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

counseland we highlyrecommend having your final contractual agreement reviewed by a lawyer.

Sample Lease

SECTIONI – REQUIREDCLAUSES

THISAGREEMENTmadethe____ day of _____, 20__ (inpursuanceofthe

Land Transfer Form Act - Part 2), and effectivethe ____ day of _____, 20__ (the

“Effective Date”).

BETWEEN:

__________

(Landlord/Landowner)

of ___________________________________________ (address)

____________________________________

(address)

hereinafter referred to as the “Lessor”.

AND:

________________

(Tenant)

of___________________________________________ (address)

____________________________________

(address)

hereinafter referred to as the “Lessee”.

WHEREASTheLessoris the registered owner ofthefollowingproperty

in_____________________________________, ProvinceofBritish Columbia,

commonly known as

(farm name),andlegally

described as:

___________ (address)

__ __ __ -__ __ __- __ __ __ (PID) ___________________ (Lot #)

_______ (Block range)

__ ___

_ (Section)

_____________________ (District) _________________ _ (Plan)

consisting ofacres asshown onthemapattached tothisLeasein

AppendixA.This property is

hereinafter referred to as“theLands”

GrantofLease

1.Subject tothe terms and conditions set out in thisLease, the Lessor agrees to

leasethe Lands totheLessee.

Scopeof the LandsLeased

2.The Landsincludeall:

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”, nameofLessoror

appropriateacronym would also be

appropriate.

Enter the tenant’s name and

address here.The tenant will be

called the “Lessee” in this

Agreement.

“Tenant”, nameof

Lesseeorappropriateacronym

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

Identifier9 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”.

Besure to note and describeany

areas in land not to be covered by this

Lease.

Agricultural Lease Template, page 2

a)buildings ontheLandsasoftheEffective Date;

b)buildingsconstructed on the Lands during theterm ofthisLease;

c)ways, pathsand passageson the Lands;

d)watersand water courseson the Lands, including access to and use of water;

and

e)privileges, advantages andappurtenances whatsoever related totheLands.

Pre-existing Termsor Easements

3. Thisgrantofleaseissubject to:

a)existingtermscontainedinanyoriginalgrantof the Lands orinanyother

dispositionfromtheCrown with respect tothe Lands;and

b)anyhighway, orpublicright-of-way, watercourse, right ofwaterorother

public easementfoundon

theLands.

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.ThisLeasewill be in effectfor ______ years / months, starting onthe

Effective Dateand ending on __

(date).

Rent Payable

6.The Lessee will pay to the Lessor the sum of $__________, payable in

monthlyinstallments on the ________ day of each month without invoice or

notice from the Lessor (“Rent”).

THELESSEE

SignatureWitness

Print NamePrint 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

THELESSOR

SignatureWitness

Print NamePrint Name

Date

SECTIONII– RECOMMENDEDCLAUSES

Termination

7.ThisLease may beterminatedin the following ways:

a)upon written agreement of both Lessor and Lesseeto terminate thisLease;

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 thisLeasefor non-payment of

Rent, unless the Lessee pays the outstanding Rent in fullwithin ____ days

of receipt of the notice, in which case this Lease remains in force;

d)anyparty to this Lease gives the opposing party written notice of the

opposingparty’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 doesnot

i)contest the notice by initiating dispute resolution

pursuant to this Lease, or

ii) correct the non-performance

e)theLessee becomes insolvent orbankruptandtakes thebenefit ofanyact

that may bein force for

bankruptorinsolvent 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 anassignmentforthe benefit ofhiscreditors.

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 terminatedin 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.

OwnershipandTransfer

11.TheLessee owns allpersonalpropertyimprovements (chattels)

brought ormadeontheLandsat the Lessee’s expenseoronthe

Lessee’s behalf during the period oftime covered by thisLease.

12.Allimprovements totherealproperty(fixtures)madeonortothe

Landsatthe Lessee’s expense oron the Lessee’s behalfduring the

period oftime covered by thisLease remainontheLands, without

anyform of

compensationtothe Lessee attheterminationofthis

Lease.

Subordinationand 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

confirmationof 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 confirmsin 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 legalword 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 thereis 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 takesover 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 theloan 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 filingof any liens,

judgments, or other charges against the Lands. In the event of thefilingof 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 liensor 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 anysuccessor in title

the lender might put in place.

Modify clause15 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 actionsof

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 notassignorsublet the Lands inwholeorinpart withoutthe

Lessor’s priorconsentinwriting, such consent not to be unreasonably withheld.

DisputeResolution

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 clause22 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.Ifa breach ofthisLease occurs oris threatened, orifthere is disagreement as

tothemeaningofthisLease:

a)either the Lessee ortheLessormay give noticetotheotherparties

requiring a meeting ofallparties for dispute resolution within ____

business days ofreceipt of the notice;

b)allactivities giving rise toan allegedbreach, or threatening a breachof

thisLease, or giving rise to a

disagreement astothemeaningofthis

Lease, must immediately ceaseupon receipt of

thenotice;

c)theparties must meet and attemptto resolve thedispute, acting

reasonablyandin goodfaith,within __ Business Days ofreceipt ofthe

notice;

d)ifthepartiesarenotabletoresolve thematterwithinthattime, the

partiesmayappointa mutually acceptableperson to mediate thematter.

Ifthepartiesareunableto agree ontheappointmentof a mediator

within ______ days afterthe mediation process is invoked,anyparty

may applyto theBritishColumbia Mediator Roster Society, orits

successor, orsuchotherorganizationor

personagreed to by theparties

in writing, forappointmentofa mediator. Theparties mustact

reasonablyandingoodfaithandcooperate withthe mediator andwith

each otherinanattempt to resolve the matter within ____ days of the

appointment of the mediator;

e)the cost ofthe mediation will beborneequally between the parties,

which costswill not include costs incurred by a partyfor representation

by counselatthe 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.IftheLessor does notinsistupon strict performanceofanyoftheconditions

inthisLeasethisisnot a waiver or relinquishment forthefutureofanysuch

condition unlesstheLessor gives a waiver in writing. The acceptanceofany

rent or performanceofanyLeaseconditionby a person otherthanthe Lessee

shall

notbeconstruedasanadmission by theLessorofanyright,titleor

interest ofanysuch persons as a sub- tenant,assignee, transferee or otherwise

inplaceandsteadoftheLessee.

IndependentContractor

28.TheLessor enters intothisLeaseasanindependent contractor andinno

senseistheLessee orthe Lessee’s employees, invitees or agentstobe

considered an agent ofor under thecontroloftheLessor.

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.TheLessee shallnot do oromitto doorpermittobedoneanythingthatwill

causeor have theeffectof

causing:

a)the cost ofthe Lessor’s insurancein respectoftheLandsto increase at

anytime duringtheLease; or

b)the Lessor’s insurance in respect of theLandstobesubject to cancellation.

Notice

31.Wherever anynoticeis required to be given to eitherpartyunder the termsof

thisLease, the noticemustbein writingandwillbedeemed tobesufficiently

given ifit is forwarded by registered mail to the address of the party setout on

the first page of this Lease.

Registrationof Lease

32.ThisLeaseshallbe registered withtheBCLandTitleandSurvey Authority.

General

33.ThisLeaseand everythingherein containedshall ensure tothe benefit ofand

bebindinguponthe heirs, executors, administrators, successors, assignsand

otherlegal representatives, asthecase may be, ofeachofthe parties hereto,

subject tothe grantingofconsent bytheLessortoanyassignmentorsub-

lease, and every reference herein toanypartyhereto shallinclude the heirs,

executors, administrators, successors, assignsandotherlegal representatives of

such party.

34.Where there ismorethanone Lessee, theprovisions herein shallbe read with

allgrammaticalchanges thereby rendered necessary andall the covenantsshall

bedeemed joint andseveral.

35.Amendments andalterationstothisLeasemustbein writing, mustbesigned

by boththe Lessee and the Lessor andmustbeappended tothis Lease.

36.Inthe event ofan emergency situationtheLessee may usetheirbest judgment

torespondtothe emergencyand mustnotify the Lessor as soonas possibleof

the actionstaken.

37.The parties agree that this Lease does not give rise to a partnership relationship.

38.The parties agree that this Lease willbeconstrued in accordance with, andbe

governed by, the laws oftheProvinceofBritishColumbiaandthelaws 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 31statesthat 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 32states that if the parties do

not intend to register the Lease

through the Land Title Office, delete

this clause.

Clause 33means that the Lease

continuesto 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

Canadaapplicablethereto.

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.Timeis oftheessence ofthis Lease.

41.This Leaseisthe complete and exclusive agreement betweenthepartiesandit

supersedes allother

agreements between the parties with respect to the Lands,

whether oralor written, includingany renewalsand extensions and

restatements.

SECTIONIII- OPTIONALCLAUSES

Roll-Over

42.Every ____ year(s) at:

____ (date)

ThecontentsofthisLease, including Rent, may be modified as mutually agreed

uponby the Lessee and

Lessor. Ifthepartiesarenotabletocometo a mutual

agreement on changes totheLease, theparties mayusetheDisputeResolution

process outlined inthis Lease. Ifthepartiesare

notableto cometo a mutual

agreement throughthe 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. Ifthepartiesarenotabletocometo a mutual

agreement onRent for the renewal term, thepartiesmay usetheDispute

Resolutionprocess outlinedinthis Lease. Ifthepartiesare

notableto cometo

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 canbe used to add

additional clarity to the Lease.

Modify examples as necessary.

Additional clauses e.g. requirement

to followCertifiedOrganic

ProductionOperation

Policiesand

ManagementStandards or access

to firewood, could also be included

in this section.

Agricultural Lease Template, page 10

44.If the Lessee does not pay Rent onorbeforethedue dates inthis Lease, the

Lessee agrees to pay interest onthe amountofunpaid Rent attherateofthe

prime business interest rate set by the Bank of Canada, plus _____

DefinitionsandInterpretations

Usethissectiontodefinespecific

wordsorclausesusedintheLease

that youfeel are importante.g.

“Farm House” meanstheprimary

residenceontheLands, “Farm

Business”meansthebusiness

operated by theLesseeforthe

commercialproductionandsaleof

local

food,includingrelated

operationssuch as,butnotlimited

toagri-tourismandproduction

andsaleofvalue-added products.