This must be negotiated and specified in the contract. If the buyer plans to continue farming, no rollback is triggered and the question is moot. If the buyer plans development, the rollback liability is typically $10,000 - $100,000+. Commonly, the seller absorbs the cost (reflected in a lower sale price) or the buyer assumes it (reflected in a higher price with an explicit contractual allocation). Never leave this unaddressed - it will create a closing dispute.
This article provides general educational information only. It is not legal, tax, financial, insurance, compliance, housing, brokerage, or professional advice. Rules, tax rates, obligations, enforcement practices, and market conditions vary by property, building, contract, municipality, and jurisdiction, and they change. Sellers should consult a qualified attorney, CPA, or other appropriate professional before making decisions based on their specific situation.
From the seller playbook: Agricultural Property and Farmland Sales in New York
This is general information, not legal, tax or accounting advice. Every situation is different. Talk to a licensed attorney, accountant or tax professional before you act.
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