Definitions
Communication between Parties to a lease can range from formal written notices to annual inspections to email exchanges and verbal conversations. Leases often (should) contain language about how approvals are obtained, and disagreements are handled. Any changes to the lease should be communicated in writing. The Parties should provide the mailing addresses, phone numbers, and email addresses to receive such communications, and they should agree on those topics that require written communication.
Permission and approval procedures must be spelled out. Which activities need prior approval, and how is that approval obtained? This can pertain to both parties, such as the Landlord needing permission from the Tenant to enter the Premises for inspection.
Dispute resolution can take several forms such as facilitated conflict management, mediation, and arbitration. A best practice is for the lease to spell out when and how the Parties will select a third party to resolve the dispute, so neither Party feels unfairly represented.
Purpose
The purpose of this section is to clearly set forth how and for what situations the Parties will communicate with one another, as well as how changes to the lease and disputes will be addressed. Addressing dispute resolution helps resolve disagreements before they escalate.
FAQs
Approvals or permission for material changes or actions pertaining to a lease should be communicated in writing and delivered as required in the lease (e.g., by surface mail, email, in person). This way, whenever questions arise about who said what to whom, there is a record showing the timing and substance of the approvals.
“Facilitation” is the use of a neutral third party to help multi-party groups accomplish the content of their work by providing process leadership and expertise. “Mediation” is the use of a neutral third person to help parties reach a voluntary resolution of a dispute. It is informal, confidential, and flexible, focusing on interests rather than positions, and on practical and legal choices. “Arbitration” is an alternative to litigation in which an arbitrator or panel of arbitrators listen to the positions of the disputing parties in a relatively informal proceeding and then issue a decision on how the situation should be resolved.
All agreements to use agricultural property should ideally be in writing. In some states, a lease for more than one year must be in writing. Any changes to the lease terms should be in writing. Also, any financial transaction such as for improvements should be put in writing. Major permissions (e.g., constructing an improvement, engaging in a use not clearly permitted, etc.) should be required to be in writing by the terms of the lease. Generally, such written documents should be signed by the parties.
Example Text
These text examples (in italics) illustrate what you might include in parts of this section. Example text is not intended as “sample” or “model” language, or as “best practice.” You may copy and paste example text into the template, then modify it for your working lease document. Or you can learn from the examples in order to develop your own text.
Text box “Dispute resolution process”
- Prior to any court action, the Parties agree in good faith to select and engage a dispute resolution professional and to mutually abide by the process and outcome directed by the professional. The Parties agree to divide the costs of retaining the professional.
- If a dispute should arise in connection with this Lease that cannot be resolved through good faith negotiation between the Parties, the Parties agree on a facilitation or no-cost mediation before engaging in fee-based mediation or arbitration.
Text box “Requests and consents process”
- The Parties may make changes to this Lease at any point during the term. However, no change to this Lease shall be effective unless it is in writing and signed by both Parties.
- All permissions required by the terms of this Lease shall be requested in writing by the requesting Party to the other. A response shall be delivered in writing within 30 days. Absence of a response shall constitute approval.
- The Parties shall meet in person once per year to review the prior season and agree to management goals for the coming year. The agreements shall be reflected in writing.
- Consent to engage in uses not expressly permitted shall be obtained by the Tenant submitting a written request with an adequate description of the desired use to the Landlord. Landlord shall within [timeframe] of receipt of such request provide approval or denial of said use in writing to the Tenant.