New Model Clauses

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News article

New Model Clauses

August 2015
rural consultancy news

On 1 October 2015 the new Model Clauses (The Agriculture (Model Clauses for Fixed Equipment) (England) Regulation 2015), come into effect in England.  Governing the maintenance, repair and insurance of fixed equipment of pre-1995 tenancies, the new regulations update current regulations in agreements, which refer to The Model Clauses (last reformed in 1988). 

The new legislation will affect the majority of Agricultural Holding Act Tenancies and some Farm Business Tenancies where the Model Clauses are referred to.  In a number of situations the liability for repair is transferred from one party to the other and there is a need for both landlord and tenant to assess how their positions may be affected.

In particular under the new regulations, the liability of the tenant is extended in respect of “electrical supply systems and fittings” requiring tenants to replace as well as repair electrical sockets, switches and light fittings on or outside the surface of walls, ceilings or floors. Landlords would be wise therefore to review the condition of electrical supply systems at the end of a tenancy. 

Where there is transfer of liability between parties, either Landlord or Tenant has the ability to obtain compensation for the other’s failure to perform within one month of the transfer. Any claim for compensation would therefore need to be made by 31st October 2015.

For further information, please contact our Rural Consultancy Team.

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