Definitions
The Premises describes what is being leased. At minimum, this means the land, but can also include buildings and other infrastructure such as greenhouses, wells, and fencing. Leased equipment could be part of the Premises, or could be contained in a separate lease. A “whole farm” lease could include a residence, tools, and even livestock as part of the Premises.
Any new structures or improvements to structures that are not included at the time of signing the lease are not part of the Premises. They are considered improvements to the Premises. This can be tricky, because sometimes existing infrastructure on the Premises can also be referred to as improvements.
Sometimes the word “Property” is used instead of “Premises” in a lease. Usually this is fine. However if the Landlord owns more property than the lease covers, this can get confusing. For example, a Landowner owns a 100-acre parcel. She is leasing 50 acres. The lease refers to the Tenant’s access to the property. The Parties need to state clearly whether the Tenant has the right to access any part of the Landlord’s property that is outside of the Premises.
Purpose
The purpose of this section is to identify and describe what is being leased, so that the Parties to the lease (as well as a third party such as an appraiser, a judge, or subsequent owner) can easily identify it and understand its condition at the outset of the lease. A clear and thorough description of what is (and therefore, is not) being leased is paramount. The description of the leased Premises should include an address, a description of the boundaries, and a plot plan, aerial photo or diagram (which is typically attached as an appendix to the lease document). More elaborate descriptions would include detailed baseline conditions, photographs, building inspection reports, etc.
It’s a good idea to note that the Tenant accepts the Premises in “as is” condition. In some cases, it is important to point out what is excluded from the leased Premises.
FAQs
A lease can be drawn up for a barn or other structure. The basic lease framework applies (i.e. list the parties; what is being leased, including the condition; the term; and the rent). The lease should state who is responsible for utilities, maintenance and repairs, and rights of access (for example, via a road that is not part of the lease) for that structure.
Unless the parties agree to the contrary, the tenant accepts the premises in “as is” condition. See Sample Language for "As is" condition.
The lease should specifically address how these crops will be valued, what will occur at the end of their productive life. If the tenant plants perennial crops on the premises, the lease should address this too. See Inspirations for Creating a Long-Term Agricultural Lease for Agroforestry: A Workbook from Farm Commons and the Savanna Institute. This guide addresses long-term leases involving agroforestry, including ways to account for the value of perennial crops and trees.
If a dwelling is included in the leased premises, various statutory provisions apply. For example, by law the residence must be habitable. Landlord-tenant and public health laws in each New England state regulate residential rental agreements to ensure safe and habitable living conditions for tenants. For this reason it sometimes makes sense to write up a separate lease for the residence, but it is not required. Additionally, if a residence is part of the lease there are different insurance considerations. (See the fact sheet “Describing the Premises” [and/or “whole farm lease” versus multiple leases])
The “property” refers to the entirety of the land, buildings, structures, equipment, etc., owned by the landowner, while the “premises” refers to only that portion of the property and/or components of it that are the subject of the lease. Explicitly listing each component of the premises (e.g., the barn, the maple sugaring tubing and syrup tanks, etc.) in a lease helps ensure that each component will be subject to the terms of the lease. Sometimes “premises” and “property” are used synonymously, so be alert to what is meant in a particular context.
A clear, precise description of the boundaries of the premises and any buildings or structures, along with any unusual characteristics, should be included in a farm lease. The parties need to know exactly what’s subject to the agreement, as do many third parties to the lease, such as an appraiser, a judge, or subsequent owner. All need to easily identify what's included - and not included - in the leased premises and understand its condition at the outset of the lease. Thus, a clear and thorough description of what is (and is not) being leased is paramount. An adequate description depends in part on how elaborate the premises are. It could suffice to have a sentence or two about the location and external boundaries of a hay field. The description of the leased premises should include an address, a description of the boundaries, and a plot plan or diagram (which is typically attached as an appendix to the lease document). GIS and/or assessor maps, and photos (aerial, satellite and others) may also .
It’s also important that the lease establish a baseline condition of the premises so that the two parties’ discussions about expectations for maintenance and repair have a common starting point. Thus, more elaborate descriptions would include narrative descriptions of baseline conditions, photographs, building inspection reports, etc.
Additionally, anything that is not defined as being part of the premises at the outset of the agreement is not subject to the agreement unless and until the lease is revised to include new areas or new components.
See the Fact Sheet Describing the Premises
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 “Description of Premises”
- Certain property in [TOWN, STATE] within the property commonly known as [FARM NAME], and consisting of the following:
- “Parcel A” (Refer to map 1, attached as Exhibit A to this lease)
a. Fields 1, 2, and 3 on the south side of Route 15, with a total field acreage of approximately 12 acres, and the wooded hillside between fields 4 and 5;
b. “Lower Barn” – 60’ x 40’ barn with hayloft located in Field 5;
c. Access to Route 1 via the farmland shown on map 1. - “Parcel B” and “Parcel C” (Refer to map 2, attached as Exhibit B to this Lease)
a. Fields 6 and 7. Total field acreage is approximately 11.5 acres.
b. Parcel B is subject to the Conservation Restriction attached or referenced herein.
- Excluded from Premises: The house and garage at 123 State Road, the house and barn at 127 State Road, and both ponds. The boundaries of said exclusion are shown on map 2.
- The Premises shall consist of cropland and other land, the cottage on the property, the barn, the CSA shed, and all roads and structures including buildings thereon and all other improvements and appurtenances thereto, including, but not limited to, a parking lot, all driveways, and landscaping as more particularly described in Attachment A which includes a narrative and photos of the current condition of the structures and roads.
- This lease also includes tools and equipment in their current condition as more particularly described in Attachment B.
- The Premises consist of the fields identified as numbers 1 through 9 on the attached USDA Farm Service Agency Map entitled “_________________”. (Appendix A), inclusive of the farm lanes and stone walls in their current condition (Photos 1-4)
- 14 Elm Lane, Elmville, NY 01010, consisting of a house, two barns and a small shed on 43 +/- acres as well as miscellaneous equipment. The acreage of the property being defined as the boundaries outlined in Attachment A: Title Report and Exhibit C: Property Description. The equipment is listed in Attachment B: Equipment Inventory.
- “As is” condition: Lessee agrees to accept the Leased Premises in “as is” condition and with all faults existing as of the date hereof. Lessee agrees that this Lease has been entered into after full investigation of the Premises, and without reliance upon any statement or representation by the Lessor unless expressly set forth in this Lease.