Legal Tips for Buying or Selling a Farm in the Fraser Valley

Essential advice for smooth farm transactions in Chilliwack, Abbotsford, Langley, and beyond

By: Sheila Evani, Business and Real Estate Lawyer

Waterstone Law Group LLP, Chilliwack, B.C.

For those planning to buy or sell a farm in the Fraser Valley whether in Chilliwack, Abbotsford, Langley, or surrounding areas, you are more than aware that these transactions involve more than land and buildings. More often than not, particularly in the Fraser Valley, a farm is a family business, a legacy, and an integral part of the local community.

At Waterstone Law Group, we regularly advise Fraser Valley farmers on the legal side of farm transitions. With careful planning, you can protect the value of your farm, your reputation, and your peace of mind. Here are the key legal considerations when buying or selling a farm and how your lawyer can help.

1. Protect Your Reputation and Relationships

The Fraser Valley farming community is close-knit, and how you handle a sale or purchase can impact your reputation, the well-being of your workers and family, and the value of the business itself. Your lawyer can ensure the transaction is fair, obligations are clearly documented, and all stakeholders — including employees and neighbors — are considered. This helps maintain goodwill and smooth relationships long after the deal closes.

2. Quota Transfers and Marketing Board Approvals

If your farm involves is part of a regulated industry governed by a marketing board, like dairy, poultry, or eggs, quota is often a significant asset. Transferring quota requires approval from the appropriate marketing board. Delays or errors can disrupt operations, and the closing of the transaction itself.

Your lawyer will confirm quota ownership, handle the board approval process, and ensure the sale agreement reflects quota transfer terms correctly.

3. Choosing Between an Asset Sale or Share Sale

Structuring your transaction as an asset or share sale is a key consideration for buyers and sellers. It can affect taxes, liability, and operational control. A lawyer works with you and your accountant to determine the best structure for your goals and drafts agreements that reduce risk and avoid disputes.

4. Employee Considerations in Farm Sales

Farm employees, whether full-time staff, seasonal workers, or family helpers, often have long-standing ties to the farm. Handling employment issues properly demonstrates professionalism and care. Legal advice ensures compliance with employment laws and can help create continuity if the buyer intends to keep key staff.

5. Environmental and Water Rights Issues

Farmland in the Fraser Valley is often subject to Agricultural Land Reserve (ALR) rules, environmental regulations, and water licenses under the Water Sustainability Act (British Columbia). Depending on the issues that may arise, a lawyer with the appropriate expertise can help you identify risks, alert you to your environmental obligations, guide due diligence, and manage license transfers.

6. Ensuring an Orderly, Transparent Transition

Farm transactions often involve multiple moving parts: mortgages, equipment leases, family shareholders, quota marketing boards, and more. A lawyer helps manage these complexities by coordinating with lenders and advisors, setting clear timelines, and guiding communications with stakeholders. This approach fosters trust and minimizes stress for all involved.

Final Thoughts

Buying or selling a farm in the Fraser Valley is more than a financial transaction — it’s a significant life event that impacts your legacy and your community. With experienced legal guidance, the process can be handled with care, professionalism, and respect. If you’re considering a farm transition, speak to a lawyer early to protect your investment and avoid unnecessary complications.

Our Farm Transactions team at Waterstone Law Group LLP is here to help Fraser Valley farmers with farm sales and purchases, quota transfers and corporate structuring. Learn more or connect at https://www.waterstonelaw.com/