IOWA FARM LEASES: A LEGAL REVIEW
additional crop year pursuant to the auto-renewal
statute. The successor in interest to the life tenant
must then serve statutory termination notice on the
tenant the following crop year or the lease will again
auto-renew. These auto- renewal provisions do not
alter the doctrine of emblements, which provides
that a life tenant’s estate is entitled to the life
tenant’s share of a crop (under a crop-share lease) if
the death occurs after the seed was planted.
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TENANTS IN COMMON
Often a parent will die, leaving farmland to his or
her children as tenants in common. This presents
some unique management challenges. “Ordinarily a
lease of the entire estate by one tenant in common is
not binding on other tenants in common who have
not authorized or ratified it.”
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Thus, unless all
tenants in common agree to rent the property, the
lease will generally not be enforceable against the
tenants in common who make their objections
know. However, where a lease is made by one
tenant in common and the lessee takes possession
and continues to pay rent, it will be presumed that
the lease was made with the knowledge and consent
of the other tenants in common, absent evidence to
the contrary.
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Because of this rule, it is important
for all tenants in common to monitor their property
and immediately object if they observe a non-owner
possessing the ground without their permission.
One tenant in common may send termination notice
to a lessee and it will generally be enforceable. This
result is less certain, however, where the tenants in
common disagree as to whether to terminate the
lease. Most likely, however, under current Iowa law,
one tenant in common—even a minority tenant in
common—can send enforceable termination notice
to the lessee, even if the other tenants in common
disagree.
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OUSTER AND BREACH
Holdover Tenant
If a landlord properly terminated the lease by
serving statutory notice before September 1, but the
tenant refuses to vacate the property as of March 1,
the landlord may evict the holdover tenant. Because
of the risks of failing to properly follow the statutory
procedure, the landlord should engage legal counsel
to complete the eviction. Typically, the landlord
must serve a three-day notice to quit upon the
holdover tenant
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and then file a forcible entry and
detainer action.
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Once the action is initiated, the
court will schedule a hearing to allow both parties
an opportunity to be heard.
Nonpayment of Rent
The Iowa Supreme Court has stated that failing to
pay rent when it is due is a default in performance
that entitles the landlord to initiate termination
proceedings, no matter when that default occurs.
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Although many leases provide that nonpayment of
rent “terminates” the lease, termination in such
cases is not automatic, but an option the landlord
can exercise.
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Any specific written lease terms will
govern the landlord’s procedure for terminating a
lease for nonpayment. Generally, however,
nonpayment of rent will entitle the landlord to
terminate the lease and initiate a forcible entry and
detainer action.
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Because equity abhors a
forfeiture, this right is generally subject to a
“substantial compliance” exception.
40
For example,
a landlord will not generally be allowed to terminate
a lease if a tenant who is able to pay merely misses
the deadline by a few days. As such, the landlord
should first provide a non-paying tenant with a
notice of default and intent to terminate, offering
within the notice a reasonable opportunity to cure.
If the tenant is unable to pay and refuses to vacate
the premises, the landlord may initiate forcible entry
and detainer procedures (preceded by a three-day
notice to quite).
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If the landlord is unable to find a
tenant willing to pay the amount of rent the non-
paying tenant was obligated to pay, the landlord
may seek breach of contract damages against the
evicted tenant for the difference. Again, it is
important for landlords to seek the assistance of an
experienced attorney to ensure that ouster and
breach procedures are properly followed.
Breach of Other Provisions
Typically, nonpayment of rent is the clearest breach
for which a landlord has the right to immediately
terminate the lease. The remedies for other breaches
may not be so clear. Even where a material breach
exists, a party must ordinarily be given a reasonable