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I have a question about a clause in a lease. I need to know…

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I have a question about a clause in a lease. I need to know what it means please. It is an agricultural lease.
Submitted: 10 months ago.Category: Real Estate Law
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Answered in 5 minutes by:
9/27/2017
Real Estate Lawyer: Legal Eagle, Lawyer replied 10 months ago
Legal Eagle
Legal Eagle, Lawyer
Category: Real Estate Law
Satisfied Customers: 14,404
Experience: Licensed to practice before state and federal court
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Hello! I am a licensed attorney, admitted to practice in state and federal court. I have a nearly 100% satisfaction rating (click here for more info) so all that means is that you can count on me to help today.

Please keep in mind that our conversation does not include an attorney-client relationship and this is for general information purposes only. What specific questions did you have? I have an idea about your situation, but I don’t want to make any assumptions. Additionally, Most people believe a phone call is the easiest and most efficient way to handle problems. Accordingly, you will receive an automatic phone call request. If you would like a phone call, please click “Accept” when prompted.

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Customer reply replied 10 months ago
We have questions about the following:
D.4 of a lease Condemnation/Substantial or Partial TakingD.4.b Tenant will have no claim to the condemnation award or proceeds in lieu of condemnation.-Please explain what this means.D.5-Landlord's Lien. Tenant grants to Landlord a security interest in the collateral to secure payment and performance by Tenant of all obligations and payments due from Tenant under this lease. The collateral will include all of Tenant's crops, livestock, and personal property located or to be located on the Premises, and all products, proceeds, offspring, increase, governmental payments, insurance proceeds, documents of title, and warehouse receipts relating to such property.This lease is a security agreement under both article 9 of the list of the names and addresses of any buyer, commission merchant, or selling agent to or through whom Tenant may sell the collateral. Tenant agrees to notify Landlord of the identity of any buyer, commission merchant, selling agent, or warehouse to or with whom Tenant intends to sell or store the collateral within seven days before any sale or storage of the collateral. e Texas Business and Commerce Code and the federal Food security Act of 1985. Landlord may file financing statements or continuation statements to perfect or continue the perfection of the security interest. Tenant agrees to furnish to Landlord a list of the names and addresses of any buyer, commission merchant, or selling agent to or through whom Tenant may sell the collateral. Tenant agrees to notify Landlord of the identity of any buyer, commission merchant, selling agent, or warehouse to or with whom Tenant intends to sell or store the collateral within seven days before any sale or storage of the collateral.
We do not understand the verbage The lease is for land where we have cattle and equipment and includes hunting and fishing rights. Does this mean that the landlord has an interest in any thing we sell on the land or we need to notify her when we are going to sell the cattle?
Real Estate Lawyer: Legal Eagle, Lawyer replied 10 months ago

great thanks just a moment...

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Customer reply replied 10 months ago
I am not able to speak on the phone at this time. I apologize.
Real Estate Lawyer: Legal Eagle, Lawyer replied 10 months ago

Not a problem! One moment...

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Real Estate Lawyer: Legal Eagle, Lawyer replied 10 months ago

My answers are in bold.

We have questions about the following:

D.4 of a lease Condemnation/Substantial or Partial Taking

D.4.b Tenant will have no claim to the condemnation award or proceeds in lieu of condemnation.-Please explain what this means. This means that if the government takes the property. For example, if they decide to build a football stadium there, the government will likely take the property.

D.5-Landlord's Lien. Tenant grants to Landlord a security interest in the collateral to secure payment and performance by Tenant of all obligations and payments due from Tenant under this lease. The collateral will include all of Tenant's crops, livestock, and personal property located or to be located on the Premises, and all products, proceeds, offspring, increase, governmental payments, insurance proceeds, documents of title, and warehouse receipts relating to such property.

This lease is a security agreement under both article 9 of the list of the names and addresses of any buyer, commission merchant, or selling agent to or through whom Tenant may sell the collateral. Tenant agrees to notify Landlord of the identity of any buyer, commission merchant, selling agent, or warehouse to or with whom Tenant intends to sell or store the collateral within seven days before any sale or storage of the collateral. e Texas Business and Commerce Code and the federal Food security Act of 1985.. Landlord may file financing statements or continuation statements to perfect or continue the perfection of the security interest. Tenant agrees to furnish to Landlord a list of the names and addresses of any buyer, commission merchant, or selling agent to or through whom Tenant may sell the collateral. Tenant agrees to notify Landlord of the identity of any buyer, commission merchant, selling agent, or warehouse to or with whom Tenant intends to sell or store the collateral within seven days before any sale or storage of the collateral.

We do not understand the verbage The lease is for land where we have cattle and equipment and includes hunting and fishing rights. Does this mean that the landlord has an interest in any thing we sell on the land or we need to notify her when we are going to sell the cattle? This section means that the landlord may get a lien on all kinds of property if you fail to pay. Also, the Landlord also wants to be informed if you sell your crops, livestock, or personal property on the premises to anyone else so they will know the extent of your property if they need to file a lien.

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Customer reply replied 10 months ago
Thank you and we might have more questions.
Real Estate Lawyer: Legal Eagle, Lawyer replied 10 months ago

The pleasure is all mine! Feel free to ask questions. In the meantime, further up on the you should see a chance to give me a rating. 5-stars are always appreciated, but it is definitely not required! You can also click here in the future to request me individually. Don’t forget, if you haven’t already, you can always sign up for a membership with Just Answer and start asking more questions on the cheap.

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Customer reply replied 10 months ago
Could you explain d-5
Real Estate Lawyer: Legal Eagle, Lawyer replied 10 months ago

Yes, basically you are agreeing to give them a security interest in your crops, livestock, and personal property (presumably your tractors, farm equipment, if applicable) as a part of renting the premises.

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Customer reply replied 10 months ago
Is there any monetary value attached? How is the amount determined? I would
Like to pay an additional amount.do I do that's on the site?
Real Estate Lawyer: Legal Eagle, Lawyer replied 10 months ago

From what I can see, the value is only going to be based on the value of the crops, livestock, and personal property on the land.

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