What is a cross lease
Land Lease (Master) Document
Do I need a solicitor to witness or complete the Master Lease?
There is no requirement for a solicitor or an auctioneer to be engaged to assist with the completion of or witness the lease agreements. However, any individual is free to engage a solicitor/advisor/tax consultant, to assist with the preparation of the lease.
Must I complete/fill in all sections of the IFA Master Lease?
No. The Master Lease is a comprehensive template document that provides many options for the individual’s involved. Where a section of the lease is deemed to be not necessary by the two parties involved, it can simply be crossed out.
To qualify for the long-term income exemption scheme, the Revenue Commissioners have advised that a lease must contain the following:
A qualifying lease must be in writing or evidenced in writing, which –
- contains the names and addresses of the lessor(s) and lessee(s),
- specifies the acreage, address, location etc. of the land which is the subject of the lease,
- sets out the terms of the lease, and
- is signed by the lessor(s).
The lease must be for a definite term of five years or more. The term of the lease should be expressly set out in the lease (or written memorandum).
Must I register the lease with the Property Services Regulatory Authority?
Yes. Farmers, who have entered into land leasing agreements since 3 rd April
2012 are now required to register the lease with the PSRA.
Registration of the lease is a legal requirement set out in Part 12 of the Property Services Regulation Act 2011 (Residential Property Sales Prices and Commercial Leases Database), whereby the PSRA is required to develop and maintain a Commercial Lease Register and tenants of a commercial lease (including land leases) are required to provide the PSRA with specific information on the commercial lease.
The tenant (or a third party authorised by the tenant) is required to provide the following information to the PSRA in respect of the lease agreement.
- The commencement date of the lease;
- The rent (if any) being paid for the lease;
- The frequency at which the rent will be reviewed for the land (if there is a rent review during the lease term);
- Particulars relating to who is liable (tenant/landlord) in respect of rates, insurance, service charges and repairs to the property;
- Particulars relating to any break-clause in the lease.
How do I register the lease with the PSRA?
This information must be registered with the PSRA thirty days after commencement of the lease (i.e. within 30 days of receipt by the tenant of the stamp certificate from the Revenue Commissioners).
How do you fulfil the Stamp Duty requirement?
The lease itself must not be registered with/ submitted to the Revenue Commissioners. Instead, Form SDR3 must be filled out and submitted.Source: www.ifa.ie