Dutch Civil Code

Book 7 Particular agreements

Title 7.5 Farm lease agreement

Section 7.5.1 General provisions

Article 7:311 Definition of 'farm lease agreement'
A farm lease agreement is an agreement under which one of the parties (‘the lessor’) has engaged himself towards the other party (‘the lessee’) to grant him the use of an immovable thing or a part of such a thing in order to run a farm on it, opposite to which the lessee engages himself to perform a counter performance.

Article 7:312 Definition of ‘commercial farming'
By 'farming' is understood, always insofar commercially conducted: field cropping, arable farming, grassland agriculture, cattle breeding, livestock farming, pig keeping, pig breeding, poultry farming, horticulture, including fruit cultivation and the growing of trees, flowers and flower bulbs, the cultivation of twigs, cane and reed and any other form of cultivation of land, with the exception of sylviculture (forestry).

Article 7:313 Definition of 'farm house' and of 'unbuilt farmland'
- 1. A farm house is a complex existing of one or more buildings or parts of such buildings and the accompanying land, serving to conduct farming activities.
- 2. What is specified in the present Title (Title 7.5) for unbuilt farmland, applies also to one or more buildings or parts thereof that serve for the conduct of farming activities.
- 3. If the same parties, however, have concluded two different farm lease agreements with each other, where under one of the agreements unbuilt farmland has been leased out and under the other agreement one or more buildings or parts of such buildings, then the statutory provisions for a farm lease agreement related to a farm house will apply to both farm lease agreements from the day on which the last of these agreements has been entered into.
- 4. When the leased out property includes accompanying land that does not serve for the conduct of farming activities, then for the purpose of the present Title (Title 7.5) that land, including its timber vegetation, will be treated as a part of the farm house or of the unbuilt farmland, respectively.

Article 7:314 Definition of 'foster-child'
For the purpose of the present Title (Title 7.5), the term 'foster-child' relates to all persons who are permanently maintained (taken care for) and raised (brought up) as if they were an own child.

Article 7:315 Leased farmland alongside water
Articles 5:29 and 5:34 of the Civil Code apply to the size of leased out farmland alongside water, unless the lessor is bound by a marking out of the border in accordance with Article 5:30 up to and including 5:32 of the Civil Code.

Article 7:316 Perception of fruits (benefits)
- 1. The right of the lessee to the fruits (benefits) of the leased property is a right of enjoyment as referred to in Article 5:17 of the Civil Code.
- 2. At the end of the farm lease agreement, the lessee's right to the fruits (benefits) encloses the crops still standing, unless the court has ordered otherwise in its judgement in which the farm lease agreement has been rescinded.

Section 7.5.2 Form of the farm lease agreement

Article 7:317 Agreement in writing
- 1. The farm lease agreement and the agreements to change or end it (to change or end the farm lease agreement), must be concluded in writing.
- 2. As long as the agreement is not written down and signed by both parties, the most interested party may claim in court that this is done after all.
- 3. In the situation meant in the previous paragraph, the court puts the agreement down in writing, on the understanding that contractual provisions that are null and void will be redrafted in conformity with the law, taking into account the intentions of parties as much as possible.

Section 7.5.3 Approval to a farm lease agreement by the Agricultural Lease Authority

Article 7:318 Required approval of the Agricultural Lease Authority
- 1. The farm lease agreement and the agreements to change or end it need the approval of the Agricultural Lease Authority.
- 2. The required approval is not necessary for an agreement to end the farm lease agreement if parties actually have carried out the agreement which intends to end the farm lease agreement.

Article 7:319 Grounds for disapproval
- 1. The Agricultural Lease Authority gives its approval to the farm lease agreement, unless:
a. the agreed farm rent or a compensation under the agreement, taken into account the further content of that agreement, is higher than allowed pursuant to the provisions of Articles 7:327, paragraph 1, 7:327, paragraph 3, or 7:393, respectively;
b. the remaining obligations of the lessee, that result from the agreement, must be considered as excessive;
c. the agreement would lead to an inefficient parcelling out of land or an inefficient location of the land compared to the location of the farm buildings or the farmers home;
d. the agreement relates to land which has been involved in a redistribution of land or to land that is located on reclaimed land in the IJsselmeer and the agreement would lead to:
1°. a redistribution of land or a location of the land which is less efficient, taken into account the location of the farm buildings or the farmers home, than the existing situation;
2°. a smaller farm size than the existing one;
e. the agreement would harm the common interests of the agricultural sector;
the Agricultural Lease Authority is, among others, entitled to qualify agreements as being harmful for the common interests of the agricultural sector if it would lead to:
1°. such a small farm size that the farmer is not able to use his full capacity to work within this agricultural undertaking;
2°. a use of the land to earn additional income for other reasons than self-sufficiency;
3°. an increase of the farm size, which for the farmer has no decisive meaning, whereas in the immediacy one or more smaller farms are in need of expansion;
f. the agreement encloses contractual provisions that are in breach of the present Title (Title 7.5).
- 2. If the farm lease agreement would lead to an effect as mentioned in paragraph 1, under point (c), (d) or (e), then the Agricultural Lease Authority may nevertheless grant its approval when a rejection would be unreasonable because of particular circumstances or when such a rejection would harm the common interests of the agricultural sector. If the farm lease agreement would lead to an effect as mentioned in paragraph 1, under point (d), then the Agricultural Lease Authority may furthermore grant its approval when circumstances, related to the personal qualities and situation of the lessor, make an approval desirable in the interest of a responsible conduct of business.
- 3. The provisions in paragraph 1, under point (c) and (e), as far as they relate to what is written under 1°, 2° and 3°, are not applicable to agreements with spouses or registered partners, blood relatives or in-laws in the direct line, foster children and co-lessees.
- 4. In determining if the agreement is in line with the provisions of paragraph 1, under point (e), the Agricultural Lease Authority may not pay any attention to the personal quality and situation of the lessee.
- 5. The provisions in paragraph 1, under point (c), (d) and (e), as far as they relate to what is specified under 1°, 2° and 3°, are not applicable if it becomes clear from a declaration of the Municipal Executive Board (‘Mayor and Alderman’) of the municipality in which the land is located, that this land is incorporated in an approved land-use plan due to which it can no longer be used as farm land.
- 6. For the validity of a contractual provision that is in conflict with the law, parties cannot appeal to the Agricultural Lease Authority for an approval of the agreement.
- 7. The provisions of the previous paragraph apply accordingly to an agreement to change or end a farm lease agreement.

Article 7:320 Modification or nullification of an agreement by the Agricultural Lease Authority
- 1. If the Agricultural Lease Authority does not approve the farm lease agreement or the agreements to change or end it, then it will modify the agreement on the point or the points that in connection with the provisions of Article 7:319, paragraph 1, make an approval impossible, or it will nullify the agreement entirely.
- 2. An agreement which has been modified by the Agricultural Lease Authority pursuant to paragraph 1, is considered to be an agreement that has been concluded by parties and approved by the Agricultural Lease Authority. In the event of a modification in connection with the provisions of Article 7:319, paragraph 1, under point (c), (d) and (e), as well as in the event of a nullification of the agreement, the Agricultural Lease Authority will, if necessary, regulate the legal effects of its interference.

Article 7:321 Obligation of parties to ask for the approval of the Agricultural Lease Authority
- 1. Each of the parties is obliged to send the farm lease agreement or the agreement to change it within two months after it has been concluded to the Agricultural Lease Authority for approval.
- 2. Each of the parties is obliged to send the agreement to end the farm lease agreement within two months after it has been concluded to the Agricultural Lease Authority for approval.
- 3. As soon as one of the parties has met (performed) this obligation, the other party is relieved from it.
- 4. The Agricultural Lease Authority applies Articles 7:319 and 7:320 of its own motion to an agreement which pursuant to Article 7:317, paragraph 3, has been put down in writing.

Article 7:322 Consequences when the farm lease agreement itself is not sent in for approval
- 1. When the requirements of Article 7:321, paragraph 1, are not met, the lessor is not able, as long as the Agricultural Lease Authority has not approved the farm lease agreement, to bring a right of action in court against the lessee to claim payment of the farm rent and all this time the farm lease agreement is regarded as to be concluded for an indefinite term, without parties being able to terminate it; when the approval is granted, the duration of the lease period referred to in Article 7:325 takes effect as of the start of the first farm lease year following the one in which the farm lease agreement was sent to the Agricultural Lease Authority.
- 2. Upon the request of one of the parties, the Agricultural Lease Authority is entitled to decide in its decision in which it grants its approval that, because of special circumstances, the duration of the lease period referred to in Article 7:325 will take effect on an earlier date than the one meant in the previous paragraph.

Article 7:323 Consequences when an agreement to change or end the farm lease agreement is not sent in for approval
- 1. As long as an agreement to change or - insofar it has not yet been actually carried out - to end the farm lease agreement has not yet been approved by the Agricultural Lease Authority, it has no binding effect for parties other than that a party is not able to withdraw from it without the consent of the other party.
- 2. If the agreement is not sent in to the Agricultural Lease Authority for approval within two months after it was concluded, then the Agricultural Lease Authority is entitled to set a later commencing date as of which the agreement will take effect than parties themselves have agreed upon, yet this commencing date cannot be set on a day later than the one on which the agreement was sent in.

Article 7:324 First draft sent in for approval
- 1. Persons who intend to enter into a farm lease agreement or an agreement to change a farm lease agreement with each other, may sent in a first draft of this agreement to the Agricultural Lease Authority for approval.
- 2. The Agricultural Lease Authority examines this first draft with application of Article 7:319, paragraph 1 up to and including 5; it may make its approval dependant on amendments to be made to the first draft which it regards necessary pursuant to Article 7:319 paragraph 1.
- 3. If the Agricultural Lease Authority or Central Agricultural Lease Authority has approved a first draft of a farm lease agreement or of an agreement to change a farm lease agreement and, within two months after this approval, a final agreement is sent in which is exactly the same as the approved first draft thereof, then the Agricultural Lease Authority must grant its approval to that final agreement.
- 4. It is no longer possible to grant an approval to a first draft of a farm lease agreement after the person, who is mentioned in this draft as the lessee, has been allowed to actually take use of the involved farm property.

Section 7.5.4 Duration of the lease period under the farm lease agreement

Article 7:325 Fixed lease period and extension of the duration of the farm lease
- 1. The lease period under a farm lease agreement is always a fixed term. This term is twelve years for a farm house and six years for unbuilt farm land.
- 2. A farm lease agreement may be entered into for a longer lease period than that mentioned in paragraph 1, provided that a specific date is set on which it will end.
- 3. A farm lease agreement may be entered into for a shorter lease period than that mentioned in paragraph 1, provided that a specific date is set on which it will end. This shorter lease period needs the approval of the Agricultural Lease Authority, which approval can be granted either before the farm lease agreement has been entered into or during the normal approval procedure for this agreement.
- 4. The Agricultural Lease Authority will only grant its approval to a shorter lease period than that mentioned in paragraph 1, if there are special circumstances in this case for doing so and if the common interests of the agriculture sector are not damaged as a result of the shorter lease period. It mentions the reason for its approval in its decision. Restrictions imposed upon the lessee by third parties are not considered as special circumstances.
- 5. The farm lease agreement with a lease period of at least twelve years for a farm house and at least six years for unbuilt land will, after the end of this period or any following period, be extended by operation of law with six years.
- 6. Where the Agricultural Lease Authority has approved a shorter lease period, the farm lease agreement will not no be extended by operation of law, but the court may, upon the request of the lessee, extend its duration with a period to be set by the court on the ground that the special circumstances, meant in paragraph 4, have not occurred and can no longer occur. The legal claim must be filed within the period set for this purpose by the Agricultural Lease Authority in its decision in which it approved the shorter lease period. Paragraph 5 applies as well to an extended farm lease agreement.
- 7. Where the Agricultural Lease Authority has approved a lease period of a year or less, no extension will take place.

Article 7:326 Revision of the content of an existing farm lease agreement
- 1. Each time before the expiry of a lease period, the lessor or lessee may request the Agricultural Lease Authority to revise the contractual provisions of the farm lease agreement as far as these terms and conditions do not relate to the counter performance which has to be performed by the lessee.
- 2. The Agricultural Lease Authority revises these contractual provisions if special circumstances give rise to this, provided that neither the common interest of the agricultural sector nor a reasonable interest of the other party opposes to the requested change.
- 3. The changes enter into force as of the first day of the new lease period.
- 4. It is not possible to request for a revision on the basis of Article 6:258 of the Civil Code (unforeseen circumstances).

Section 7.5.5 Farm rent

Article 7:327 Maximum farm rent
- 1. By or pursuant to Order in Council rules are issued with respect to the maximum chargeable farm rent.
- 2. The rules meant in paragraph 1 intend to promote farm lease prices (farm rent) which are in reasonable proportion to the profits of the farm that is managed properly, on the understanding that, in making these rules, the reasonable interests of the lessor must be observed as well.
- 3. With due observance of the rules meant in paragraph 1, the Agricultural Lease Authorities, each for their own territory, may, if necessary after several random tests, determine the level of farm rents in their territories and issue further decrees concerning the farm rent. Such decrees expire a year after the day on which they entered into force.
- 4. These decrees need the approval of the Minister of Agriculture, Nature and Food Quality and have to be published in the Dutch Government Gazette ('Staatscourant').

Article 7:328 Counter performance for the use of the farm or the land
- 1. The counter performance which the lessee has to perform may only consist of a stipulated farm rent, with or without additional obligations.
- 2. The farm rent may only be an amount in Dutch currency, indebted over a specific period of time, of which the sum does not depend on the price of products or other elements.
- 3. The Agricultural Lease Authority is, however, entitled, either upon the request of parties prior to the moment on which the farm lease agreement has been entered into, or during the normal approval procedure at the examination of this agreement, to approve a derogation from the provisions of paragraphs 1 and 2.
- 4. Where the Agricultural Lease Authority has granted such an approval, it must ensure that the agreed counter performance does not exceed the maximum farm rent meant in Article 7:327, paragraph 1, and consider as well the scope and necessary implications of the provisions of Article 7:327, paragraph 1 and 2.

Article 7:329 Specific public charges and duties are partly chargeable to the lessee
Where charges or duties have or will be imposed upon the lessor by virtue of the Land Use Act or the Act on the Land Use Development of Rural Areas or by virtue of a redevelopment on the basis of the Redevelopment Act Midden-Delfland or of the Redevelopment Act Concentration Range or by virtue of a replanning on the basis of the Redevelopment Act Oost-Groningen and the Peat District of Groningen and Drenthe, the lessor is entitled to stipulate that these charges and duties are in part chargeable to the lessee.

Article 7:330 Reduction of the farm rent because of extraordinary circumstances
- 1. The lessee is entitled to a reduction (decrease) of the farm rent over a farm lease year or a farm lease season during which, as a result of extraordinary circumstances, the profit of the farm has been considerably less than could have been expected when entering into the farm lease agreement or during which the lessee temporarily had to miss entirely or partially the enjoyment of the leased property.
- 2. The following events, however, are no reason to reduce the farm rent:
a. a decrease of the price of the products of the farm;
b. circumstances that are attributable to the lessee or that lead to consequences which the lessee reasonably could have prevented by means of an insurance policy or by taking other measures;
c. damage which the lessee can recover from someone else.
- 3. The right of action of the lessee to claim a reduction of the farm rent expires six months after the end of the farm lease year or the farm lease season over which the farm rent is indebted.

Article 7:331 Increase of the farm rent because of beneficial works of public authorities
- 1. The lessor is entitled to an increase of the farm rent over a farm lease year or a farm lease season during which the charges, imposed by public authorities upon the lessor because of unusual works, have been considerably higher than could have been expected when entering into the farm lease agreement, provided that the farm business of the lessee has benefited from these works performed by the public authorities.
- 2. The right of action of the lessor to claim an increase of the farm rent expires six months after the end of the farm lease year or the farm lease season over witch the farm rent is indebted.

Article 7:332 Increase of the farm rent after beneficial works of the lessor
- 1. The lessor is entitled to an increase of the farm rent over a farm lease year or a farm lease season if he has carried out extra works at his own expense from which the farm business of the lessee has benefited in such a way that an increase of the farm rent can be claimed.
- 2. The right of action of the lessor to claim an increase of the farm rent expires six months after the end of the farm lease year or the farm lease season over which the farm rent is indebted.

Article 7:333 Revision of the farm rent and reconsideration of the counter performance
- 1. The farm rent will be reviewed by operation of law in accordance with the adjustment of the rules issued under Article 7:327, paragraph 1. But the lessor may, under written notification to the lessee, entirely or partially waive his right to such an increase of the farm rent.
- 2. Nevertheless, the lessee or lessor may request the Agricultural Lease Authority within one year after the moment on which the adjustment of the rules issued under Article 7:327, paragraph 1, has entered into force, to reconsider the counter performance. The Agricultural Lease Authority changes the counter performance if this is required by standards of reasonableness and fairness or if this is justified due to changed circumstances.
- 3. Without prejudice to the provisions of paragraph 1 and 2, the lessor or lessee may request the Agricultural Lease Authority before the expiry of a lease period of three years to reconsider the counter performance. The Agricultural Lease Authority changes the counter performance if this is required by standards of reasonableness and fairness or if this is justified due to changed circumstances.
- 4. The reviewed farm rent, meant in paragraph 1, and the changed counter performance, meant in paragraph 2, take effect as of the first day on which the adjustment of the rules that were issued under Article 7:327, paragraph 1, have entered into force. The change of the counter performance meant in paragraph 3, takes effect as of the first day of a new three-year period.


Article 7:334 [repealed on 01-01-2012]

Article 7:335 No change of the counter performance on the basis of unforeseen circumstances
It is not possible to claim a change of the counter performance or of a compensation chargeable under the farm lease agreement on the basis of Article 6:258 of the Civil Code (unforeseen circumstances).

Section 7.5.6 Obligations of the lessor

Article 7:336 Placing the leased out property at the disposal of the lessee
The lessor is obliged to place the leased out property at the disposal of the lessee and to leave it at his disposal insofar this is necessary to comply with the agreed enjoyment (right of use).

Article 7:337 Defects in the leased property
- 1. With regard to defects in the leased property the lessor has the obligations as described in the present Section (Section 7.5.6).
- 2. A defect is a quality or characteristic of the leased property or another circumstance not attributable to the lessee, as a result of which the leased property does not provide the lessee the enjoyment which a lessee at the moment of entering into the farm lease agreement could have expected to get of a well maintained property of the kind as to which the farm lease agreement relates.
- 3. An actual disturbance in the agreed enjoyment by a third person who does not claim to have a right in the leased property as meant in Article 7:344, is no defect in the meaning of paragraph 2; neither a defect is the claim of a third person to the leased property itself, but without actually causing a disturbance in the agreed enjoyment.

Article 7:338 The rights (actions) and legal remedies of Book 6 of the Civil Code
The lessee is entitled to the rights (actions) that result from this Section (Section 7.5.6) without prejudice to all other rights (actions) and legal remedies available to him pursuant to law.

Article 7:339 Remedy of defects
- 1. If the lessee desires so, the lessor must remedy a defect, unless this is impossible or it would require expenditures which in the given circumstances reasonably cannot be expected to be made by the lessor.
- 2. This obligation does not apply to minor defects which the lessee has to repair himself pursuant to Article 7:351, nor to defects for which the lessee is responsible (liable) towards the lessor.
- 3. Where the lessor is in default of remedying a defect, the lessee may perform the remedy himself; as far as the remedy costs are reasonable, they may be recovered from the lessor, if required by withholding them from the farm rent.

Article 7:340 Reduction of the farm rent
- 1. In the event that the enjoyment of the farm lease has been diminished due to a defect, the lessee may claim a proportional reduction of the farm rent as of the day on which he has properly notified the lessor of the defect or on which the defect was sufficiently known to the lessor in order to take measures, up until the day that the defect is remedied.
- 2. The lessee is not entitled to a reduction of the farm rent to the point of minor defects that he has to repair himself pursuant to Article 7:351, nor of defects for which he is responsible (liable) towards the lessor.

Article 7:341 Damages
Without prejudice to the rights (actions) and legal remedies of the lessee in the event of a non-performance of the obligation referred to in Article 7:339, the lessor is obliged to compensate the damage caused by the defect, if the defect has arisen after the conclusion of the farm lease agreement and is attributable to him, as well as if the defect already existed at the conclusion of the farm lease agreement and the lessor was aware or ought to have been aware of its existence or the lessor had made clear, at that time, that the leased property did not have this defect.

Article 7:342 Mandatory law
It is not possible to derogate to the disadvantage of the lessee from Article 7:341 as far as it concerns defects of which the lessor was aware or ought to have been aware at the conclusion of the farm lease agreement.

Article 7:343 No agreed enjoyment left
- 1. If a defect makes it entirely impossible to enjoy the leased property in conformity with the farm lease agreement, but from Article 7:339 follows that the lessor is not obliged to remedy this defect, then both, the lessee and the lessor, may rescind the farm lease agreement on the basis of Article 6:267 of the Civil Code.
- 2. The damage caused by the fact that the farm lease agreement has ended in consequence of paragraph 1, may be recovered by virtue of a debt-claim for damages caused by a defect.

Article 7:344 Rights of action (legal claims) of third persons against the lessee
- 1. When a third person has filed a legal claim (right of action) against the lessee with the objective to sell off the leased property by foreclosure or to obtain a right or title in the leased property with which that property should not have been burdened according to the farm lease agreement, then the lessor is obliged, as soon as the lessee has notified him of this legal claim (right of action), to enter the legal proceedings in order to defend the interests of the lessee.
- 2. The lessor must compensate the lessee for all costs incurred with regard to this legal claim (right of action), though, if the notification was not given immediately, only the costs that have arisen after that notification have to be compensated.
- 3. When the main lessor has filed a legal claim (right of action) against a sublessee in relation to the subleased property, the previous paragraphs apply accordingly to the sublessor.

Article 7:345 Obligation of the lessor to rebuild destroyed constructed immovable things
- 1. The lessor is obliged to rebuild constructed immovable things which are destroyed due to a fire or storm, insofar rebuilding is necessary for the conduct of the farm business related to the leased property. This obligation does not exist if the farm lease agreement has a lease period shorter than the statutory duration of Article 7:325; it neither exists for a sublessor.
- 2. Upon the request of the lessor, either made before the farm lease agreement has been entered into or during the normal approval procedure for this agreement, the Agricultural Lease Authority may release the lessor from the obligation referred to in paragraph 1, if the constructed immovable things cannot be insured on reasonable conditions for their rebuilding value or if it is plausible that, when the immovable things are destroyed, the obligation to rebuild them will elapse on the basis of the statutory provisions in the first sentence of paragraph 4.
- 3. If the lessor, although it is possible to insure the constructed immovable things on reasonable conditions for their rebuilding value, has not or not sufficiently insured them against damage by fire or storm, and he has neither provided any other security for the compliance with his obligation mentioned in paragraph 1, then the court may authorise the lessee, on his request, to take an insurance policy or an additional insurance policy for the duration of at the most the running lease period and to pay the insurance premium for account of the lessor. If it concerns an additional insurance policy, it must be from the insurer with whom the constructed immovable things are insured already, unless the court orders otherwise in its judgment. For the purpose of the present Article an insurance for the rebuilding value means an insurance for such an amount that it enables the lessor to comply with his obligation referred to in paragraph 1, first sentence.
- 4. The obligation of the lessor to rebuild the destroyed constructed immovable thing elapses if it can reasonably not be expected of him that he rebuilds such a destroyed thing in view of the common interests of the agricultural sector or the special circumstances of this specific case. If the lessee is liable for damage caused by fire, then the obligation of the lessor to rebuild the destroyed constructed immovable thing will be postponed as long as the lessee has not performed his obligation to pay damages.

Section 7.5.7 Obligations of the lessee

Article 7:346 Counter performance
The lessee is obliged to perform a counter performance in the agreed way and at the agreed times.

Article 7:347 Prudent lessee
The lessee is obliged to behave himself with regard to the use of the leased property as a prudent lessee.

Article 7:348 Changes to the leased property
- 1. The lessee is not entitled to change, neither in full nor in part, the functional arrangement or appearance (shape) of the leased property, nor the purpose for which it is intended, without a written consent of the lessor, unless it concerns changes and additives which at the end of the farm lease agreement can be made undone and removed without noteworthy costs.
- 2. If the lessor does not give his consent, then the lessee may request the Agricultural Lease Authority to get authorised to carry out the planned changes himself. If the lessor is not also the owner, usufructuary or long leaseholder of the leased property, then the lessor ensures that the owner, usufructuary or long leaseholder is called in time to the legal proceedings as well. If the leased property is encumbered with a mortgage, then this obligation also exists towards the mortgagee.
- 3. The Agricultural Lease Authority may only grant its authorisation if the changes are necessary for an efficient use by the lessee of leased property and the lessor cannot bring forward compelling objections against these changes.
- 4. The Agricultural Lease Authority may subject its authorisation to certain conditions or duties; upon the request of the lessor, it may also raise the farm rent if the changes give rise that.

Article 7:349 Right of removal
- 1. Up until the eviction the lessee is entitled to undo and remove the changes and additives he has introduced, provided that the leased property is brought back to a condition which at the end of the lease period reasonably can be regarded as being in conformity with its original state.
- 2. Before evicting the leased property the lessee does not need to undo or remove rightfully introduced changes and additives, notwithstanding the competence of the court to impose such a duty upon him on the basis of Article 7:348, paragraph 4.

Article 7:350 Compensation for introduced improvements
- 1. At the end of the farm lease agreement the lessor must pay a reasonable compensation to the lessee for the changes and additives introduced rightfully by the lessee as far as they have been an improvement for the leased property.
- 2. This compensation cannot exceed the amount with which the value of the leased property at the end of the farm lease agreement has increased as a result of the introduced improvements. The compensation is lessened in proportion to the degree that the lessee has been able to enjoy the fruits (benefits) of the introduced improvements himself.
- 3. The lessee may only claim this compensation if he has notified the lessor in writing of the planned improvement, which notification also mentions the estimated costs involved, and either the lessor has not made an objection against it within a month after receiving this written notification, or the court has authorized the lessee to introduce the planned improvement on a legal claim filed to this end by the lessee.
- 4. Article 7:348, paragraph 2 and 4, first sentence, applies accordingly to the legal claim of the lessee to get an authorisation as meant in the previous paragraph.
- 5. The legal claim of the lessee to obtain a compensation for introduced improvements cannot be filed later than three months after the end of the farm lease agreement.
- 6. The legal claim of the lessee to obtain a compensation for introduced improvements cannot be based on Article 6:212 of the Civil Code.

Article 7:351 Minor repairs
The lessee must, at his own expense, repair minor defects, unless it has become necessary to make these repairs because the lessor has failed to comply with his duty to remedy defects for which he is responsible (liable)

Article 7:352 Presumption of proof with regard to the liability of the lessee
- 1. The lessee is responsible (liable) for the damage caused to the leased property by a failure to comply with an obligation imposed on him by the farm lease agreement as far as this failure is attributable to him.
- 2. All damage is presumed to have been caused by an attributable failure as referred to in the paragraph 1, except for damage caused by fire.
- 3. Without prejudice to Article 7:358, paragraph 2, the lessee is presumed to have received the leased property in good condition.

Article 7:353 Liability of the lessee for behaviour of third persons
In the same way as the lessee is responsibly (liable) towards the lessor for his own behaviour, he is responsible (liable) towards him for the behaviour of those who under his approval use the leased property or find themselves on (in) it.

Article 7:354 Urgent work and necessary improvements initiated by the lessor
- 1. If it is necessary that during the lease period urgent works to the leased property are carried out or if the lessor must tolerate that during the lease period others use his property pursuant to Article 5:56 of the Civil Code to carry out such works on behalf of the adjoining premises, then the lessee must give opportunity to perform these works, without prejudice to his right to claim a reduction of the rent, to rescind the farm lease agreement and to claim a compensation for damages [always if this would be possible on these grounds according to the requirements set to this end by law].
- 2. The lessor is not entitled to introduce improvements on or to the leased property without the written consent of lessee.
- 3. If the lessee does not give his consent, then the lessor may request the Agricultural Lease Authority to authorise him to introduce the improvements himself.
- 4. The Agricultural Lease Authority may only grant its authorisation if the improvements are necessary for an efficient use of the leased property and the lessee cannot bring forward compelling objections against these improvements.
- 5. The Agricultural Lease Authority may subject its authorisation to certain conditions or duties. Upon the request of the lessee or lessor, it may also reconsider the farm rent if the improvements give rise that.

Article 7:355 Sublease of the leased farm or land
The lessee is not entitled to enter into a farm lease agreement with a sublessee, unless with written consent of the lessor.

Article 7:356 Duty to inform the lessor of defects
If the lessee has discovered defects in the leased property or if third persons disturb him in his enjoyment of the leased property or if they claim to have rights in the leased property themselves, then the lessee must notify the lessor immediately thereof, and failing in doing so, he has to compensate the damage that the lessor suffers due to this negligence.

Article 7:357 Duty to allow potential lessees or buyers to make a visit
When the lessor wants to lease out the leased property after the current farm lease agreement has ended or when he wants to sell the leased property to someone else, then the lessee has to tolerate that the usual signs and posters are placed on or attached to the leased property and he has to give opportunity to potential lessees or buyers to visit the property and to look around.

Article 7:358 Duty to return the leased property at the end of the lease
- 1. At the end of the farm lease the lessor is obliged to place the leased property in good condition at the disposal of the lessor.
- 2. When the lessee and lessor have made a description of the condition of the leased buildings, the lessee has to return these buildings in the same condition as in which they were accepted according to the description, with exception of rightfully added changes and additives and of what was destroyed or damaged by aging or normal use.

Article 7:359 No eviction in good time and compensatory farm rent
Where the lessee unlawfully keeps hold of the leased property after the farm lease agreement has ended, the lessor may, over the period that he misses the leased property, claim damages equal to the farm rent, without prejudice to his right to claim a higher compensation if this rent is not sufficient to cover all the damage suffered.

Article 7:360 Obligations of the leaving and upcoming lessees when taking over the leased property
- 1. The leaving and upcoming lessees are obliged to help each other as far as this is necessary to evict and take over the leased property easily, not only with regard to the use of the property for the coming year, but also with regard to harvesting the crops and fruits on the field and moving into the buildings and otherwise.
- 2. The lessee who is negligent in complying with the obligation referred to in the previous paragraph, is towards both, the other lessee and the lessor, liable for damages.

Section 7.5.8 Passage of the farm lease agreement when the leased property is transferred

Article 7:361 Passage of the farm lease agreement at a transfer of the leased property
- 1. A transfer by the lessor of the property to which the farm lease agreement is related or the establishment or transfer by the lessor of an independent usufruct, long leasehold or right of superficies on the property to which the farm lease agreement is related, makes that the rights and obligations of the lessor derived from the farm lease agreement, that will become due and demandable as of this moment, pass to the acquiring party.
- 2. A transfer of the leased property by a creditor of the lessor is equated with a transfer by the lessor himself.
- 3. The acquiring party is only bound by those contractual provisions of the farm lease agreement that directly relate to the use of the leased property as granted by the lessor in exchange of a counter performance to be performed by the lessee.

Article 7:362 Farm lease agreement has priority over a later established limited property rights
In case of the establishment or transfer of a limited real property right on the leased property that is not covered by Article 7:361, paragraph 1, the limited proprietor is towards the lessee obliged to refrain from exercising his right as far as this would lead to an interference with the use that the lessee may make of the encumbered property [this applies also to a later vested mortgage on the leased property].

Section 7.5.9 Subrogation (substitution) of the contractual position under a farm lease agreement

Article 7:363 Subrogation (substitution) of the lessee
- 1. The lessee may claim in court to become authorised to replace himself with his spouse or registered partner, one or more of his blood relatives and in-laws in the direct line, one or more of his foster children or one or more of the co-lessees, who in that event as of then will continue his contractual position under the existing farm lease agreement as lessee.
- 2. If the lessee has filed a legal claim as meant in the previous paragraph, then the lessor is entitled to appeal to the same court with a legal claim to become authorized to replace the lessee with one or more other persons than those mentioned in the previous paragraph.
- 3. The court decides in fairness, taking into account the remaining provisions of the present Article.
- 4. The court rejects the legal claim if it would not have given its approval to the farm lease agreement on the basis of the provisions in Article 7:319, paragraph 1, under point (d) and (e), first sentence, taking into account the provisions of Article 7:319, paragraphs 2 and 5.
- 5. The court rejects the legal claim if the proposed new lessee does not offer sufficient guarantees for a proper conduct of business
- 6. If the court should have rejected the legal claim because it would not have given its approval to the farm lease agreement on the basis of the provisions of Article 7:319, paragraph 1, under point (d) and (e), first sentence, then it may modify the agreement on the point or the points that in connection with the provisions of Article 7:319, paragraph 1 would have made an approval impossible. The provisions of Article 7:320, paragraph 2, apply accordingly.
- 7. When awarding the legal claim, the court may make its judgment dependant on the fulfilment of such conditions as it regards necessary in the best interests of the lessor.
- 8. If the farm lease agreement has been modified by virtue of paragraph 6 against the will of the proposed new lessee, then the proposed new lessee may withdraw from the replacement through a notification by registered letter addressed to the lessor, provided this letter is received within one month after the court has given its judgment. In that case the lessee cannot appeal to a higher court against the court's judgment.

Article 7:364 Appointment by the court of one or more related persons as co-lessee
- 1. The lessee may claim in court the appointment of his spouse or registered partner, one or more of his blood relatives and in-laws in the direct line, one or more of his foster children - or two or more of these persons jointly - as co-lessee.
- 2. The provisions of Article 7:363, paragraph 3 up to and including 8, shall apply accordingly, on the understanding that for this purpose the words "proposed new lessee" are to be read as "proposed new co-lessee".

Article 7:365 Co-lessee who is released or dismissed from the farm lease agreement
- 1. A co-lessee who is not or no longer personally involved in the conduct of the farm business which is run on the leased property, may claim in court to get released from the farm lease agreement. The court decides in fairness, on the understanding that it will award the legal claim, unless the interests of the lessor or of other co-lessees will be seriously harmed as a result of the release.
- 2. The lessor may claim in court to dismiss a co-lessee from the farm lease agreement on the ground that co-lessee is not or no longer personally involved in the conduct of the farm business which is run on the leased property. The second sentence of paragraph 1 applies accordingly.
- 3. A co-lessee may claim in court to dismiss another co-lessee from the farm lease agreement on the ground that their mutual relationship makes a joint conduct of the farm business on the leased property extremely difficult.

Section 7.5.10 End of a farm lease agreement


Article 7:366 Legal effects of the death of one of the parties
- 1. The death of the lessee or of the lessor does not end the farm lease agreement.
- 2. When the heirs of the lessee are not entitled to grant a right of use of the leased property to a third person, then the lease agreement may be terminated by them during six months after the death of the lessee by means of a bailiff's notification or a registered letter.
- 3. If the deceased lessee leaves behind two or more heirs, then the lessor is obliged to cooperate in the apportioning by the joint heirs of the rights and obligations derived from the farm lease agreement to one or more of the heirs, unless the lessor has reasonable objections against one or more of the selected heirs.

Article 7:367 Termination and term of notice
- 1. A farm lease agreement may be terminated by each of the parties by means of a notice of termination taking effect at a termination date at the end of every lease period meant in Article 7:325.
- 2. The notice of termination effectuating the termination must be a bailiff's notification or a registered letter. The term of notice is at least one year.
- 3. No termination is required if the farm lease agreement is ended with mutual consent of the parties at a moment on which the farm lease agreement already had been entered into with binding effect for both parties.

Article 7:368 Mentioning the grounds for termination
A termination by the lessor is null and void if the notice of termination does not mention the grounds which have lead to the termination.

Article 7:369 Lessor may claim in court to end the farm lease agreement
- 1. If the lessee notifies the lessor, within six weeks after the termination date, by means of a bailiff's notification or registered letter that he opposes against the termination, mentioning in the same document the grounds on which his objections are based, then the terminated farm lease agreement will remain in force by operation of law, until the court has given a final and binding judgment on a legal claim of the lessor as meant in paragraph 2. However, if the defence of the lessee appears to be unfounded, the court may give a judgment which is enforceable immediately.
- 2. If the lessee has opposed in time against the termination in accordance with the requirements of paragraph 1, then the lessor may claim in court, on the grounds mentioned in his notice of termination, that the court sets the date on which the farm lease agreement shall end.

Article 7:370 Grounds for termination are to be mentioned
- 1. The court may only award a legal claim of the lessor as meant in the previous Article on the ground that:
a. the conduct of business of the lessee has not been in accordance with that of a good lessee or that the lessee has seriously failed to comply with his obligations in another way;
b. the lessor has made plausible that he, his spouse, his registered partner, a blood relative in the direct line, an in-law in the direct line or a foster child wants to take permanent use of the leased property personally and the lessor is therefore in urgent need of the leased farm house or land himself;
c. a reasonable appreciation of the lessor's interests in ending the lease agreement and the lessee's interests in continuing the lease agreement is in favour of the lessor;
d. the lessee has not accepted a reasonable offer to enter into a new farm lease agreement, as far as this offer does not imply a change of the farm rent, or;
e. the grounds for a complete rescission of the farm lease agreement under Article 7:377 are met.
- 2. By permanent use in the sense of paragraph 1, under point (b), is not understood the alienation (conveyance) of the leased property.

Article 7:371 Respite period to accept the offer of the lessor
- 1. In the event, meant in Article 7:370, paragraph 1, under point (d), the court may permit the lessee a period of at the most one month during which he still can accept the offer to enter into a new agreement.
- 2. If the offer is related to a new agreement for a shorter period than the period meant in Article 7:325, paragraph 1, then the court may only regard the offer as reasonable if the special circumstances of the case justify so and the common interests of the agricultural sector are not harmed. Article 7:325, paragraph 4, second and third sentence, applies accordingly. If the lessee accepts the offer, then Article 7:325, paragraph 6 and 7, applies accordingly to the agreement that has been brought about because of that acceptance.

Article 7:372 Eviction of the premises and moving expenses and settling-in costs
- 1. Where the court awards the legal claim of the lessor to end the farm lease agreement, it will determine the moment on which the leased property has to be evicted by the lessee. Such a court order is considered to be a judgment to evict the leased property on this moment.
- 2. If one or more farm buildings form a part of the leased property, then the court may, in its decision to award the legal claim of the lessor to end the farm lease agreement, assess an amount which the lessor has to pay to the lessee as compensation for moving expenses and settling-in costs which the lessee has to make. Article 7:297, paragraph 2 and 3, shall apply accordingly.

Article 7:373 Liability of the lessor when the ground for termination in reality never existed
- 1. If the farm lease agreement has been terminated on one of the grounds meant in Article 7:370, paragraph 1, under point (b or (e), and the lessee has agreed on this basis with the ending of the farm lease or the legal claim of the lessor to end the farm lease agreement has been awarded on one of these grounds by the court, then the lessor is liable for damages towards the lessee if it appears that the proposed person in reality never wanted to take permanent use of the leased property personally or if the intention to use the leased property in the meaning of Article 7:377 never existed.
- 2. Subject to counter-evidence, the proposed person meant in Article 7:370, paragraph 1, under point (b), is regarded never to have wanted to take permanent use of the property personally if he does not permanently uses this property himself within one year after the lease agreement was ended. Subject to counter-evidence, the intention to use the leased property in the meaning of Article 7:377 as meant in Article 7:370, paragraph 1, under point (e), is regarded never to have existed if this use has not been given to the property within one year after the lease agreement was ended.
- 3. If the court awards the legal claim of the lessor to end the lease agreement as meant in Article 7:372, it may, upon the request of the lessee or of its own motion, set an amount which the lessor has to pay to the lessee if it becomes apparent that the proposed person meant in Article 7:370, paragraph 1, under point (b), never wanted to take permanent use of the leased property personally or if the intention to use the leased property in the meaning of Article 7:377 never existed, notwithstanding the right of the lessee to claim further damages.
- 4. The right of action of the lessee to claim damages or the payment of the amount referred to in paragraph 3 becomes prescribed five years after the farm lease agreement has ended.

Article 7:374 End of the farm lease agreement for just a part of the leased property
The court may, either upon the request of one of the parties or of its own motion, award the legal claim of the lessor to end the farm lease agreement just for a part of the leased property if fairness gives reason to decide so. In that case the court will decrease the applying counter performance in proportion. The lessee is in that event entitled to end the remaining part of the farm lease agreement as of the moment on which the other part shall end according to the court's judgement. If the lessee makes use of this right, then he must notify the lessor thereof by registered letter within one month after the judgment has become final and binding.

Article 7:375 (repealed)

Article 7:376 Rescission of the farm lease agreement based on a failure in the performance by the lessee
- 1. Where the lessor claims that the lessee has failed to comply with his obligations, only the court may rescind the farm lease agreement on that ground, except in the situation referred to in Article 7:343, paragraph 1. At all times the lessee shall be regarded to have failed to comply with his obligations, if he:
a. no longer uses the leased property in the course of a farm business, or;
b. he does not fulfil his management duties, laid down in the farm lease agreement, necessary for the preservation of the ecological value of the leased property or if he has harmed these ecological values otherwise.
- 2. If the lessee is in default of performing his obligations, then the court may grant him, upon his request, a fairly short term to comply with his obligations after all.
- 3. When the lessor requests so, the court may, before it gives its judgment on the legal claim to rescind the farm lease agreement, order an investigation as to how the lessee has complied with his obligation to maintain the leased property and, if this investigation gives rise to it, give directions to the lessee as to what he must do to fulfil this obligation, this in a way as the court regards appropriate in the circumstances; the court may set a period at the end of which its directions must have been followed by the lessee.
- 4. If the lessee is negligent in following the court's directions within the period set for this purpose, then this shall be regarded as a failure to comply with his obligation as meant in paragraph 1, unless the lessee makes plausible that his negligence cannot be attributed to him.

Article 7:377 Plan to use the leased property for non-agricultural purposes
- 1. If the lessor wants to use the leased property or a part thereof for non-agricultural purposes and this use is in conformity with the public interest, then the court will, upon a legal claim of the lessor, rescind the farm lease agreement completely or partially, as of a date to be set in its judgment. The intended use is considered to be in conformity with the public interest if it is in accordance with an irrevocable land use plan.
- 2. When the farm lease agreement is rescinded partially, the court will reduce the counter performance in proportion. The lessee is in that event entitled to end the remaining part of the farm lease agreement as of the moment meant in the previous paragraph. If the lessee makes use of this right, then he must notify the lessor thereof by registered letter within one month after the judgment has become final and binding.
- 3. If the court rescinds the farm lease agreement pursuant to paragraph 1 or 2, it will order the lessor to indemnify the lessee with regard to the period that the lessee could have stayed on the leased property if the farm lease agreement would not have been rescinded.
- 4. If the farm lease agreement has been concluded for a lease period meant in Article 7:325, paragraph 1 or 2, or if it is in force for such a period or if it has been concluded for a shorter lease period, yet afterwards this period has been extended with six years, then the possibility that the farm lease agreement would be extended, has to be taken into account in determining the indemnification. At the assessment of the possibility that the farm lease agreement may have been extended, the court does not take into account the intention of the lessor to use the leased property or a part thereof for non-agricultural purposes.
- 5. The provisions of paragraph 4, first sentence, do not apply if the farm lease relationship has started on a moment on which the leased property already was indented to be used for non-agricultural purposes under a land use plan. In that event, for the purpose of determining the indemnification, a farm lease agreement related to a farm house, concluded for a longer period than twelve years, is considered to be concluded for twelve years, whereas a farm lease agreement related to unbuilt land, concluded for a longer period than six years, is considered to be concluded for six years, on the understanding that when the farm lease agreement is rescinded after this period, it is regarded to have been extended each time for six years.
- 6. Nevertheless, paragraph 2 will remain applicable if the leased property, prior to the decision which established the land use plan meant in paragraph 5, has been successively in use for agricultural purposes by persons who are related to each other as referred to in Article 7:363, paragraph 1.
- 7. If the farm lease agreement is in force by virtue of Article 7:322 for an indefinite term, then, for the purpose of determining the indemnification, only the agreed lease period is taken into account, yet in the event that the agreement has been concluded for an indefinite term, the lease period that has to be taken into account will never be longer than the duration meant in Article 7:325, paragraph 1. For the purpose of determining the indemnification, it is assumed, in the same way as with respect to farm lease agreements that do not fall under the scope of Article 7:322, that the farm lease agreement could have been extended; paragraph 4, second sentence, and paragraph 5 and 6, apply accordingly.
- 8. For the purpose of determining the indemnity, no attention will be paid to actual changes that obviously have been introduced to raise the indemnity.
- 9. Article 7:373 applies accordingly.

Section 7.5.11 The pre-emptive right of the lessee

Article 7:378 Requirements for the existence of a pre-emptive right
- 1. When the farm lease agreement, as approved by the Agricultural Lease Authority, has been concluded for a lease period of at least the statutory duration or for a shorter lease period which afterwards has been extended with at least six years, and the lessor wants to alienate (convey) the leased property or a part thereof, then he is obliged to give the lessee, prior to all others, the opportunity to acquire the right which he intends to alienate (convey), this in accordance with the provisions of the present Section (Section 7.5.11). Alienation (passage) includes the transfer of the right of ownership and the establishment or transfer of a long leasehold, a right of superficies or a usufruct.
- 2. The lessor notifies the lessee by bailiff's notification or registered letter of his intention to alienate (convey) the leased property or a part thereof and of the asking price.
- 3. Within one month after the lessor's notification, the lessee notifies the lessor by bailiff's notification or registered letter whether he is willing to become the owner, long leaseholder, superficiary or usufructuary, provided that they reach an understanding on the price.
- 4. If the lessee has not made clear before the end of the period meant in the previous paragraph that he is willing to acquire the right that is to be alienated (conveyed), then Article 7:378, paragraph 1, shall not apply during one year after the end of the period meant in the previous paragraph.
- 5. During this year the lessor is allowed to alienate (convey) his right to a third person, but not for a lower price than the price he has mentioned to the lessee in his notification pursuant to Article 7:378, paragraph 2, unless it concerns a sale by foreclosure (public sale under execution).

Article 7:379 Request to price (appreciate) the market value of the right to be alienated
- 1. When the lessor and lessee cannot come to an understanding on the price, the lessor may request the Agricultural Lease Authority to price (appreciate) the market value of the right in the leased property that is to be alienated (conveyed).
- 2. If the lessor, after the Agricultural Lease Authority has decided irrevocably on his request, is prepared to alienate (convey) the involved right to the lessee for its appreciated market value or for a lower price, then he shall notify the lessee of this by bailiff's notification or registered letter.
- 3. When the lessor has made an offer as meant in paragraph 2 and the lessee has not accepted this offer by bailiff's notification or registered letter within one month after the lessor's notification was served on or sent to him, then Article 7:378, paragraph 1, shall not apply during one year after the end of the before mentioned period of one month. In that event, Article 7:378, paragraph 5, shall apply accordingly, on the understanding that the lessor cannot alienate (convey) the involved right to a third person for a lower price than the price meant in the previous paragraph.
- 4. If the lessor has not made a notification as meant in paragraph 2 within one year after the decision of the Agricultural Lease Authority on the market value has become irrevocable, then the provisions of Article 7:378 and next shall apply again.

Article 7:380 Situations in which no pre-emptive right exists
- 1. The obligation imposed on the lessor under Article 7:378 paragraph 1 ('pre-emptive right') does not exist:
a. in case of a sale under a statutory provision or under a court order and in case of a sale by foreclosure (sale under execution) of the leased property or of the right therein;
b. when the lessor proceeds to alienate (convey) a right in the leased property to his spouse or registered partner, to a blood relative or in-law in the direct line or in the direct or side line up to the second degree or to a foster child;
c. in case of a juridical act which is to be treated as an apportionment of a community of property;
d. in case that the court, upon a legal claim of the lessor, has decided that the lessor has a profound reason to deprive the lessee of the opportunity to become the owner, long leaseholder, superficiary or usufructuary of the leased property or of a part thereof.
e. in case that the right in the leased property is alienated (conveyed) to a third person who towards the lessee, in advance and in writing, has waived his right to terminate the farm lease agreement on the basis of Article 7:370, paragraph 1, under point (b).
- 2. The obligation imposed on the lessor under Article 7:378, paragraph 1 ('pre-emptive right') neither exists when the Agricultural Lease Authority has decided, upon the request of the lessor, that the lessor has a profound reason to deprive the lessee of the opportunity to become the owner or limited proprietor of the leased property or of a part thereof. The fact that the agricultural use of the leased property by the lessee has been poorly, shall at all times be regarded as a profound reason.

Article 7:381 A pre-emptive right excluded by administrative and public law
- 1. Furthermore, the obligation imposed on the lessor under Article 7:378, paragraph 1 ('pre-emptive right'), does not exist when and as far as the leased property is located in an area indicated under a valid land use plan, according to which the leased property is intended to be used for other than agricultural purposes. Upon the request of the lessor, the Municipal Executive Board ('Mayor and Alderman') shall state in writing whether the leased property has been given another use under such a land use plan than for agricultural purposes.
- 2. The obligation imposed on the lessor under Article 7:378, paragraph 1 ('pre-emptive right'), neither exists when the lessor alienates (conveys) the involved right to a third person and the Agricultural Lease Authority has decided, upon a joint request of the lessor and this third person, that it is plausible that this third person will use the leased property for other than agricultural purposes or that he will allow others to make such another use of the leased property.
- 3. The obligation imposed on the lessor under Article 7:378, paragraph 1 ('pre-emptive right'), neither exists as far as the leased property is located in an area for which a structure vision has been established as meant in Article 2.1 of the Spatial Planning Act and the lessor alienates (conveys) a right in the leased property to the Municipality, Province or State pursuant to the provisions of Article 2 of the Act on Pre-emptive Rights for Municipalities in conjunction with Article 4, first paragraph, under point (a), 10 up to and including 24 and 27, of that Act or pursuant to Article 9a, first or second paragraphs, of the Act on Pre-emptive Rights for Municipalities, in conjunction with Article 4, first paragraph under point (a), of that Act.

Article 7:382 Notification of a public sale of the leased property other than by foreclosure
At least one month before the lessor will proceed to a public sale of a right in the leased property, he must notify the lessor thereof by bailiff's notification or registered letter, unless it concerns a sale by foreclosure (sale under execution).

Article 7:383 Consequences of a violation of the pre-emptive right of the lessee
When the lessor has alienated (conveyed) a right in the leased property in violation of Article 7:378, paragraph 1 (in violation of the 'pre-emptive right' of the lessee), 7:378, paragraph 5, or 7:379, paragraph 3, then the acquiring party who obtained that right under particular title cannot terminate the farm lease agreement on the ground mentioned in Article 7:370, paragraph 1, under point (b), unless twelve years have passed since the end of the farm lease year in which the acquiring party has obtained that right from the previous lessor.

Article 7:384 If the lessee alienates the acquired right within ten years he must pay a compensation to the lessor
- 1. The lessee who has used his pre-emptive right and who, as a result, has acquired a right in the leased property from the lessor, must pay a compensation as meant in the present Article to the lessor, when he alienates this right, in full or in part, to a third person within ten years after the moment on which he had acquired this right himself.
- 2. The compensation amounts up to the difference between the price which the lessee has paid himself for the right and the value of this right when it would be appreciated free from any farm lease agreement at the moment on which the lessee had acquired it from the lessor.
- 3. Paragraph 2 does not apply when the value of the right, when it would be appreciated free from any farm lease agreement at the moment on which the lessee has alienated it to a third party, is less than the value of that right when it would be appreciated free from any farm lease agreement at the moment on which the lessee had acquired it from the lessor. In that event the compensation amounts up to the difference between the price which the lessee has paid himself for the right and the value of this right when it would be appreciated free from any farm lease agreement at the moment on which the lessee has alienated it to the third person.
- 4. The compensation referred to in paragraph 2 and 3 will decrease each time with one tenth for each year that has passed, to be calculated as of the moment that the lessee has received the right in the leased property; when a part of the right has been alienated by the lessee to a third person, the compensation will decrease under the same conditions, but now in proportion to the part that is alienated.
- 5. The provisions of paragraph 1 do not apply:
a. if the lessee has alienated his right in the leased property to his spouse or registered partner, to one or more of his blood relatives or in-laws in the direct line, to one or more of his foster children or to one or more of his co-lessees, on the understanding that when these last persons will entirely or partially alienate the acquired right within the period referred to in paragraph 1, they will have to pay the compensation meant in that paragraph to the lessor from whom the lessee acquired the right;
b. if the right in the leased property is alienated by one or more blood relatives or in-laws in the direct line of the lessee or by one or more of his foster children to one or more of their blood relatives in the direct line or to one or more of their foster children, on the understanding that when these last persons will entirely or partially alienate the acquired right within the period referred to in paragraph 1, they will have to pay the compensation meant in that paragraph to the lessor from whom the lessee acquired the right;
- 6. For the purpose of the present Article, by an alienation is understood as well: each agreement or other juridical act, regardless in which form and under which name or title it is concluded or performed, intending to alienate the acquired right in the leased property in any other way, if it must be assumed that this agreement or juridical act would not have been concluded or performed if the compensation meant in paragraph 1 would not have been chargeable.

Section 7.5.12 Specific farm lease agreements

Subsection 7.5.12.1 Public authorities leasing out a farm house or unbuilt land

Article 7:385 Approval of the Agricultural Lease Authority of derogating contractual provisions in the farm lease agreement
If the State, a Province, a Municipality, a public body with legal personality as meant in the Act on Common Regulations, a Water Authority, a Peat Board or a Peat Polder has decided that a farm house or unbuilt land, belonging to its property, is to be used for public purposes of non-agricultural nature, but it nevertheless wants to lease out that farm house or unbuilt land for a specific time, then it may request the Agricultural Lease Authority to approve one or more of the following contractual provisions in the farm lease agreement:
a. that the farm lease agreement, contrary to the provisions of Article 7:325, paragraph 1, will be in force only for the agreed lease period;
b. that the farm lease agreement will not be extended if and insofar the lessor has terminated it by bailiff's notification or registered letter on the ground that an extension is incompatible with the intended public use of the leased property, provided that the notice of termination is given at least six months before the expiry of the relevant lease period;
c. that the lessee will not be entitled to request the Agricultural Lease Authority its authorisation to change the agreed use, the functional arrangement or the appearance (shape) of the leased property;
d. that the agreement may be terminated at any time by the lessor, if and insofar the lessor thinks this is necessary in relation with the intended public use of the leased property.

Article 7:386 Limited possibilities for the Agricultural Lease Authority to examine the derogating contractual provisions of the farm lease agreement
The Agricultural Lease Authority may only examine if the intended public use makes the derogating contractual provision necessary. It is not allowed to examine the public use itself.

Article 7:387 The right of the lessee to an indemnity when the farm lease agreement is ended
- 1. When the farm lease agreement is not extended due to a contractual provision as meant in Article 7:385, under point (b), the lessee is not entitled to any indemnity.
- 2. When the farm lease agreement is ended due to a contractual provision as meant in Article 7:385, under point (d), the lessee is entitled to an indemnity with regard to the period that he could have stayed on the leased property under the existing farm lease agreement if it would not have been ended by the lessor.
- 3. Where the farm lease agreement has been ended partially due to a contractual provision as meant in Article 7:385, under point (d), the lessee is also entitled to end the remaining part of the agreement. If the lessee makes use of this right, he must notify the lessor thereof by registered letter within one month after the moment on which the farm lease agreement is partially ended by the lessor as meant in Article 7:385, under point (d).

Subsection 7.5.12.2 Leasing out property within a land reserve

Article 7:388 Definition of 'land reserve'
In the present Subsection (Subsection 7.5.12.2) by a 'land reserve' is understood an area of land that includes farmland falling under a right of ownership or a long leasehold of the State, a public legal person or a private institution for the protection of nature as appointed by Royal Decree, which farmland can be managed with the objective to preserve the nature and landscape, but not by means of concluding agreements under which the farmers have to conduct their business with the objective to preserve the nature and landscape.

Article 7:389 Special obligations for the lessee in the farm lease agreement
- 1. A farm lease agreement related to a farm house or unbuilt land situated in a land reserve, my include one or more obligations which intend to set out a composition and conduct of business that are contributable to the preservation of nature and landscape.
- 2. An obligation will not be regarded as excessive in the sense of Article 7:319, paragraph 1, under point (b):
a. if it forms a part of a farm lease agreement which is concluded with regard to land plots, situated in a land reserve, falling under a right of ownership or a long leasehold of the State or of a private institution for the protection of nature as pointed out by Royal Decree;
b. if it is necessary for the preservation or development of the values of nature and landscape, present on the land, and;
c. if the lessee has obtained a compensation for the obligation he has to fulfil.

Article 7:390 Lease period of six years
If Article 7:389 has been applied, then the farm lease agreement will have, contrary to the provisions of Article 7:325, a lease period of six years, regardless if it concerns a farm house or unbuilt land.

Article 7:391 The lease period is extended each time with six years; extra ground for termination
- 1. If Article 7:389 has been applied, then the farm lease agreement will each time, contrary to Article 7:325, be extended with six years.
- 2. A legal claim referred to in Article 7:370, may not only be awarded by the court on the grounds for termination mentioned in that Article, but also on the ground that the lessor wants to conduct such a management with regard to the preservation and development of the land's values of nature and landscape that a leasing out of the land is no longer in agreement with the intended use of the land. When considering each of these grounds, the court shall observe fairness in connection with the particular nature of the farm lease agreement.

Article 7:392 Revision of the contractual provisions of the farm lease agreement by the Agricultural Lease Authority
The Agricultural Lease Authority will revise the contractual provisions of the farm lease agreement meant in Article 7:326, if this is necessary for the preservation or development of the values of nature and landscape, present on the land.

Article 7:393 Additional compensation for the lessee
- 1. The compensation which has been stipulated pursuant to Article 7:389, paragraph 2, under point (c), is not regarded as a part of the counter performance for the use of the farm.
- 2. This compensation cannot exceed the counter performance that is laid down in the farm lease agreement which has been approved by the Agricultural Lease Authority.
- 3. Additional rules with respect to the maximum allowable compensation shall be issued by Order in Council.

Article 7:394 Revision of the compensation by the Agricultural Lease Authority
- 1. The lessee or lessor may request the Agricultural Lease Authority to revise the compensation meant in Article 7:389, paragraph 2, under point (c):
a. prior to the expiry of a lease period of three years;
b. within a period of one year after the moment on which an amendment of the rules issued under in Article 7:393, paragraph 3, has entered into force.
- 2. The Agricultural Lease Authority revises the compensation if this is required by reasonableness and fairness or justified because of changed circumstances.
- 3. If a request has been made under paragraph 1, under point (a), the revision of the compensation by the Agricultural Lease Authority shall become effective as of the first day of the new three-year lease period.
- 4. If a request has been made under paragraph 1, under point (b), the revision of the compensation by the Agricultural Lease Authority shall become effective as of the first day of the farm lease year following the moment on which the amendment of the rules issued under Article 7:393, paragraph 3, has entered into force.
- 5. Where the rules issued under Article 7:393, paragraph 3, are amended after the day on which the Agricultural Lease Authority has given its decision, the Central Agricultural Lease Authority shall, upon the request of one of the parties, give a decision with due observance of these amended rules.

Subsection 7.5.12.3 Farm lease agreements related to small areas of land

Article 7:395 Unbuilt land smaller than one hectare (1 hectare = 10,000 square metres or 107,637 square feet)
- 1. Articles 7:313, paragraph 2, 7:317 up to an including 7:329, 7:332, 7:333, 7:348, paragraph 2 up to and including 4, 7:350, 7:363, 7:364 and 7:366 up to and including 7:384, do not apply to farm lease agreements related to unbuilt land not larger than one hectare.
- 2. The Agricultural Lease Authority may by decree, for a specific branch of land cultivation, either for its entire territory or for a part of it, reduce the size of the land area mentioned in the previous paragraph, yet not up to less than 50 are (5,000 m2). The decrees of the Agricultural Lease Authority are announced in the Dutch Government Gazette.
- 3. Such a decree needs the approval of the Ministry of Agriculture, Nature and Food Quality.
- 4. Agreements, regardless under which name or in which form they are entered into, that have as effect that one party grants to another party - including natural or legal persons who conduct a farm business under a joint interest - the use of unbuilt land for farming purposes in return for a counter performance, are regarded for the purpose of the present Article as one agreement. For the purpose of the present Article are regarded as well as one agreement those agreements of which, on the basis of facts and circumstances, must be assumed that they would not have been concluded for a different land area if the sizes for land area meant in the present Article would not have been set.

Subsection 7.5.12.4 Farm lease for crop growing and liberalised farm lease agreements

Article 7:396 Cultivations for one or two years
- 1. Articles 7:313, paragraph 2, 7: 318 up to and including 7:325, 7:327, 7:328, 7:332, 7:333, 7:363, 7:364, 7:366 up to and including 7:374 and 7:378 up to and including 7:384, do not apply to farm lease agreements related to unbuilt land:
a. where parties have stipulated so in the farm lease agreement;
b. which are concluded for the purpose of one or two-year cultivations for a lease period of at the most one or two years, respectively;
c. which are concluded for cultivations for which fruit rotation is necessary, and;
d. which meet the requirements of paragraph 2 and 3.
- 2. The farm lease agreement referred to in paragraph 1 is sent by one of the parties to the Agricultural Lease Authority for registration.
- 3. The farm lease agreement must be sent in for registration within two months after it has been concluded. It will be sent in with due observance of the formalities for requests for an approval of a farm lease agreement, regulated in the Implementation Act Agricultural Lease Authorities, and it will be addressed to the Agricultural Lease Authority that is competent to consider such requests. The secretary of the Agricultural Lease Authority notifies each party of the registration.
- 4. If the lessor does not give the lessee his authorisation to sublease the farm as referred to in Article 7:355, paragraph 1, then the lessee may request the Agricultural Lease Authority for its authorisation to sublease the farm. The Agricultural Lease Authority shall give its authorisation when the common agriculture interests are served by such a sublease and no reasonable interest of the lessor opposes against it. The Agricultural Lease Authority can subject its authorization to specific conditions and it may impose additional obligations on the lessee; upon the request of the lessor, it may also revise the counter performance in a way contrary to the rules meant in Article 7:327, paragraph 1, if the counter performance, as agreed under the farm lease agreements, gives rise to such a revision.

Article 7:397 Lease period related to unbuilt land for f six years or shorter or for longer than six years
- 1. The provisions of Articles 7:313. paragraph 2, 7:319, paragraph 1, under point (a), (c) and (d), 7:325, 7:327, 7:328, 7:332, 7:333, 7:363 up to and including 7:374, 7:378 up to and including 7:384, 7:399a and 7:399c, paragraph 1, do not apply to farm lease agreements related to unbuilt land:
a. where parties have stipulated so in the farm lease agreement, and;
b. which has been concluded for a lease period of six years or shorter.
- 2. The provisions of Articles 7:313, paragraph 2, 7:319, paragraph 1, under point (c) and (d), 7:325, 7:363 up to and including 7:374 and 7:378 up to and including 7:384, do not apply to farm lease agreements related to unbuilt land:
a. where parties have stipulated so in the farm lease agreement, and;
b. which has been concluded for a lease period longer than six years.
- 3. The Agricultural Lease Authority shall only exercise its right to modify the farm lease agreement as referred to Article 7:320 if the agreement, including the modifications, still can be qualified as a farm lease agreement as meant in the present Article.
- 4. It is possible to regulate by Order in Council that Articles 7:319, paragraph 1, under point (a,) 7:327, 7:328, 7:332, 7:333, 7:399a and 7:399c, paragraph 1, do apply to farm lease agreements as meant in paragraph 1. Such an Order in Council will not become effective earlier than eight weeks after the date on which the Dutch Government Gazette has been issued in which this regulation was published. Both Chambers (Upper and Lower House) of the States-General (Parliament) will be informed of this publication immediately.

Article 7:398 Legal effect on the farm lease agreement of the death of the lessee or lessor
- 1. A farm lease agreement as meant in Articles 7:396 and 7:397 does not end by operation of law upon the death of the lessor or the lessee.
- 2. After the death of the lessee the farm lease agreement will be continued by his spouse or registered partner, by one or more of his blood relatives or in-laws in the direct line, by one or more of his foster children or by one or more of the co-lessees or sublessees, unless the lessor is notified in writing after the death of the lessee that this right of continuation is abandoned (waived).
- 3. A notification as meant in paragraph 2 is made:
a. within one month after the death of the lessee, as far as it concerns a farm lease agreement as meant in Article 7:396;
b. within three months after the death of the lessee, as far as it concerns a farm lease agreement as meant in Article 7:397.

Section 7.5.13 Mandatory law in Title 7.5

Article 7:399 Mandatory law for the protection of the lessee
It is not possible to derogate to the disadvantage of the lessee from the provisions of Articles 7:311 up to and including 7:314, 7:317 up to and including 7:332, 7:335, 7:345, 7:347, 7:348, 7:350, 7:352, paragraph 3, 7:353, 7:354, paragraph 2 up to and including 5, 7:360 up to and including 7:383, 7:384, paragraph 2 and 3, 7:389, paragraph 2, 7:390 up to and including 7:394, 7:395, paragraph 4, 7:396, paragraph 2 up to and including 4, and 7:398.

Article 7:399a Financial charges levied by public authorities on the lessor
Null and void is each contractual provision in the farm lease agreement by virtue of which the financial charges, which are or will be levied on the lessor by public authorities, will be entirely or partially recharged to the lessee.

Article 7:399b Condition that the Agricultural Lease Agreement will not modify the farm lease agreement
If a farm lease agreement has been entered into under the condition that it will be approved unmodified or partly unmodified by the Agricultural Lease Authority, then this condition is regarded not to have been written.

Article 399c Other null and void contractual provisions
- 1. Null and void is a contractual provision in which the lessor has stipulated that, after the Agricultural Lease Authority or the Central Agricultural Lease Authority will have approved or determined the farm lease agreement or an agreement to change the farm lease agreement, a higher counter performance will be chargeable than allowed according to law. For the purpose of this paragraph a counter performance includes performances which are stipulated or obtained by virtue of another agreement in connection with the farm lease agreement.
- 2. Null and void is a contractual provision in an agreement between the leaving and upcoming lessee, related to the transition of the farm business, in which a higher remuneration has been stipulated than a reasonable fee for the to be carried out performance.
- 3. Null and void is a contractual provision in an agreement for the provision of intermediation services or other services with respect to the conclusion of a farm lease agreement or the conclusion of an agreement to change or end a farm lease agreement, if in this contractual provision a higher fee has been stipulated than a reasonable remuneration.

Section 7.5.14 Final provisions

Article 7:399d Real property rights vested on leased farm houses or unbuilt land
- 1. The statutory provisions for farm lease agreements apply accordingly to agreements due to which, in return for a counter performance which is to be performed at once or in instalments, real property rights, other than security rights, are established on a farm house or on unbuilt land for an indefinite term or for 25 years. Where it concerns real property rights for an indefinite term, the statutory provisions for farm lease agreements shall only apply accordingly during the first 25 years after the real property has been established.
- 2. The statutory provisions for real property rights of Book 3 and Book 5 of the Civil Code shall only apply to the extent that they are not in conflict with the statutory provisions for farm lease agreements of mandatory law as provided for in the present Title.

Article 7:399e Approval for the appointment of a farm manager
- 1. The appointment of a farm manager or the prolongation of his appointment needs the preceding approval of the Agricultural Lease Authority as far as his appointment relates to a farm business run on a leased farm or leased land within the meaning of the present Title (Title 7.5).
- 2. By a farm manager is understood the person who has been charged with the operational management of a farm house or of unbuilt land by the owner or proprietor of that property and who, because of his position, has a major influence on the leading management of the farm business and to whom in return a remuneration is paid.
- 3. The Agricultural Lease Authority shall only approve the appointment of a farm manager if this is justified for special reasons. It may not consider the conditions of the appointment.