Gentlemans agreement with local farmer causes inheritance issues
You would never suspect that letting your local farmer use your land for a bit of quid pro quo might cause your UK heirs issues with french inheritance law by putting your estate in a compromising position in future.
Gary had a few acres of agricultural land adjoining his property however as an ex engineer he did not see himself in the role of a farmer and was not particularly interested in maintaining the land. After mentioning to several local farmers at market that he had land available a farmer called Guy approached him asking if he would let him graze cattle on the meadow. In return Guy would generally maintain the land, mend fences etc. A win win situation and after a glass of wine and a handshake the matter progressed splendidly. After a few years, a paper was signed in order to formalize the fact that Guy was using the land for free. Our advice is of course never sign a document relating to your french property without first consulting with your french property lawyer.
Years later unfortunately Gary passed away and on settling his UK estate his sons had decided to sell their French property and as they were not fluent in the language they needed an English speaking French property Lawyer. They called Anglo French Law for advice on French property law as they were in receipt of various inexplicable demands for information and action from the notarial office. Demands that they did not understand or felt were disproportionality expensive and in their view unnecessary.
We were able to offer suggestions that would help mitigate any costs associated with succession/inheritance until the property had been sold. We also pointed out that they might not want to burden potential buyers with the agreement their father had made with Guy. An agreement that would likely narrow the market or even reduce the resale value of their french property. We wrote to Guy expressing the wish of the sons to cancel the agreement entered into with their father.
Predictably Guy ignored the request and continued to use the land as before. This led to a 18 month case after which the Cour de cassation ruled that because Gary had received payment in kind, by means of labor for maintenance and some produce from the land, it meant that the arrangement could be deemed a rural lease.
Although we were able to help Gary’s sons through the process of selling their french property from the UK, the process was longer and more expensive than anticipated and you can see that it is easy to fall foul of French property law even for something as simple as letting a friendly local use a spare field. As UK based French Lawyers, Anglo French Law is available to support and advise you on legal matters relating to French property law.
Rural lease (bail rural)
A rural lease is a contract by which one of the parties binds himself to have the other carry out farming activities on agricultural property during at least 9 years, and at a certain price which the latter commits to pay.
Although it is easier to evidence a rural lease with a written agreement, a verbal lease is valid and can be proven by any means.
The landlord cannot refuse the renewal of the lease unless:
– Two rents have not be paid,
– The upkeep of the land has not been maintained,
– The farmer has reached retirement age,
– The farmer has sublet the land,
– The landlord wishes to farm the land.
A landlord not renewing the lease must notify the farmer 18 months in advance and usually a Court order will be required to authorize the non-renewal.
The lease does not end upon the farmer’s death but is transferred to the surviving spouse or the children (if they are also farmers).
Finally, in case of sale of the land, the farmer benefits from a pre-emption right. Meaning that should the property come up for sale the farmer has the right of first refusal
The issue here is that the sale of the land would in this and many other cases materially affect the value and sale price of the house as such the siblings we stuck with the case or choice of maintaining and paying for a property
Preventing the application of a rural lease
Considering the terms and conditions of a rural lease, it is easy to understand why one would prefer to avoid such situation. It is still possible for a farmer to use your land but a few points should be considered.
Firstly, it is important to keep the use of the land free. As the recent Court case shows, even one payment can justify the application of the rural lease.
Secondly, a written agreement signed by the parties outlining the terms and conditions of use and the gratuity of the service is the most suitable evidence to thwart any claim that rural lease rules should be applied.
Again , it must be pointed out that it is always beneficial to seek independent legal advice to help you through the intricacies of an agreement with your local farmer and prevent potential future embarrassment & pitfalls.
