Introduction
This article is based on The Agricultural Tenancies Act 1995, which came into operation on 1 September 1995. This article gives a general guide to the main provisions. It does not provide a full explanation of all possible issues. Links to template tenancy agreements can be found at the end of this article. Net Lawman also have free information on Farm business tenancies under the same act. Links are at the end of this article.
The importance of having a tenancy or grazing agreement is frequently underestimated until a problem occurs. It is important to set out responsibilities clearly to avoid uncertainty. For instance it can set standards for the condition of the pasture, detail what activities are permissible on land and to whom responsibility will fall for maintenance and management work in order to avoid neglect. A properly written legally binding contract is essential for the protection of both parties and will help the preservation of land and pasture quality.
Types of agreement
Traditionally, there are two types of agreements:
- Rolling, when the Agreement will go from month to month until either party decides to end it. These are uncommon.
- Fixed Term, when the Agreement will be for a specified period (for example, two years) but with a clause allowing either party to withdraw after serving a period of notice (such as one month). The responsibility of maintenance and repair work usually falls to the Tenant, as he/she has a greater level of occupancy security and therefore an incentive to maintain fences and so on. This article applies only to fixed term tenancies.
If permanent facilities (such as stable and barns stabling) are included, a more substantial agreement may be needed such as a lease. An agreement to graze on the other hand requires a mere licence. Similarly if an occupier uses land for business rather than recreation, another form of agreement is required because the Landlord and Tenant Act Part II comes into play.
Welfare
The welfare of horses and ponies must be the primary consideration for both the livestock owner and the landowner. The proper welfare of horses and ponies is dependent along with other factors on good and well-maintained pasture. Most landlords and tenants wish for the land to be put and/or kept in good condition and appearance, and generally speaking this will provide a safe and productive area for the grazing and keeping of horses.
Land suitability
First, the suitability of pasture must be given some thought. Parameters such as soil quality and drainage, grass composition, fencing, shade/shelter and access must be assessed to decide whether land is suitable for use as horse, sheep grazing, for storage or for any other intended use.
There may be occasions when planning permission is required.
You should also check if the land lies within an area which has landscape protection designation (e.g. AONB), has a conservation status (e.g. Site of Special Scientific Interest) and/or is under a land management agreement such as Countryside Stewardship. The Local Planning Authority will be able to advise. Designations and agreements may affect what you can do on the land and may affect any planning application.
Agreement Details
An agreement usually starts with a definition of the particulars:
- The names and addresses of the landlord and tenant who will thereafter be referred to respectively as the landlord, owner or licensor and the tenant, licensee or occupier.
- The dates between which the agreement applies, indicating the period of tenancy. It is worth bearing in mind that a long-term agreement is likely to attract greater tenant commitment than a short-term agreement. A clause allowing either party to serve one month's notice will enable the tenant or landowner to terminate the agreement should they wish.
- The location and approximate size of the land with reference to an accompanying plan marking the site boundary. An ordnance survey plan with the plot of land outlined will suffice.
- The sum to be paid as the fee, the appropriate method of payment and when it is due. Any outgoings (for example water rates, electricity etc) that the tenant will be required to pay should also be listed. If an agreement is for a period of one year or more, it is wise to consider including a rent review clause to allow an increase or decrease of rent. The tenant's entitlement to pro-rata return of rent in the event of notice being served should be detailed.
Terms and Conditions
The following points address some essential utilisation and management practises that an agreement should include. The terms and conditions - including whether responsibilities fall to the landowner or tenant - will vary depending upon the circumstances in which a plot of land is let.
A tenant will usually be responsible for:
- Keeping land clear of injurious weeds, including ragwort, broad-leaved dock, curled dock, creeping thistle and spear thistle.
- Stopping any damage to the present trees and fences.
- Maintaining condition of and repairing when appropriate, gates, fences, hedges and trees growing on the land.
- Grazing only his/her horse(s) and/or pony(ponies) on the land and ensuring no part of the land is assigned, sub-let, shared or parted with possession.
- Ensuring land is used only for grazing and by an appropriate number of horse(s) and/or pony(ponies).
- Gaining the Landowner's consent prior to storing vehicles/equipment on the land or putting up any fixtures.
- Having appropriate liability insurance for any injury or damage to third parties caused by the horse(s) and/or pony(ponies) whether on or off the land. The landowner will also require adequate insurance cover.
- Indemnifying the landlord for any damage and all costs and liabilities including legal costs and expenses incurred as a result of, or caused by the negligent act or omission of the tenant.
- Maintaining land in accordance with the advice given by the Horse Pasture Management Project in the Grassland Management Advice Note.
- Ensuring any public or private right of way is not obstructed.
Whilst the tenant may be expected to maintain fences, gateways and so on to the standard held at the beginning of the tenancy, if measures beyond repair are necessary, renewal usually becomes the Landowner's responsibility. The exception to this would be if the tenant has caused excessive damage beyond reasonable wear and tear. For example, a fence that requires a new gate due to the Tenant's horse repeatedly chewing would be the tenant's responsibility.
The tenant who pays the fee as requested and meets the terms of an agreement is entitled to the use of the land without interference from the Landowner. However, if there is a tenant's breach of condition, the necessary provisions must be in place to allow the landowner early possession. Regardless of how an agreement is terminated, vacant possession must be given at that time.
Summary
A negotiated and carefully drafted agreement will ensure the parties know exactly what is expected of them during the course of the tenancy. It will make it easier to resolve issues and avoid disputes. |
