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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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PROPOSED LAW NO. 269 /X

Exhibition of Motives

The current regulation of the renting of rustic buildings for the purpose of

development of agricultural and forestry activities was produced on the threshold of integration

full of Portugal in the European Communities and is enshrined in a set of

degrees of scope and differential complexity, distinguishing themselves for leasing for purposes

of agricultural or animal husbandry and the leasing for the forestry farm.

That legislation sought to stimulate the lease by assuring the funarian owner a

profitability of your investment and ensuring the renown the necessary stability to the

exercise of productive activity. It was intended to promote access to land by entrepreneurs

more dynamic agricultural and by all those who wished to create forestry wealth in their

broader concept.

Decorated more than 20 years, it is apparent that it is necessary to streamline the market of the

rural lease in order to combat the abandonment of agricultural land by mobilizing them

for productive activity, reducing public risks and promoting the conservation of the

natural resources, biodiversity and the rural landscape. The abandonment of agricultural land

increases, for example, the risk of fire and certain pests and diseases. On the other

side, we know that 90% of the existing natural wealth in the classified areas of the Natura Network

2000 depends on the maintenance of existing agricultural and forestry systems, being to be mentioned

that the proposed new scheme also contemplates the conservation activities of the

natural resources and the landscape, not domestically oriented towards the production of goods

mercantile.

Thus, it is intended to define a legal framework that best fits the rules and requirements of the

common agricultural policy, giving stability to agricultural and forestry activities that if

intends to be competitive, environmentally-friendly and promoters of social cohesion,

territorial and biodiversity. The amendment of the legal regime of the rural lease is

expressed in the Major Plan Options, as a way to streamline the market of

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lease of the land and facilitate its mobilization for productive activity with a view to the

promotion of the increase in the physical and economic dimension of farms and their

economic, social and environmental sustainability. In this sense, the new regime is more

flexible, privileging contractual agreements between the landlord and the lessee.

In the proposed scheme, the rent is fixed freely by agreement between the parties, in cash,

it may be agreed to the annual update coefficient and they cease to be fixed rents

national highs for joint porter of the members of the Government responsible for the

areas of finance and agriculture and forests.

The anticipation of rents may be agreed, which is an incentive to the lease,

especially in the case of forest leasing. It is also conferred the possibility of being

persuades a portion of the rent depending on the productivity of the building, which allows

to the lessees repartition the risk of investment with the landlords.

The contract shall include agricultural, animal husbandry and forestry activities and may be

covered in the movable property that the parties understand. They may also be included

activities producing goods and services associated with agricultural and forestry activities and

the parties may agree the transmission of production rights and rights to supports

financial in the framework of the common agricultural policy, which allows for an allocation more

efficient of productive resources and public supports, with increased competitiveness,

improvement of the management of rural spaces and diversification of agricultural activity.

The proposed new regime also safeguards the defence of older tenants.

In that sense, the guarantee of the opposition to the complaint by the lessee is hereby established when this

is more than 55 years old, has resided or used the building for more than 30 years and the earned income

of the building constitutes the main or exclusive source of household income.

The submitted proposal privileges the establishment of contractual agreements between the

landlord and the lessee, simplifies and consolidates existing legislation by adapting it to the new

economic, social and environmental reality.

Consultations have been triggered on the self-governing bodies of the autonomous regions.

Consultations have been triggered to the National Association of Portuguese Municipalities and the

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National Association of Freguesias.

Thus:

Under the terms of the paragraph d) of Article 197 (1) of the Constitution, the Government presents to the

Assembly of the Republic the following proposal for a law:

Article 1.

Subject

It is the Government authorized to establish a new legal regime of the rural lease.

Article 2.

Sense

The present legislative authorization bill is granted to approve the new regime of the

rural lease, which codifies and simplifies the legislation regarding the lease

agricultural, forestry and campaign, forecasting the establishment of contractual agreements between

the landlord and the lessee, in particular with regard to the objectives of the contract of

renting and the value of the rent and relaxation the devices for the duration of the

tenancy.

Article 3.

Extension

The extent of the legislative authorization granted is as follows:

a) The definition of rural tenancy as the lease, total or partial, of buildings

rustic for agricultural, forestry or other production activities of goods or

services associated with agriculture, animal husbandry or forest.

b) The presumption that the joint renting of a rustic part and a part

urban is considered rural, except where the contrary is expressly

declared by the contracting parties;

c) The possibility of the lease to cover, in addition to the terrain and vegetation, the

constructions and infrastructure customarily intended for the purposes of the

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normal and regular operation of the located buildings, the tenant's housing and the

development of other economic activities associated with agriculture and the

forest, including the conservation activities of natural resources and the

landscape and still other goods, specifically machinery and equipment;

d) The presumption that they are included in the lease all immovable property

existing in the rustic building the subject of renting;

e) The possibility that, at the will of the parties, they are also considered in the

contract the transmission of production rights and rights to financial supports in the

scope of the common agricultural policy associated with the rustic buildings subject to the

contract;

f) The consideration, in the tenancy agreements, not only of agricultural activities and

forestry but also from other production activities for goods and services with the

same related;

g) The mandatory existence of written contract and the fixation of the rent in

money, as well as from the delivery of the original of the contract in the finance services of the

residence or social seat of the landlord;

h) The determination that they are null and void the contractual clauses in which:

i) The lessee becomes oblige to the payment of fire insurance premium

of buildings or facilities and infrastructure not included in the contract,

as well as from taxes, contributions or incident fees on real estate

object of the contract and which are due by the landlord;

ii) Any of the counterprotesters waive the right to ask for complaint or resolution

of the contract and the claims that are due in the cases of violation of

legal or contractual obligations;

iii) The lessee waives the right to renew the contract or to get obried

in advance of their complaint;

iv) The lessee obliges itself, by any title, to services that do not revert to

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direct benefit of the building, or subject yourself to extraordinary charges;

i) The determination of which the rural lease contract, and its changes, does not

are found to be subject to registration and are exempt from paying tax

of stamp and any other tax or fee.

j) The consecration, as a norm, that the duration of the tenancy agreement is

agreed between the parties on the basis of the following principles:

i) Agricultural leases cannot be contrupdated by lower term

seven years, being renovated by successive periods of at least seven years,

presumed to be seven years if there is no fixed other, while the

even not to be denounced;

ii) Forest leases cannot be celebrated for higher periods

to 70 years or less than seven years, lapse at the expiry of the term, save

contract clause or express agreement between the parties;

iii) Campaign leases cannot be celebrated by higher deadlines

to six years, presumed to be one year if another deadline is not agreed, and

lapse, unless agreement between the parties, at the expiry of the deadline.

l) The forecast that the rent is annual, corresponds to a pecuniary benefit,

the respective payment may be anticipated, with its value being set by

agreement between the landlord and the lessee and owing the respective update to be

carried out on the basis of the annual updating coefficient of the Institute's renowned

National of Statistics, in the case of such a device not appearing in the contract;

m) The prediction of the transmissibility of the lease in certain cases, and of the

exercise of the right of preference in certain circumstances;

n) The clarification of the regime of constitution and cessation of the tenant in arrear,

by means of the application of the following standards:

i) Unless otherwise clause, the lessee must pay the rent until the last day

of the period to which you respect, at the domicile or registered office of the landlord;

ii) The lessee may cease to live within 60 days without payment of

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compensation or resolution of the contract;

iii) The landlord is entitled to ask for the settlement of the contract in the cases of mora

higher than six months.

o) The determination that the rural lease can cease by agreement between the

parts, by resolution, lapse, opposition to the renewal or denunciation of the contract,

having in particular the following:

i) The resolution may be requested by any of the parties on the basis of

non-compliance with the contract by the other party;

ii) Termination by expiry may happen when it finishes the deadline and there is no

place the automatic renewal, in the cases of expropriation of the buildings, when

the holder of the possibly existing right of transmission does not exercise it in

timely and when to cesse the right or terminate the legal powers of

administration on the basis of which the contract was concluded;

iii) The cessation by opposition to renewal can happen on the initiative of the

landlord or tenant with the advance of one year in respect of the

term of the term of the lease or its renewal;

iv) Termination by denunciation may happen when the lessee intends to

abandon the agricultural or forestry activity or the building or buildings, by

motifs alheios at your will, do not allow for a viable exploitation

economically.

p) The densification of regulation with regard to conservation, recovery and

beneficiation of the rustic buildings object of lease form to

be clear the accountability of the parties and with a view to ensuring the efectiveness of the

works of conservation and recovery, as well as the necessary and useful benefactions to the

profitability and the sustainable use of buildings;

q) The determination that legally required communications between the parties are

concretized in written form signed by the declarant and referred to by letter

registered with notice of receipt;

r) The establishment of the possibility of, in the legally required communications between

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the parties, be admissible the use of procedures by electronic means, duly

validated by qualified electronic signature;

s) The safeguarding of the defence of older tenants and with situations of

older tenancy and, in many cases, no written contracts, guaranteeing the

possibility of opposition from the lessee regarding the situations of denunciation of the

contract by the landlord, in particular when the lessee is more than 55 years old

and resided or use the building more than 30 years ago and the yield obtained from the building

constitute the main or exclusive source of income of your household;

t) The prediction that the lawsuits regarding the right of preference have

character of urgency, follow the terms of ordinary or summary proceedings,

depending on the value, and that, in its pendency, it cannot be carried out the delivery of the

building to the landlord on the basis of denunciation of the contract;

u) The prediction that the legal proceedings regarding cessation disputes and

transmission of the tenancy agreement and the realization of conservation actions,

repair and benfeasis of the leased rustic buildings have an urgent character and

follow the form of summary process, unless another is expressly provided for;

v) The prediction of the admissibility of the appeal to the court of Relation as to the

matter of law, without prejudice to the ordinary resources, depending on the value of the

action, having always suspenseful effect the interpost appeal of the sentence that decrees

the restitution of the building;

x) The determination that no legal action can be received or to proceed,

under penalty of extinction of the instance, if it is not accompanied by an exemplar of the

contract, when required, unless it is soon to be randomly charged that the lack is attributable to the

contrarian part;

z) The determination that they become exempt from the Municipal Tax payment on

Onerous Transmissions of Real Estate (IMT) all onerous transmissions of

rustic buildings in favour of the respective tenants, provided there is contract

written for at least three years, and the same is from the knowledge of the services of

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finances of the residence area of the landlord or the registered office of the legal person;

aa) The prediction that the eviction of leased rustic building cannot take place before

of the term of the agricultural year subsequent to the sentence, and without which is safeguarded the

right to harvest the outstanding fruits on the part of the lessee;

bb) The prediction of in the course of the last year of the lease, the lessee does not

be able to oppose the realization of the indispensable work to the normal

of the land, to be carried out by the new cultivator, without prejudice to the right which it assists in

outstanding fruit harvesting matter;

cc) The determination of the mandatory conversion of the partnership contracts and the

mixed leasing contracts and partnership in rural lease contracts,

excluding from this device the livestock partnership;

dd) The prediction of the application of the new regime to contracts concluded after its

entry into force and the application to the currently existing contracts at the end of the

their respective time frame, or their renewal through the introduction of the necessary

changes.

Article 4.

Duration

The authorisation granted by this Law shall be for the duration of 90 days.

Seen and approved in Council of Ministers of April 2, 2009

The Prime Minister

The Minister of the Presidency

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The Minister of Parliamentary Affairs

The regulation regarding the renting of rustic buildings for the purpose of

development of agricultural and forestry activities is currently enshrined in a

set of diplomas of scope and differential complexity and in some cases unadjusted

of agricultural and forest reality. The present schemes, approved after our accession to the

European Communities in 1986, find themselves unsettling in the face of changes

significant occurred in Portugal, following the dynamics verified in the structure

economic and social national and the evolution of community policies, continuing the

to be characterised by lack of flexibility, excessive regulation and unsuitability to

reality of the market of land and agricultural and forestry development.

A suitable renting regime of the rustic buildings for the development of

agricultural, animal husbandry and forestry activities allows to improve the structure of the farms

agricultural and forestry with a view to their economic viabilization and land use

agricultural countering the trend towards its abandonment, with its consequences

nefarious for the economy, social and territorial cohesion and environmental risks.

It is in this perspective, and in fulfillment of the enshrined in the Grand Options of the Plan, that

it becomes necessary to make the amendment of the scheme of the rural lease, in the sense of

to streamline the land rental market and facilitate its productive mobilization, with

a view to promoting the increase in the physical and economic dimension of agricultural holdings,

ensuring their economic, social and environmental sustainability. In this sense, they are

promoted changes conducive to the relaxation of the rental market,

privileging the agreement between the contracting parties.

On the other hand, there is a need to redefine, and in some cases eliminate, processes and

excessive regulatory procedures, rigid and, or, untuned, in a perspective of

legislative simplification and flexibility.

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The present decree-law has as fundamental objectives aggregating regulation

on the renting of rustic buildings dispersed by various diplomas, simplify and

consolidate the existing legislation, adapt it to the new economic, social and environmental reality and

Privileging the establishment of contractual agreements between the landlord and the lessee, with

the consequent elimination of the devices that allowed or determined the intervention

of the State.

Thus, the present Decree-law establishes the legal regime to which it is subject to

renting of rustic buildings for the purpose of development of agricultural activity and

or forestry and other activities with the same related ones, highlighting how

core elements of the new regime:

a) The consecration of the existence of three types of rural tenancy: agricultural, forest and

of campaign;

b) The consideration not only of agricultural and forestry activities but also of other

production activities of goods and services with the same related ones in the

rural tenancy contracts;

c) The possibility that, at the will of the parties, they are also considered in the

contract the transfer of production rights and other rights arising from the

common agricultural policy associated with the rustic buildings the subject of the contract;

d) The mandatory existence of written contract and the fixation of the rent in

money, as well as from the delivery of the original of the contract in the finance services of the

residence or official seat of the landlord;

e) The consecration, as a norm, that the duration of the tenancy agreement is

agreed between the parties on the basis of the following principles:

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i) Agricultural leases cannot be contrupdated by lower term

seven years being renovated by successive periods of at least five

years, presumed to be seven years if there is no fixed other, while

the same are not denounced;

ii) Forest leases cannot be celebrated for more than 70 years,

not less than seven years, lapse at the expiry of the term, save clause

contractual or agreement expressed between the parties;

iii) Campaign leases cannot be celebrated by higher deadlines

to six years, presumed to be one year in case it has not been established, and

lapse, unless agreement between the parties, at the expiry of the deadline.

f) Establish that the value of the rent is fixed by agreement between the landlord and the

tenant, and the respective update shall be carried out on the basis of the

coefficient of annual updating of the reners of the National Institute of Statistics in the

case of such a device not appearing in the contract;

g) To clarify the regime of constitution and cessation of the tenant in mora;

h) To determine that the rural lease may cease by agreement between the parties, by

resolution, expiry or denunciation of the contract;

i) Develop regulation with regard to conservation, recovery and

beneficiation of the rustic buildings object of lease form to

be clear the accountability of the parties and with a view to ensuring the efectiveness of the

conservation and recovery interventions, as well as the necessary and useful works

the profitability and the sustainable use of the buildings;

j) Make it mandatory to convert the partnership contracts and mixed contracts from

renting and partnering in rural lease agreements, excluding this

device the animal husbandry partnerships and the forest holding;

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l) Safeguarding the defence of older tenants, with situations of

older tenancy, with exclusive or mainly earned income

from the leased buildings and without written contracts, guaranteeing the possibility

of opposition from the lessee regarding the situations of denunciation of the contract

by the landlord, in particular when the lessee is more than 55 years old and resides

or use the building more than 30 years ago and the yield obtained from the building constitutes the

primary or exclusive source of income for your household.

The self-governing bodies of the Autonomous Regions were heard,

The National Association of Portuguese Municipalities and the National Association were heard

of Freguesias.

They were still heard, by the optional title, the representative organisations of the farmers and

of the forest producers.

Thus:

In the use of the legislative authorization granted by the ___/___ Law of ___, and pursuant to the

point ( a) and b) of Article 198 (1) of the Constitution, the Government decrees the following:

CHAPTER I

General provisions

Article 1.

Subject

The present decree-law establishes the New Regime of Rural Tenure.

Article 2.

Rural lease

1-Rural tenancy is the lease, total or partial, of rustic buildings for agricultural purposes,

forestry or other activities of production of goods or services associated with agriculture,

to animal husbandry or the forest.

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2-The renting that falls on rustic buildings, when of the contract and their respective

circumstances does not result in different fate, it is presumed to be rural tenancy.

3-The joint tenancy of a rustic part and an urban part is considered

rural except when expressly declared in a different sense by the parties.

Article 3.

Types

1-Rural tenancy may be of the following types:

a) Agricultural tenancy;

b) Forest tenancy;

c) Campaign lease.

2-A total or partial leasing of rustic buildings for agro-forestry purposes

takes on the nature of agricultural, campaign or forest leasing according to the

will of the parties expressed in the tenancy agreement.

3-When, in the case provided for in the preceding paragraph, the parties did not express their will, the

tenancy considers itself agricultural.

Article 4.

Goods covered

1-Rural tenancy covers the land, waters and vegetation, and, when it is the

willingness of the parties expressly stated in the contract, may cover:

a) The constructions and infrastructure customarily intended for the purposes of the

normal and regular operation of the located buildings;

b) Tenant housing and the development of other economic activities

associated with agriculture and forest, including the conservation activities of the

natural resources and the landscape;

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c) Other goods, specifically machinery and equipment, and shall in this case be

attached to the contract an inventory of the same with indication of the respective

state of conservation and functionality.

2-Unless otherwise contractual clause, presumed to be included in the renting all

the existing immovable property in the rustic building object of lease.

3-Rural tenancy may also integrate the transmission of production rights and

rights to financial supports within the framework of the common agricultural policy, without prejudice to the

respective compliance with the legislation on the transmission of these rights,

constants of the respective applicable special regimes.

4-For the purposes set out in paragraph 1, activities are considered to be associated with agriculture and

to the forest:

a) The services provided by tourism ventures in the rural area and the

touristic animation activities developed in the subject buildings of the

tenancy;

b) The activities of processing and, or, marketing of production products

own obtained exclusively from agricultural or forestry activities

developed in the subject buildings of the lease;

c) The apicultural and kinetic activities, when developed in the buildings subject to

tenancy;

d) The conservation activities of natural resources and landscape, not targeted

dominantly for the production of mercantile goods.

5-The activities and services provided for in the preceding paragraph shall comply with the requirements

set out in specific legislation.

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Article 5.

Other definitions

For the purposes of the provisions of this decree-law, it is understood to be:

a) "conservation actions", the actions that are aimed at keeping the

characteristics and fundamental potentials of the building and consequently the

respective productive capacity;

b) "Recovery actions", the actions that they aim to promote and

guarantee the recovery of the fundamental characteristics and potential of the building

object of destruction or deterioration, due to unforeseeable circumstances and

abnormalities, alheys at the will of the lessee;

c) "Agricultural activity", the production, cultivation and harvesting of agricultural products, the creation

of animals and production of goods of animal origin and the maintenance of land in

good agricultural and environmental conditions;

d) "Agro-forestry activity", the agricultural and forestry activities developed in the

even building and under single management, specifically the silvo-pastoril and the

development of annual under-covered forest crops;

e) "Forestry activity", the installation, conduction and operation of stands

forest on bare or covered land of spontaneous vegetation, the driving and

exploitation of already existing forest stands, the installation and operation of

forest nurseries, the constitution or extension of conservation areas and all the

activities associated with the development, maintenance and exploitation of the

stands and forest nurseries;

f) "agricultural year", the period that starts November 1, ending 31 of

October of the following year, when no other date is convenor by the parties;

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g) "Agricultural tenancy", the total or partial lease of rustic buildings for purposes

agricultural;

h) "Campaign Lease", the total or partial lease of rustic buildings to

operating effects of one or more cultures of a seasonal nature;

i) "forest tenancy", the total or partial lease of rustic buildings for purposes of

forest exploitation;

j) "Benefits necessary", the expenses incurred for the purpose of avoiding loss,

destruction or deterioration of the rustic building, or of the urban, if it is included in the

contract, and, consequently, safeguard its productive characteristics

key, being the conservation and recovery actions considered for

the effects provided for in this decree-law as necessary benfeuals;

l) "useful Benfeons", the expenses which, taking into consideration the object of the contract

of leasing, determine the development and improvement of capacity

productive of the building, and, consequently, its value;

m) "Unforeseen and abnormal circumstances", the unpredictable occurrences, outside the

context of geo-climatic behavioural normality, and other circumstances

abnormal, such as climatic calamities, floods, geological accidents and

ecological, fires;

n) "Partnership contract", the contract by which one or more persons, the partner

owner, deliver to the other or others, the thinker partner or cultivator, to

these create and, or, explore, animals and, or, rustic buildings, with the adjustment of

to repartition with each other the future profits in a certain proportion;

o) "Permanent crops", agricultural crops, not integrated in rotation, with

exclusion of permanent pastures, which occupy the lands for five years or more,

and give rise to several harvests;

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p) "Seasonal crops", the cultures practiced under special conditions and according to

a circumscribed cultural calendar at a time of the year, usually on the basis of

a campaign for each cultural sheet;

q) "Exploitation in talhadia", the type of forestry operation activity, in which they are

used, more often, short and medium rotations, and which is based on the

ability to, after the cutting of the forest, the species that constituted it if

regenerate by vegetative pathway.

CAPITCHAPTER II

Form and duration of the tenancy agreement

Article 6.

Form of the contract

1-Rural leases are compulsorily reduced to written, constants of the

same the complete identification of the contracting parties, the indication of the number of

tax identification and their respective abode of residence or registered office, as well as the

complete identification of the building or buildings subject to the lease.

2-A non-reduction in writing of the concluded or renovated rural rental contracts

in the duration of this decree-law generates its nullity.

3-Within 30 days, counted as of the date of conclusion of the contract of

agricultural or forest leases, the landlord delivers the original of the contract in the

finance services of your residence or registered office, which communicate the delivery to the

respective regional direction of agriculture and fisheries, in the case of agricultural leavening

or of campaigning or the respective regional direction of forests, when dealing with

forest leasing.

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4-Rural tenancy contract is not subject to registration and is exempt from payment

of stamp duty and any other tax or fee.

5-The provisions of the preceding paragraphs shall apply, with the necessary adaptations, to

changes to the contract.

6-A The communication referred to in paragraph 3 is carried out preferentially through means

electronic.

7-A lack of delivery of the original of the contract in the finance services mentioned in the n.

3 gives way to the application of the fine laid down in Article 117 (1) of the General Regime of the

Tax Offences, passed by Law No. 15/2001 of June 5.

Article 7.

Elements of the contract

1-The rural lease contract is reduced in writing.

2-Are mandatory elements of the rural lease contract:

a) The complete identification of the parties;

b) The identification of the good, the subject of renting;

c) The end to which it is intended;

d) The stipulated value for income;

e) The indication of the date of celebration.

3-In case there are movable goods that form an integral part of the contract, they shall owe the same

listed in the annex, with its detailed description, specifically, the state of

conservation and functionality.

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Article 8.

Null clauses

They are void the contractual clauses in which:

a) The lessee obliges itself to the payment of insurance premium against fires of

buildings or facilities and infrastructure not included in the contract, well

as from taxes, contributions or incident fees on the subject real estate

contract and which are due by the landlord;

b) Any of the counterprotesters waive the right to ask for denunciation or resolution of the

contract and claims that are due in the cases of breach of obligations

legal or contractual;

c) The lessee waives the right to renew the contract or to get obried

in advance of their complaint;

d) The lessee obliges itself for any title to services that do not revert to

direct benefit of the building or subject to extraordinary charges;

Article 9.

Term of the lease

1-The contracts for agricultural leases are concluded by a minimum term

of seven years.

2-When, in the contracts referred to in the preceding paragraph, it was not fixed term or the

term set to be less than seven years, it is considered that the same are concluded from

agreement with the provisions of the preceding paragraph.

3-Agricultural leases are automatically renewable by successive periods of

seven years, unless contractual provision to the contrary, while the same is not

denounced under the terms of this decree-law.

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4-Forest leases may not be concluded by a period of less than seven years,

not more than 70, considering modified for these limits the divergent deadlines

that hajam has been fixed.

5-Campaign Leases cannot be concluded by deadlines above six

years, considering it reduced to this limit the upper time limit that has been fixed, and

assume of a year if no time has been established.

6-Unless contractual clause or the express agreement of the contractors, the contracts of

forest and campaign lease do not renew automatically in the term of the

term of the contract.

7-Can be convened and, on the initiative of the lessee, reduced in writing, the amendment

of the date of termination of the contract, in the following circumstances:

a) When the lessee will carry out, with permission of the landlord, investments of

development, improvement or cultural conversion or works of benefit in the

building;

b) When in the course of an agricultural or forestry leasing contract, they occur

unforeseen and abnormal circumstances, alheiances to any of the parties, which cause the

loss of more than one third of the plantations of permanent crops or plantation

forest explored and seriously jeopardize the economic return of that

exploration.

Article 10.

Sublease

1-Is prohibited the sublease or ceding by comodate or any other form,

in whole or in part, from the leased buildings, or still ceding to third parties of the position

contractual of the lessee, unless there is an express agreement with the landlord for the

effect.

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2-To the sublease cases authorized by the landlord applies, with due

adaptations, the provisions of this decree-law for the tenancy agreement.

CAPITCHAPTER III

Income

Article 11.

Annual income

1-A rent is annual, previously stipulated and corresponds to a pecuniary benefit.

2-A rent may be amended pursuant to this decree-law.

3-Within the scope of forest tenancy agreements, the parties may agree to the fixation

of a portion of the variable income depending on the productivity of the building.

4-Unless otherwise clause, the payment of the rent must be made up to the last day

of the year to which you respect, at the domicile or registered office of the landlord at the date of due date,

finder which one considers the lessee in mora.

5-Unless stipulation to the contrary, the annual updating coefficient of rents is the

resulting from the totality of the variation in the consumer price index, without housing,

corresponding to the last 12 months and for which there are values available to date

of August 31, ascertained by the National Institute of Statistics, and published in the Journal

of the Republic by October 30 of each year.

6-When, in the leased building, and during the period fixed in the contract, the landlord

realize, with the express agreement of the lessee, works of beneficiation, excluding the

recovery actions of the building, can be convened, on the initiative of the landlord,

a change in the rent, which is lacking in the express agreement of the lessee, without prejudice to the

provisions of the previous number.

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Article 12.

Change in the value of income by occurrence of unforeseeable circumstances and

abnormal

1-When in the leased rustic building, and during the period fixed in the contract, if

check, for unpredictable circumstances and abnormalities alheys at the will of the

tenant, changes with significant impact on regular and normal capacity

productive of the building, can be convened, at the initiative of either party, a

temporary or permanent alteration of the rent, without prejudice to the provisions of the previous article.

2-In the case of forest tenancy and permanent agricultural crops, it is presumed

that the occurrence of unforeseeable and abnormal circumstances causes alterations with

significant impact on the regular and normal productive capacity of the building, whenever

those circumstances cause the loss of at least one third of the plantations of the

permanent crops or the forest plantation explored in the building.

Article 13.

Mora of the lessee

1-Constituting the tenant in arrear, the landlord has the right to demand, in addition to the

rents in arrears, an indemnity equal to 50% of what is due, save if the contract

is resolved on the basis of the lack of payment.

2-Cesses the right to compensation, or to the resolution of the contract, if the lessee makes a cessation

you live within 60 days of your start.

3-It is inchargeable to the landlord the maintenance of the lease in the event of a superior living

six months in the payment of the rent.

24

4-As long as the obligations referred to in paragraph 1 are not fulfilled, the landlord has the

right to refuse the receipt of the following renown, which are considered in

debt for all effects.

5-A The reception of new rents does not deprive the landlord of the right to the resolution of the contract or

the indemnity referred to, on the basis of the benefits in mora.

6-The tenant can put an end to the mora by offering the landlord the payment of the renowned

in arrears, as well as the compensation set out in paragraph 1.

7-In the face of the refusal of the landlord to receive the corresponding importances, may the

tenant to resort to the consignment in deposit.

Article 14.

Deposit of rents in arrears

1-The lessee may proceed to the deposit of the rent when the assumptions of the

consignment in deposit, when it is allowed to make cessation of the mora and still when

is pending eviction action.

2-The deposit is made at any credit institution agency, in the face of a document

in two copies, signed by the lessee and of which they are listed:

a) The identity of the landlord and the lessee;

b) The identification of the locus;

c) The quantitative of income;

d) The period of time to which the income respects;

e) The reason for which deposit is requested.

25

3-One of the copies of the document referred to in the preceding paragraph shall be in power of the

credit institution, by cabling the other to the depositor, with the voucher of having been

carried out the deposit.

4-The deposit is to the order of the court of the situation of the building or, when carried out in the

pendency of judicial process, of the respective court.

5-The lessee shall communicate to the landlord, in writing, the deposit of the rent.

CAPITCHAPTER IV

Cessation and transmission of the lease agreement

Article 15.

Forms of termination of the contract

1-The rural renting ceases by agreement between the parties, by resolution, by expiry,

by complaint or by any other form provided for in the law.

2-In cases of termination of the contract provided for in this Decree-law, the restitution of the

building may only be required at the end of the ongoing agricultural year in which they are

verified the facts that determined the termination of the contract, with the exception of the

leased buildings for the purpose of forest exploitation.

3-In the case of forest leavening, the procedures to be adopted in respect of

lumpy material and outstanding fruit by virtue of any of the forms of cessation of the

contract provided for in this Decree-Law shall be agreed between the Parties to the

lease agreement.

Article 16.

Termination by agreement between the parties

1-The parties may, at all times, revoke the contract, upon agreement.

26

2-The agreement referred to in the preceding paragraph shall be concluded in writing, when it is not

immediately executed or when it contains countervailing or other clauses

accessory clauses.

Article 17.

Cessation by resolution

1-Any of the parties may settle the contract on the basis of default by the other

part, which, by its gravity or consequences, makes it inchargeable to the other party to

maintenance of the lease, or significant alteration of nature and or capacity

productive of the building.

2-The landlord can only ask for the resolution of the contract if the lessee:

a) Do not pay the rent on time and place of your own, nor make the payment on the terms

provided for in Article 11 (4);

b) Fail to comply with a legal or contractual obligation, with direct injury

for the productivity, substance or economic and social function of the building;

c) Do not use properly and with regularity the building or use the same for

purposes other than that stipulated in the contract;

d) Not to ensure the good preservation of the goods or cause serious damage to us, not

being the subject of the contract, exist in the leased building;

e) Carry out, without consent of the landlord, investments in works or constructions

that change the nature, the geophysical structure and the essential characteristics of the building,

without prejudice to the provisions of Chapter V of this decree-lei;

f) To sublease or indulge in comodate, in whole or in part, the leased buildings,

or give in to its contractual position, without compliance with the legal obligations;

27

3-The landlord may, still, ask for the settlement of the contract in case, within six

months counted from the date death of the lessee, is not notified by the holders of the

right to the transmission of the lease, of the intention to maintain it.

4-It is grounds for resolution by the lessee:

a) The reduction or alteration of the productive capacity of the building by unpredictable causes

and abnormality, not likely to be covered by insurance, except in cases of the

forest stands and plantations of permanent crops;

b) The occurrence of unforeseen and abnormal circumstances that cause the loss of more

of one-third of the plantations of the permanent crops or forest plantation and that

seriously jeopardize the economic return of such exploitation, in the case of

agricultural or forestry leases;

c) The non-realization, by the landlord, of works that this fall, when such omission

undertakes the normal and regular use and fruition of the leased buildings;

d) The expropriation, albeit partial, of the building.

5-A resolution must be communicated within the six-month period for contracts with

duration up to two years and one year for the remaining contracts, from the date of

knowledge of the fact that it serves as a foundation, under penalty of expiry.

6-Applies to the resolution of the contract for lack of payment of the rent the provisions of the article

1048. of the Civil Code, with the necessary adaptations.

Article 18.

Cessation by expiry

1-The tenancy agreement lapses when:

a) End the stipulated time limit, there will be no place for renewal, according to the established

in the present decree-lei;

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b) To either terminate the right or terminate the legal powers of administration on the basis of which the

contract has been concluded, without prejudice to the provisions of Article 1052 of the Code

Civil;

c) Expropriation occurs, except if expropriation is compatible with subsistence

of the contract.

2-A expropriation of the totality of the leased building matters the expiry of the contract of

rural lease.

3-Should the expropriation be total, the lease is considered to be an autonomous charge

for the purpose of compensation of the lessee by the expropriant.

4-In the calculation of the compensation referred to in the preceding paragraph, in addition to the values of the fruits

outstanding or from unutilized harvests, still meets the value of invested capitals and

too much emerging damage from the cessation of the lease, calculated in the general terms

of law.

5-Should the expropriation be partial, the lessee, without prejudice to the provisions of the number

previous with respect to the expropriated party, may opt for the resolution of the contract or

by the proportional reduction of income.

Article 19.

Cessation by denunciation

1-The tenancy agreement cesses by opposition to the renewal or by denunciation of a

of the parties, upon written communication.

2-A opposition to the renewal or termination of the tenancy agreement includes

compulsorily all of its object.

3-The landlord or the lessee may object to the renewal of the lease agreement,

with the advance of one year in respect of the term of the term of the lease or the

its renewal, without prejudice to the provisions of paragraph 9.

29

4-In the case of agricultural leasing contracts by emigrant landlord, can this

report the contract, in advance of one year, from the third year of the

lease contract or its renewal, with no possibility of opposition by party

of the lessee, except in the case provided for in paragraph 9, provided that it fulfils cumulatively

the following conditions:

a) To have been he who leased the building or acquired it by succession;

b) Need to return or have permanently returned to Portugal there is less than

one year;

c) Want to explore directly the leased building.

5-The lessee may denounce the contract, with no possibility of opposition on the part of the

landlord, in the cases of abandonment of agricultural or forestry activity or when the building

or buildings that are the subject of the lease, for reasons alheas to their will, do not allow

the development of agricultural or forestry activities economically

balanced and sustainable.

6-In the case provided for in the preceding paragraph, the lessee shall notify the landlord with the

in advance of one year.

7-The landlord that there is an invocation of the grounds referred to in paragraph 4 shall be obliged, save

case of force majeany, direct exploitation, by you or by member of your household

family, for a minimum term of five years.

8-In the event of failure to comply with the provisions of the preceding paragraph, the lessee whose contract

has been denounced is entitled to compensation equal to the quintuple of the relative renown

to the period of time the lessee was absent, and to the reoccupation of the building, if

so as to be desired by initiating another contract, to which the provisions of paragraph 1 of the

article 31 para.

30

9-The lessee may object to the effect of the opposition to the renewal or denunciation,

provided that it cumulatively meets the following conditions:

a) Be more than 55 years old and have been living or using the building for more than 30 years;

b) The yield obtained from the building constitutes the main or exclusive source of

income for your household.

10-In the event of termination of the contract by opposition to the renewal or denunciation of the landlord the

lessee is entitled to be indemnified:

a) By the benfeits carried out, in the terms provided for in Article 23;

b) By the plantations and betterment fundials that hajam made the building more

productive, carried out with the consent of the landlord;

11-You are still entitled to an indemnity corresponding to 1/12 of the annual income per each

year of contract, and the value of the indemnity may not be less than one year of rent,

in the cases provided for in paragraph 4.

Article 20.

Transmissibility

1-The tenancy does not lapse by death of the landlord nor by the transmission of the building,

case the successor of the lessee pursuits agricultural or forestry activity.

2-The tenancy does not lapse by death of the lessee, in the case of natural persons,

nor by extinction, in the case of legal persons, being that:

a) In the case of natural persons, the lease transmits itself to the surviving spouse

not separate from persons and goods or in fact, to the one at the time of his death

had been living with him for more than five years in conditions analogous to those of the spouses and the

relatives or related, in the recta line, who with the same lived in table communion

and housing or in common economy for more than a consecutive year;

31

b) In the case of legal persons, the lease transmits itself to the entity for

who, in accordance with applicable law, must be passed on the rights and

obligations of the extinct entity.

3-A transmission referred to in paragraph (a) of the preceding paragraph shall be defed by the order

next:

a) To the surviving spouse or to the person who lived with the tenant more than five

years in conditions analogous to those of the spouses;

b) To the relatives or related in the straight line, preferring the first ones to the seconds, the

descendants to the ascendants and those of a degree closest to those of the most estranged degree;

4-A transmission in favour of the relatives or the afins of the primitive lessee also if

check for death of the surviving spouse or of the person living with the lessee there is

more than five years in conditions analogous to those of the spouses when, under this

article, has been passed on the right to the lease.

5-There may be two transmissions mortis cause in the terms of the previous number or only

a, when the first transmission operates in favour of the persons referred to in points

b) of paragraph 3.

6-The holders of the right to transmission shall, within six months, notify the landlord

of the intention to exercise its right.

CAPITV V

Conservation and beneficiation of leased rustic buildings

Article 21.

General principle

1-The landlord and the lessee are obliged to allow and facilitate the realization of the shares

of conservation or reclamation, as well as the benfeits that the other party should or

intend to do, with the aim of ensuring the use of the building in compliance with

the purposes set out in the contract and in a perspective to improve the conditions of

production and productivity.

32

2-The actions of conservation or recovery and the benfeits referred to in the preceding paragraph

shall be carried out, where possible, during the period of the year that less

inconveniences cause to the lessee, unless the same are of an urgent nature and

inadible.

Article 22.

Conservation and recovery of the building

1-The lessee is obliged to conserve and, finder of the contract, to refund the building in the state

in which he received it, re-salvaged the changes inherent in an appropriate use of the

even in compliance with the purposes set out in the contract, under penalty of payment

of damages, pursuant to the general law, and without prejudice to the provisions of Articles 23 and

24., as far as the benfeits are concerned.

2-For the purposes of the preceding paragraph, it is understood by appropriate use, the exploitation of the

building in accordance with the techniques that prove necessary and appropriate to the execution of the

activity provided for in the contract, in accordance with the contractually anticipated purposes.

3-In the case of forest leasing for the purpose of exploitation of species in talhadia, the

lessee, at the expiry of the contract, is obliged to destroy or remove the toyces or strains,

save contractual clause or express agreement to the contrary.

4-Fiting the contract and the lack of contractual clause to the contrary, is the responsibility of the

landlord for the realization of the recovery actions of the building that are necessary and

are not directly attributable to the lessee.

5-Presume the building was handed over to the tenant in good state of conservation and

in conditions appropriate to the use of the same in contractual terms, when not

there is a document in which the parties have described the state of the same, at the time of the

delivery.

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Article 23.

Benfeasures made by the lessee

1-The lessee can carry out in the building leased recovery actions without

consent of the landlord, in cases where:

a) The landlord is in mora as to the obligation to make reparations that, by his

urgency, do not commiserates with the delay of the respective judicial procedure,

and the lessee may make them extrajudicially, having the right to their refund;

b) The urgency does not constrict any dilation, while retaining the right to refund,

regardless of the landlord's mora, provided that the avise at the same time.

2-Unless otherwise contractual clause, the lessee lacks the consent of the

landlord to carry out useful benfeits.

3-In the case of forest leavening, the change in composition, regime and structure

of the stands, can only be carried out with the consent of the landlord, without

prejudice to compliance with the legislation applicable to such situations.

4-The useful benefactions carried out by the lessee without the consent of the landlord, no

justify the revision of the amount of the rent nor give it right to any kind of

compensation, upon termination of the tenancy agreement.

5-The useful benefactions carried out by the lessee with the consent of the landlord no

justify the revision of the amount of income, but they give right to the payment of a

compensation, when they revert to the landlord after termination of the contract of

tenancy.

6-Unless otherwise contractual clause, by ceasing the lease for any cause, the

benfeasures carried out by the lessee revert in favour of the landlord.

34

Article 24.

Calculation of the benfeits that give way to compensation

1-A compensation for the useful benefactions carried out by the lessee, with consent

of the landlord, who revert to this at the end of the lease, is calculated by having in

counts the cost borne by the lessee, the advantages of which the same there is

enjoyed in the duration of the contract and the patrimonial and income benefit that they

result, futhermore, for the landlord.

2-The payment of the indemnity referred to in the preceding paragraph may be fractionated, of

form that benefits take place at the perception by the landlord of the

benefits resulting from the benfeits.

Article 25.

Benfeits made by the landlord

1-The landlord can only make benfeits in the building, excluding the actions of

recovery of the building, with the consent of the lessee or with supply

judicial of that.

2-The benefactions carried out by the landlord with the consent of the lessee may

determine the change in income as provided for in Article 11 (6).

3-The landlord indemnifies the lessee for the damage that the realization of the benfeits,

carried out by their initiative, eventually cause in the building, excluding the shares

of recovery of the same.

35

CAPITCHAPTER VI

Procedural standards

Article 26.

Form of communication

1-Unless otherwise lawful provision, legally required communications between the

parties, specifically, those relating to the cessation and amendment of the lease agreement,

to the updating, alteration and deposit of the rent, to the realization of conservation works and to

recovery and of benfeits and the exercise of the right of preference, are realized

upon written notice signed by the declarant and referred to by registered letter with notice of

receipt, without prejudice to the provisions of Article 27.

2-Any communication shall contain the complete address of the party which subscribes to it,

owing to the parties to mutually communicate the amendment of that.

3-The written signed by the declarant can, yet, be delivered in hand, owing the

recipient apor in copy to your signature, with receipt note.

4-A communication by the landlord intended for termination of the contract by resolution, in the

terms of Article 17, is carried out by avulsa notification, or upon contact

personal lawyer, solicitor or enforcement officer, being in this case made in the

person of the notifying, with duplicate delivery of the communication and copy of the

documents that accompany it, and notifies you of signing the original.

Article 27.

Digital communication

In legally required communications between the parties is admissible the use of procedures

by electronic means duly validated by qualified electronic signature.

36

Article 28.

Procedures to be adopted for updating, reduction or fixation of new income

1-Convinced Renters are updated annually as provided for in paragraph 5 of the

article 11 by written communication from the landlord to the lessee.

2-A reduction or fixation of new rent as provided for in paragraphs 5 and 6 of Article 11 and of the

article 12 process shall be processed in accordance with the following points:

a) The proposal to change the rent following the realization of benfeits by the

landlord must be presented to the tenant with express and reasoned

indication of the new income.

b) The proposal to reduce the rent should be addressed to the landlord, owing the

tenant in it to mention the income that it considers duty to be paid.

3-The proposals are formulated in writing, within a maximum of 30 days after the term of the

facts that substantiate them, or, dealing with continuing events, in the course of these.

4-It is assumed that the facts are not grounds for the reduction of income if the lessee

do not provide the landlord with verification of the signs of their occurrence and their

results.

5-In the case of contractors, in the 30 days following the formulation of the respective application,

they do not agree on the amendment of the rent, they can appeal to the court, which

fixed, in the sander dispatch, the income to be transiently invigorating until final decision of the

plete.

6-As long as the court decision does not transcend on trial, the landlord may not apply for

resolution of the contract on the basis of a lack of payment of income, save:

a) To which it is set out in the tenancy agreement to the date of the dispatch

saneador referred to in paragraph 5;

37

b) To which is determined in the sander dispatch up to the date of the court decision

transitioned on trial.

7-A difference that comes to be found between the amounts paid by the lessee and the

values due in function of the court decision must be regularised after properly

corrected by the application of the statutory rate provided for the cases of mora.

Article 29.

Procedures to be adopted in respect of the resolution of the contract

1-A resolution of the lease agreement on the initiative of the landlord or by the will of the

lessee is based on the default of the other party, as provided for in the article

17., and taking into consideration the provisions of Articles 26 and 27, in respect of

communications between the parties.

2-Communications between the parties must explain in a clear, complete and

substantiated the nature and size of the default and the date of knowledge of the

facts owing, when possible, to attach copying of evidence possibly existing and,

where appropriate, an estimate of the amounts to be considered as a

compensation for termination of the contract.

Article 30.

Procedures to be adopted in relation to the opposition to the renewal or denunciation of the

contract

1-A opposition to the renewal or denunciation of the tenancy agreements shall

come to fruition by written communication, in the terms provided for in Articles 26 and

27. and under the conditions laid down in Article 19 para.

2-Communications between the parties must explain in a clear and complete manner, if possible

with presentation of evidence, the statement of reasons for the termination of the contract.

38

3-In the cases provided for in Article 19 (6) and (9) it is up to the lessee to submit the

statement of reasons and evidence supporting, in the first case, the need for complaint of the

contract and, in the second case, the opposition to the denunciation of the contract.

4-In any case, the landlord and the lessee may object to the effectivation of the complaint

of the contract by the other party provided that, in an action brought forward within 60 days after the

communication provided for in paragraph 1, prove the non-existence of grounds for the complaint.

Article 31.

Right of preference

1-When the cessation of the lease occurs, because of the non-attributable to the

tenant, this enjoys the right of preference in the tenancy agreements

celebrated in the following five years.

2-In the case of sale or dation in fulfillment of buildings that are the subject of

agricultural or forestry leases, to the respective tenants whose contract vigore there are

more than three years, assists the right to prefer in the transmission.

3-The right of preference of the lessee provided for in the preceding paragraph shall lapse, in the face of the

exercise of the same right, by co-heir or co-owner.

4-Where the lessee exercises the right of preference referred to in paragraph 2, it has to

explore the building, or in the case of being a collective person, by you or society of the same

business group, such as its owner for at least five years, saved in case

of force majeany, duly proven.

5-In case of failure to comply with the provisions of the preceding paragraph, the acquirer is obliged to

pay the previous owner the value equivalent to the quintuple of the last lace won

and to transmit the property to the preterse with the exercise of the preference, if this the

desire, for the purchase price of the building.

39

6-In the case of the judicial exercise of the right enshrined in paragraph 2, the price is paid or

deposited within 30 days after the transit on trial of the respective sentence, under

expiry of the expiry of the right and the lease.

7-Stay exempt from the payment of Municipal Tax on Onerous Transmissions from

Real estate (IMT) all onerous transmissions of rustic buildings in favour of the

respective tenants, provided that there has been contract written for at least three years, and the

even be of the knowledge of the finance services of the landlord's residence area

or the seat of the legal person.

Article 32.

Action of eviction

1-A The eviction action is intended to stop the legal situation of the lease always

that to impose recourse to the judicial route to promote such cessation and follows the form of

declarative common process.

2-In the pendency of the eviction action, the overdue rents must be paid or deposited,

in the legal terms.

3-If the lessee does not pay or deposit the accrued rents for a period higher than

six months is notified to, within 10 days, proceed to your payment or

deposit.

4-If, within that time limit, the amounts referred to in the preceding paragraph are not paid

or deposited, the landlord may ask for the autos ' certificate relating to these facts.

Article 33.

Executive title

1-Not being the building vacated on the date due by law or by convention of the parties,

can serve as a basis of the execution for delivery of the right thing, the contract of

renting, accompanied by the evidence of the communications provided for in the

present decree-law, concerning the cessation of the lease agreement.

40

2-The tenancy agreement constitutes executive title for the payment action of the

income, when accompanied by the demonstrative of communication to the lessee of the

amount in debt.

Article 34.

Resolution of conflicts

1-The possible conflicts that may arise between the parties in respect of the application,

interpretation or integration of emerging gaps in the tenancy agreement may

be resolved by convention of arbitration under the terms of Law No. 31/86 of 29 of

August.

2-A submission of any matter to the conflict resolution process provided for in the

previous number does not determine any interruption of the development of the

activities of the lessee arising from the tenancy agreement, nor of the realization

of the actions of the landlord in conservation and beneficiation of the building.

Article 35.

Forms of process

1-The legal proceedings referred to in Article 31 shall be of an urgent nature, follow the

terms of ordinary or summary process, depending on the value and, while they are

pending, it cannot efect the delivery of the building to the landlord on the basis of

termination of the contract.

2-The legal proceedings concerning disputes of termination and transmission of the contract of

renting and the realization of conservation, repair and benefaction of the

leased rustic buildings have an urgent character and follow the form of process

summary, save if another is expressly provided for.

41

3-It is always permissible to appeal to the court of the Relation as to the matter of law, without

loss of ordinary resources, depending on the value of the action, having always effect

suspensive the interpost appeal of the sentence that decrees the restitution of the building.

4-In the cases provided for in Article 28 (5) the procedure provided for in Article 1429 shall apply.

of the Code of Civil Procedure, which is of a matter of urgency, not to be fit

appeal of the decision.

5-No legal action may be received or proceed, under penalty of extinction of the

instance, if it is not accompanied by an exemplar of the contract, when it is demanded, the

less than soon to be randomed that the lack is attributable to the opposing party.

CAPITCHAPTER VII

Final and transitional provisions

Article 36.

Partnerships

1-The conclusion of partnership contracts and mixed leasing contracts is prohibited

and partnership.

2-The partnership contracts and mixed leases and partnership existing on date

of the entry into force of this decree-law shall be converted into contracts of

rural lease in the 30 days leading up to its renovation.

3-In the event that no duration has been convenor for the partnership contracts and

mixed leases and partnership agreements existing at the date of entry into force of the

present decree-law, the same shall remain valid until the termination of the contract, by

agreement between the partners, or on the initiative and express will, or death of the partner

cultivator.

42

4-The provisions of the preceding paragraphs shall not apply to the livestock partnerships, observing

in respect of these the provisions of Articles 1121 to 1128 of the Civil Code.

5-Are not covered by the constant prohibition of paragraph 1, the tenancy agreements

forest, in which it establishes itself, jointly with a fixed income, a portion of the income

variable, calculated as a function of the value of forest production under Article 11 para.

Article 37.

Renting in the framework of the emparceling operations

Without prejudice to the provisions of Article 36 of the Decree-Law No 103/90 of March 22, the

buildings purchased for the Lands Reservation can be leased by a deadline of less than six

years, taking the form of agricultural leases or campaign leases, in

compliance with the will of the parties and taking into consideration the object of the contract of

tenancy.

Article 38.

Preparatory work and outstanding fruit harvests

1-Unless contractual provision or agreement between the parties, the lessee is entitled to

carry out all the necessary practices for the harvesting, use and processing of the fruits

pending, albeit outside the outgoing tenancy deadline.

2-The eviction of leased rustic building cannot take place before the term of the year

agricultural posterior to the sentence, and without that it is safeguarded the right to harvest the

outstanding fruits on the part of the lessee, save in the cases of forest leasing,

in which the provisions of Article 15 (3) apply.

3-In the course of the last year of the lease, the lessee may not object to the

realization of the indispensable work to the normal use of the land, to be carried out

by the new cultivator, without prejudice to the right that it assists him in harvesting matters

outstanding fruits.

43

Article 39.

Application in time

1-To the rural lease agreements, concluded from the date of entry into force of the

present decree-law, it shall apply obligatorily and in full the scheme provided therein.

2-To tenancy agreements, existing at the date of the entry into force of the present

decree-law applies to the scheme prescribed therein, in accordance with the following principles:

a) The new scheme 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 pending proceedings in judgment that, at the date of its

entry into force, have already been the subject of decision in 1ยช instance, albeit not

transitioned on trial, save as to norms of an interpretative nature;

c) By the end of the term, in progress, of contracts validly concluded under the

of Article 36 of Law No 76/77 of September 29 shall not apply to the provisions of the

article 10 para.

Article 40.

Application to Autonomous Regions

The present decree-law applies to the Autonomous Regions of the Azores and Madeira, with the

necessary adaptations to be introduced by regional legislative decree, keeping in force,

up to the date of publication of this, the current legislation. "

Article 41.

Amendment of existing contracts

The existing rural lease agreements at the date of entry into force of the present

decree-law must, at the time of its renewal, be amended in accordance with the

same.

44

Article 42.

Subsidiary law

1-In missing cases, provided that they do not contravenes the principles of the present decree-law,

successively apply the rules relating to the lease agreement and the rules of the

contracts in general, provided for in the Civil Code.

2-In cases missing in this decree-law and relating to the adjective part of the same

applies the Code of Civil Procedure.

Article 43.

Abrogation standard

Re-salvaged for the purpose of the provisions of Article 41, they are repealed:

a) Decree-Law No 385/88 of October 25, as amended by Decree-Law No. 524/99,

of December 10;

b) Decree-Law No. 394/88 of November 8.

Article 43.

Entry into force and production of effects

1-This decree-law shall come into force 90 days after the date of its publication.

2-Without prejudice to the provisions of Article 39, the present decree-law only produces effects

regarding the existing tenancy contracts on the date of its entry into force,

after the same are amended in the terms set out in Article 41.

Seen and approved in Council of Ministers

The Prime Minister

45

The Minister of Justice

The Minister of Economy and Innovation

The Minister of Agriculture, Rural Development and Fisheries