Survey, Title, and Closing

After auction day, the transaction moves toward a formal closing — typically within 30 days. Here's what happens during that window, and what both buyers and sellers need to know.

Survey

Where new tract boundaries were created by the auction's division of the property, a new survey is required. The cost is typically split 50/50 between buyer and seller. Importantly, the final sale price may be adjusted to reflect any difference between the advertised acreage and the surveyed acreage — so buyers should pay attention to the "approximate acreage" language in the brochure.

Title

The seller provides a title insurance commitment verifying clear, fee-simple ownership of the property prior to closing. Buyers who require their own owner's title policy or a lender's policy pay for those separately. The deed conveyed is typically a Warranty Deed or Special Warranty Deed, as specified in the auction terms.

Taxes and Assessments

Real estate taxes are generally prorated at closing. The seller pays all taxes through the auction year; the buyer assumes responsibility for taxes thereafter, along with any ditch or drainage assessments that come due following closing.

Mineral Rights

Many farmland auctions include 100% of the mineral rights owned by the seller. Buyers should confirm mineral rights inclusion — and any limitations — in the auction brochure before bidding.

Possession

Formal possession of the property transfers at closing, unless an immediate farming possession arrangement was made at the time of signing (see Step 8). In some cases, buyers may be able to begin farming operations before the closing date with the appropriate deposit in place.

Wrapping Up the Series

From the initial seller consultation through the final closing, a farmland auction is a structured, transparent process designed to achieve the highest possible value for the seller while giving buyers of all sizes a fair opportunity to compete. The nine steps covered in this series reflect the approach refined over decades by Schrader Real Estate & Auction Company — the firm that invented the multi-parcel auction method and has continued to lead the industry ever since.

Whether you're a landowner considering your options or a buyer looking to add productive farmland to your portfolio, understanding this process puts you in the best position to make confident decisions.

To explore upcoming farmland auctions or speak with an auction specialist, visit schraderauction.com or call 800-451-2709.