How to give agricultural land on rent basis

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If a land lease agreement is not drafted carefully, it will not actually constitute a legally binding contract. There are several elements that must be included in a well-drafted land lease agreement to ensure its viability. Fortunately for first-time landlords, the process is not overly complex or loaded with legal jargon. If you approach lease drafting with the right information you can create a clear, effective, binding lease for your real estate property.
1
Provide a legal description of the property in the first paragraph of the lease agreement. While a street address or unit number often suffices for structural leases, a land lease agreement requires a more exhaustive legal description. You must cite the property's exact boundaries as given by coordinates on a land survey map or on the property's deed.
2
Use specific, consistent nomenclature when referring to parties involved in the lease. In other words, you want to consistently and specifically refer to the “tenant” and “landlord,” or use a business name or the landholder's name in place of the generic “landlord.” Avoid using vague pronouns like “us,” “them,” “he/she” or “you.” These words are not specific enough and will often weaken a lease agreement.
3
Establish the lease's duration clearly and concisely. If you do not specify how long the tenant will lease the land, then the lease agreement is invalid.
4
Add any necessary clauses concerning profit-sharing if you expect the tenant to give you a percentage of the land's profits. If the land is being leased for agricultural purposes, you may want to consider adding profit-sharing clauses. According to the University of California's Small Farm Program, leases that include profit-sharing can be beneficial if the land is fertile and the landlord and tenant both take proactive steps toward ensuring a high crop yield. However, keep in mind that profit-sharing agreements are usually coupled with a very low or nonexistent monthly rent, so if the crop fails, you will not receive rent from the tenant. Make sure any profit-sharing provisions are clearly worded, incorporating exact profit percentages and itemizing the tenant's responsibilities for cultivating and harvesting the land.
5
Detail each party's financial responsibilities for any potential construction or landscaping on the property. If your land lease agreement allows the landlord or tenant to build residential or commercial structures on the property, you must explain who will pay for these improvements. According to “California Real Estate Property Management,” you cannot force a tenant to pay for improvements unless the lease specifically indicates that the tenant is responsible for certain itemized property additions.
6
Itemize any included or excluded utilities. If specific water, electric or gas utilities are not itemized in the lease, whoever uses the utilities is legally responsible for those bills. In most cases the tenant uses the utilities, but it can be difficult to prove tenant usage if the property is shared by multiple occupants. This is why itemized utility costs are important in the land lease agreement.
7
Schedule a consultation session with a lawyer once you've drafted the lease agreement. This is the only way to know for sure that the lease is complete and legally binding. While it can be costly and time-consuming to have a lawyer draft a lease from scratch, a simple consultation using your pre-drafted lease document will usually take around 15 minutes.

Advocate Siddhant Sharma LawRato