The farmer's right of pre-emption

We are frequently asked about the rights of the farmer in a land sale. This is the subject of our 6th article on the specificities of rural leases. 

The farmer's right of pre-emption  

The farmer has a right of pre-emption (Article L412-1 of the Rural Code) in the event of the sale of the leased property by the owner. This is one of the public policy provisions of the rural lease, which applies whether the lease is written or verbal and from which it is not possible to derogate. 
This priority is stronger than a simple right of preference because the farmer has the possibility of contesting the transfer price if he considers it exaggerated 

Conditions to be met by the farmer 

The farmer must meet a number of conditions to benefit from this right of pre-emption:  

• Be a farmer for at least 3 years 
• To personally exploit the property sold (effective and permanent participation) 
• Not be the owner of a surface area greater than 3 times a threshold defined by the Schéma Directeur Régional des Exploitations Agricoles (between 1/3 and 1 time the average regional useful agricultural area) 

A right of pre-emption only for sales of agricultural land. 
This right of pre-emption is only available in the context of a sale and therefore does not apply in the case of a donation or inheritance. It does not apply either when the sale is made to a relative or ally up to and including the third degree (grandparents, parents, child, brother and sister, uncle and nephew) or to the State or a public body. 

Mandatory notification of the proposed sale 

The seller must allow the farmer to exercise his right of pre-emption. The proposed sale must therefore be notified to him and contain the price, charges and conditions of the sale. The tenant has a period of 2 months and 3 options:  

• Exercise his right of pre-emption (within the 2 month period) 
• Not to exercise his right of pre-emption (the absence of a response is equivalent to a waiver of his right) 
• Exercise its right of pre-emption subject to a review of the price by the Tribunal Paritaire des Baux Ruraux

In the latter case, both the farmer and the lessor will be free to accept the prices set by the court after an expert appraisal: the farmer may waive his right of pre-emption, the owner may waive the sale. 
If the owner sells several plots of land of which only a part is concerned by the rural lease, he must allow his farmer to exercise his right only on the leased plots by splitting his sale. 
If the terms of the sale change after the lessee has been notified, the procedure must be restarted from the beginning. Failure to respect the right of pre-emption may result in the invalidity of the sale and in damages.

A commitment to operate for 9 years

Lastly, the farmer who has exercised his right of pre-emption undertakes to farm the property himself for at least 9 years in his capacity as owner, failing which he is liable to pay damages to the purchaser who has been evicted. 

FIND OUT MORE : 

1. The universal character of the rural lease
2. Farming
3. Duration and end of the rural lease
4. Other types of agricultural leases
5. Transfer, exchange and subletting of the rural lease
6. Rural lease and succession
7. Termination of the lease
8. Recovering rented farmland for sale
9. Can rented vines be sold?
10. How to recover land leased to a farmer?
11. The hire purchase agreement on agricultural land
12. 5 steps to calculate the rental amount
13. How to calculate the amount of rent for vineyards?

Author's note: The information we present is purely informative and pedagogical and cannot replace an analysis carried out by a professional in rural law. In case of conflict, difficulty, etc., we invite you to contact one of these professionals (lawyers, notaries, rural law experts, etc.).