# Help! Should we be concerned?



## swordancer (Jun 28, 2013)

We are working on buying a 30 acre farm in Missouri. And when I say "working" I mean that we are 3 months into the process! :stars: We have been through so many agencies (FSA, USDA, you name it) and now we are working with a local bank. Anyway, long story short, we are now trying to get a conventional loan, and the mortgage company wants us to sign a statement saying that neither the barn NOR the land will be used to generate income! Both our banker and our realtor are advising us just to sign it; they say that as long as we pay the mortgage on time, no one will care what we do. I am very nervous about this! I feel like this could totally come back to bite us. Has anyone else done this and/or had any bad experiences because of this? 

And while we're on the topic, has anyone ever ignored a deed restriction? The property has a restriction on it against pigs... and we want to raise pastured pigs. Again, our realtor said to ignore it, that no one will know. 

Any advice is greatly appreciated!!


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## RonM (Jan 6, 2008)

You raise pigs everyone within a mile will know.... I would not deal with Feds on a farm mortgage, nor would I ever ignore deed restrictions


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## tarbe (Apr 7, 2007)

It really does not sound like this is the place for you.


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## Jupiter (Dec 30, 2012)

I don't know any hobby farmers that break even, let alone generate extra income. However, it's never a good idea to take the advice of someone telling you to be deceptive...


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## d'vash (Apr 25, 2013)

Take a step back, revise the situation, and listen to your gut. If you don't have peace, run! Many a times, blockades are put forth in our lives when it is just not meant to be. 

I was in a similar situation when purchasing our current home. One after another: home inspection fell through, offers rejected, financing disapproved, and so on, until finally after year of intensive house hunting, we found a property that was meant to be. FINALLY no hassles with getting a mortgage, etc.


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## Madame (Jan 1, 2003)

It'll come back to bite you. Sign only if there are no restrictions.


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## K-9 (Jul 27, 2007)

If you sign the restriction on no commercial use and then do so, it is technically mortgage fraud, and could subject you to some pretty severe penalties if anyone wanted to pursue it. If there is a Farm Credit Services office in your area, go talk to them, as they encourage income production on your property. 

As far as the deed restriction goes, I have no idea on that one, is it something the seller is wanting to put on, is it already on the deed and how far back does it go, or is it a local ordinance, I would talk to an attorney on that one.


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## beowoulf90 (Jan 13, 2004)

Don't sign!

Clear these issues up before you put yourself in a situation you may regret.. 

They will always say "we wont' enforce that issue" or "it's just a technicality". But it's not if someone wants to get you out of there for any reason. Typically that would be Government, be they local, State or Federal.. If they want the land for some reason or control of the populace, they now have a place to start with you if you falsify documents or violate those deed restrictions or mortgage contract.

Remember there is always some one in Government that won't like you and they will make your life miserable if they want to.. Most of the time it is a local person(s), because they don't like your politics or looks for that matter.. 

So make sure that any and all restrictions, deed or mortgage are to your liking/needs.


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## grandma12703 (Jan 13, 2011)

K-9 said:


> If you sign the restriction on no commercial use and then do so, it is technically mortgage fraud, and could subject you to some pretty severe penalties if anyone wanted to pursue it. If there is a Farm Credit Services office in your area, go talk to them, as they encourage income production on your property.
> 
> As far as the deed restriction goes, I have no idea on that one, is it something the seller is wanting to put on, is it already on the deed and how far back does it go, or is it a local ordinance, I would talk to an attorney on that one.


This seems sensible. Commercial is different than for your own use. Try to clear this up and get it in writing.


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## netskyblue (Jul 25, 2012)

Never forget your Realtor is a salesperson. He/she gets paid when you buy the property. I would never accept the word of someone trying to sell me something that I should "just ignore" legally binding restrictions. Your Realtor is not the one screwed if you get caught - he/she's long been paid by that point.


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## John_Canada (Aug 17, 2013)

Your realtor is working for the seller, not you. Their interest is in the sale and thus commission, not your legal rights. I dont know in US but here in Canada, a financed purchase MUST go through a lawyer and they can advise you for a small price before you sign anything. I really do recommend paying them $100 or $200 to do so. Some will even do it free if you use them to close the deal instead of a title company. Btw, there can be many more title issues that will come up with your deal that the lawyer can uncover. I think you are stressing a bit much about things but I would still get legal counsel. (btw, I used to work in real estate law and for a US title company and really do recommend speaking to a lawyer either way. they are truly the only one with your interests in mind).


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## Cyngbaeld (May 20, 2004)

Better to lose 3 months of mostly paperwork than to buy it and be so unhappy you turn around an sell or be stuck someplace you are not able to use the way you want. There are other properties out there. I'd keep looking.


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## John_Canada (Aug 17, 2013)

K-9 said:


> As far as the deed restriction goes, I have no idea on that one, is it something the seller is wanting to put on, is it already on the deed and how far back does it go, or is it a local ordinance, I would talk to an attorney on that one.


This can be a subdivisional restriction or municipal restriction. One we were looking at had a restriction on the MINIMUM size you can build a house (4000sqft), how the house lined up on the street and no livestock (even though it was zoned to do so. Again for a lawyer to tell you what it is and what it means.


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## sidepasser (May 10, 2002)

I would get this explained "income"..

I would also be very hesitant to sign something that neither the barn NOR the land will be used to generate income! 

I really would back up on that..what if you want to breed sheep, board a horse, raise chickens, ducks, pigs, heck store tobacco?

Can the bank call the mortgage due and payable in full if you violate this?

I would be worried about signing something that could come back to "bite me".


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## plowhand (Aug 14, 2005)

I'd say buy no restricted land. Only the almight knows the future, who knows what you'll need 5,10.15......years from now.....Does not generating income include something as simple as cutting timber? Would it stop you from renting your land out, your barn and pasture in years to come?

It isn't my business, but I'd keep on looking.....If you accepting restrictions like that, might as well be under one of those HOA you here about trying to rule folks lives....Buy land that you can use like you like...look for the legal phrase "all rights and appertances there of for your heirs and assigns forever"....if a deed doesn't say that, run the other way. Be careful about right of ways and other such possible problems.....they can cause headaches down the road. Good luck in your venture!


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## DEKE01 (Jul 17, 2013)

If pastured pigs are important, look elsewhere. I guarantee some busy body neighbor will catch you and make trouble after you have invested lots of time and money into the project. On 30 acres, you are not going to be able to hide pastured pigs for very long. 

OTOH, if you wanted to occasionally pen raise a couple of feeders, and all the other deed restrictions and mortgage covenants were resolved, that would be worth the risk if the place is perfect otherwise.


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## swordancer (Jun 28, 2013)

We have decided to walk away. We're disappointed, but it's not worth the risk and we don't want to start a farm by being dishonest! Thank you all for your advice!


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## Molly Mckee (Jul 8, 2006)

Good for you, no sense in adding stress to your life. The right place will come along!


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## davel745 (Feb 2, 2009)

counter offer with no restrictions, if the bank doesn't want your business go elsewhere. Or walk away it may be the best choice.


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## swordancer (Jun 28, 2013)

Our realtor tried to intimidate us with legal action if we walked away now! I couldn't believe it. Wrong move, realtor lady, wrong move. Now I feel 100% sure that this is not the place for us. Thank again for your encouragement! We do want to farm so very much, but this place isn't for us. Just trying to stay positive that we will find the place for us soon.


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## DEKE01 (Jul 17, 2013)

swordancer said:


> Our realtor tried to intimidate us with legal action if we walked away now! I couldn't believe it. Wrong move, realtor lady, wrong move. Now I feel 100% sure that this is not the place for us. Thank again for your encouragement! We do want to farm so very much, but this place isn't for us. Just trying to stay positive that we will find the place for us soon.


That realtor needs to be reported to your state realtor license board. 1. tried to get you to sign a deal knowing you would be in violation of covenants if used the property as you intended. 2. threatened legal action for not signing a mortgage that is not acceptable to you. 

you've done nothing wrong


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## bluebird2o2 (Feb 14, 2007)

I do not trust realtors period.they tried too sell my sister a farm too raise horses that is restricted by the township because its less than ten acres.its in the country surrounded by farms but those are the township rules.I know too many people the realtors lied too.


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## DenMacII (Aug 16, 2008)

Who is the agent so we know to avoid her?


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## DEKE01 (Jul 17, 2013)

bluebird2o2 said:


> I do not trust realtors period.they tried too sell my sister a farm too raise horses that is restricted by the township because its less than ten acres.its in the country surrounded by farms but those are the township rules.I know too many people the realtors lied too.


realtors lie? That would never happen. 

Before I bought my farm, the agent promised me that there were no wild hog in the area. The next day I went to the farm and walked around on my own and I saw a herd of several adults, 3 or 4 from a prior litter, and 10 or 12 from a current litter. 

On the plus side, all my hog hunting neighbors love me.


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