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Frequently Asked Questions:

What happens if the government takes a leased property by eminent domain during the term of the lease?

A lease should specify what will happen in the event the premises are taken by eminent domain (through a condemnation proceeding), whether the parties reserve the right to terminate the lease, and whether the proceeds of a condemnation will be shared between the parties. A lease may also provide that, depending on the extent of the land taken, either party has the right to decide whether it is feasible to continue the operation of the farm or to terminate the lease without penalty, as well as how such determination should be made.

Posted in: Transfer, Sale and Sublease, Lease Agreements