Lease of Developed Farmland and Agricultural Land

Farmland equipped with the necessary residential buildings and outbuildings for carrying out agriculture, is deemed to constitute developed farmland.

Leases of developed farmland and agricultural land are subject to the general provisions of the Tenancy Act, as well as a number of special provisions, some of which are set out below.

The term of the tenancy may not exceed 15 years. In the absence of a contractual provision, the term shall be deemed to be two years.

The tenant shall not be entitled to transfer the tenancy to a third party without the landlord’s consent, unless otherwise agreed in the lease agreement.

Upon failure by the landlord to carry out agreed improvement works, the tenant is, subject to certain conditions, entitled to reduced rent, termination of the agreement and damages for losses resulting from the early termination of the tenancy.

The landlord is required to redeem buildings, which the tenant was entitled to erect pursuant to a written permission. Otherwise, the landlord is entitled but not under an obligation to redeem;

The tenant is entitled to compensation for other renovations carried out on the property, to the extent the tenant was granted a written permission to do so.

For other improvements, the tenant is entitled to compensation only to the extent they are not unnecessary or useless, taking into consideration intended use of the property.

Land that has no buildings and is mainly used for agriculture, is deemed to constitute agricultural land. Agricultural land may, subject to certain exceptions, be leased for a maximum period of 10 years only. Otherwise, a tenancy of agricultural land is subject to the aforementioned provisions applicable to a lease of developed farmland.