Authorizes The Government To Establish The New System Of Rural Leases

Original Language Title: Autoriza o Governo a estabelecer o novo regime do arrendamento rural

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Read the untranslated law here: http://app.parlamento.pt/webutils/docs/doc.pdf?path=6148523063446f764c3246795a5868774d546f334e7a67774c336470626d6c7561574e7059585270646d467a4c316776644756346447397a4c334277624449324f5331594c6d527659773d3d&fich=ppl269-X.doc&Inline=false

1 PROPOSAL of law No. 269/X explanatory statement the current rules of the lease of farm buildings for the purposes of development of agricultural and forestry activities was produced at the threshold of full integration of Portugal in the European communities and is enshrined in a number of diplomas of scope and complexity, distinguishing the lease for agricultural or livestock exploitation and the lease to the forestry exploitation. The legislation sought to stimulate the rental, ensuring the land owner the return on your investment and ensuring the tenant the necessary stability to engage in productive activity. It was intended to promote access to land by the most dynamic agricultural entrepreneurs and all those who wished to create wealth forestry in its broader concept. After more than 20 years, it turns out that it is necessary to invigorate the rural rental market in order to combat the abandonment of farmland, mobilizing them for productive activity, reducing the public risks and promoting the conservation of natural resources, biodiversity and the countryside. The abandonment of agricultural lands increases, for example, the risk of fire and to certain pests and diseases. On the other hand, we know that 90% of the wealth existing in the natural areas of the Natura 2000 depends on the maintenance of existing agricultural and forestry systems, and noted that the new proposed scheme includes also the activities of conservation of natural resources and the landscape, not dominantly oriented to the production of market goods. Thus, it is intended to define a legal framework which best fits to the rules and requirements of the common agricultural policy, giving stability to the agricultural and forestry activities which intended that to be competitive, environmentally friendly and promoting social cohesion, territorial and biodiversity. The change in the legal regime of the lease is expressed in the great options the plan as a way to invigorate the market for land rental and 2 facilitate their mobilization for productive activity, with a view to the promotion of increased physical and economic dimension of agricultural holdings and their economic, social and environmental sustainability. In this sense, the new system is more flexible, favouring the contractual agreements between the landlord and the tenant. The proposed scheme, the income is fixed by agreement between the parties, in cash, and may be awake the annual update and no longer laid down maximum incomes by order of national Government members responsible for the areas of finance and of agriculture and forestry. Can be up to anticipation of lace, which is an incentive to lease, especially in the case of the lease. It is also given the opportunity to be a part of the rent agreed on building productivity function, which allows the tenants share the investment risk with landlords. The contract goes on to include farming, forestry and livestock can be covered the movable property that the parties understand. May also include goods and services producing activities associated with agricultural and forestry activities and the parties may agree to transfer of production rights and rights to financial support under the common agricultural policy, which allows for a more efficient allocation of productive resources and public support, with increased competitiveness, improving the management of rural areas and diversification of the agricultural activity. The new proposed regime also safeguard the protection of elderly tenants. In this sense, establishes the warranty of the opposition to the complaint by the tenant when it has more than 55 years, reside or use the building for over 30 years and the income derived from the building constitutes the primary source or exclusive of household income.

The proposal favours the establishment of contractual agreements between the landlord and the tenant, simplifies and consolidates existing legislation, adapting it to the new economic, social and environmental realities. Were initiated consultations with government organs of the autonomous regions. Were triggered consultations to National Association of Portuguese municipalities and the National Association of 3 Parishes. So: under d) of paragraph 1 of article 197 of the Constitution, the Government presents to the Assembly of the Republic the following proposal of law: article 1 subject-matter Is the Government allowed to establish a new legal regime of the lease. Article 2 this law Sense of legislative authorization is granted to approve the new rural rent regime, which encodes and simplifies the legislation relating to agriculture, forestry and rental campaign, Envisioning the establishment of contractual agreements between the landlord and the tenant, in particular with regard to the objectives of the lease and the value of income and relaxes the devices relative to the duration of the lease. Article 3 extension to extension of legislative authorization granted is as follows: a) the definition of rural leases as the lease all or part of rustic buildings for agriculture, forestry or other activities of production of goods or services linked to agriculture, cattle breeding or the Woods. b) the presumption that the lease set a rustic part and a part is considered rural, except when the contrary is expressly declared by the Contracting Parties; c) the possibility of rental cover, in addition to the terrain and vegetation, buildings and infrastructure usually for the purposes of 4 normal exploitation and of leased buildings, housing the tenant and to the development of other economic activities associated with agriculture and forest, including the activities of conservation of natural resources and landscape and other goods in particular machinery and equipment; d) presumption that are included in all existing real estate rental in brownstone rental object; and) the option, will of the parties, be also considered in the contract the rights transmission of production and rights to financial support under the common agricultural policy farm buildings associated with the subject of the contract; f) consideration, in lease agreements, not only agricultural and forestry activities but also other activities of production of goods and services with the same related; g) mandating the existence of written contract and fixing of the rent in cash, as well as the delivery of contract document finance services of residence or registered place of business of the lessor; h) the determination that the standard contractual clauses are null in which: (i)) the lessee force yourself to pay fire insurance premium of buildings or installations and facilities not included in the contract, as well as taxes or charges levied on the property covered by the contract and which are payable by the landlord; II) Any of the parties renounce the right to demand termination or rescission of the contract and compensation that are due in cases of breach of legal or contractual obligations; III) the lessee waives the right of renewal of the contract or force yourself in advance to your complaint; IV) the lessee force yourself, by any title, the services which do not accrue in direct benefit of building 5, or if subject to extraordinary charges; I) the determination of the lease, and its amendments, are not subject to registration and are exempt from payment of stamp duty and any other tax or fee. j) the consecration, as a rule, that the duration of the lease is agreed between the parties on the basis of the following principles: i) agricultural rentals cannot be contratualizados by period of less than seven years, being renewed by successive periods of at least seven years, assuming seven years if there are been fixed another, while the same is not terminated; II) forest rentals may not be concluded for periods of more than 70 years nor less than seven years, getting senile at the end of the period, unless contractual clause or express agreement between the parties; III) campaign rentals cannot be held for periods exceeding six years, assuming a year if another term is not awake, and shall expire, unless otherwise agreed between the parties, at the end of the period. l) prediction that the income is annual, corresponds to a financial allowance, which may be anticipated payment, the value fixed by agreement between the landlord and the tenant and its update should be performed based on the annual coefficient of the incomes of the National Institute of statistics, in the case of such a device is not listed in the contract; m) the prediction of transmissibility of the tenancy in certain cases, and the exercise of the right of preference in certain circumstances; n) the clarification of the Constitution and termination of tenant in lives, in particular through the application of the following standards: (i)) unless otherwise clause, the tenant must pay the rent until the last day of the period concerned, the domicile or registered place of business of the lessor; II) the lessee may terminate the lives within 60 days without payment of 6


compensation or rescission of the contract; III) the landlord is entitled to request resolution of the contract in cases of arrears of more than six months. the) determination of the rural rental may terminate by agreement between the parties, by resolution, expiry, opposition to the renewal or termination of the contract, bearing in mind, in particular, the following: (i)) the resolution can be requested by any of the parties based on the breach of contract by the other party; II) termination by revocation can happen when after the deadline and there's no way to auto-renew, in cases of expropriation of the buildings, where the holder of the right of transmission if any don't the exercise in a timely manner and when it ceases the right or ending the legal powers of Administration on the basis of which the contract was concluded; III) cessation by opposition to the renovation can happen by initiative of the landlord or the tenant with the advance of a year in respect of the expiry of the period of the lease or renewal; IV) termination by complaint may happen when the tenant wishes to abandon agricultural or forestry activity or the building or buildings, for reasons beyond their control, do not permit an economically viable farm. p) the densification of the regulations regarding the maintenance, restoration and upgrading of the rustic buildings subject to lease in order to be clear accountability of the parties and with a view to ensuring the implementation of conservation and recovery, as well as the improvements needed and useful to monetization and the sustainable use of the buildings; q) determining that the legally required communications between the parties are achieved by writing signed by the declarant and sent by registered letter with acknowledgement of receipt; r) the establishment of the possibility of legally required communications between 7 parties, be admissible the use of procedures by electronic means, duly validated by qualified electronic signature; s) safeguarding the protection of elderly tenants and with older lease situations and, in many cases without written contracts, ensuring the possibility of opposition by the tenant in relation to situations of termination of the contract by the landlord, in particular when the tenant has more than 55 years and reside or use the building for over 30 years and the income derived from the building constitutes the main source of income or his/her family members;
t) prediction that the judicial proceedings concerning the right of pre-emption must as a matter of urgency, follow the ordinary procedure or contents, depending on the value, and that, in its pending, cannot achieve-if the delivery of the building landlord based on termination of the contract; u) the prediction that the legal proceedings relating to disputes of termination and transmission of the lease and the implementation of conservation actions, repair and improvements of rustic buildings leased are as a matter of urgency and follow the process form contents, unless another is expressly foreseen; v) the prediction of admissibility of the appeal to the Court of appeal as to the matter of law, without prejudice to the ordinary resources, depending on the value of the action, always having suspensive effect to the appeal of the ruling that decrees the refund of the building; x) the determination that no legal action can be received or proceed under penalty of termination of the instance, if it is not accompanied by a copy of the contract, when required, unless soon claimed that is attributable to the other party; z) the determination that shall be exempt from the payment of Municipal tax on real estate Disposals (IMT) all disposals of rustic buildings in favor of their respective tenants, provided there is a written contract for at least three years, and it is the knowledge of 8 finance services in the area of residence of the landlord or the seat of the legal person; AA) prediction that the rustic building leased dump cannot take place before the end of the agricultural year after the judgment, and without that is safeguarded the right to harvest the fruits of the lessee's outstanding;

BB) the weather forecast during the last year of the lease, the lessee could not oppose the carrying out of the work essential to the normal exploitation of the Earth, to be carried out by the new grower, without prejudice of the right in respect of the harvest of fruits are pending; CC) determining the mandatory conversion of partnership contracts and mixed contracts leasing and partnerships in rural leases, excluding this device the livestock partnership; DD) predicting the new rules to contracts concluded after its entry into force and application to existing contracts at the end of their term, or their renewal through the introduction of the necessary changes. Article 4 Duration of the authorisation granted by this law lasts for 90 days.

Seen and approved by the Council of Ministers of 2 April 2009 Prime Minister the Minister of Presidency the Parliamentary Affairs Minister 9 the regulations on rental of farm buildings for the purposes of development of agricultural and forestry activities is currently enshrined in a number of diplomas of scope and complexity and in some cases misfits reality agriculture and forestry. The current schemes, approved after our accession to the European Community in 1986, are misfits in the face of the significant changes that have occurred in Portugal, following the dynamics observed in national economic and social structure and the evolution of Community policies, continued to be characterised by lack of flexibility, over-regulation and unsuitability to the reality of the land market and agricultural and forestry development. A suitable rustic buildings lease arrangements for the development of agricultural activities, livestock and forestry allows you to improve the structure of agriculture and forestry with a view to their economic viability and use of agricultural lands contrary to the tendency to their abandonment, with its disastrous consequences for the economy, social and territorial cohesion and environmental risks. It is in this perspective, and in compliance with the consecrated in the great Plan options, it becomes necessary to change the regime of rural leases, in order to boost the land rental market and facilitate productive mobilization, with a view to the promotion of increased physical and economic size of agricultural holdings, ensuring their economic, social and environmental sustainability. In this sense, are promoted changes conducive to the relaxation of the rental market, favoring the agreement between the Contracting Parties. On the other hand, there is a need to redefine, and in some cases eliminate, excessive regulatory processes and procedures, rigid and, or, misfits, in the interests of legislative simplification and flexibility.

11 this Decree-Law has as its main objectives to aggregate the rules relating to rental of farm buildings scattered through various diplomas, simplify and consolidate the existing legislation, adapt it to the new economic, social and environmental reality and focus on the establishment of contractual agreements between the landlord and the tenant, with the consequent elimination of devices that allowed or they could determine the intervention of the State. So, this Decree-Law establishes the legal regime to which shall be subject the lease of farm buildings for the purposes of development of agriculture and forestry and other activities with the same related, such as central elements of the new regime: a) the consecration of the existence of three types of lease: agriculture, forestry and rural campaign; b) consideration not just agricultural and forestry activities but also other activities of production of goods and services with the same related in rural leases; (c)), by will of the parties, be also considered in the contract the transfer of production rights and other rights arising from the common agricultural policy farm buildings associated with the subject of the contract; d) mandating the existence of written contract and fixing of the rent in cash, as well as the delivery of contract document finance services of the residence or seat of the Dominion officer; and) the consecration, as a rule, the duration of the lease is agreed between the parties on the basis of the following principles: 12


I) agricultural rentals cannot be contratualizados by period of less than seven years being renewed for successive periods of at least five years, assuming seven years if there are been fixed another, as the same are not reported; II) forest rentals cannot be concluded for more than 70 years, not less than seven years, getting senile at the end of the period, unless contractual clause or express agreement between the parties; III) campaign rentals cannot be held for periods exceeding six years, assume a year if no time limit has been established, and shall expire, unless otherwise agreed between the parties, at the end of the period. f) provide that the value of the income is fixed by agreement between the landlord and the tenant, and the update to be performed on the basis of the annual coefficient of the incomes of the National Institute of statistics in the case of such a device is not listed in the contract; g) clarifying the regime of establishment and termination of tenant in arrears; h) Determine that the rural leases may terminate by agreement between the parties, by resolution, expiry or termination of the contract; I) Develop the regulations regarding the maintenance, restoration and upgrading of the rustic buildings subject to lease in order to be clear accountability of the parties and with a view to ensuring the implementation of conservation and recovery interventions, as well as the necessary and useful works on monetization and the sustainable use of the buildings; j) compulsory conversion of partnership contracts and mixed contracts leasing and partnerships in rural leases, excluding this device the livestock and forestry partnerships;

13 l) safeguard the defense of older tenants, with older rental situations, with income exclusively or primarily obtained from the leased buildings and without written contracts, ensuring the possibility of opposition by the tenant in relation to situations of termination of the contract by the landlord, in particular when the tenant has more than 55 years and reside or use the building for over 30 years and the income derived from the building constitutes the primary source or exclusive of income for your household. Were heard the Government organs of the autonomous regions, were heard the National Association of Portuguese municipalities and the National Association of Parishes. Been heard, on an optional basis, representative organizations of farmers and producers. So: the use of legislative authorization granted by law n° ___/___, ___, and in accordance with subparagraph (a)) and b) of paragraph 1 of article 198 of the Constitution, the Government decrees the following: chapter I General provisions Article 1 subject-matter this Decree-Law establishes the new Rural rent Regime. Article 2 Rental-apartments-1 rural countryside is the lease all or part of rustic buildings for agriculture, forestry or other activities of production of goods or services linked to agriculture, cattle breeding or the Woods.

14 2-leases that fall on farm buildings, when the contract and their circumstances resulting in different destination, rural lease is assumed. 3-the lease set a rustic part and a part is considered rural except when expressly stated in different ways by the parties. Article 3 1-rural rental Types can be of the following types: a) agricultural Lease; b) Lease; c) Lease. 2-total or partial rental of farm buildings for forestry exploitation takes the nature of lease, agricultural or forestry campaign according to the will of the parties expressed in the lease. 3-When, in the case referred to in the preceding paragraph, the parties did not express his will, the lease is considered. Article 4 Goods covered 1-rural rental covers the land, water and vegetation, and when is that the will of the parties expressly stated in the contract, may include: a) the buildings and infrastructure usually for the purposes of normal exploitation and of leased buildings; b) the tenant's housing and the development of other economic activities associated with agriculture and forest, including the activities of conservation of natural resources and the landscape;

15 c) other goods, including machinery and equipment, and should in this case be attached to contract an inventory thereof with indication of their State of conservation and functionality. 2-Unless contractual clause to the contrary, shall be included in all existing real estate rental in brownstone rental object. 3-the rural lease can also integrate the transfer of production rights and entitlement to financial support under the common agricultural policy, without prejudice to their compliance with the legislation relating to transmission of such rights, contained in its special schemes. 4-for the purposes set out in paragraph 1 are considered associated activities to agriculture and the forest: a) the services provided by rural tourism enterprises and tourist entertainment activities developed in buildings subject to the lease; b) transformation and activities, or marketing of products of own production obtained exclusively from agricultural or forestry activities carried out in buildings subject to the lease; c) beekeeping activities and hunting, when developed in the buildings the subject of lease; d) activities of conservation of natural resources and the landscape, not dominantly oriented to the production of market goods. 5-the activities and services referred to in the preceding paragraph shall comply with the requirements laid down in specific legislation.

16 Article 5 other definitions for the purposes of this Decree-Law: (a)) shares of conservation ' means the actions that have the objective of maintaining the characteristics and potential of the building and consequently their productive capacity; b) ' recovery ' Actions, actions that have the objective to promote and ensure the recovery of the characteristics and potential of the building subject to destruction or deterioration, due to unforeseen circumstances and abnormal, beyond the will of the tenant; c) ' agricultural Activity ' means the production, cultivation and harvesting of agricultural products, animal husbandry and production of goods of animal origin and the maintenance of land in good agricultural and environmental condition; d) forestry activity», agricultural and forestry activities carried out in the same building and under single management, in particular forest-pastoral exploitation and development of annual crops under-covered; and forest activity ') the installation, management and exploitation of forest stands in grounds naked or covered with spontaneous vegetation, the conduct and operation of existing stands, installation and exploitation of forest nurseries, the creation or expansion of conservation areas and all activities associated with the development, maintenance and operation of stands and forest nurseries; f) ' agricultural year ' means the period that begins on November 1, ending 31 October of the following year, when there is another date agreed by the parties;

17 g) "agricultural Lease" means the total or partial lease of farm buildings for agricultural purposes; h) «Lease» campaign, total or partial rental of farm buildings for the purpose of holding one or more cultures of a seasonal nature; I) «forest» Lease, the lease all or part of rustic buildings for forestry exploitation; j) «Improvements necessary», the expenditure incurred in order to prevent the loss, destruction or deterioration of the brownstone, or urban, if included in the contract, and thus safeguard the productive characteristics, being the conservation and recovery actions considered for the purposes referred to in this Ordinance as improvements needed; l) «Improvements», the expenses, taking into account the subject of the lease, determine the development and improvement of the productive capacity of the building, and, consequently, their value; m) ' unforeseen circumstances and abnormal», unforeseen occurrences, outside the context of normal geo-climática, and other behavioral unusual circumstances such as climatic disasters, floods, geological and ecological accidents, fires; n) «partnership contract ' means the contract whereby one or more persons, the owner, deliver the other partner or other partner thinker or grower, for these to create and, or, explore, and animals, or, farm buildings, with the adjustment to share among themselves the future profits in certain proportion; the) «permanent crops», agricultural crops, not integrated in rotation, other than permanent pasture that occupy the land for five years or longer and yield repeated harvests;

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p) ' seasonal ' Cultures, the crops planted in special conditions and in accordance with a circumscribed to a cultural calendar time of year, usually at the base of a campaign for each cultural sheet; q) ' coppice ' exploitation, the forestry exploitation activity type, which are used more often, short and medium revs, and which is based on the ability to, after cutting of the forest, the species that constitute regenerate through vegetative. CHAPTER II form and duration of the lease article 6 form of the contract 1-rural rentals must be reduced to writing, consisting of the same full identification of the Contracting Parties, the tax identification number and address of residence or registered office, as well as the complete identification of the building or buildings subject to the lease. 2-reduce the writing of rural leases entered into or renewed on the expiration of this Ordinance raises its invalidity. 3-within 30 days, counting from the date of conclusion of the lease, the landlord agricultural or forestry deliver the original of the contract finance services of their residence or registered office, which shall forward the delivery to the regional direction of agriculture and fisheries, in the case of agricultural lease or campaign or to the respective regional Directorate of forests , case of furnished apartments.

19 4-the rural lease is not subject to registration and are exempt from the payment of stamp duty and any other tax or fee. 5-the preceding paragraphs shall apply, mutatis mutandis, to amendments to the contract. 6-the notification referred to in paragraph 3 shall be carried out, preferably by electronic means. 7-the lack of original delivery contract finance services mentioned in paragraph 3 gives rise to the application of the fine provided for in paragraph 1 of article 117 of the General Regime of Tax Offences, approved by law No. 15/2001, of 5 June. Article 7 contract Elements 1-the lease is reduced to writing. 2-Are mandatory elements of the lease rural: the complete identification of the parties); b) identification of the subject of lease; c) the intended use; d) value stated for income; e) an indication of the date of conclusion. 3-if any movable property forming part of the contract, shall be included in the same annex, with their detailed description, in particular, the conservation status and functionality.

20 article 8 null Clauses Are void contractual clauses in that: a) the lessee if the premium payment requires fire insurance of buildings or installations and facilities not included in the contract, as well as taxes or charges levied on the property covered by the contract and which are payable by the landlord; b) Any of the parties renounce the right to demand termination or rescission of the contract and compensation that they are due in cases of breach of legal or contractual obligations; c) the lessee waives the right of renewal of the contract or force yourself in advance to your complaint; d) the lessee force yourself for any title services which do not accrue in direct benefit of the building or if subject to extraordinary charges; Article 9 Term of lease 1-agricultural leases contracts are concluded for a minimum period of seven years. 2-When, in the contracts referred to in the preceding paragraph, has not been fixed term or deadline is less than seven years, the same shall be concluded in accordance with the preceding paragraph. 3-The agricultural leases are renewable automatically for successive periods of seven years, save contractual provision to the contrary, while the same is not terminated in accordance with this decree-law.

21 4-forest rentals cannot be concluded for a period of less than seven years, nor more than 70, modified for these differing deadlines that limits have been set. 5-campaign rentals cannot be held for periods exceeding six years, whereas reduced this limit the upper time limit that has been set, and assume a year if no time limit has been established. 6-Unless contractual clause or the express agreement of the parties, the forest leases and not automatically renew campaign at the end of the period of the contract. 7-Can be agreed and, on the initiative of the tenant, reduced to writing, the change of the date of termination of the contract, in the following circumstances:) when the tenant with the landlord's consent, investments, improving development or cultural restructuring or maintenance in the building; b) When in the course of an agricultural or forestry lease arising unforeseen circumstances and abnormal, beyond any of the parties, which cause the loss of more than a third of permanent crops or plantations of forest plantation and get seriously into question the economic return of that holding. Article 10 1-Subletting subletting or assignment is prohibited by lending or any other form, in whole or in part, of the leased buildings, or the assignment to third parties of the tenant's contractual position, unless there is express agreement with the landlord.

22 2-cases of subletting authorized by the landlord applies, mutatis mutandis, the provisions of this Ordinance for the lease. CHAPTER III article 11 Income Annual Income 1-the rent is an annual, previously stipulated, and corresponds to a financial allowance. 2-income may be amended in accordance with this decree-law. 3-under the lease agreements, the parties may agree to a part of the income variable in function of the productivity of the building. 4-clause to the contrary, the rent must be paid until the last day of the year concerned, the domicile or registered place of business of the landlord at the expiration date, after which the tenant in arrears. 5-Save stipulation to the contrary, the annual update of rents is the result of the total variation of the consumer price index, without housing, corresponding to the last 12 months and for which there are available values at the date of August 31, determined by the National Statistics Institute, and published in the Official Gazette until 30 October each year. 6-when the leased property, and during the period fixed in the contract, the landlord to perform, with the express agreement of the tenant, maintenance, excluding the recovery actions, can be agreed, on the initiative of the landlord, a change in the income, which lacks the express agreement of the lessee, without prejudice to the provisions of the preceding paragraph.

23 article 12 Amendment of the value of income for occurrence of unforeseeable circumstances and abnormal 1-When in the rustic building leased, and during the period fixed in the contract, if they occur, by unforeseen circumstances and beyond the will of the tenant freaks, changes with significant impact on regular and normal productive capacity building, can be agreed, at the request of either party temporary or definitive alteration of income, without prejudice to the provisions of the previous article. 2-in the case of forestry and rental of agricultural crops, it is assumed that the occurrence of unforeseeable circumstances and causes abnormal changes with significant impact on regular and normal productive capacity building, where those circumstances cause the loss of at least one third of the permanent crops or plantations of forest plantation operated in the building. Article 13 the tenant Lives 1-constituting the lessee in mora, the landlord has the right to require, in addition to the rent arrears, compensation equal to 50% of what is due, unless the contract is settled on the basis of non-payment. 2-the right to compensation, or the termination of the contract, if the tenant does cease to live within 60 days of its beginning. 3-is unenforceable to the landlord the rental in case of maintenance arrears exceeding six months in the payment of rent.

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4-While are not fulfilled the obligations referred to in paragraph 1, the landlord has the right to refuse the receipt of rents following, which are considered indebted to all intents and purposes. 5-the reception of new lace does not deprive the landlord the right to termination of the contract or compensation referred to, on the basis of the benefits in lives. 6-the tenant can end the lives giving the landlord the payment of rent in arrears, as well as the compensation referred to in paragraph 1. 7-before the landlord's refusal to receive the corresponding amounts, can the tenant to use consignment in storage. Article 14 payment of rent in arrears 1-the tenant may proceed to deposit the rent when the assumptions of the consignment at warehouse, when he is allowed to end the live action is still pending and eviction notices. 2-the deposit is made in any branch of credit institution, before a document in two copies, signed by the lessee and which are set out in:) the identity landlord and tenant; b) identification of the rented property; c) the amount of income; d) the time period to which the income respect; and) the reason is requested the deposit.



25 3-one of the copies of the document referred to in the preceding paragraph is in power of the credit institution, and the other to the depositor, with proof of having been paid the deposit. 4-the warehouse is the order of the Court of the situation of the building or, when carried out pending court proceedings, the relevant court. 5-the tenant must notify the landlord in writing of the filing of the income. CHAPTER IV termination and transmission of the lease article 15 forms of termination of employment 1-rural rental ceases by agreement between the parties, by resolution, by revocation, by denunciation or by any other means provided for in the law. 2-in cases of termination of employment provided for in this decree-law, the restitution of the building can only be required at the end of the agricultural year in which have verified the facts that led to the termination of the contract, with the exception of leased buildings for logging purposes. 3-in the case of the lease, the procedures to be followed with regard to outstanding fruit and Woody material by virtue of any of the forms of termination of employment provided for in this decree-law shall be agreed between the parties to the lease. Article 16 Termination by agreement between the parties 1-the parties may, at any time, revoke the contract, by agreement.

26 2-the agreement referred to in the preceding paragraph shall be concluded in writing, when is not immediately executed or when contains compensatory clauses or other ancillary. Article 17 Termination by resolution 1-Any of the parties can settle the contract on the basis of non-compliance by the other party, which by reason of their seriousness or consequences, become unenforceable the other party rental, maintenance or significant change in the nature and or the building of productive capacity. 2-the landlord can only ask for the rescission of the contract if the lessee:) does not pay the rent on time and place, or make the payment in accordance with paragraph 4 of article 11; b) dereliction of a legal or contractual obligation, with direct damage to productivity, substance or economic and social function of the building; c) do not use properly and regularly the building or using the same for purposes other than stipulated in the contract; d) to ensure the satisfactory preservation of the goods or cause serious injury in which are not covered by the contract, exist in the leased property; and) Perform, without consent of the landlord, investments in works or constructions that change the nature, structure geophysics and the essential characteristics of the building, without prejudice to the provisions of chapter V of this Ordinance; f) Sublet or assign by lending, in whole or in part, the leased buildings, or assign its contractual position, without legal obligations;

27 3-the landlord may also ask for the rescission of the contract if, within six months from the date the tenant's death, is not notified by the holders of the right to the lease, of the intention to keep him. 4-is Foundation of resolution by the tenant: a) the reduction or change in the productive capacity of the building by unpredictable and abnormal causes, not likely to be covered by insurance, except in cases of forest stands and plantations of permanent crops; b) the occurrence of unforeseen and abnormal circumstances that cause the loss of more than a third of permanent crops or plantations of forest plantation and seriously concerned the economic return of that holding, in the case of agricultural and forestry leases; c) Director, by the landlord, of works that fit, when that omission undermines the normal and regular use and enjoyment of the leased buildings; d) expropriation, even though part of the building. 5-the resolution shall be communicated within a period of six months for contracts lasting up to two years and one year for the remaining contracts, from the date of knowledge of the fact that it's plea, under penalty of forfeiture. 6-applies to the termination of the contract for non-payment of rent under article 1048.º of the Civil Code, with the necessary adaptations. Article 18 Termination by revocation 1-the lease expires when:) after the deadline, there is no place the renewal, in accordance with the provisions of the present Decree-Law;

28 b) Cease the right or ending the legal powers of Administration on the basis of which the contract has been concluded, without prejudice to the provisions of article 1052.º of the Civil Code; c) expropriation Occurs, except where the expropriation is compatible with the livelihood of the contract. 2-the expropriation of all of the leased property regardless of expiry of the lease. 3-If the expropriation is total, the lease is considered as independent charge for compensation the tenant at expropriante. 4-in the calculation of the compensation referred to in the preceding paragraph, in addition to the values of pending fruits or crops destroyed, if the value of the capital invested and other losses arising from the termination of the lease, calculated in accordance with law. 5-If the expropriation is partial, the lessee, without prejudice to the provisions of the preceding paragraph in relation to the expropriated, can opt for termination of the contract or the proportional reduction of the rent. Article 19 Termination by complaint 1-the lease ceases as opposed to the renewal or denunciation of one of the parties, by written communication. 2-opposition to the renewal or termination of the lease includes obligatorily all its objects. 3-the landlord or the tenant may oppose the renewal of the lease, with the advance of a year in respect of the expiry of the period of the lease or renewal, without prejudice to the provisions of paragraph 9.

29 4-in the case of agricultural leases by lessor emigrant, can this cancel the contract, with the advance of a year from the third year of the lease or renewal, without possibility of opposition on the part of the lessee, except in the case referred to in paragraph 9, provided that satisfies the following conditions: (a)) have been he who leased the building or has acquired by succession; b) require return or have returned definitely to Portugal for less than a year; c) want to explore directly the leased property. 5-the lessee may withdraw from the contract, without possibility of opposition on the part of the lessor, in cases of abandonment of agricultural or forestry activity or when the building or buildings subject to the lease, for reasons beyond their control, do not permit the development of agricultural or forestry activities in an economically sustainable and balanced. 6-in the case referred to in the preceding paragraph, the tenant must notify the landlord at a year. 7-the landlord there is relied on the grounds referred to in paragraph 4 is thanks, except in cases of force majeure, direct exploitation, by you or a member of your household, for a minimum period of five years. 8-in the event of non-compliance with the provisions of the preceding paragraph, the tenant whose contract was terminated is entitled to compensation equal to five times the rents to the time period in which the tenant was absent, and the occupation of the building, if so desired, starting another contract, to which apply the provisions of paragraph 1 of article 31 30


9-the tenant may oppose the opposition to renew or gross of the complaint since that gather the following conditions: (a)) has more than 55 years and reside or use the building for over 30 years; b) income derived from building constitutes the main source of income or for your household. 10-in the event of termination of the contract as opposed to the renewal or termination of the landlord, the tenant is entitled to be compensated: a) The improvements made, as referred to in article 23; b) By land improvement and plantations that have made the building more productive, carried out with the consent of the landlord; 11-is also entitled to compensation corresponding to 1/12 of the annual income for each year of the contract, the amount may not be less than one year of income, in the cases referred to in paragraph 4. Article 20 1-Transmissibility lease expires not by death of the landlord or by the transmission of the building, if the successor of the lessee to continue agricultural or forestry activity. 2-the lease expires not by death of the tenant, in the case of natural persons, or for the termination, in the case of legal persons, with: a) in the case of individuals, the lease passes to the surviving spouse not separate terms or in fact, that at the time of his death he lived with him for more than five years in conditions similar to those of spouses and relatives or the like , in a straight line, that with the same lived in communion and housing or in common economy for more than a year in a row;

31 b) in the case of legal persons, the lease is transmitted to the entity for whom, according to the applicable law, shall be transmitted to the rights and obligations of the entity. 3-the transmission referred to in point (a)) of the previous grant number-if in the following order: a) to the surviving spouse or to the person who lived with the tenant for more than five years in conditions similar to those of the spouses; b) to relatives or the like in a straight line, preferring the first to the second, the descendants to ascendants and the closest degree to the furthest degree; 4-transmission in favour of relatives or the like of the primitive tenant also checks by death of the surviving spouse or the person who lived with the tenant for more than five years in conditions similar to those of spouses when, under this article, it has been transmitted the right rental. 5-there may be two broadcasts of death cause in accordance with the provisions of the preceding paragraph or just one, when the first transmission operate in favour of the persons referred to in paragraph 1 (b)) of paragraph 3. 6-holders of the right to broadcast shall, within six months, notify the landlord of intention to exercise his right. CHAPTER V maintenance and improvement of the rustic buildings leased article 21 general principle 1-the landlord and the tenant are obliged to allow and facilitate the implementation of measures for the conservation or recovery, as well as the improvements that the other party should or intend to do, in order to ensure the use of the building in accordance with the purposes set out in the agreement and with a view to improving the conditions of production and productivity.

32 2-The conservation or recovery actions and the improvements referred to in paragraph 1 shall be carried out, wherever possible, during the period of the year that less inconvenience cause to the tenant, unless it is urgent and imperative. Article 22 conservation and restoration of the building 1-the lessee is obliged to preserve and, at the end of the contract, to restore the building as received, subject to the changes inherent in proper use in accordance with the purposes set out in the contract, payment of compensation, in accordance with the general law, and without prejudice to the provisions of articles 23 and 24 with regard to improvements. 2-for the purposes of the preceding paragraph, appropriate use, exploitation of the building according to the techniques that are necessary and appropriate to the implementation of the activities provided for in the contract, in accordance with the contractually stipulated purposes. 3-in the case of the lease for the purpose of exploitation of forest species in coppices, the lessee, in the term of the contract, is obliged to destroy or remove the toiças or logs, except contractual clause or express agreement to the contrary. 4-at the end of the contract and in the absence of a contractual clause to the contrary, it is the responsibility of the landlord to carry out the measures of recovery of the building that are necessary and are not directly attributable to the tenant. 5-it is assumed that the building was handed over to the tenant in a good state of repair and in conditions suitable for use in contractual terms, when there is no document in which the parties have described the State of the same, at the time of delivery.

33 article 23 Improvements made by the lessee 1-the tenant can accomplish in leased property recovery actions without consent of the landlord, in cases where: a) the landlord is in arrears with regard to the obligation to make reparation which, because of its urgency, if not pity with the delay of the respective court proceedings, and the tenant to make them out of court, being entitled to reimbursement; (b)) the urgency does not consent any extension, keeping the right to reimbursement, regardless of lives of the landlord, as long as the notify at the same time. 2-Unless contractual clause to the contrary, the renter lacks the consent of the landlord to perform leasehold improvements useful. 3-in the case of forestry lease, changing the composition of the system and the structure of stands, can only be performed with the consent of the lessor, without prejudice to compliance with the legislation applicable to such situations. 4-The useful improvements made by the lessee without the landlord's consent, do not justify the revision of the amount of income or entitle to any compensation, upon termination of the lease. 5-The useful improvements made by the tenant with the landlord's consent do not justify the revision of the amount of the income, but give entitlement to payment of compensation, when reverse to the landlord after termination of the lease. 6-Unless contractual clause to the contrary, ceasing the lease for any cause, the improvements made by the lessee shall accrue in favour of the lessor.

34 article 24 calculation of improvements that give rise to compensation 1-compensation for useful improvements carried out by the tenant, with the consent of the landlord, which accrue to this at the end of the lease, is calculated taking into account the cost borne by the tenant, the advantages of which the same there are enjoyed on the contract and the benefit income and equity that would result in the future, to the landlord. 2-payment of the compensation referred to in the preceding paragraph may be split, so that the benefits are carried out at the time of perception by the landlord of the benefits resulting from the improvements. Article 25 Improvements made by the landlord 1-the landlord can only make improvements in the building, with the exception of actions for recovery of the building, with the consent of the lessee or with legal supply of that. 2-the improvements made by the landlord with the tenant's consent can determine the income change as provided for in paragraph 6 of article 11 3-the landlord compensates the tenant for the loss that the achievement of the improvements, made on its own initiative, eventually causing the building, excluding the recovery actions.



35 CHAPTER VI procedural Rules article 26 1 communication form-unless provided otherwise legal, legally required communications between the parties, in particular those relating to the termination and amendment of the lease, the updating, amendment and deposit of income, to the implementation of conservation and recovery works and improvements and to the exercise of the right of preference, are achieved by writing signed by the declarant and sent by registered letter with acknowledgement of receipt without prejudice to article 27 2-any communication should contain the full address of the party to subscribe, and the parties communicate each other to change that. 3-the written signed by the declarant may also be hand-delivered, and the recipient affix his signature prints, with note of receipt. 4-communication by the landlord for the termination of the contract for resolution, in accordance with article 17, shall be effected by notification uvula, or by personal contact a lawyer, solicitor or agent for the application, in this case made in the person of notifying, with duplicate delivery of communication and copy of the documents attached thereto, and notifying sign the original. Article 27 legally required communications digital communication between the parties is permissible using electronic procedures duly validated by qualified electronic signature.

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Article 28 procedures for updating, reduction or fixation of new 1-income pensions to agreements are updated annually as provided in paragraph 5 of article 11 by written communication from the landlord to the tenant. 2-the reduction or fixation of new income as provided for in paragraphs 5 and 6 of article 11 and article 12 process in accordance with the following subparagraphs:) the amendment of income following the completion of improvements by the landlord to the tenant must be provided with express indication of new income and reasoned. (b)) the proposed reduction of the rent shall be addressed to the landlord and the tenant in it mention the rent that must be paid is considered. 3-the proposals are formulated in writing, within 30 days after the expiry of the facts that underlie, or, in the case of continuing, during these events. 4-it is assumed that the facts are not grounds for a reduction in rent if the tenant does not give the landlord the check of sign of their occurrence and their results. 5-in the case of contractors, in the 30 days following the formulation of the respective request, does not agree on the change of income, may appeal to the Court, which shall, in the order saneador, the income effect Transiently until final decision of the lawsuit. 6-While the judicial decision not made absolute, the landlord cannot require the termination of the contract on the basis of non-payment of rent, safe:) that is attached to the rental agreement until the date of the order saneador referred to in paragraph 5;

37 (b)) that is determined in the order saneador to date of the judicial decision which has become final. 7-the difference that may arise between the amounts paid by the lessee and the amounts due according to the Court decision should be regularized after duly corrected by applying the legal rate on the cases. Article 29 working party procedures relating to the termination of the contract 1-the resolution of the lease by the landlord or the tenant will be based on the failure of the other party, as provided for in article 17 and taking into account the provisions of articles 26 and 27, in communications between the parties. 2-communications between parties must spell out clearly, completely and founded the nature and extent of non-compliance and the date of knowledge of the facts and, when possible, attach a copy of proof if any and, when appropriate, an estimate of the amounts to be consider by way of compensation for termination of employment. Article 30 procedures regarding opposition to the renewal or termination of the contract 1-opposition to the renewal or termination of the lease agreements must take place in writing, under the conditions laid down in articles 26 and 27 and under the conditions laid down in article 19 2-communications between parties must spell out clearly and completely, if possible with presentation of evidence the justification for the termination of the contract.

38 3-in the cases referred to in paragraphs 6 and 9 of article 19 it is up to the tenant to present the rationale and evidence that support, in the first case, the need for termination of the contract and, in the second case, the opposition to the termination of the contract. 4-In any case, the landlord and the tenant may oppose the gross weight of the termination of the contract by the other party provided that, in the action brought within 60 days after the notification referred to in paragraph 1, showing the lack of grounds for complaint. Article 31 right of preference 1-When the termination of the lease, because not attributable to the tenant, this enjoys the right of preference in lease agreements concluded within five years. 2-in case of sale or restitution in compliance of buildings which are the subject of agricultural or forestry lease, to the respective tenants whose contract in force for more than three years, has the right to prefer in the transmission. 3-the right of first refusal of the tenant as provided for in the preceding paragraph expires, before the exercise of the same right, co-heir or comproprietário. 4-where the lessee exercises the right of first refusal referred to in paragraph 2, has to explore the building, or in the case of a legal person, for himself or society of the same corporate group, as its owner for at least five years, except in cases of force majeure, duly established. 5-In case of non-compliance with the provisions of the preceding paragraph, the purchaser is required to pay to the previous owner the value equivalent to five times the last income and to convey the property to the deprecated with the exercise of choice, if it so wishes, for the purchase price of the building.

39 6-in the case of the judicial exercise of the right in paragraph 2, the price is paid or deposited within 30 days after the final transit of their sentence, under penalty of forfeiture of the right and of the lease. 7-shall be exempt from the payment of Municipal tax on real estate Disposals (IMT) all disposals of rustic buildings in favor of their respective tenants, provided there is a written contract for at least three years, and it is the knowledge of the finance services in the area of residence of the landlord or the seat of the legal person. Article 32 1 dump Action-the eviction action is intended to end the legal situation of the lease where imposing recourse to judicial process to promote such termination and follows the form of common declarative process. 2-pending eviction action, rents due must be paid or deposited, in legal terms. 3-If the lessee fails to pay or deposit the rent due for a period exceeding six months is notified to, within 10 days, proceed to your payment or deposit. 4-If, within that period, the amounts referred to in the preceding paragraph are not paid or deposited, the landlord can ask for a certificate from the record on these facts. Article 33 1 enforcement-not the building vacated in due date by law or by Convention of the parties, can serve as a basis for the implementation to deliver right thing, the lease, accompanied by the proof of communications provided for in this decree-law, relating to the termination of the lease.

40 2-the lease is enforceable for rent, when accompanied by proof of communication to the tenant of the amount owed. Article 34 1 conflict resolution-the possible conflicts that may arise between the parties relating to the application, interpretation and integration of emerging gaps of the lease may be resolved by arbitration agreement, pursuant to law No. 31/86 of 29 August. 2-submission of any matter to the dispute resolution process provided for in the preceding paragraph does not determine any disruption of development activities in the lessee under the lease, or the carrying out of the landlord's actions for the conservation and improvement of the building. Article 35 forms of process 1-The legal proceedings referred to in article 31 have as a matter of urgency, follow the ordinary procedure or contents, depending on the value and, while pending, cannot achieve-if the delivery of the building landlord based on termination of the contract. 2-court proceedings relating to disputes of termination and transmission of the lease and the implementation of conservation actions, repair and improvements of rustic buildings leased are as a matter of urgency and follow the process form contents, unless another is expressly provided for.

41 3-is always admissible appeal to the Court of appeal as to the matter of law, without prejudice to the ordinary resources, depending on the value of the action, always having suspensive effect to the appeal of the ruling that decrees the refund of the building. 4-in the cases provided for in paragraph 5 of article 28 shall apply the procedure laid down in article 1429.º of the code of Civil procedure, which is a matter of urgency, and not appeal. 5-No legal action can be received or proceed under penalty of termination of the instance, if not accompanied by a copy of the contract, when required, unless soon claimed that is attributable to the opposing party. CHAPTER VII transitional and final provisions article 36 1-Partnerships the partnership contracts and mixed contracts leasing and partnerships. 2-partnership contracts and mixed contracts leasing and partnerships existing at the date of entry into force of this decree-law shall be converted into rural leases in the 30 days prior to your renewal. 3-in case you haven't been agreed any duration for contracts of partnership and mixed contracts leasing and partnerships existing on the date of entry into force of this decree-law, the same shall remain valid until the termination of the contract by agreement between the parties, or at the initiative and wishes, or death of partner grower.

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4-the preceding paragraphs shall not apply to livestock, partnerships for these articles 1121.º to 1128.º of the Civil Code. 5-are not covered by the prohibition in paragraph 1, the forest leases, which establish, in conjunction with a fixed income, a portion of the variable income, calculated on the basis of the value of forest production, pursuant to article 11 article 37 Lease within the framework of reparcelling operations Without prejudice to the provisions of article 36 of Decree-Law No. 103/90 , March 22, the buildings acquired for the reservation of land can be leased for a period of less than six years, taking the form of agricultural leases or tenancies of campaign, in accordance with the will of the parties and taking into account the subject of the lease. Article 38 preparatory work and outstanding fruit crops 1-unless the contract or agreement between the parties, the lessee is entitled to perform all practices necessary for the collection, use and processing of pending fruits, albeit outside the period outgoing lease. 2-the rustic building leased dump cannot take place before the end of the agricultural year after the judgment, and without that is safeguarded the right to harvest the fruits of the lessee's outstanding, except forestry lease, in which apply the provisions of paragraph 3 of article 15-3 in the last year of the lease , the tenant cannot oppose the carrying out of the work essential to the normal exploitation of the Earth, to be carried out by the new grower, without prejudice of the right in respect of the harvest of fruits.

43 article 39 Application in time 1-rural lease contracts concluded as from the date of entry into force of this decree-law, applies necessarily and in full the system it provided for. 2-lease agreements, existing at the date of entry into force of this decree-law applies the regime prescribed therein, in accordance with the following principles: a) the new regime only applies to existing contracts from the end of the term of the contract, or of its renewal, in progress; (b)) the new scheme does not apply to cases pending in court which, at the date of its entry into force, have already been decided in first instance, even if not final, except for the nature interpretative standards; c) Until the end of the period, in course of contracts validly concluded under article 36 of law No. 76/77, of 29 September, does not apply the provisions of article 10 article 40 application to autonomous regions this decree-law applies to the autonomous regions of the Azores and Madeira, with the necessary adjustments to be made by regional legislative decree remain in force until the date of publication of this, the current legislation. " Article 41 Amendment of existing contracts The rural leases existing at the date of entry into force of this decree-law shall, at the time of renewal, be amended in accordance with the same.

44 article 42A 1 supplementary law us missing cases, provided they do not contradict the principles of the present Decree-Law, successively apply the rules relating to the lease and the rules of contracts in General, provided for in the Civil Code. 2-in cases not specified in this decree-law and concerning the part the same adjectiva applies the code of Civil procedure. Article 43 set Standard Except their validity for the purposes of article 41, the following shall be repealed: a) Decree-Law No. 385/88 of 25 October, amended by Decree-Law No. 524/99, of December 10; b) Decree-Law No. 394/88, of 8 November. Article 43 entry into force and effect 1-this decree-law shall enter into force 90 days after the date of its publication. 2-Notwithstanding the provisions of article 39, this decree-law shall take effect only in relation to existing leases on the date of its entry into force, after the same be changed under the terms established in article 41 Seen and approved by the Council of Ministers Prime Minister 45 the Minister of justice the Minister of economy and innovation Minister of Agriculture , Rural development and fisheries