Key Steps for Evaluating Farm Equipment in Real Estate Deals
The contract is signed. Earnest money is deposited. Closing is weeks out. Then the question arrives: does the irrigation system convey? What about the grain bins, the equipment shed, the back-pasture fencing? These are not minor items. They are often why a buyer made the offer. In Texas, the transfer question turns on legal distinctions. Most out-of-state buyers have never faced them before. In This Article: Real Property Versus Personal Property in Texas How Texas Courts Classify Fixtures What the Deed Does Not Say Where Purchase Contracts Go Wrong What I Saw From the Operator Side A Buyer’s Perspective on Texas Farm and Ranch Closings Common Questions About Personal Property in Farm and Ranch Deals Conclusion Real Property Versus Personal Property in Texas Texas law divides property into two categories. Real property is land and everything permanently attached to it. Personal property is everything else. That line matters at closing.