Pacht may evoke a sense of medievalism and fief lords. However, a pact is still a current concept, which in many ways resembles a classic lease agreement. Nevertheless, it has its peculiarities, which we will look at in today’s article. In addition, we will also give you an insight into how a lease agreement works and what the specifics of a lease agreement for forest land are.
We will draft or review a forest land lease to ensure that it is appropriate to the specific management practices and interests of the owner or lessee.
Tenancy, tenant, tenant in common. Sounds a bit like a tongue-in-cheek origin from the Middle Ages, yet these terms belong to contemporary law. Pact has its roots in ancient Rome, but its basic essence remains the same today.
A lease is very similar to a tenancy, but with one major difference. A lease is created when the owner of a property, or the lessor, decides to let the property to the lessee for use and enjoyment in return for a rent. The word use is particularly important in this sentence, as it distinguishes a lease from a tenancy.
In a traditional lease, the landlord gives his tenant the property only for use – that is, the tenant can live there or perhaps run a business. On the other hand, in the case of a lease, the property can not only be used but also occupied – the lessee receives a product or financial gain from the property. A typical example is the lease of a field, where the lessee is then able to use the crops grown. Similarly, a restaurant or factory can also be leased, where the lessee also receives a financial profit from the operation of these facilities.
In order to constitute a lease, the products or money obtained from the property must be the first priority. This means that if you are renting a house with a garden with tomatoes growing in it, it cannot be a tenancy because the products in the form of tomatoes are secondary, the primary use of the house is for living.
Do you want to rent out your property or are you looking to rent instead? We will draw up or review a lease agreement tailored to your case. Thanks to our services, even after the end of the lease, no disputes will arise between landlord and tenant regarding unclear rights or obligations.
A tenancy agreement is concluded between the landlord and the tenant for the use and enjoyment of a certain asset (most often real estate), with the tenant being obliged to manage it properly. In the case of agricultural land, the money for the lease or rent is usually paid once a year on 1 October. If the lease is, for example, in the form of a restaurant, it is paid in the same way as rent, usually once a month.
It is common practice that the rent is not paid in money but in kind. If you have a lease on a piece of forest land, you can pay in wood or, in the case of a field, in what you grow on it. If it is a variable yield item, it is usual to adjust the price of the lease according to the total production. So, for example, if it is a very dry year and there are fewer potatoes than in previous years, the rent should also be reduced to match the size of the crop.
We have a whole article on what a lease is and how it differs from a lease. You will find out in it which cases are suitable for concluding a so-called lease and what the possible risks are.
It is usually not possible to terminate a forest land lease as easily as a normal lease. In the case of forest and other agricultural land, the nature of the farming and the long-term care of the leaseholdare taken into account.
It is therefore important that the terms of termination are set out as precisely as possible in the lease. In the case of agricultural leases, which include forestry leases, the normal rule is a 12-month notice period so that the lease ends at the end of the lease year. In practice, therefore, it is not only a question of how many months’ notice is given, but also at what point the lease can actually end.
Our team of experienced attorneys will help you solve any legal issue. Within 24 hours we’ll evaluate your situation and suggest a step-by-step solution, including all costs. The price for this proposal is only CZK 690, and this is refunded to you when you order service from us.
The law also provides for special situations. A shorter, three-month notice period may be applicable, for example, if the lessee dies or loses the ability to farm the leased land for health reasons. In addition, termination without notice may also be appropriate in specific cases, especially in the event of a serious breach of contract. Typically, this may be the case if the lessee transfers the land to a third party or changes its economic purpose without the consent of the lessor. Such reasons should be described as specifically as possible in the contract.
In addition, it is worth thinking about the practical consequences of terminating the contract when leasing a forest. The contract should clearly stipulate the condition in which the forest land is to be handed over at the end of the lease, the treatment of work in progress in the forest, management records, harvested timber or obligations towards the professional forester. It is on these points that forest land tends to have the greatest scope for future disputes.
It is when the termination of the lease is being dealt with that it most often becomes apparent whether the contract was drafted well. If you are unsure how to set up the termination grounds, the handover of the forest land or the settlement of the harvested timber and work in progress, it is worth having the agreement prepared or reviewed by an attorney. This is because in the case of forest land, details that are not usually addressed in the standard templates are crucial.
It should also be mentioned that just as there is a sublease agreement alongside a lease, there is also a sublease agreement for a tenancy agreement. In this case, the tenant enters into a contract with a third party to sublet the property. A typical case is the sublease of state property to an institution, which then subleases it to someone else for a certain period of time.
A forest is a very specific type of land. Even though you own it, you cannot dispose of it as you please. In addition, owning it comes with a number of responsibilities. First of all, it is important to say that even the owner of a forest cannot cut down whatever he wants and whenever he wants. Timber harvesting is restricted by law, which states that the forest must not be thinned below the permissible limit. In addition, the so-called ‘random logging’ must be observed, which consists of prioritising the felling of damaged trees. Similarly, logging must not exceed a cutting size of more than 1 ha. The whole process is supervised by a professional forester.
It is also not possible to turn the forest into a private plot of land that you do not allow anyone to enter. Forest land is encumbered by a certain easement, which allows access to all people who can collect mushrooms, berries or bark. The only exception to this is for forest protection, health or safety – for example, the classic forest nursery fence. The forest owner’s obligations are to look after the forest and maintain it in good condition. The owner is thus obliged to plant trees in the forest, get rid of diseased trees, etc.
Read more about the obligations of the forest owner and how the sale and purchase of forest land works in our earlier article.
Because of these specificities of forest land, lease agreements also need to be adapted. Unlike farmland or restoration, forest is a fragile ecosystem that has been formed over hundreds of years. This should be matched by its protection by the leaseholders. Forestry companies whose main interest is profit most often negotiate forestry contracts. And profit naturally arises from harvesting as much timber as possible. On the other hand, it is in the interest of the logger and indeed all nature lovers and forest walkers to preserve the forest and keep it as healthy as possible.
For this reason, a carefully drafted contract is needed which sets out as a rule the careful management of the forest, but also provides sufficient profits for the perpetrator. Such a contract should therefore set out in detail the rules and restrictions on harvesting for the tenant and include, for example, some form of control by the landlord. After all, it is ultimately in everyone’s interest to maintain healthy forests.
So, whether you are going to lease your forest land or are in the opposite role to the lessee, do not rely on downloaded model lease agreements from the internet. A forest lease has specifics that need to be contracted for, which you won’t find in the templates. If you choose our services, we can guarantee reliable and professional negotiations. In addition, you will settle everything quickly and without having to travel anywhere.
Mr Novák inherited a small forest plot and wanted to sell it to a company that had been farming in the area for a long time. He had a draft agreement which at first glance looked standard, but in practice it did not address the extent of harvesting, control of management or how the forest would be handed over at the end of the lease. The biggest problem was that the draft left most of the important issues to the general agreement of the parties.
We therefore first looked at what the real intention of both parties was and what risks the proposal posed to the owner. We added to the agreement specific rules for the recording of forest encroachments, conditions for control by the owner, restrictions on harvesting, and a clear mechanism for the handover of the land, including the settlement of harvested timber and work in progress.
As a result, we managed to conclude the contract in a way that is practically usable for the lessee and at the same time protects the owner from taking over the forest in a worse condition than he expected after several years. In similar cases, we most often deal with vague rights and obligations, lack of control mechanisms and unclear rules for terminating the lease.
A forest land lease is considerably more sensitive than a normal lease or even some other types of lease. It is not enough to specify only the land, the rent and the duration. In the case of a forest lease, it needs to detail the method of management, harvesting rules, owner control, liability for breach of duty and the exact termination regime. These are the points where the most frequent disputes arise.
The forest is not an ordinary asset that can be disposed of arbitrarily, and the protection of the forest and the legal obligations of the owner and manager have a direct impact on the content of the contract. Equally important is the termination of the lease and the practical settlement of the relationship after its termination. Therefore, universal models do not usually work for forest land. A contract that is tailored to the specific management method, the extent of the tenant’s authority and the degree of control the owner wishes to retain makes sense.
With a lease, you just use the thing. With a lease, you use it and take income from it, such as timber or other economic benefits.
From a practical point of view, yes. In the case of forest land, a written contract is essential because of the rules of management, liability and termination of the lease.
Usually not. For agricultural leases, which include forest land, a longer notice period is common and the date on which the lease ends is also important.
He can’t. Forest management is subject to legal rules, and the contract should specifically regulate what the lessee can and cannot do.
Mainly the state of the forest at handover, management records, work in progress, timber harvested and any obligations to the professional forester.
Only if the contract or the law allows it. Without the owner’s consent, this may be a serious breach of contract.
This can be risky on forest land. The general patterns often do not address harvesting, management control, restocking or handing over the forest at the end of the lease.
Our team of experienced attorneys will help you solve any legal issue. Within 24 hours we’ll evaluate your situation and suggest a step-by-step solution, including all costs. The price for this proposal is only CZK 690, and this is refunded to you when you order service from us.
Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 10 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.
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