Rural Lease Renewal

Verified 07 October 2022 - Directorate for Legal and Administrative Information (Prime Minister)

The rural lease is concluded for a minimum period of 9 years. If neither party comes forward, the lease is automatically renewed for a further period of 9 years under the same conditions. The conditions for renewing the lease are different depending on whether it is a "traditional" 9-year rural lease or a long-term rural lease (18 or 25 years or a quarry lease). In some cases, the landlord may object to the renewal of the lease.

Traditional rural lease

The tenant has a right to renew his rural lease.

The rural lease is concluded for a minimum period of 9 years. At the end of this period, the tenant has a right to renew his rural lease for a period of 9 years under the same conditions as the previous lease.

This is an automatic renewal.

In order to benefit from this right, the tenant must actually exploit the leased property.

In the case of living quarters, he must live in them or occupy nearby premises.

In principle, the renewed lease constitutes a new lease even if it incorporates the terms of the old lease. The parties may also decide to negotiate amendments.

For example, the owner can introduce a six-year recovery clause (6 years). This clause allows the spouse, partner, to Civil partnerships: titleContent, major offspring or emancipated minors of the owner to take back the land or buildings at the end of 6e year. The owner himself is not affected by this clause. These people must personally operate the premises.

Please note

In the event of disagreement on any of the lease amendments (e.g. rent), the parties may seize the joint rural leases tribunal.

The lessor may refuse the renewal of the rural lease either because of a fault on the part of the lessee, or because of a change in the destination of the premises, or because of the age of the lessee.

In order to refuse the renewal of the rural lease, the lessor must send a leave of absence to the lessee, by act of commissioner of justice (formerly act of bailiff) 18 months at least before the lease expires. In the absence of leave sent within the legal deadlines, the lease is automatically renewed (para tacit renewal) for a further period of 9 years.

The tenant has 4 months to challenge this refusal of renewal before the joint rural leases court.

Tenant's fault

The landlord may refuse the renewal of the rural lease to the tenant on one of the following grounds:

  • 2 rental defaults of the tenant
  • Lease assignment made by the tenant without the agreement of the owner
  • Exchange of use of plots without notifying the owner
  • Acts likely to jeopardize the proper operation of the fund
  • Non-compliance with environmental clauses (such as non-turning of grasslands or limitation of plant protection products...).
Change of destination of the rented property

The change of destination of the leased property for reasons of city planning may justify the renewal of the lease by the lessor.

For example, when a crop plot becomes buildable as a result of a change in the local city planning plan, the lessor may refuse renewal.

Age of tenant

The lessor may refuse to renew the rural lease when the lessee has reached retirement age, i.e. 62 or 67 for the full rate

The tenant can oppose this refusal by indicating that he wishes to transfer his lease to his partner or partner of CIVIL PARTNERSHIPS participating in the operation or to a major or emancipated descendant.

The lessor may refuse to renew the lease if he wishes to take over the leased property for himself or for the benefit of his spouse, his Civil partnership partner, or an emancipated major or minor descendant.

This right to take back leased premises is possible in one of the following 3 situations:

  • Personal use of the agricultural land or for the benefit of his spouse or Civil partnerships: titleContent, a descendant or a emancipated minor
  • Quarry operation
  • Construction of a dwelling

He must grant leave by act of commissioner of justice (formerly a bailiff), at least 18 months before the proposed takeover

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Takeover for personal use by the lessor or a member of his family

The trade-in may apply to the lessor or his or her spouse, Civil partnership partner, descendant or to a emancipated minor.

In order to use the right of take-back, the lessor or the beneficiary of the take-back must also meet other conditions such as:

  • Devote themselves to the exploitation of the property for at least 9 years either individually or as part of a business by participating in the work effectively and permanently according to the customs of the region and according to the importance of the exploitation
  • Occupy the residential buildings of the property taken over, otherwise live in a dwelling located near the plot of land to allow direct exploitation
  • Comply with the regulations on structural control, which in certain cases (for example, lack of diploma or professional experience, exceeding the surface threshold...), require and obtain an administrative authorization to operate
  • Sufficient financial capacity (i.e., having or having the means to acquire the necessary livestock and equipment).

The tenant may object to this takeover when he or his roommate is in one of the following situations:

  • Less than 5 years from retirement age (set at 62 for farmers)
  • Less than 5 years of the age of full retirement (set at 67)

In this case, the lease is automatically extended for a period that allows the tenant or his roommate to reach the corresponding age.

The tenant has 4 months from the moment he becomes aware of the lessor's leave to contest it by seizing the joint rural leases court.

Warning  

The judges check that the beneficiary of the lease take-back has a genuine desire to exploit the fund in a professional capacity and not to set up a garden, for example.

Resumption for Quarry Operations

Where the lessor is a quarry operator, he can exercise a right of take-back on agricultural land for the good operation of his industry. The right to take back is limited to parcels needed for quarryings.

He must commit himself to undertaking indeed the industrial exploitation of the parcels which have been taken over.

Resumption to build a dwelling house

The landlord has a right of take-back to build a dwelling house. This right also includes the possibility of adding land dependencies to existing dwellings and taking over a building of heritage or architectural interest.

The dwelling house must be for personally to the lessor or to a family member.

In this case, the lessor must hold a building permit in order to be able to grant the leave 18 months before the effective date of the leave.

The owner must complete the construction of the house within 2 years of the issuance of the permit, in compliance with the environmental rules and distance to the farm's headquarters and the farm buildings. If no construction takes place within 2 years, the tenant regains the enjoyment of the fund.

The tenant may waive his right to renew the rural lease.

The owner should be notified by registered letter with AR or by act of commissioner of justice (formerly a bailiff), at least 18 months before the lease expires.

Long-term rural lease

The long-term rural lease includes the 18-year lease, the 25-year lease, and the quarry lease.

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18-year lease

Right to renewal

The tenant has a right to renewal of the lease 18 years per 9 years.

Owners who wish to object to the renewal of the rural lease must send a leave of absence, by act of commissioner of justice (formerly a bailiff),18 months before the lease expires.

When renewing the long-term lease, a six-year recovery clause can be inserted. This clause allows the spouse, partner, to Civil partnerships: titleContent, major offspring or emancipated minors of the owner to take back the land or buildings at the end of 6e year.

FYI  

The tenant may waive his right to renew the rural lease.

The owner should be notified by registered letter with AR or by act of commissioner of justice (formerly a bailiff), At least 18 months before the lease expires.

Refusal of renewal by lessor

The lessor may refuse to renew the rural lease in any of the following circumstances:

  • or because of a fault on the part of the tenant
  • or due to a change in the destination of the premises
  • or because of the age of the tenant.

In order to refuse the renewal of the rural lease, the lessor must send a leave of absence to the lessee, by act of commissioner of justice (formerly act of bailiff) 18 months at least before the lease expires. In the absence of leave sent within the legal deadlines, the lease is automatically renewed (para tacit renewal) for a further period of 9 years.

The tenant has 4 months to challenge this refusal of renewal before the joint rural leases court.

Right of takeover by the lessor

The lessor has the option, at the time of renewal, to take over the leased property.

The takeover concerns the lessor or his or her spouse, Civil partnerships: titleContent, one descendant or a emancipated minor.

In order to use the right of take-back, the lessor or the beneficiary of the take-back must also meet the following conditions:

  • Be dedicated to the exploitation of the property for at least 9 years either individually or as part of a business
  • Occupy the residential buildings of the property taken over, otherwise live in a dwelling located near the plot of land to allow direct exploitation
  • Comply with the regulations on structural control, which in certain cases (for example, lack of diploma or professional experience, exceeding the surface threshold...), require and obtain an administrative authorization to operate
  • Sufficient financial capacity (i.e., having or having the means to acquire the necessary livestock and equipment).

Warning  

The tenant who is within 5 years of retirement cannot oppose the takeover by the lessor.

25-year lease

The renewal of the 25-year lease depends on the content of the contract:

  • Either a tacit renewal is inserted in the contract. This means that the lease automatically renews after 25 years without any term limit. Each Party may terminate it each year by leave granted by act of commissioner of justice (formerly a bailiff). It shall take effect at the end of the fourthe year following the year in which the leave was granted.
  • Either there is no implied renewal clause. The lease ends at the end of the 25 years. In this case, there is no possibility of renewal.

Career Lease

This lease concluded for a minimum of 25 years shall end in the crop year during which the tenant reaches retirement age within the meaning of MSA: titleContent (i.e. 62 years).

When signing the rural lease, the tenant must not be more than 37 years old.

So there is no possibility of renewal.

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