Clauses 9 and 10 contain optional break clauses (termination rights) for landlords and tenants. These clauses should, if necessary, be amended or removed. Note that there is a delay of at least 12 months for a fixed period of more than two years. This is reflected in the definition of Break Date. However, in all cases, no compensation is due, unless the lessor has accepted the improvement. If the parties fail to reach an agreement or if a tenant is not satisfied with the terms of consent, the law gives the tenant the right to seek arbitration, provided the tenant has not yet begun the improvement. An arbitrator can also be used to decide any value issue. Any financial contribution from the lessor or a public subsidy system should be taken into account and deducted. However, landlords and tenants can agree on how often a rent review is to take place – this agreement replaces the law.
For example, you can agree every 4 years on a rent review. This lease agreement has land-register clauses at the beginning. If the lease has a term of more than 7 years, these clauses must be concluded, otherwise the tenant will have problems if he tries to register the lease with the land registry. Leases lasting more than 7 years are subject to mandatory registration with the land registry. A change in usage can be expected and does not necessarily disqualify the agreement when the notification has been notified. The law does not show how far diversification can go. In the meantime, it has become clear that peripheral or additional business activities will not prevent a lease from being a FBT. For example, operating a farm shop or camping camp. In any case, any diversification of use, which is not agriculture, is likely to require the agreement of the lessor. If you rent farmland or buildings to manage an agricultural activity, you can have an agricultural lease. Each farm lease is unique.
You should consult with experts or amend an existing contract before entering into a new lease or agreement. Example: Leon (an owner) agrees to lease his farmland to Freddy (a farmer) for a fixed term of 4 years. They agree that the maximum notice period is 24 months. Six months before the end of the lease, Leon sends Freddy a notice to stop in 20 months. The fixed term ends and becomes a periodic lease. A month later, Freddy decides he wants to terminate the lease sooner. He gives Leon the minimum of 12 months` notice. The rent ends after 61 months, a month before Leon wants it to end. The duration of the contract can be between 2 years and 60 years, with regular revisions of rents.
Note that we also provide a similar document specifically for terms less than two years old (see below). The lease contained a standard provision that all disputes arising from the terms of the lease are determined by a single arbitrator, in the event of a contract delay appointed by the President of the Central Agricultural Values Association.