Consulting a
knowledgeable attorney
A knowledgeable and experienced attorney can prove to be a valuable asset by providing guidance in areas of law that can have very significant impacts to those leasing or buying property.
In past articles I have discussed the importance of having written leases when renting farmland. “Advantages of a written agreement include: a detailed statement of the agreement which ensures better understanding by both parties; a reminder of the terms originally agreed upon; and a valuable guide for heirs if either the tenant or the landowner dies. Without a written agreement to refer to, a court may have to decide what the agreement between parties was or is. Because of the numerous areas of potential disagreement, a rental arrangement should be approached with the same degree of seriousness that a land purchase would entail.”
I have also covered what is called periodic tenancy. “Periodic tenancy can be established in a couple ways. The first would be if a landowner has a verbal lease for a year and the following year the renter “holds over”, or simply keeps raising crops on the land. A second way would be if a landowner has written lease with a set ending date but after that date a new written lease is not signed but the farmer continues to pay rent and grow crops on that land. If a condition of periodic tenancy has been established the landowner must provide the renter with a written notice of his intent to cancel the lease at least 90 days before the normal end of the lease.”
I have a sample two page lease posted for readers on the Waushara County UW-Extension website. One of the clauses I advise farmers to include is a clause called “the right of first refusal”. The right of first refusal is a legal right a landowner grants to a person that allows that person the right to match the price and other terms for which a landowner is willing to sell a property to a third person.
In an article in The Wisconsin Agriculturalist, Tim Halbach, a partner in Twohig, Rietbrock, Schneider and Halbach, S.C. covered the finer points in the “right of first refusal” clause.
Halbach explains that if a property is sold to a third party and the third party had no knowledge of the “right of first refusal clause” in the existing lease, it would still be considered a legal sale and the third party would get to keep the property. In order to prevent this, the present lessee would need to record the written lease with the register of deeds office in the county where the property is located. Halbach also explains that there are also legal complications when such a right of first refusal clause is included in a written will.
It is always advisable to consult a good attorney.
