Sample Lease Agreement

Sample Lease A

gr

eement

cels of agricultural land for the purpose of farming activity as described mor

e fully in this lease.

NO W , THEREFORE for good and valuable consideration stated her ein, the sufficiency of which is her eb y ackno wledged, the par ties agr ee as follo ws: I. Agr eement to Lease. [Lando wner] agr ees to lease to [F armer] , and [F armer] agr ees to rent from [Lando wner] the Pr emises (as defined in Section 2) on the

terms and conditions stated in this Agr

eement and the attached E

xhibits. II. D escription of P remises. Cer tain r

eal and personal pr

oper

ty in [

To

wn, S

tate] commonly kno

wn as ___________________, consisting of the follo

wing: __________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ III. Lease Term, R ene wal, and Termination. The term of this lease shall run for a period of ________ years beginning on _______ ___, 200__, and ending on ______ ___, 200_ _. Optional R ene wal pr ovision: The par ties shall hav e the option of rene wing the lease for an additional _________ -y ear period. Rene wal shall occur only upon [F armer ’s] deliv er y to [Lando wner] by _______ __, 200__ of a written request to rene w the lease for the additional period. U pon said deliv er y, Landlor d shall hav e until _________ ____, 200__ to pr ovide written notice of its acceptance or rejection of [F armer ’s] rene wal offer . I f [F armer] fails to deliv er such rene wal notice, the lease shall terminate at the end of the initial term; conv ersely , if [Lando wner] fails to notify [F

armer] in writing of its decision, the lease shall automatically r

ene

w for the additional _____-y

ear period. IV . P ermitted U ses. A. [Lando wner] permits, authoriz es, and consents to [F armer ’s] under taking all activities incident to agricultural uses of the Pr emises, including:

(i) ______________________________________ (ii) ______________________________________ (iii) _____________________________________ (iv) _______________________________________

B. [F armer] agr ees to comply with [S tate ’s] “A ccepted Agricultural Practices, ” which ar e incorporated her ein by refer ence. [F armer] and [Lando wner] shall wor k cooperativ ely with the N atural Resour ces Conser vation Ser vice to dev elop a conser vation plan for the farm. [F armer] agr ees to adopt all best management practices recommended by NR CS within a r easonable time frame identified in the conser va

-tion plan. The conser

vation plan shall be periodically r

evie w ed b y [Lando wner] and [F armer] to ensur e compliance. C. [F armer] agr ees to comply with all federal, state, and local laws, regulations, or dinances, decr ees, and rulings in connection with the use of the pr emises and any agricultural or other activities conducted ther eon, including but not limited to any and all regulations, dir ectiv es, and pr ocedur es necessar y to ensur e that [Lando

wner] continues to qualify for C

urr

ent U

se status under the S

tate

D. [F armer] may use the Farmhouse as a primar y residence so long as this lease is in for ce. The rental of the dw elling shall be go verned by a separate residential lease and both [F armer] and [Lando wner] agr ee that state law regar ding residential rental agr eements shall go vern. U se of the r

esidence is subject to the follo

wing conditions: [to be completed b

y par

ties]

(i) ______________________________________ (ii) ______________________________________ (iii) _____________________________________ (iv) _______________________________________

V. P rohibited U ses. A. [F armer] shall not, without the prior written consent of [Lando wner] engage in any of the follo wing activities on said par cels: [to be completed b y par ties]

(i) ______________________________________ (ii) ______________________________________ (iii) _____________________________________ (iv) _______________________________________

B. Consent to engage in pr ohibited uses, or to engage in uses not clearly permitted shall be obtained by submitting a written description of the pr oposed use including the location and scope of the pr oposed use. [Lando wner] may appr ov e, disappr ov e, requir e mor e infor -mation, or requir e cer tain modifications to the pr oposed impr ov ement. [F armer ’s] final written pr oposal including a clear indication of [Lando wner

’s] assent and signed b

y [Lando

wner] shall constitute written consent of [Lando

wner]. VI. R ent and Tax es. A. [F armer] shall pay to [Lando wner] without demand, rent in the amount of _______ per month (the “R ent ”). [F armer] shall deliv er the rent by the first day of each month at the addr ess specified in the Pr eamble. A late penalty of ___[e.g., 5%] per month will be assessed on all late payments. [F armer] agr ees and ackno wledges that the late penalty is necessar y to compensate [Lando wner] for lost inter est, the oppor tunity cost of r enting the pr oper ty

, and any legal fees or expenses incurr

ed in enfor

cing its rights pursuant to this Agr

eement.

B. P

rior to taking possession of the pr

oper

ty

, [F

armer] shall deliv

er to [Lando

wner] a security deposit of $______________.

Alternativ e P ro visions C rop shar e:

A. All costs and r

eturns shall be divided betw

een [Lando wner] and [F armer] as pr ovided belo w. (a) The [F

armer] shall pay as r

ent the shar

es or quantities of cr

ops as indicated belo

w: C rop A cr es S har e paid as r ent P lace of S ale or D eliv er y 1. ___________/______/_______________/________________________ 2. ___________/______/_______________/________________________ 3. __________/______/_______________/________________________ 4. __________/______/_______________/________________________ (b) [F

armer] shall consult with [Lando

wner] r

egar

ding the time, price, and other manner of sale of cr

ops prior to any sale.

(c) [Lando

wner] shall pay the follo

wing shar

e or quantities of expenses as indicated belo

Expense S har e or Amount D ate of P ayment P aid to [F armer] 1. ____________/____________________/_____________________ 2. ____________/____________________/_____________________ 3. ____________/____________________/_____________________ 4. ____________/____________________/_____________________ (d) [F

armer] shall consult with [Lando

wner] r

egar

ding any shar

ed expenditur e which ex ceeds $_____. C. [Lando wner] shall pay for all tax es and assessments on the Pr emises, with the ex ception of those tax es that ar e dir ectly attributable to agricultural or other pr

oduction- and sales-based activities being conducted b

y [F armer] on the P remises. D. If [Lando wner] accepts an offer for a rene wal term, the annual rent for the rene wal term shall be adjusted using the CP I for the N ew England region in [y ear of rene wal] as an index and the [first year of lease] as a base year (as set for th by the G ov ernment of the U nited States, B ase Year = 1982-1984). The r

ent shall not decr

ease during the r

ene wal term. VII. U tilities [F armer] agr ees to pay in a timely manner any and all utilities for use of the Pr emises, including, without limitation, electricity , fuel oil, gas ser vices, telephone, trash collection, sno w plo wing, lawn mo wing, water , se w er ser vice, cable or satellite television reception, internet

connection fees, and any other such ser

vices associated with the [F

armer

’s] use of the P

remises and the F

armhouse. VIII. R epairs, M aintenance, and R eplacement A. [Lando wner] shall be responsible for major rehabilitation, repair , or replacement of the str uctural components and operating systems upon the pr emises which ar e pr e-existing assets of [Lando wner] and which ar e not shor t-term or cy clical consumables. [Lando wner] shall not be responsible for minor or routine repairs or replacements. [Lando wner ’s] responsibilities shall be understood to include, but ar e not

limited to, the follo

wing: (a) S tr uctural component – R epair/r eplacement of all str

uctural systems – foundations, floors, walls, and r

oof systems.

(b) E

xterior fabric – G

eneral r

eplacement of siding, trim, por

ches, and steps.

(c) R

oofing – G

eneral r

eplacement of shingles, flashing, gutters, do

wnspouts. (d) W ater supply systems (household) – Replacement or major repair to w ells or cisterns, replacement of non-r epairable pumps. (e) W aste tr eatment – R eplacement or major r

epairs to toilets, holding tanks, leach fields.

(f

) H

eating, v

entilating, and air conditioning – R

eplacement of major system components.

B. [F

armer] shall be r

esponsible for all general maintenance and minor r

epairs of the buildings and their operating systems. Should [F armer] and [F armer ’s] agents or repair persons determine that a component or system is no longer able to be repair ed and should [Land -owner] concur in that judgment, [Lando wner] will fulfill its responsibility to replace such a component or system. Shor t of the need for such r eplacement, [F armer ’s] r

epair and maintenance r

esponsibilities include, but ar

e not limited to:

(a) S tr uctural components – D iligent pr ev ention or r emo

val of any and all deteriorating conditions or factors.

(b) E

xterior fabric – M

inor or localiz

ed r

epairs, such as windo

w glazing, glass r eplacement, or periodic r epainting/staining. (c) R oofing – Localiz ed minor r epairs/r

eplacement of shingles, flashing, or gutters.

(d) W ater systems (household) – All ser vicing and repair of pumps, water lines, fixtur es, and the repair of water tanks and water heaters. (e) W aste tr eatment – U nblocking/r epair of toilets or se wage lines, cy

clical and emergency septic pumping.

(f

) H

eating, v

entilating, air conditioning – All filters, ser

vicing, adjustments or r epair . C. Residential G rounds M aintenance – [F armer] shall be responsible for maintaining residential gr ounds in an aesthetically pleasing man -ner at [F armer ’s] sole expense. Aesthetically pleasing is understood to include, but is not limited to, regularly mo w ed and managed lawns and ornamental plantings and av oidance or remo val of unsightly storage or par king of materials, equipment, and vehicles. [F armer] is

responsible for all aesthetic/utilitarian sno

w r

emo

D. O n or befor e Januar y 31 of each year , [Lando wner] and [F armer] shall complete and sign a “r epairs, maintenance, and replacement wor ksheet ” indicating the repair and replacement wor k to be completed for that year; the estimated cost of each pr oject; the shar e of the cost to be contributed by each; any labor to be contributed to the wor k by [F armer]; and the date by which the wor k is to be completed. The total cost for repairs and maintenance, including the value of [F armer ’s] labor in any giv en year , shall not ex ceed ______. The total cost of r

eplacements in any giv

en y

ear shall not ex

ceed_______. IX. I mpr ov ements A. [F armer] shall not make alterations or impr ov ements to the Pr emises without the written consent of [Lando wner]. Consent shall be obtained by submitting a written description to [Lando wner] of the pr oposed impr ov ement, including its location, siz e, pr oposed use, and whether the impr ov ement is to be sev er ed from the pr oper ty at the termination of the lease or is to be left on the pr oper ty , and any other information that may be requir ed by the lando wner . [Lando wner] may appr ov e, disappr ov e, requir e mor e information, or requir e cer tain modifications to the pr oposed impr ov ement. [F armer ’s] final written pr oposal including a clear indication of [Lando wner ’s] assent and signed by [Lando wner] shall constitute written consent of [Lando wner]. [U nless other wise agr eed by both par ties, appr ov ed impr ov ements

shall be at the sole expense of [F

armer]. B. M aintenance and repair of [F armer ’s] impr ov ements – [F armer] shall be responsible for all major and minor maintenance, repairs, or

replacement of any and all alterations or impr

ov

ements to the pr

emises made under paragraph 9.1.

C. Impr ov ements made under paragraph 9.2 that ar e capable of sev erance may be remo ved by [F armer] at any time or within 30 days after termination of the lease ev en though they may be fixtur es, pr ovided that [F armer] leav es in good condition that par t of the farm from

which such impr

ov ements ar e r emo ved. D. Impr ov ements not capable of sev erance shall become the pr oper ty of [Lando wner] at termination of the lease without compensation

to the farmer Alternativ

e to D: [Lando wner] shall pay [F armer] the depr eciated value of any non-r emo vable impr ov ements at the termination of this lease, pr ovided the initial cost of such impr ov ement ex ceeds ________. D epr eciation will be determined on the basis of the useful life of the impr ov ement. X. S

uccessors and Assigns

This Agr eement is binding on all persons who may succeed to the rights of [Lando wner] including but not limited to heirs, ex ecutors, as

-signs, and pur

chasers, as applicable, and in accor

dance with this Agr

eement. [F armer] may not assign this Lease Agr eement and the lease inter est in the Pr emises repr esented her ein, sublet all or any par t of the Pr emises, or allo w any person to occupy the Pr emises for an extended period without, in each instance, [Lando wner ’s] expr ess written permission. XI. N o P ar tnership C reated This lease shall not be deemed to giv e rise to a par tnership relationship and neither par ty shall hav e authority to obligate the other without written consent, ex cept as specifically pr

ovided in this lease.

XII. I nsurance A. [F armer] will maintain general liability insurance policy with co verage of _____________ and naming [Lando wner] as an additional insur ed during the period of the lease. [Lando wner] will maintain fir e and extended casualty insurance co verage on the Pr emises in a sum

of not less than ____________. E

vidence of insurance shall be pr

ovided to the other par

ty . B. [Lando wner] agr ees to maintain fir e and extended insurance co verage adequate to replace or repair the dw elling or any other farm building or equipment regularly used by [F armer] that may be destr oy ed by fir e, flood, or other casualty loss and to replace or repair such str uctur es in the ev

XIII. D

efault

A. The follo

wing ev

ents shall constitute default under this Agr

eement (for example): [to be completed b

y par

ties]

(i) ______________________________________ (ii) ______________________________________ (iii) _____________________________________ (iv) _______________________________________

B. A default under any of the pr ovisions of this Agr eement by either par ty may be cur ed by the defaulting par ty within 30 days of receipt of a notice of default. Failur e to cur e shall constitute gr ounds for termination of the lease or withholding of rent at the election of the non-defaulting par ty . C. I n the ev

ent the Lease is terminated due to the default of [F

armer]: (i) All obligations of [Lando wner] under this Agr eement shall cease. [Lando wner] shall take reasonable measur es to lease the Pr emises to

another tenant for a comparable term and r

ent. (ii) U ntil [Lando wner] enters into a ne w lease [F armer] shall continue to pay the applicable rent until the end of the Lease Term. [Land -owner] may r etain a por

tion of the security deposit to co

ver his costs of r

e-letting the pr emises. (iii) R ental payments r eceiv ed b y [Lando wner] fr om a ne w tenant will r

educe the amount for which [F

armer] is liable to [Lando

wner]. (iv) U pon termination, [F armer] agr ees to yield possession of the pr emises within 90 days of the date of notice of default, reser ving the right to r e-enter the pr

emises solely to har

vest any cr ops that ar e the personal pr oper ty of [F armer} and ar e gr

owing at the time of default.

D. I

n the ev

ent the Lease is terminated due to the default of [Lando

wner].

(i) All obligations under

taken b

y [F

armer] under this Agr

eement including the obligation to pay r

ent shall cease.

(ii) U pon termination, [F armer] shall yield possession of the pr emises in a timely manner , r eser ving the right to re-enter the pr emises solely to har vest any cr ops that ar e the personal pr oper ty of [F armer} and ar e gr owing at the time of default. [Lando wner] shall remit an amount equal to two times the [F armer ’s] security deposit as liquidated damages and her e agr ees that such an amount is a r easonable appr oximation

of the costs incident to mo

ving a farming operation.

XIV . D ispute R esolution A. Prior to taking any action in a cour t of law , the par ties to this agr eement agr ee to endeav or in good faith to appoint a dispute resolution committee to ev aluate the dispute and make recommendations for its resolution. The D ispute Resolution Committee shall consist of the follo wing thr ee persons: (1) O ne adult person appointed by [F armer] who is not a member , par tner , dir ector , or emplo yee of [F armer] nor an immediate family member; (2) O ne adult person appointed by [Lando wner] who is not a dir ector , officer , emplo yee, or shar eholder of [Lando wner] or its dir ectors; and (3) a neutral individual with exper tise in farm-r elated matters, to be agr eed upon by both par ties after a good faith ev aluation. The D ispute Resolution Committee shall, within 90 days of its formation and after revie wing written submissions and any suppor ting evidence submitted by both par ties, make findings of fact and suggestions for resolving the dispute to be deliv er ed to the par ties in writing. The par ties may accept the resolution recommended by the committee or pr opose an alternativ e resolution. The par ties, ho w ev er , her eto agr ee and ackno wledge that the D ispute Resolution Committee ’s findings of fact shall be pr esumptiv ely valid with the bur den resting on the complainant in any legal pr oceeding to demonstrate other wise. [F armer] and [Lando wner] each agr ee to assume

50% of the costs of the E

valuation Committee in the ev

ent such D ispute R esolution Committee is r esor ted to . XV . Right of E ntr y [Lando wner] may enter the Pr emises at reasonable times in or der to examine the Pr emises, inspect repairs or alterations, and replace mechanical or other systems. [Lando wner] will giv e [F armer] 48 hours prior notice of such entr y. In the ev ent of an actual or appar ent emergency , [Lando wner] may enter the Pr emises at any time without notice. [F armer] will not change any lock or install additional locks without [Lando wner ’s] prior written consent and without pr oviding [Lando wner] a copy of all keys. K eys must be pr ovided on the date the lock(s) ar

e added or/and changed.

XVI. S ev erability If any par t of this Agr eement is inv alid or unenfor

ceable, the balance of this Agr

eement shall r

emain effectiv

e, absent such pr

XVII. M erger This Agr eement repr esents the entir e agr eement betw een the par ties. [Lando wner] has made no repr esentations other than what is con

-tained in this Agr

eement.

XVIII. Amendments No change in this Agr

eement shall be effectiv

e unless it is in writing and is signed b

y both [Lando wner] and [F armer]. IN WITNESS WHEREOF , the par ties her eto hav e ex

ecuted this Lease Agr

eement to be effectiv

e as of the date first set for

th abo ve. [Lando wner] By:_____________________________ __________________________ [Lando wner] W itness [F armer] By: ________________________ __________________________ [F armer] W itness ST ATE OF VERMONT ______________ COUNT Y, SS. At __________________ in said County this ___ day of __________________, 20__, ___[Lando wner] ________ personally appear ed, and he/she ackno wledged this instr ument, by him/her sealed and subscribed, to be his/her free act and deed and the free act and deed of ____________________________________. Befor e me, ____________________________________ N otar y P ublic [SEAL] M y commission expir es: _____________ ST ATE OF VERMONT _____________ COUNT Y, SS. At __________________ in said County this ___ day of __________________, 20__, ____[F armer] _____ personally ap -pear ed, and he/she ackno wledged this instr ument, by him/her sealed and subscribed, to be his/her free act and deed and the free act and deed of ____________________________________. Befor e me, ____________________________________ N otar y P ublic [SEAL] M y commission expir es: _____________

M

emorandum of Lease

wn land r ecor ds) KNO W ALL PERSONS BY THESE PRESENT S that Lando wner and Lessee identified belo w ar e par ties to a cer

tain lease agr

eement dated ______________, 200__ containing the follo

wing terms and conditions:

Lessor: Lessor addr

ess:

Lessee: Lessee addr

ess: Leased pr oper ty: Date of ex ecution: ___________________, 20__.

Lease term: Commencement date: Expiration/termination: Rights to extend or r

ene w: Rights to pur chase: Right of first r efusal: Assignment and S ublease: This memorandum of lease will be recor ded in the to wn of [T own] to pr ovide notice of the lease pursuant to 27 V.S. A. § 341(c). The lease contains terms and conditions in addition to those set out her e. This M emo -randum of Lease is not intended to amend or modify the terms and conditions of the lease. To the extent that the terms and conditions of this M emorandum of Lease differ from the terms and conditions of the lease, the

terms and conditions of the Lease shall go

vern and pr

ev