Farm Business Tenant’s Section 7 Break Notice

This Farm Business Tenant’s Section 7 Break Notice should be used by an agricultural Tenant who wishes to terminate a Farm Business Tenancy (FBT) by exercising an early termination right, also known as a break option.

Not all FBTs contain a tenant’s break option. You should check the tenancy agreement carefully to verify that a break option is included.

If the FBT has a term of more than 2 years, the Break Notice must comply with Section 7 of the Agricultural Tenancies Act 1995. Section 7 requires a break notice to be in writing and to be given at least 12 months before the intended break date. There is no such requirement where the FBT has a term of 2 years or less.

The Notice should be served on the Landlord by the method (or one of the methods) specified in the tenancy agreement. There is often a “Notices” clause which will stipulate where and how notices should be served. Subject to what the tenancy agreement says, delivery by hand or by recorded delivery will probably be safest.

Remember that the notice period begins from the time the Landlord receives the Notice, not when it was posted. Do not leave it until the last minute to post the Notice.

It is good practice to enclose a duplicate Notice for the Landlord to sign and return. This provides the Tenant with evidence that the Notice has been received.

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