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And will zone'ing allow it to be split? They may need to apply for a sub/division permit. The land maybe grandfather'ed in to a old zoneing, but any division of the land will have it fall into the new rules, and sub/division permits are not cheap.
I think some of those posting for division do not understand the effect of a loss of total acreage has on the remainder nor perhaps are they considering the cost on all the co-owners for a survey to delineate the three individual pieces.
Obviously, keeping the entire parcel together would be the best option, whether for future use or for monetary gain. However, it was obvious from the very beginning that this is not an easy option for the three invovled. The cost of a survey and recording fee are cheaper by far than the amount to buy out the brother. The value of 1/3 of the land may be less than 1/3 of the potential value of the entire parcel, but it would be more immediate income for the brother than waiting for a decision to sell the entire piece (or not).
Nothing about the situation is ideal, as is the case in so many land issues. The OP just needs to work with her siblings to find the best one for them at this point.
One question and thought: how long ago did you inherit this land? If it was reletively recent, perhaps you should try to get your siblings to agree to a year wait on the decision. After some grieving time, your sister may realize that she is just being romantic or your brother may realize that holding onto the land may make a better investment. (Sorry if you already told us when you inherited it.)
I think some of those posting for division do not understand the effect of a loss of total acreage has on the remainder nor perhaps are they considering the cost on all the co-owners for a survey to delineate the three individual pieces.
but if brother forces the issue, the judge wont care and will have to divide so the value is equal to all. If that means odd shaped land that have value to devlopers but not to farmers, that may happen. If they can't work it out as family, the court will work it out for them.
My extended family went through this lawyers, accountants, etc. It was absolutely horrible. I can't remember what or if you said what the regulations are regarding subdividing land in your area. Since you all have different ideas, if you can subdivide into three parcels of equal (or land plus cash), and can all agree this might be the best way to go. Something your sister needs to think about is that 250 acres of farmland is not a viable farming operating today in North American. If she is entitled to 1/3 then that's a very nice size acreage for whatever. It doesn't sound like your brother has any plans of "giving" away his share to anyone, which of course is up to him. Just curious why you are using a land management company. You may be able to make arrangements with the person who is already farming it to farm. Farming is really hard work, and less people want to take it--no guarantees of anything (except usually trips to the bank). You need to really check out your family's tax situation. You may be better off renting for awhile because of taxes, etc,. and if you are getting rental income, than that's cash in the bank for you. Let us know how you make out. Best wishes.
but if brother forces the issue, the judge wont care and will have to divide so the value is equal to all. If that means odd shaped land that have value to devlopers but not to farmers, that may happen. If they can't work it out as family, the court will work it out for them.
Yes, the court will work it out for them. As to division of the land, actually no. If the brother forces a land sale the way to determine equality is to sell it in entirety and divide the money equally upon closing of the sale. It is unlikely that 3 seperate parcels would be of equal value as stand alones.
Yes, the court will work it out for them. As to division of the land, actually no. If the brother forces a land sale the way to determine equality is to sell it in entirety and divide the money equally upon closing of the sale. It is unlikely that 3 seperate parcels would be of equal value as stand alones.
That is so true. The brother is due the value of his portion and cutting it into smaller lots may lower value that forces a full land sale to give each their equal share. If they were going to divide by size, they could do that themself without the court. But the brother really holds the cards and hes the one they need to be sucking up to before he takes action in court. Once he doe it, seldom does the one wanting to keep the land come out with what they want.
Since the land has been rented out since the 1960's ( about 45 years) it is understandable why the brother doesn't feel a " close attatchment" to working the land. His family /ancestors have not farmed it in over 45 years and the buildings are long gone.
Bare corn/soybean land should be fetching between $3,000-$5000+ per acre and the economy has not affected land prices very much. $5 a bushel corn today holds land values up and investors are itching to buy bare corn/soybean ground and lease it out for farming purposes.
Cash rents range from $100-$200+per acre per year.
There should be no problem splitting the 240 whatsoever !
I have both bought and sold bare farmland that had been split.
Since the OP stated they do not have the funds to buy their brother out, their options are limited.
His share will be between $240,000 and $400,000 and maybe he could use that cash now.
You could also convince your brother that right now isn't a good time to sell with the economy as it is. This doesn't erase the problem, but would buy you more time.
Corn and sybean prices are sky high right now.
A good time to be selling bare corn/soybean land.
^Now who does this remind me of......hmmmmmm..........
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You need to really check out your family's tax situation. You may be better off renting for awhile because of taxes, etc,. and if you are getting rental income, than that's cash in the bank for you. Let us know how you make out. Best wishes.
