Recent changes to the Law on Land Lease

According to the recent amendments to the Law on Land Lease, in order to register a signed contract of lease with the Registry Office it is no longer necessary to furnish a sketch of the subject lease contract issued or certified by the municipal Agriculture Office.

These amendments are aimed at facilitating the procedure and reducing the cost of registration of the lease.

Another significant change in the regulation provides that:

• It is necessary to conclude the contract with a co-owner of the agricultural land who owns more than 50 percent of the shares of the co-owned property.
• The contract of lease can be concluded with a co-owner of the agricultural land authorized to represent those co-owners owning with him more than 50 per cent of the shares of the co-owned property. The signatures and the content of said authorization must be notarized.

Each owner will share in the benefits and burdens of the common property in proportion with his share and according to the contract of lease will be entitled to such a part of the rent received that corresponds   to his share. This rule is without prejudice to third party tenants who only have obligations towards the co-owner / co-owners that are party to the lease contract.

Contractual relations entered into prior to 07.02.2017 will continue to be governed by the former regulations.