Secure the Sale, Protect the Purchase: Due Diligence Done Right
Spring is already in full swing, and with more farms coming onto the market, both buyers and sellers are moving into negotiation mode. But it’s also one of the busiest times of the farming year, which is when due diligence can be rushed, incomplete, or left too late.
Irricon Director Keri Johnston says good due diligence is ultimately about certainty, confidence, and protecting value for both sides of the transaction.
“Good due diligence is about doing your homework properly. That means understanding the land, the consents, the infrastructure, and the numbers. It’s about making sure there are no surprises down the track.”
She says that the process matters whether you’re the one buying or the one selling.
“Good due diligence is knowing you have done all you can to ensure you get the best possible outcome whether it is buying or selling a property.
“Buying a farm is a big investment. If you skip due diligence, you’re flying blind. You might end up with compliance issues, unexpected costs, or land that can’t be used the way you thought. Getting it right protects both your wallet and your future.”
When assumptions cost you
The most common pain points are not usually dramatic. Rather, they’re the little things that people assume will be fine and never properly check.
“I’ve seen buyers get caught out by expired consents, missing nutrient data, or infrastructure that’s not up to scratch,” says Keri. “Sellers sometimes assume everything’s fine because it’s always worked for them, but that doesn’t mean it’ll pass muster with council or a new owner. Rushing it can lead to deals falling over, or worse, legal headaches later.”
Irricon Principal Environmental Consultant Nicky Watt says that even when a due diligence process has technically been done, it may not have gone deep enough.
“Most properties go through a DD process, but the process often misses some key things to look for example close proximity of a bore to an effluent pond; actual effluent or irrigated areas not what was consented; cow numbers not on effluent consent but there will still be a number on the council’s files.”
For sellers: preparation = credibility
Nicky says vendors put themselves in a much stronger position when they start early.
“Do your homework early, don’t leave it to the last minute or you might be disappointed in the outcome. The earlier you start this process the more time you have to get your ducks in a row.”
Coming to market prepared can be one of the biggest value-makers in a transaction.
“Have a DD report ready for the buyer so they can see what you have identified and have addressed. A prepared vendor signals transparency and avoids last-minute conditions, renegotiations, or settlement delays.”
For buyers: don’t just look – verify
A farm can look tidy from the laneway, but that doesn’t mean the paperwork matches the reality.
“Check that consents are current and match the farm’s actual operations,” says Nicky. “Review compliance history. Has the farm had any warnings or enforcement action? You want to know what you’re walking into.”
When records are missing or vague, that should ring alarm bells.
“Expired or missing consents, poor audit history or non-compliance notices, infrastructure that’s not in a good state, lack of documentation. If it’s all ‘in someone’s head,’ that’s a risk.”
The best time to bring in support is before you commit.
“As soon as you are looking to purchase a property, make sure you seek expert advice and support to identify potential issues or risks,” says Keri. “The right person will also suggest solutions and make recommendations to give the buyer the best outcome.”
Timing: don’t wait until the contract stage
Because spring is already a busy time on farm, both sides need to move early.
“Spring is often when a lot of farms go on the market. Hopefully the buyer has been proactive and already done the DD,” says Nicky. “Leaving this process to the last minute is more than likely to result in something important being missed.”
Keri and Nicky’s final words of advice.
“Don’t wing it. Get the right people around you, ask the hard questions, and don’t be afraid to walk away if something doesn’t feel right.
“Do your homework, don’t leave it until the last minute. Give yourself time to investigate and involve the right people in the process. There is a lot of money at stake.”
Practical tips for buyers & sellers
For sellers
- Start 6–12 months before listing
- Get consents, nutrient data, farm maps and audits organised early
- Present tidy infrastructure and visible maintenance
- Have a DD pack ready for prospective buyers
- Be upfront – transparency reduces risk
For buyers
- Confirm consents match actual farm operations
- Check water use history and compliance records
- Don’t rely on verbal assurances
- Bring in expertise early – not after offer stage
- If it isn’t documented, treat it as a red flag
