Greenhouse Leasing publication now available from MSU Extension
Editor’s note: This article is from the archives of the MSU Crop Advisory Team Alerts. Check the label of any pesticide referenced to ensure your use is included.
In response to discussions with the Michigan greenhouse industry, MSU Extension has compiled a sample greenhouse lease form and information on owner and operator considerations in leasing greenhouse space. The new 12 page publication is titled: “Sample Greenhouse Facility Lease” Extension Bulletin E-3141.
The sample lease format in the publication is designed to be flexible and to address issues related to leasing a facility for an entire year, for a single crop such as poinsettias, or for a season such as the spring crop cycle.
An additional document that can be used alongside the lease, if applicable, is the Subordination, Non-Disturbance and Attornment Agreement. This agreement, between the operator and the owner’s mortgagee, ensures that the operator will remain in possession of the leased premises 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.
It is strongly advised that you obtain legal assistance to better understand the provisions presented in the sample lease form. This form is not a substitute for obtaining legal counsel regarding the lease – it is intended to help focus discussions between landowner (owner), the lessee (operator) and qualified legal counsel.
To order a copy contact your local MSU Extension office or go to the MSU Extension Bulletin store website: www.emdc.msue.msu.edu and request it by the title of the publication in a keyword search on that page. If you have further questions please feel free to contact either one of us and we will be happy to discuss this with you.