agricultural holdings act 1941

An act with the objectives of encouraging rural land occupation and development by providing legal status, and defining the rights and obligations of both rural landlords and rural tenants. The act encourages the smooth operation of rural leases, and sharefarming agreements.

Applies to parcels of land not less than 0.8904ha used wholly for agricultural or pastoral purposes or partly agricultural and partly pastoral purposes and held by a tenant under an agreement for a term of years, for life, from year to year, or at will  s4(1). The provisions of the act also apply to SHARE FARMING AGREEMENTS.

Important parts of the act are as follows;

(a) PartIII

Confers certain compensation rights on the parties. Where the tenant of the holding has made any improvements listed in the First Schedule of the act he is entitled on quitting his holding to be compensated by the landlord for the value of the improvements to an incoming tenant whether or not he was required by the terms of his/her tenancy to effect the improvements  s7 and provided he has given the landlord prior notice of his intention to effect the improvements  s8. If the parties cannot agree on the value then the act allows the dispute to be settled by arbitration.

(b) PartIV

Regulates the tenant's right to remove fixtures. The tenant may remove "any engine, machinery, fencing or other fixture" which he brought onto the land, and any building erected by him for which he is not otherwise entitled to compensat1on, before or within a reasonable after the termination of the tenancy, provided, inter alia, that he has paid all his rent, given notice of intention to remove and does not cause any avoidable damage in the removal. The landlord may elect to purchase the fixture or building at a fair value  s21

Provides for compulsory extension of some tenancies, and regulates notices to quit. A tenancy of a holding expressed to be for a fixed term of less than 2 years is to take effect as if the term of 2 years were substituted for the ter expressed  s22. The section does not apply to a tenancy not exceeding 1 year for the purpose of agistment of stock.

A tenancy of a holding for 2 and more years does not terminate at the expiration of the term unless written notice of intention to terminate has been given by either party to the other not less than 1 year, nor more than 2 year before the expiry date. If no notice is given the tenancy continues as a tenancy from year to year  s23.

A notice to quit a holding is invalid if it purports to terminate the tenancy before the expiration of 12 months from the end of the current year of the tenancy. A tenancy entered into for an express term less than 2 years shall be converted to 2 years certain  s22 except for a tenancy for a term not exceeding 1 year for the sole and express purpose of agistment of livestock.