Agricultural Tenancies Flashcards
What tenancies are governed under the Agricultural Tenancies Act 1995?
Tenancies of agricultural land that start on or after 1st September 1995
What is the condition for tenancies under the Agricultural Tenancies Act 1995 and what section governs it?
Section 1 - a tenancy is a farm business tenancy if it meets the business condition together with either the agriculture condition or notice condition.
What is the notice condition under the ATA 1995?
The notice condition is served by both parties prior to the commencement of the tenancy stating the land in the FBT and that it will be and remain an FBT if they do not meet the agricultural condition
What section under the ATA 1995 defines agriculture?
Section 38
What security provisions are given under the ATA 1995
Section 5 - an FBT which is for a fixed term of more than 2 years will not automatically terminate by effluxion of time on its term date.
Section 7 - overrides the agreement if the fixed term is more than 2 years, any notice to quit shall be invalid unless it is in writing and given at least 12 months before the term date. There is no prescribed form and once it has been served it cannot be unserved.
What is required of leases that have a fixed term of 7 years or more?
It must be registered with the Land Registry to give proof of the tenants occupancy and to notify third parties of the tenants interest in the property.
Land Registration Act 2002.
Unregistered land section 4
Registered land section 27.
What is the rent review procedure under the ATA 1995?
Section 9 allows parties to agree on a fixed rent with no reviews during the tenancy or to allow to review the rent by a specific amount by applying an objective rent review formula.
Under the ATA 1995, what happens if the parties do not or fail to make provisions for a rent review clause?
Either party may serve a section 10 statutory review notice in writing requiring the rent payable in respect to the holding shall be referred to arbitration.
The review date must be 12 months but less than 24 months from the date the notice was served. The review date is the anniversary of the tenancy or otherwise stated in the agreement.
What is the Regulatory Reform Order and how did it amend FBTs?
The Regulatory Reform (Agricultural Tenancies) (England and Wales) Order 2006.
FBTs before 19th October 2006 either party can serve a section 10 rent review notice every 3 years.
The Reform amended that FBTs on or after 19th October 2006, a section 10 statutory review notice no longer provides an automatic right to review every 3 years unless explicitly stated in the tenancy agreement.
Under what section of the ATA 1995 directs the arbitrator to determine the rent?
Section 13 ‘the rent properly payable in respect of the holding is the rent at which might reasonably be expected to be let on the open market by a willing landlord to a willing tenant, taking into account all relevant factors, including in every case the terms of the tenancy’.
FBT Heads of Terms
Term
Rent payable
Break clauses
Assignment and sub-letting
Rent and rent review procedure
Repairing and insuring obligations
User covenants
Reservations to the landlord
Breach of covenants and forfeiture
Dispute resolution
What section under the ATA 1995 governs appointment of arbitration?
Section 12 - where a section 10 statutory rent notice has been served, either party at any time during the period of 6 months ending with the review date apply to a professional authority for appointment of arbitration
What section of the ATA 1995 governs the service of notices?
Section 36
What section governs notice to quit of an FBT?
Section 6 - must be given in writing, take effect at the end of the year of the tenancy and is given at least 12 months before the date of which it is to take effect.
What does section 8 of the ATA 1995 govern?
Tenants right to remove fixture and buildings
What is section 15 of the ATA 1995?
The meaning of tenants improvements
Tenants compensation rights at the end of an FBT.
Section 16 - the right to compensation for physical improvements the landlord gave consent and changed that increase the value of the holding. The agreement can specify the upper limit of compensation.
AHA 1986 tenancies?
Agricultural tenancies before 1st September 1995.
AHA 1986 tenancies that carry statutory succession rights
Tenancies granted before 12th July 1984 have the right to 2 successions. Tenancies after this date have lifetime of tenure but no succession rights. Can voluntarily contract in under section 34
What is the rent review notice under the AHA 1986?
No demand within 3 years of the start or last review date.
Section 12 trigger notice requires the rent to the settled by arbitration.
Must give at least 12 months notice but no more than 24 months for the review date.
The 3 year rule is from the date the notice takes effect
What is the date of valuation for an AHA rent review?
The next termination date
How does the arbitrator determine the rent of an AHA tenancy?
The arbitrator must determine the properly payment in accordance with the rent review formula, whether increased, decreased or remains the same.
Rent review formula and schedule of the AHA 1986
Schedule 2 - the rent at which the holding might reasonably be expected to be let by a prudent and willing landlord to a prudent and willing tenant, taking into account all relevant factors, including the terms of the tenancy (including those relating to rent), the character and situation of the holding (including the locality), the productive capacity of the holding and its related earning capacity, and the current level of rent for comparable lettings’
