Fillable Printable Lease Agreement Sample - British Columbia
Fillable Printable Lease Agreement Sample - British Columbia
Lease Agreement Sample - British Columbia
Agricultural Lease Template, page 1
This lease document has been adapted by Young Agrarians and Linking Land and Farmers from FarmFolk CityFolk Soc iety and The
Land Conservancy of British Columbia "A Guide to Farmland Access Agreements". We have updated the legal language and put in a
plain English side-bar to support the user to understand how to work with the template. This template is not meant to replace legal
counsel and we highly recommend having your final contractual agreement reviewed by a lawyer.
Sample Lease
SECTION I – REQUIRED CLAUSES
THIS AGREEMENT made the ____ day of _____, 20__ (in pursuance of the
Land Transfer Form Act - Part 2), and effective the ____ day of _____, 20__ (the
“Effective Date”).
BETWEEN:
__________
(Landlord/Landowner)
of ___________________________________________ (address)
____________________________________
(address)
herein after referred to as the “Lessor”.
AND:
________________
(Tenant)
of ___________________________________________ (address)
____________________________________
(address)
herein after referred to as the “Lessee”.
WHEREAS The Lessor is the registered owner of the following property
in_____________________________________, Province of British Columbia,
commonly known as
(farm name), and legally
described as:
___________ (address)
__ __ __ -__ __ __- __ __ __ (PID) ___________________ (Lot #)
_______ (Block range)
__ ___
_ (Section)
_____________________ (District) _________________ _ (Plan)
consisting of acres as shown on the map attached to this Lease in
Appendix A. This property is
herein after referred to as “the Lands”
Grant of Lease
1. Subject to the terms and conditions set out in this Lease, the Lessor agrees to
lease the Lands to the Lessee.
Scope of the Lands Leased
2. The Lands include all:
Enter the date of the Agreement and
the date the Agreement will come
into effect.
Enter the landlord’s name and
address here. The landlord will be
called the “Lessor” in this
Agreement.
“Landowner”,
“Landlord”, name of Lessor or
appropriate acronym would also be
appropriate.
Enter the tenant’s name and
address here. The tenant will be
called the “Lessee” in this
Agreement.
“Tenant”, name of
Lessee or appropriate acronym
would also be appropriate.
Describe the parcel of land in as
much detail as possible using its
legal description. This includes
address, BC Land Titles Parcel
Identifier 9 digit Property
Identification Number (PID), lot
number, block range and any
section and district information.
Attach an accurate plan or map of
the land and label it “Appendix A”.
Be sure to note and describe any
areas in land not to be covered by this
Lease.
Agricultural Lease Template, page 2
a) buildings on the Lands as of the Effective Date;
b) buildings constructed on the Lands during the term of this Lease;
c) ways, paths and passages on the Lands;
d) waters and water courses on the Lands, including access to and use of water;
and
e) privileges, advantages and appurtenances whatsoever related to the Lands.
Pre-existing Terms or Easements
3. This grant of lease is subject to:
a) existing terms contained in any original grant of the Lands or in any other
disposition from the Crown with respect to the Lands; and
b) any highway, or public right-of-way, watercourse, right of water or other
public easement found on
the Lands.
4. The Lessor represents that the Lessor has informed the Lessee of any and all
pre-existing terms or public easements described in clause 3.
Duration of Lease
5. This Lease will be in effect for ______ years / months, starting on the
Effective Date and ending on __
_
(date).
Rent Payable
6. The Lessee will pay to the Lessor the sum of $__________, payable in
monthly installments on the ________ day of each month without invoice or
notice from the Lessor (“Rent”).
THE LESSEE
Signature Witness
Print Name Print Name
Date
The Lands that are being leased include
all the listed items. If you do not want
one of those items to be included,
remove it.
Any terms already attached to the
parcel of land will also attach to this
lease. Pre-existing terms could be
attached to the land through the title
to the land or through another form of
disposition such as a head lease from
the government (which would make
this a sub-lease).
The Lessor agrees that he or she has
told the Lessee about all of the
pre-existing terms that will attach to
this lease, if any.
Set out the length of the lease. If you
want it to be possible to revise the
terms of the lease partway through, or
to renew the lease, see the “Roll-Over”
and “Renewal” clauses in the Optional
Clauses section.
Set out the rent. Note there are
alternative forms of rent such as
annual rent, gradually increasing rent,
or sharecropping. You may also wish to
set out how the rent is paid (e.g. by
bank transfer).
The witness should see both the Lessor
and the Lessee sign the Agreement.
Agricultural Lease Template, page 3
THE LESSOR
Signature Witness
Print Name Print Name
Date
SECTION II – RECOMMENDED CLAUSES
Termination
7. This Lease may be terminated in the following ways:
a) upon written agreement of both Lessor and Lessee to terminate this Lease;
b) the Lessee gives the Lessor ___ days advance written notice that the Lessee
wishes to terminate this Lease;
c) the Lessee does not pay Rent when due and the Lessor gives the Lessee
written notice of an intention to terminate this Lease for non-payment of
Rent, unless the Lessee pays the outstanding Rent in full within ____ days
of receipt of the notice, in which case this Lease remains in force;
d) any party to this Lease gives the opposing party written notice of the
opposing party’s non-performance of one or more of the covenants
contained in this Lease, specifying the instance(s) of non-performance, and
the opposing party does not
i) contest the notice by initiating dispute resolution
pursuant to this Lease, or
ii) correct the non-performance
e) the Lessee becomes insolvent or bankrupt and takes the benefit of any act
that may be in force for
bankrupt or insolvent debtors;
f) any of the Lessee’s property on the Lands is seized or taken in execution
or attachment by any creditor of the Lessee; or
g) the Lessee makes an assignment for the benefit of his creditors.
8. If the Lessor terminates this Lease in accordance to subclause 7 b) or 7 c) then
the Lessor must notify the Lessee of the termination, after which the Lessor
may immediately:
a) take possession of the Lands or any part thereof; and
b) subject to clause 10, remove all persons and property from the Lands, if
the Lessee does not do so.
9. If the Lessor terminates this Lease in accordance to clause 8 and the Lessee has
This clause sets out the different ways
the lease can be terminated.
Subclauses (e) to (g) allow the Lease
to be terminated in situations where
the Lessee becomes bankrupt, has
property seized by a creditor, or
similar.
Agricultural Lease Template, page 4
planted crops on the Lands that have not been harvested at the time
of termination, then:
a) the Lessee maintains the exclusive right to harvest crops planted
by the Lessee on the Lands and to access the Lands for that
purpose; or
b) the Lessor may pay compensation to the Lessee for the Lessee’s
reasonable expenses and labour in relation to the crops, in which
case the Lessee has no further right to harvest or access crops on
the Lands.
Overholding
10. If, following the expiry of the term of this Lease, the Lessee
continues to occupy the Lands and the Lessor continues to accept
Rent, the new tenancy created is deemed to be a yearly tenancy subject
to all the provisions of this Lease insofar as those provisions apply to a
tenancy from year to year.
Ownership and Transfer
11. The Lessee owns all personal property improvements (chattels)
brought or made on the Lands at the Lessee’s expense or on the
Lessee’s behalf during the period of time covered by this Lease.
12. All improvements to the real property (fixtures) made on or to the
Lands at the Lessee’s expense or on the Lessee’s behalf during the
period of time covered by this Lease remain on the Lands, without
any form of
compensation to the Lessee at the termination of this
Lease.
Subordination and Non-Disturbance
13. This Lease is and will be subject, subordinate, and postponed to all
Mortgages to the extent that without execution of any document
other than this Lease, the Mortgages will have priority over this
Lease notwithstanding the respective dates of execution, delivery, or
registration of them. Without limiting the generality of the
foregoing, the Lessee agrees to promptly execute any document in
confirmation of such subordination and postponement of this Lease
to any of the Mortgages, provided however that such subordination
or postponement will not be effective with respect to a specific
Mortgage unless and until the Lessor’s Mortgagee holding such
Mortgage confirms in writing to the Lessee that the Lessee has the
right, if not in default under this Lease, to remain in possession of
the Lands in accordance with the terms of this Lease in the event the
Lessor’s Mortgagee obtains title to the Lands by way of foreclosure
or otherwise.
Attornment
14. Whenever required by any of the Lessor’s Mortgagees under any of the
Clause 9: If the Landlord terminates the lease
then the tenant may still harvest crops that he
or she has already planted, or alternatively the
landlord can pay for the tenant's expenses and
labour on the crops up to the termination date
and then the tenant has no further right to
access the Lands or crops.
Clause 10: If the landlord-tenant relationship
continues beyond the expiry of this lease with
no additional written agreement, then the
terms of this Lease continue to apply on a year-
to-year basis.
Clauses 11-12: "Chattels" is a legal word for
moveable personal property, such as a shovel
or a tractor. "Fixtures" is a legal word for
property that is affixed to the land or buildings
to such a degree that it is treated as part of the
land, such as a stone wall. Sometimes there is a
fine line between chattels and fixtures, for
example a greenhouse or a chicken coop could
potentially be treated as a chattel or a fixture
depending on how portable they are. In those
cases it may be a good idea to add a clause
which explicitly names particular items as
"chattels" or "fixtures" if you would like to be
clear about whether the tenant keeps those
particular items at the end of the Lease.
Clauses 13-14 should be crafted individually for each
agreement. Text in this lease is an example.
Explanation of clauses: Generally, if a landowner
leases out their property after putting a mortgage on
the land, the person leasing the property can be
asked to vacate the land if the landowner defaults on
their loan and the lender takes over the land. If a
mortgage is placed on the land after it is leased the
lease has priority and the lender cannot ask the lessee
to leave. The landowner may insist on a
subordination clause in the lease that gives the
mortgage priority even if the mortgage is done after
the lease. Again, in this situation if the landowner
defaults on their loan the person leasing the land can
be asked to vacate by the lender taking over the land.
If the land is leased or is likely to be leased it is in the
lending institutions interest to require landlords to
include subordination clauses in their leases before a
mortgage will be approved. If the person leasing the
land is faced with subordination clauses or knows
that there is a mortgage prior to the lease, they
should ensure the lease agreement includes a non-
disturbance clause. This clause(s) will ensure that the
lender foreclosing on the loan will not disturb the
possession rights of the lessee as long as the lessee
continues to meet the terms of the lease.
Agricultural Lease Template, page 5
Mortgages, or in the event of an exercise by any of the Lessor’s Mortgagees of
the power of sale in any of the Mortgages, the Lessee will attorn to and
become, in each case, a tenant of such Lessor’s Mortgagees or any purchaser
from such Lessor’s Mortgagee for the then unexpired residue of the term upon
all of the terms and conditions of this Lease.
Utilities
15. The Lessee must promptly pay all charges for heat, water, gas, hydro, sewage
and all other utilities supplied to or consumed on the Lands.
Taxes
16. The Lessor must promptly pay all taxes, levies, duties, assessments and license
fees whatsoever whether municipal, school, provincial, parliamentary or
otherwise levied, imposed or assessed against the Lands or upon the Lessee in
respect thereof.
Liens
17. The Lessee must make best efforts to prevent the filing of any liens,
judgments, or other charges against the Lands. In the event of the filing of any
liens, judgments or charges against the said lands as a result of the actions of
the Lessee, the Lessee must, within _____ days of being advised of same, take
all necessary steps to have the liens or charges discharged or cancelled.
Lessor Access
18. The Lessee must permit the Lessor to enter the Lands:
a) at any time in the case of an emergency that threatens life or property; and
b) upon at least 24 hour’s notice and during regular business hours, where
such will not unreasonably disturb or interfere with the Lessee’s use of the
Lands, to examine and inspect the Lands.
Responsible Use
19. The Lessee must use the Lands in a socially responsible manner, causing no
harm and creating no nuisance to neighbours. The Lessee takes responsibility
for the use of the Lands by members of the Lessee’s families, employees,
friends or visitors.
Construction
20. The Lessee must:
a) get written approval from the Lessor for construction of any major
improvement (over $_______);
b) not alter, improve, change, remodel, tear down or destroy any buildings
erected upon the Lands without written approval from the Lessor; and
c) not construct housing for human habitation on the Lands without written
approval from the Lessor. Any housing construction must meet all federal,
Clause 14: An attornment clause
means that the lessee is promising to
recognize the lender as their landlord
when the original landlord defaults
on their mortgage obligations. A well
written attornment clause will include
an obligation by the lessee to become
the tenant of any successor in title
the lender might put in place.
Modify clause 15 according to the
responsibilities for paying utilities
agreed upon during negotiations.
Clause 17: A person who is working
on an improvement on a piece of land
(e.g. a barn) can file a lien against the
title to the land if they are not paid
for their services, which gives the
worker a legal interest in the land
until the lien has been discharged.
Other charges can be filed against the
title to land, including an outstanding
judgment from a court to pay money.
In this clause the tenant agrees to try
to prevent the filing of liens or other
charges against the Lands, and to
remove any charges that are filed as
a result of something the tenant has
done.
Agricultural Lease Template, page 6
provincial and local government legislation and bylaws.
Operations
21. The Lessee must:
a) use the Lands only for the primary purposes of farming legal commercial
crops;
b) perform all acts required to be done under any Act or by regulation or by-
laws with respect to weed and insect control;
c) comply with all the laws, rules, regulations and ordinances and by-laws of
any government or other body having jurisdiction over the Lands; and
d) at the time of expiry or termination leave the Lands in the same or better
condition than recorded on the Effective Date.
Repair and Maintenance
22. The Lessee assumes full responsibility for the operation, repair, and
maintenance of the Lands and any improvements constructed on the Land
(whether or not such improvements were constructed by the Lessee), ensuring
all is kept in good working condition (including fixtures and chattels).
23. If the Lessee fails to meet any expense when due or carry out repair or
maintenance work on the Lands and improvements that is reasonably necessary
and not merely cosmetic, then the Lessor may give the Lessee written notice to
pay the said expense or commence the said work. If the Lessee does not abide
by the notice or initiate dispute resolution under this Lease within _____ days,
then the Lessor may enter the Lands and do the said work or pay the said
expenses all at the expense of the Lessee, the cost of which is added to the
Rent.
Quiet Enjoyment
24. The Lessor must:
a) not interfere with the personal lives, associations, expressions or actions of
the Lessee, except insofar as permitted under terms and conditions of this
Lease;
b) expressly recognize the rights of the Lessee to the quiet enjoyment of the
Lands and to the Lessee’s right of privacy; and
c) not enter into agreements with others in regards to use and occupation of
the Lands without written approval from the Lessee.
Subletting and Assigning
25. The Lessee may not assign or sublet the Lands in whole or in part without the
Lessor’s prior consent in writing, such consent not to be unreasonably withheld.
Dispute Resolution
Modify clause 21(a) if you want to
have a different set of restrictions on
the use of the Lands (e.g. adding
livestock), or remove the clause if
you want no restrictions at all.
Modify clause 22 if the landlord is to
have some or all of these
responsibilities.
Clause 23: If the tenant fails to pay
expenses or make necessary repairs,
then the landlord can issue a notice
requiring the tenant to do so. If the
tenant does not dispute the notice or
do the work, then the landlord can
do the work him- or herself and
charge the cost to the tenant as
additional rent.
Agricultural Lease Template, page 7
26. If a breach of this Lease occurs or is threatened, or if there is disagreement as
to the meaning of this Lease:
a) either the Lessee or the Lessor may give notice to the other parties
requiring a meeting of all parties for dispute resolution within ____
business days of receipt of the notice;
b) all activities giving rise to an alleged breach, or threatening a breach of
this Lease, or giving rise to a
disagreement as to the meaning of this
Lease, must immediately cease upon receipt of
the notice;
c) the parties must meet and attempt to resolve the dispute, acting
reasonably and in good faith, within __ Business Days of receipt of the
notice;
d) if the parties are not able to resolve the matter within that time, the
parties may appoint a mutually acceptable person to mediate the matter.
If the parties are unable to agree on the appointment of a mediator
within ______ days after the mediation process is invoked, any party
may apply to the British Columbia Mediator Roster Society, or its
successor, or such other organization or
person agreed to by the parties
in writing, for appointment of a mediator. The parties must act
reasonably and in good faith and cooperate with the mediator and with
each other in an attempt to resolve the matter within ____ days of the
appointment of the mediator;
e) the cost of the mediation will be borne equally between the parties,
which costs will not include costs incurred by a party for representation
by counsel at the mediation; and
f) a party may not seek to have an alleged breach of this Lease adjudicated
in Court until the dispute resolution process set out in this clause has
concluded, unless both parties agree to forego mediation.
Non-Waiver
27. If the Lessor does not insist upon strict performance of any of the conditions
in this Lease this is not a waiver or relinquishment for the future of any such
condition unless the Lessor gives a waiver in writing. The acceptance of any
rent or performance of any Lease condition by a person other than the Lessee
shall
not be construed as an admission by the Lessor of any right, title or
interest of any such persons as a sub- tenant, assignee, transferee or otherwise
in place and stead of the Lessee.
Independent Contractor
28. The Lessor enters into this Lease as an independent contractor and in no
sense is the Lessee or the Lessee’s employees, invitees or agents to be
considered an agent of or under the control of the Lessor.
Insurance
Clause 26: There are two potential
stages to the process for resolution of
a dispute under the Lease. First, once
one party begins the dispute resolution
process by sending a notice to the
other party, the two parties must sit
down together within a given time to
try to resolve the dispute. Second, if
that is unsuccessful, either party may
initiate mediation. If mediation is
unsuccessful, the parties may bring the
matter to Court, but they cannot do so
before that time (unless both parties
agree).
Note: it is also possible to include an
arbitration clause in the Lease. With an
arbitration clause, instead of going to
Court the parties agree to be bound by
the decision of a neutral and impartial
arbitrator that they select. The potential
advantage of arbitration is that it is
often cheaper and simpler than Court.
Clause 27: The second part of this non-
waiver clause means that, if a third
party pays the tenant’s rent or
performs some other obligation of the
tenant (e.g. repairs), the landlord can
accept the rent or allow the
performance of the obligation without
agreeing that the third party is then a
tenant as a result.
Agricultural Lease Template, page 8
29. The Lessor represents that the Lands are insured by the Lessor to the extent set
out in the insurance documents attached to this Lease as Appendix “A”. The
Lessor agrees to maintain a level of insurance for the Lands that is equal to or
better than that set out in Appendix “A” for the duration of the Lease.
30. The Lessee shall not do or omit to do or permit to be done anything that will
cause or have the effect of
causing:
a) the cost of the Lessor’s insurance in respect of the Lands to increase at
anytime during the Lease; or
b) the Lessor’s insurance in respect of the Lands to be subject to cancellation.
Notice
31. Wherever any notice is required to be given to either party under the terms of
this Lease, the notice must be in writing and will be deemed to be sufficiently
given if it is forwarded by registered mail to the address of the party set out on
the first page of this Lease.
Registration of Lease
32. This Lease shall be registered with the BC Land Title and Survey Authority.
General
33. This Lease and everything herein contained shall ensure to the benefit of and
be binding upon the heirs, executors, administrators, successors, assigns and
other legal representatives, as the case may be, of each of the parties hereto,
subject to the granting of consent by the Lessor to any assignment or sub-
lease, and every reference herein to any party hereto shall include the heirs,
executors, administrators, successors, assigns and other legal representatives of
such party.
34. Where there is more than one Lessee, the provisions herein shall be read with
all grammatical changes thereby rendered necessary and all the covenants shall
be deemed joint and several.
35. Amendments and alterations to this Lease must be in writing, must be signed
by both the Lessee and the Lessor and must be appended to this Lease.
36. In the event of an emergency situation the Lessee may use their best judgment
to respond to the emergency and must notify the Lessor as soon as possible of
the actions taken.
37. The parties agree that this Lease does not give rise to a partnership relationship.
38. The parties agree that this Lease will be construed in accordance with, and be
governed by, the laws of the Province of British Columbia and the laws of
Clause 29 would require the landlord
to have insured the property and to
attach the insurance papers as an
appendix to this Lease. It may be
desirable to negotiate special
insurance provisions (e.g. the
landlord or the tenant takes out
additional personal injury liability
insurance) and to specify those
requirements in detail in this section.
Clause 31 states that for a notice to
be automatically treated as sufficient
under the Lease it must be sent by
registered mail to a party’s address.
Depending on the circumstances, it
may be preferable to modify this
clause to include personal delivery.
Clause 32 states that if the parties do
not intend to register the Lease
through the Land Title Office, delete
this clause.
Clause 33 means that the Lease
continues to be binding on other
persons who may gain a legal
interest in the lands. For example, if
the landlord were to pass away, this
clause means that the Lease
continues to bind the administrator
of the landlord’s estate and any
person who may inherit the property.
.
Agricultural Lease Template, page 9
Canada applicable thereto.
39. Notwithstanding the termination or expiry of this Lease:
a) the Lessee shall continue to be liable to the Lessor for all outstanding Rent
due at the time of termination or expiry of this Lease; and
b) the provisions in this Lease under the headings “Overholding”,
“Ownership and Transfer” and “Dispute Resolution” will continue in
effect.
40. Time is of the essence of this Lease.
41. This Lease is the complete and exclusive agreement between the parties and it
supersedes all other
agreements between the parties with respect to the Lands,
whether oral or written, including any renewals and extensions and
restatements.
SECTION III - OPTIONAL CLAUSES
Roll-Over
42. Every ____ year(s) at:
____ (date)
____ (date)
____ (date)
The contents of this Lease, including Rent, may be modified as mutually agreed
upon by the Lessee and
Lessor. If the parties are not able to come to a mutual
agreement on changes to the Lease, the parties may use the Dispute Resolution
process outlined in this Lease. If the parties are
not able to come to a mutual
agreement through the Dispute Resolution process then the terms of the Lease
will continue in force without modification.
Renewal
43. If the Lessee duly pays the Rent and performs all of the Lessee’s obligations
under the Lease, the Lessor will, upon the request of the Lessee made at least
______ months prior to the expiration of the term of this Lease, grant to the
Lessee a renewal lease of the Lands for a further term of _____ years, subject to
the same covenants, provisos and agreements as herein contained with the
exception of this clause and with the exception of Rent, which shall be mutually
agreed upon by the parties. If the parties are not able to come to a mutual
agreement on Rent for the renewal term, the parties may use the Dispute
Resolution process outlined in this Lease. If the parties are
not able to come to
a mutual agreement on Rent for the renewal term within ____ days of the
commencement of the Dispute Resolution process, then the renewal of the
Lease will not take effect.
Interest
Clause 39 ensures that provisions in
the Lease which are meant to have
an effect beyond the time that the
Lease terminates remain in force
(e.g. the tenant’s obligation to pay
outstanding rent, or the provisions
governing who owns what property
when the Lease is over).
Clause 40: “Time is of the essence”
means that failure to do something
within a time required by the Lease
constitutes a breach of the Lease.
Clause 41 states that this Lease
replaces or trumps any prior
agreements between the parties
about the Lands
Clauses 42-44 can be used to add
additional clarity to the Lease.
Modify examples as necessary.
Additional clauses e.g. requirement
to follow Certified Organic
Production Operation
Policies and
Management Standards or access
to firewood, could also be included
in this section.
Agricultural Lease Template, page 10
44. If the Lessee does not pay Rent on or before the due dates in this Lease, the
Lessee agrees to pay interest on the amount of unpaid Rent at the rate of the
prime business interest rate set by the Bank of Canada, plus _____
%.
Definitions and Interpretations
Use this section to define specific
words or clauses used in the Lease
that you feel are important e.g.
“Farm House” means the primary
residence on the Lands, “Farm
Business” means the business
operated by the Lessee for the
commercial production and sale of
local
food, including related
operations such as, but not limited
to agri-tourism and production
and sale of value-added products.
