability, restricted areas, etc. A lease that addresses a property sale may allow the hunter to finish out the hunting season even after the property trades. This lease will “follow the land,” and the new owner would have to honor the lease until its expiration. Other leases may provide for a prorated rebate to the hunter, and the lease is terminated upon the sale of the property.
An active lease that will continue as an encumbrance to the new owner can affect a property sale. Oftentimes, a land buyer is purchasing a property specifically for hunting, so depending on the time of year the property is being offered for sale, the seller could see a reduced number of interested buyers, or the property may stay on the market longer than what is typical for the area due to the lease. There are also situations where a property is being purchased by an investor who would want the income or crop benefits from a hunting lease.
As a seller, it’s essential to make sure your lease agreements are in writing and specifically address a property sale. If you will be offering your property for sale in the next year, craft your lease with your hunters accordingly. As a buyer, it’s essential to do your due diligence before you purchase to determine if there are any active hunting leases in place.
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