It may sound ideal tending to your vines and relaxing later with a glass of your own pinot in hand. However, with established vineyards selling for upwards of $80,000 a hectare, buying a vineyard can prove to be an expensive undertaking if details are overlooked in the initial stages. It goes without saying that the financial aspects of buying a vineyard are vitally important. However, buyers must also fully understand aspects of the property itself and any related issues to avoid problems after settlement.

Water, boundaries, roads, trees . . .
Water is required for irrigation and during the winemaking process. The sellers must have the necessary consents to take water and must transfer these consents to you. You should note any restrictions on the water take including volume, timing, renewal and expiry. Make sure that the purchase price includes the water reticulation equipment and that the equipment will meet the water consent conditions for your property. You also need to ensure that your property has the legal right to reticulate water and electricity. Local authorities in wine growing regions have specific policies addressing resource management issues. Do check whether there are any restrictions on the use of land in the area.

For example, frost fans are necessary in many areas to help prevent frost damage. However, to alleviate noise concerns there are sometimes restrictions on the types of fans and when they can be used.

The physical boundaries of the property may vary from the actual legal boundaries on the title. An example is where vines are planted up to a riverbed. The river may have altered its course over time and the vines may be planted on land that is not on the title. Although this may be able to be remedied, it's complex and expensive to sort out. Roads may show on the title but at the property there may be nothing to indicate their presence; these are 'paper roads'. Problems can arise if vines are planted across these paper roads. To stop the road, you will have to apply to the local authority to buy the land from it at valuation, which may include the value of your own vines.

Boundary trees can be a problem in vineyards, particularly if they shade the vines or are perching sites for birds. Some trees, such as blue gums, carry a risk of taint from the oil so you'll need advice on how to deal with this.

If you are supplying grapes to winemakers, you'll need to understand the details of any existing grape purchase agreements. These agreements are crucial as they detail, amongst many things, how you will be paid. If equipment is included in the purchase, make sure the seller owns, not leases, the equipment. Ascertain whether the seller has any creditors that may have claims over the equipment so that everything you are expecting to be there will be present on settlement. You may have claims to any missing equipment, but these may be difficult to pursue and you will have vines that require that equipment in the meantime!

It is crucial that the Agreement for Sale & Purchase allows for all the above, and any other related issues, for your prospective vineyard. Some vigilance before signing the Agreement will help ensure you can enjoy drinking your own pinot for many years to come.