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FBTs
| Question | Answer |
|---|---|
| Tenancies granted after what date are FBTs? | 1st September 1995 |
| To be an FBT what Conditions but be satisfied? | The business condition and either the agricultural condition or notice condition |
| What were the objectives of the ATA 95? | Increasing letting of agricultural land Allow new entrants into agriculture Allow rented land to be more economical, flexible and responsive to market forces |
| What are the business conditions? | a) that all/part of the land in the tenancy is farmed for the purposes of a trade or business b) Thatsince the beginning of the tenancy, all or part of the land comprised has been farmed according to section (1) (2) of the ATA 95 |
| To make sure the business conditions are met, what should the tenancy agreement include? | contain a covenant for the tenant to farm all (or a substantial part of) the farm for trad or business - if there isn't such covenant, and use of the farm for trade/business lapses and then recommences the tenancy maybe be protected under the 54 act. |
| How is the agricultural condition met according section 1 (3) ATA95? | a) the terms of the tenancy b) use of the land c) the nature of commercial activity carried out on the land d) other relevant circumstances |
| What is the significance of the agricultural condition? | unlike the business condition which must be satisfied at all times, the agricultural condition only needs to satisfied at the beginning of the tenancy |
| If the land must remain in use for agricultural purposes only, what is important to include in the tenancy and what will this prevent? | A clause should be included in the agreement prohibiting any non-agricultural use therefore preventing any L&T 54 issues |
| What are the notice conditions? | That on/before the relevant day, the landlord and the tenant each gave the other written notice i)identifying the land comprises in the tenancy and ii) contains a statement that the person giving the notice intends the tenancy to remain an fbt. |
| What happens when the notice conditions are met? | Allowed to diversify the use of the holding without having regard to the agricultural condition . If the notice condition is satisfied then the tenancy will continue as an FBT even when Ag condition is not met |
| How must the notice conditions be satisfied? | 1. Parties to the agreement must exchange notices before the FBT begins 2. Notices must be writing 3. Notices must identify the land comprised within the tenancy, stating the the tenancy is and shall remain an FBT |
| What are the important difference between ATA and AHA? | 1. For an FBT tenant only has security of tenure for the agreed duration of the tenancy. No right to succession. 2. Landlord and tenant free to agree the majority of the terms of the tenancy themselves. |
| Which matter are regulated by the ATA 95? | rent reviews The period of notice that must be given to end certain types of FBTs The tenants right to compensation for improvements that he has made to the holding |
| What happened in the case of Brooke & ors v Purton and ors [2014]? | Solicitor who was tasked with drawing up a will, which was later found in correct, used a stock template from the firms library/computer server which she had amended without realising it was incorrect. |
| What are the main head of terms that should be considered? | 1. Duration of the letting 2. Break clauses 3. Assignment and subletting 4. Rent review and procedure 5. Repairing/insuring obligations 6. User covenants 7. Reservations to LL 8. Breach of covenant and forfeiture 9. Dispute resolution |
| Should it be a fixed term or periodic tenancy? | Fixed term, tenant more likely to invest in holding, sufficient time to benefit financially from the investment & gives degree of certainty to both parties. Could start tenancy with an initial term of 1 year followed by a number or rolling annual periods |
| Which section of the 95 act contains the only secure provisions for the tenant? | Sections 5-7 |
| What requirement does section 5-7 impose? | for tenancies of certain length must be given a particular length of notice to terminate the tenancy and must be served correctly in accordance with section 36 |
| What are the other methods a tenancy may be terminated? | surrender - the ATA does not prevent the termination of the tenancy by surrender - Section 5-7 govern the methods of termination and cannot be contracted out of. |
| Which case covered the surrender of an FBT ? | Greenwich London Borough Council V Mcgrady 1982 |
| How must an FBT be correctly surrender? | 1. All tenants must serve their written intention to surrender 2. Must be in the form of a deed 3. Tenant must give up the land 4. Landlord must take the land back. |
| How does a tenancy of less than tow years end? | Agreement will expire on the term date by effluxtion of time - tenant will become a trespasser after hat time. Technically LL or T dont need to do anything however in practise would communicate with tenant that it was a 24 month letting |
| Does the Eviction Act 1977 apply to an FBT | No - Does not apply to statutorily protected tenancies and according to para 29 Sch to the ATA95 farms business tenancies are a statutorily protected tenancy so s3 of the Eviction act does not apply |
| How is a tenancy of more than 2 years terminated? | Will not automatically come to end on its term date (section 5). LL or T must take positive action by serving written notice to the other party with their intention to terminate the tenancy - no prescribed for s 36 |
| When must the notice be served by to terminate a tenancy of more than two years? | At least 12 month before the term date - no prescribed form. Once served notice cannot be unserved |
| What happens when no notice is served? | The tenancy will continue on a periodic basis or they can re-let the holding to the tenant on a new fixed agreement. |
| How do you terminate a tenancy that is of a length other than a year? | give a full periods notice e.g. a month or a quarter or the frequency the rent is paid. |
| What can break clauses provide? | Break clauses and the right to assign or sublet can provide the means to end a tenancy prematurely |
| How may a break clause be conditional | either by time or an event |
| How might a break clause be exercise able by a tenant? | 1. The tenants death or incapacity 2. after a rent review |
| How might a landlord exercise a break clause? |
Created by:
Joph
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