Property Dispute: Solution

You are the owner of an agricultural plot in Oloron-Sainte-Marie and you have just discovered that your farmer has planted poplars without telling you. You are wondering whether they belong to you or to him. And above all: when do they become your property? This question, which may seem trivial, has already triggered lengthy and costly disputes. The Court of Cassation has just provided a clear answer in a judgment of 23 November 2017 (No. 16-16.815).

But what exactly does this change for you, whether you are a landlord or an agricultural tenant? This judgment clarifies the articulation between Article 555 of the Civil Code (which governs the fate of buildings and plantations on another's land) and Article L. 411-50 of the Rural Code (specific to the status of agricultural tenancy). In short, the moment when plantations become the property of the lessor depends on the date on which they were made.

In this article, I will tell you the story of this dispute, dissect the judges' reasoning, and above all give you practical advice to avoid finding yourself in a delicate situation.

The Facts: A Story Like Those That Happen Every Day

Imagine a rural land group (GFR), the GFR de la Ramée, which leases agricultural plots to an agricultural operating company, SCEA Chauviré. The lease has been running for years. At some point, SCEA plants poplars on the plots. Then the lease is renewed. Later, the GFR recovers the land and contests the ownership of the poplars: according to it, these plantations belong to it because they were made on its land.

SCEA retorts that the poplars were planted after the start of the lease and that it remained the owner throughout the contract. The dispute comes before the Court of Appeal of Pau, which rules in favour of SCEA: it holds that the lessor leaves the lessee the ownership of works and plantations regularly erected during the lease, and that Article 555 of the Civil Code only applies at the end of the lease.

But the GFR disagrees and appeals to the Court of Cassation. It argues that the Court of Appeal did not check whether the plantations were made before the renewal of the lease. Because if they were made before, then they became the property of the lessor at the time of renewal, by application of Article 555.

The Court of Cassation upholds the appeal: it quashes the Court of Appeal's decision on the ground that it did not investigate whether the plantations were prior to the renewal. In other words, the moment of renewal is crucial: it transfers ownership of the plantations to the lessor, unless otherwise agreed.

The Reasoning of the Court — Dissected

To understand this judgment, we must go back to the texts. Article 555 of the Civil Code provides that, unless otherwise agreed, buildings and plantations made on another's land by a third party become the property of the landowner, but the latter may either keep them (by reimbursing the cost of materials and labour) or require their removal. This article applies to constructions made without right. But in the context of an agricultural lease, the tenant has the right to plant and build for the needs of the farm (Article L. 411-50 of the Rural Code). Therefore, Article 555 only governs the fate of plantations at the end of the lease, not during its term.

The Court of Appeal of Pau had therefore held that, during the lease, the tenant remains owner of his plantations. But it had forgotten to ask whether the poplars were planted before the renewal of the lease. Now, renewal is a new lease. If the plantations existed before, they became the property of the lessor upon renewal, because the new lease has no retroactive effect. This is what the Court of Cassation criticises the Court of Appeal for: not having made this inquiry.

However, note that this solution is not a development but a logical application of the texts. It confirms that the fate of plantations depends on their date of realisation in relation to the renewal. What few people know is that the renewal of an agricultural lease is not a mere extension: it is a new contract that transfers to the lessor ownership of improvements made by the previous tenant. undefined that if you are a tenant and you plant trees, you must be aware that they will become the property of the lessor at the next renewal.

What This Changes for You — Concretely

If you are a landlord (for example in Tarbes, where agricultural leases are frequent), this decision is good news: it reminds you that plantations made by your farmer before the renewal automatically belong to you as of the renewal date. You have nothing to do, no compensation to pay. But be careful: this only applies to plantations regularly authorised by the lease. If the tenant planted without right, Article 555 applies differently.

If you are a tenant (farmer), you must be vigilant: your plantations become the property of the lessor upon renewal. You therefore lose ownership of your trees, even if you planted them at your own expense. However, you can negotiate an exit indemnity or a right of repossession in the lease. undefined, I have encountered cases where the farmer had planted costly orchards (olive trees, walnut trees) and found himself stripped at renewal. A concrete example: in Oloron-Sainte-Marie, one hectare of poplars can be worth €15,000 at maturity. Losing that value without compensation is harsh.

If you are a purchaser of agricultural land, check whether plantations exist and on what date they were made. They could belong to the farmer if the lease has not been renewed since.

In summary, the rule is simple: the tenant's plantations belong to him during the lease, but become the property of the lessor at the first renewal following their realisation. If you are in this situation, you must check the date of your plantations in relation to the last renewal.

Four Tips to Avoid This Type of Dispute

• Draw up a precise inventory of existing plantations at the signing of the lease. This avoids any dispute over the date of plantations. Have it signed by both parties.
• Stipulate in the lease the fate of plantations in the event of renewal. For example, provide that the tenant remains owner or receives compensation. This is legal and secures both parties.
• For the tenant: declare your plantations to the lessor in writing. Send a registered letter with the date and nature of the plantations. This will constitute proof in case of dispute.
• For the lessor: in case of renewal, have a bailiff's report made of the plantations. This will allow you to claim their ownership if necessary. The cost (about €200) is trivial compared to the stakes.

Further Analysis: Related Case Law and Developments

This decision is part of a consistent line of case law. Already, in a judgment of 15 March 2006 (No. 04-17.691), the Court of Cassation had held that improvements made by the outgoing tenant become the property of the lessor at the end of the lease, unless the new tenant compensates them. Here, the Court specifies that renewal is equivalent to a new expiry of the lease. Conversely, the Court had admitted (Cass. 3e civ., 20 Dec. 2000, No. 99-11.164) that the tenant may retain ownership of his plantations if the lease so provides. The trend is therefore towards protecting the lessor's right of ownership, but with significant contractual freedom. In the future, the courts will continue to examine the date of plantations in relation to renewal. If you are a tenant, do not wait until renewal to negotiate: do it as soon as you plant.

Checklist Before Acting

• When do plantations become the property of the lessor? At the first renewal of the lease following their realisation, unless otherwise stipulated.
• Can I retain ownership of my plantations as a tenant? Yes, if the lease expressly provides or if you planted them after renewal (in that case, they remain yours until the next renewal).
• What to do if the lessor claims my plantations? Check the date of your plantations in relation to the last renewal. If they are later, you are the owner. If they are earlier, the lessor is right. Consult a lawyer.
• Is there a time limit to act? Yes, the limitation period is 5 years from knowledge of the dispute. Do not delay.
• Can I claim compensation for my plantations? Yes, if the lease provides for it or if you made them with the lessor's agreement. Otherwise, you risk losing them without compensation.

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