Land intended for agricultural work is a demanded property used for profit by individuals or different companies. It can be issued for rent or purchased. The rules for leasing agricultural land depend on whether a particular plot belongs to the state or to a private person. It is important to correctly draw up a lease, as well as indicate the duration of the document and other essential conditions.
Rental rules
Territories in which there are forest plantations, water bodies and agricultural land are demanded plots of land, usually used for doing business. The procedure for leasing agricultural land is regulated by law Federal Law No. 101 “On the Turnover of Agricultural Land”.
A specific land plot with exact boundaries acts as an object of lease. Without land surveying, it will not be possible to determine which site can be used by the tenant. Therefore, the land must have a cadastral number, clear boundaries, address and category. The cadastral registration of an object is an obligatory step for a landlord who wants to lease his land.
Who can be a tenant?
Lease of land from agricultural land is permitted for both different companies and individuals. Typically, tenants are:
- farms;
- educational organizations in which future specialists are trained in various areas of agriculture;
- all kinds of NPOs;
- business companies;
- unitary enterprises owned by the state or municipality;
- scientific companies;
- production cooperatives;
- private individuals engaged in gardening, farming, livestock breeding or similar activities.
All of the above persons have the right to redeem the land when registering it for a long lease from the state. The purchase of territory by foreigners or stateless persons is not allowed.
Rental benefits
Renting agricultural land is considered a profitable process for any tenant. This is due to the following reasons:
- territories are distinguished by the presence of fertile soils;
- if land is leased from the state, the rent will be low;
- construction of residential buildings on the site is prohibited;
- if there are several applicants for the territory, then the fee is minimal, which is very beneficial for different companies and farms;
- any citizen can engage in such a plot as a personal subsidiary farm, earning a high income with minimal investment.
The process of land registration depends on who is its owner.
Private rental
Often agricultural land is owned by citizens. Under such conditions, the lease of agricultural land has some nuances:
- a standard contract between the parties to the transaction is drawn up, which indicates how exactly the tenant is allowed to use the site;
- under this agreement, it is not allowed to change the type of permitted use of land, since for such actions administrative liability is provided for participants;
- it is not allowed to build residential buildings on such territory;
- most often land owners conclude a collective agreement with different companies.
If one owner has a large territory, then he can divide it into several sections, but for this purpose either a collective agreement is drawn up or cadastral registration of all received sections is made.
Land lease from the state
The transfer of agricultural land for rent by the state is based on numerous rules. Bidding is held to transfer the property, and only the bidder who offers the highest rent wins. If there is only one bidder, then the contract is concluded with him directly, so bidding is not required.
In order to conclude an agreement with state authorities, the actions are carried out by a potential tenant:
- a special application is drawn up in the municipality, which indicates which territory the applicant is applying for, on what conditions he wants to make a lease, and also for what purposes the plot will be used;
- the date of the auction is set by local authorities;
- applications from other applicants for drawing up a lease are accepted;
- if there are at least two bidders, then tenders are held;
- participants make deposits;
- the territory is prepared, for which a land survey is carried out and a cadastral passport is issued for it;
- the winner is the applicant offering the highest rent;
- a lease is concluded with him, and an act of transfer of the object is also formed and signed.
If farmers apply with an application, then the law provides for the possibility of drawing up an agreement without an auction. The terms of consideration of the application were significantly reduced, therefore, the lease of agricultural land is concluded with the applicants just a week after receiving the application.
What documents should the owner have?
Leasing of agricultural land is allowed only if the owner has the necessary documentation for this object. It includes paper:
- certificate of ownership or extract from the USRN, which indicates who exactly is the owner of the territory, as well as what category of land;
- passport data of the owner or information about the state body that is the owner;
- technical papers on the facility;
- site plan.
The tenant may request additional documentation. With its help, you can make sure that the agreement is really drawn up with the owner, and that there are no legal problems with the owner.
Tenant rights and obligations
Leasing of agricultural land is made after signing the lease. It lists the rights and obligations that appear with the user and the owner of the territory. These include:
- the landlord can at any time check whether the territories are used in accordance with the purposes specified in the contract;
- the lessee can independently manage the results of his work on the land provided, therefore, he receives personal benefit or profit from such activities;
- the landlord must control that the land is used in accordance with its category and type of permitted use;
- the lessee is obliged to transfer to the owner of the territory a predetermined amount of funds in a timely manner;
- if the landlord, after checking the land, finds out that as a result of the tenant’s activity the soil is deteriorating, he is obliged to take various measures to prevent further deterioration of the land quality.
All rights and obligations of participants are fixed in the agreement.
Contract Drafting Rules
The lease of agricultural land includes numerous information that is important for each participant in the transaction. It regulates the relations that have arisen between two participants, which may be the state, private individuals or different companies and societies. The contract must include information:
- information about the parties to the transaction;
- the subject of the contract represented by the land plot, and its address, area, purpose and other significant parameters are indicated;
- the lease term for agricultural land, and it is not allowed to draw up such an agreement for a period exceeding 49 years;
- terms and conditions of payment;
- duties and rights of each party to the transaction;
- the possibility of redeeming the territory ahead of schedule or after the expiration of the contract;
- responsibility of each party for violation of the most important points of the formed agreement;
- conditions on which the provisions of the contract can be adjusted;
- nuances of extension and termination of the contract.
Additionally, a special schedule is drawn up on the basis of which the tenant must make payments. An example contract is located below.
Do I need a registration?
If the owner of the territory is a private person, then most often he uses the minimum rental period for agricultural land, presented one year. Such an agreement may not be registered with government agencies.
If an agreement is drawn up for a period of one year or more, then it will certainly be registered with the Rosreestr. The procedure is divided into the following steps:
- a statement is drawn up by the lessor;
- it is transferred together with the passport of the owner of the territory, drawn up by the contract and land documents to Rosreestr;
- transaction is being recorded.
To complete the process, a fee of 200 rubles is paid. You can address this process not only directly to the Rosreestr branch, but also to the MFC.
Rental period
The minimum term for an agricultural land lease is one year. It may vary depending on the type of activity that the tenant engages in. In drawing up an agreement, this item is given a lot of attention. If there is no information about the term, then it is considered that the agreement is drawn up for the maximum term, so it will be quite difficult to terminate it ahead of schedule even through the court.
The maximum lease term for agricultural land is 49 years. Most often, such a period is chosen by tenants planning further redemption of the territory. Such a period is usually proposed by the state providing the land for rent.
Rollover rules
Extension of the contract is allowed on the basis of Art. 621 Civil Code. Features of the process include:
- the agreement is extended only if the tenant, without violation, copes with its obligations under the contract;
- extension of cooperation involves the drafting of a new agreement in which the amended conditions are introduced;
- if the contract was terminated ahead of schedule due to violations by the tenant, then it will not be possible to conclude it again.
Even during the preparation of this document, the possibility of redemption of the territory may be provided. This process can be performed at any time with the consent of the owner of the object.
The nuances of termination of the contract
Termination of the drawn up contract is allowed if there are the following reasons:
- the term of the agreement specified directly in its text expires;
- the lessor creates obstacles for the tenant in the process of using the territory;
- the land has significant shortcomings, therefore it cannot be used for the purposes listed in the agreement;
- the owner of the territory does not perform various actions aimed at improving the soil;
- the plot becomes unusable.
After the termination of the agreement, the necessary information is necessarily entered into the Rosreestr.
How is the fee determined?
When drawing up an agreement, the following payment rules must be determined:
- amount of monthly payment;
- frequency of money transfer;
- the method by which payment will be made;
- Liability for late or non-payment.
If this information is not in the contract, then it is considered free of charge. Additionally, information about a possible redemption of the territory may be entered.
Conclusion
Land intended for agricultural activities may be leased from private owners or the state. The process involves the preparation and registration of a lease.
When forming this agreement, it is important to include information on the amount of payment, the maximum term of the lease of agricultural land and other material conditions. The nuances of cooperation depend on the correctness of the preparation of the document.