Mich. St. Univ. Extension has released a 14-page publication, “Sample Greenhouse Facility Lease” (Extension Bulletin E-3141). The bulletin includes a sample greenhouse lease form and information on owner and operator considerations in leasing greenhouse space.
The sample form is designed to be flexible to address issues related to leasing a facility for a year, a season such as the spring crop cycle or just a single crop such as poinsettias.
The bulletin also includes a Subordination, Non-Disturbance and Attornment Agreement. This agreement, between the operator and the owner’s mortgagee, ensures that the operator remains in possession of the leased facilities throughout the term of the lease and in ownership of all of the operator’s products present on the leased premises despite any foreclosure action against the greenhouse owner, as long as the operator is not in default of the lease.
Extension officials strongly advise growers to obtain legal assistance to better understand the provisions presented in the sample lease form. The form is intended to help focus discussions between landowner (owner), the lessee (operator) and qualified legal counsel.
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