1973, September, Pg. 11. A Check List for Acquisition of Rural Lands.

• Author: by Willis V. Carpenter

2 Colo.Law. 11

The Colorado Lawyer

1973.

1973, September, Pg. 11.

A Check List for Acquisition of Rural Lands

11Vol. 2, No. 11, Pg. 11A Check List for Acquisition of Rural Landsby Willis V. Carpenter, Clyde O. Martz and William N. CoxIn Colorado, acquisition of sizeable tracts of land for development, usually farms and ranches, requires the buyer's attorney to consider a multitude of details, any one of which is forgotten at his peril. This presents the ideal context for a "working" check-list---that is, a check-list that changes and expands with use and experience gained in each transaction.(fn2) No claim of completeness is asserted regarding the checklist below: the outline is intended as a starting point for the novice or a supplemental guide to the seasoned practitioner.

For convenience, the topic has been divided into five chronological phases: (1) pre-purchase site investigation, (2) tax planning, (3) negotiations, (4) contract/option drafting, and (5) closings.

PRE-PURCHASE SITE INVESTIGATIONThe experienced land developer is aware of the pitfalls of shoddy investigative work. However, the average buyer-client has only a vague idea of the areas with which he ought to be concerned. Either type of client will probably place considerable, if not total, reliance upon counsel to provide answers to his direct inquiries in the traditional areas (e.g., title examination), and, in addition, to ask the proper questions and search out the essential information needed to determine accurately the true value of the property as a site for development.

TitleThe preliminary site investigation should disclose any title defects that could substantially hinder the client's anticipated use of the lands, such as1. Unpatented mining claims;

2. Adverse possessors;

3. Severance of surface and mineral estates;

4. Ditch easements and other possessory rights, recorded and unrecorded; and

5. Non-cancelable leases, mineral and crop as well as residential.

AcreageHow many acres will actually be conveyed, and how many of those are suitable for development?1. Boundary and topographical surveys, although seldom available, are invaluable. However, exercise caution as to the accuracy of any survey.122. Verify reliability of government surveys with the Bureau of Land Management (BLM). Do not blindly compute acreage by assuming that US Geological Survey (USGS) maps represent regular sections and townships.

3. Consider which will control, an old (20 years or more) fence line, an even older survey, or a recent government independent resurvey.

4. Determine the cost of a new survey. Will the seller pay for it?

WaterDevelopment is impossible without an adequate supply.(fn3) 1. Beware of "paper rights." Verify the likelihood of physical delivery of water year around.

2. Obtain the State Engineer's opinion of ground water conditions. Will he approve private domestic wells as a source of water? Will he require augmentation? Will he issue a permit for a test well? Municipal or commercial wells?

3. Test any existing wells.

4. Consider conversion loss in changing irrigation water to domestic use.

5. Investigate the availability of water service from neighboring municipalities, water districts, or private sources.

HazardsAll hazards must be identified.(fn4) Valuable information may frequently be obtained by employing professional consultants and by inquiries directed to government agencies, including:1. Colorado State Forest Service and US Forest Service (fire hazards, beetles, disease);

2. Colorado Geological Survey and US Geological Survey (landslides, flood-plains);

3. Soil Conservation Service (suitability of soils for septic systems and buildings; also possible source of topographic survey); and

4. Colorado State Engineer.

Local GovernmentIt has become increasingly important to test the water and determine local attitudes before risking total submersion. A trip to the county courthouse is in order.1. County Planning/Zoning Office:

(a) Zoning classifications and permitted uses;

(b) County master plan;

(c) Subdivision regulations.

2. County Health Office: permitted and required water treatment and sewage disposal systems.

3. School Board: policy with respect to land...