Country estate leasing contract

The country estate leasing contract is the one that is agreed between the owner of a rural land and a tenant. The tenant can exploit the lands for agricultural, livestock or forestry use in exchange for a price. If you are planning to rent a rural property but you do not know how to solve all the paperwork, continue reading our guide. Here we explain all the details you should know about the rural leasing.

The rural estate leasing contract

As we said, rustic leases are those agreements by which one or several rustic estates, or parts thereof, can be temporarily assigned. The purpose of this assignment is to use agricultural, livestock or forestry in exchange for an income. The leasing contract will be based on the agreement of the Contracting Parties. They will be able to define their characteristics if they are not contrary to the law.

We can find certain contracts that by their characteristics will be excluded from the law of rustic leases. This exclusion may occur if:

• The lease is only seasonal, less than the agricultural year.
• Land is carved and prepared by the owner for planting or for planting agreed in the agreement.
• Rural property is acquired for a cause of social interest or public utility.
• Rental affects communal property, and property owned by local and neighborhood corporations.
• The main objective of the lease is:
  • Hunting
  • Taking advantage of secondary pastures, broken meadows…
  • Improving fallows or seeding.
  • Being livestock farms of industrial type or to be dedicated only to the breeding of cattle.
  • Being a different activity to the agricultural.

 

Characteristics of the country estate leasing contract

The country estate leasing contract has totally different characteristics to an urban lease. Among the main highlights:

• Form of the contract: must be in writing.
• Duration: Its minimum duration will be 5 years. If it’s minor, it’ll be nil.
• Income: The method of payment must be money. If it is paid in kind or in kind and money, payments in kind must be monetary valued.
• Payment: The landlord must give the tenant the payment receipt. The contract will define the form and place of payment.
• Inventory: The contract must be accompanied by an inventory, where all the elements of the property and its state of conservation are collected.
• Improvements and repairs: The Contracting Parties are obliged to allow the carrying out of works, but they will be carried out at the time that less disturbs the activity.
• Simultaneous leases: You can have several leases at the same time if the activities are compatible.
• Cultivation: The person who rents the land can decide the type of crop he wants to make. If the farm requires some improvement for this reason, they will have to come to an agreement.
• Tenant and Landlord: Rustic leases may be held between natural persons and legal entities. This has certain exceptions.

 

Termination of the lease

The rural estate leasing contract can be terminated for various reasons, both by the owner and the tenant

The tenant can finish it if…

• Property is expropriated, or it suffers a total loss.
• The extension is ended
• There is an agreement between the two parties.
• He expresses his waiver at the end of the agricultural year, notifying it one year in advance.
• He dies but his right is kept by his successors.
• The rent was made by a legal entity or a community of goods, in which case it will terminate when the legal person is dissolved.
• The resolution of the owner’s right is produced.
• Contract termination is made, in the cases legally permitted.

The owner can finish it if…

• Lack of rent payments by the tenant.
• The tenant seriously violates the obligation to improve the rural property to which he was committed.
• The tenant does not exploit the property.
• When subleasing the farm, the tenant does not meet some of the requirements.
• The tenant causes serious property damage.

Assignment of contract and subleasing

For the assignment of contract and subleasing the agreement will be respected by both parties and it must be attached to the entire property. The key points when subleasing the property are:

• It will be granted until the end of the original contract.
• The rental price must be the same as the one agreed in the original agreement.
• The consent of the owner is necessary for the assignment of the contract or sublease.
• If this is done to a spouse or descendant, the consent of the landlord will not be necessary. However, he must notify him within 60 working days since it was held.

If you are thinking of making a country estate leasing contract and you still have doubts, contact our specialist lawyers and solve all your questions.