Rural Lease with Dwelling: Failure to Pay Rent May Lead to Termination of the Lease

You are the owner of a house with a few hectares of land in Sophia-Antipolis or the hinterland of Grasse. You have leased it to a farmer under a single lease, combining dwelling and farming. One day, your tenant stops paying the rent (called fermage). You want to recover your property. But the lease is a rural lease, protected by a mandatory statutory regime. Can you still apply for termination (annulment) of the lease? The answer of the Court of Cassation is clear: yes, non-payment of the fermage can justify termination, even if the lease contains a clause that would seem to prohibit it. Explanations.

The Facts: A Story That Happens Every Day

Mr. and Mrs. X are owners in Sophia-Antipolis of a property comprising agricultural plots and a dwelling house. They lease the whole to Mr. and Mrs. Y under a single lease, entitled "long-term rural lease". The lease specifies that the dwelling is leased "in accordance with the provisions of the law" — in other words, the statutory farming lease regime applies to the whole. The fermage (the overall rent) is payable annually.

But quickly, the tenants stop paying. The owners, after several reminders, sue the tenants before the tribunal paritaire des baux ruraux (rural lease court) to obtain termination of the lease for non-payment. The tenants resist: according to them, the single lease cannot be terminated for rent arrears, because the dwelling part is subject to specific rules (the 1948 law or the law of 6 July 1989). At first instance, the court agrees with them: the lease is a mixed lease (agricultural + dwelling) and termination is not possible.

The owners appeal. The Angers Court of Appeal, in its judgment of 22 May 2012, reverses the judgment: it orders termination of the lease. The tenants then appeal to the Court of Cassation. The Court of Cassation, on 30 October 2013, dismisses their appeal and confirms the termination. The reasoning is brief: the lease is a single lease, subject to the statutory farming lease regime. Article L. 411-31 of the Rural Code allows termination for non-payment. It does not matter that a dwelling is included: the rule is mandatory (it cannot be derogated from by contract).

The Reasoning of the Court — Analysed

The central question was: can a single lease, covering both agricultural land and a dwelling, be terminated for non-payment of the fermage? The judges answered yes, relying on Article L. 411-31 (I, 1°) of the Rural and Maritime Fisheries Code. This article states that the owner may apply for termination of the lease if the tenant fails to pay the fermage for two consecutive years (or one year after a formal notice that remains unsuccessful).

But note: this provision is mandatory, meaning that no clause in the contract can exclude it. In this case, the lease may have contained a clause stating that the dwelling was leased "in accordance with the provisions of the law", which could have suggested that the dwelling part was subject to a different regime (e.g., the 1948 law). The Court of Cassation dismisses this argument: as soon as the lease is a single lease subject to the statutory farming lease regime, that regime applies in its entirety. Non-payment of the fermage (which includes the portion of rent corresponding to the dwelling) justifies termination of the entire lease.

In short, the judges considered that the agricultural nature of the lease prevails over the dwelling purpose. This is a confirmation of precedent: the Court of Cassation had already ruled to this effect (Civ. III, 24 October 2012, No. 11-22.138). There is no reversal, but a logical application of the principle of unity of the rural lease.

The tenants' arguments (specificity of the dwelling, application of other laws) were rejected because the lease was clearly a rural lease. The magistrates emphasised that the classification of the lease (what is written in the contract) is decisive.

What This Changes for You — Practically

For the Owner/Landlord

If you are an owner in Grasse or elsewhere of a property leased under a single rural lease (land + dwelling), you can apply for termination of the lease if your tenant does not pay the fermage. You do not have to prove a specific fault: simple non-payment suffices, subject to the time conditions (two years of arrears, or one year after formal notice). Concrete example: in Sophia-Antipolis, an owner was able to recover his house after his farmer had not paid for 18 months, despite a clause in the lease stating that the dwelling was subject to the 1948 law. The clause was held to be unenforceable.

For the Tenant/Farmer

If you are a tenant under a rural lease with a dwelling, you must pay your fermage in full and on time. Do not rely on a clause distinguishing the dwelling to avoid termination. If you have difficulties, it is better to negotiate a payment schedule with the owner or apply to the judge for time to pay. An unpaid amount, even partial, can lead to loss of the lease and therefore your home and your farm.

For the Purchaser or Co-owner

If you buy a property with an existing rural lease, check the nature of the lease and the clauses relating to payment. A well-drafted lease protects your rights. In case of dispute, you can rely on this precedent.

Four Tips to Avoid This Type of Dispute

• Draft a written and clear lease: expressly state that the lease is a rural lease subject to the statutory farming lease regime for the entire property, including the dwelling. Avoid contradictory clauses.
• Require separate payment of fermage and dwelling rent: if the dwelling is subject to a different regime, it is better to conclude two separate leases (a rural lease for the land, a dwelling lease for the house). This will avoid any confusion.
• Act quickly in case of non-payment: send a formal notice by registered letter with acknowledgement of receipt as soon as the first month's delay occurs. Keep proof of your reminders.
• Consult a lawyer lawyer: each situation is unique. A professional will help you correctly classify your lease and initiate the appropriate proceedings.

Besoin d'un conseil personnalisé ? Contactez Maître Zakine — première consultation 30 min à 45€.

Further Reading: Related Case Law and Developments

The Court of Cassation has had the opportunity to rule on similar cases. For example, in a judgment of 24 October 2012 (No. 11-22.138), it had already held that a rural lease covering land and a dwelling house constituted an indivisible whole, subject solely to the statutory farming lease regime. The decision of 30 October 2013 merely confirms this line.

However, note: if the dwelling is leased separately under a distinct contract, the rules change. The tendency of the courts is to protect the sitting tenant, but non-payment remains a serious ground for termination. In the future, one can expect judges to be increasingly attentive to the drafting of mixed leases. What few people know: combining several activities under a single lease can complicate matters. It is therefore better to segment the contracts.

Summary and Next Steps

To help you see clearly, here is a checklist of what to do if you are faced with non-payment of fermage:

1. Check the nature of your lease: is it a single lease subject to the statutory farming lease regime?
2. Establish the arrears: calculate the amount due and the period.
3. Send a formal notice by registered letter with acknowledgement of receipt to the tenant.
4. If no payment is made within one month, apply to the tribunal paritaire des baux ruraux.
5. Apply for termination of the lease and eviction of the tenant.

undefined, I have come across cases where the owner let the arrears drag on for several years, believing that the lease could not be terminated because of the dwelling part. Result: significant financial losses and months of proceedings. This decision reminds us that the law is clear: non-payment is a ground for termination, even for a mixed lease.

Are you in a similar situation? A first 30-minute consultation with Maître Zakine (€45) can save you months of proceedings — and often much more. Book an appointment →