In response to discussions with the Michigan growers, Michigan State University (MSU) Extension has compiled a sample greenhouse lease form and information on owner and operator considerations in leasing greenhouse space. The new 12-page publication is titled “Sample Greenhouse Facility Lease” Extension Bulletin E-3141.
The sample lease format in the publication is designed to be flexible and to address issues related to leasing a facility for an entire year, for a single crop such as poinsettias or for a season such as the spring crop cycle.
An additional document that can be used alongside the lease, if applicable, is the subordination, non-disturbance and attornment agreement. This agreement, between the operator and the owner’s mortgagee, ensures that the operator will remain in possession of the leased premises throughout the term of the lease and in ownership of all of the operator’s products present on the leased premises despite any foreclosure action against the greenhouse owner – as long as the operator is not in default of the lease.
MSU strongly advises growers to obtain legal assistance to better understand the provisions presented in the sample lease form. This form is not a substitute for obtaining legal counsel regarding the lease. It is intended to help focus discussions between owner, operator and qualified legal counsel.
To order a copy contact your local MSU Extension office or go to the MSU Extension Bulletin store website: www.emdc.msue.msu.edu. Request the publication by its title in a keyword search on that page.