Adrian MM. (X) Mar 1, 2013:

Pacht as a chameleon or weasel Whilst we are racking or, as per a German translation primer, 'wrecking' our brains, it is Friday evening after all. I don't doubt Steven's agri-exposition plus refs. and Cindy's horticultural refs, but the asker did stipulate that is industrial property. The possible legal shift in meaning from the Netherlands to Belgium makes me wonder whether we have another case of a German-type Pachtvertrag chameleon or weasel which ranges from a farming lease to a business franchise cf. Pachtklo.

sindy cremer Mar 1, 2013:

And while we're all breaking our heads over this Asker is probably enjoying a nice Belgian beer in one of Flanders' cosy pubs LOL!!!

Steven Segaert Mar 1, 2013:

@Sindy - probably Belgian It probably pertains to Belgian law. I have indeed not found an example of use of the term "pachtverbrekingsvergoeding" in a Dutch context.

sindy cremer Mar 1, 2013:

You're right, Steven. http://www.natuurbeheer.nu/Wet-_en_regelgeving/Nederland/Pac...

Onder pacht wordt in de wet verstaan: "Elke overeenkomst in welke vorm en onder welke benaming ook aangegaan, waarbij de ene partij zich verbindt aan de andere partij tegen voldoening van een tegenprestatie een hoeve of los land in gebruik te verstrekken ter uitoefening van landbouw."
Pacht is dus een soort huurovereenkomst die betrekking heeft op land of boerderijen.

I gave Belgian refs because I assume that the question relates to Belgium.

Steven Segaert Mar 1, 2013:

Pacht is pacht Afaik, "pacht" is a special contract both in Dutch and in Belgian law. Its constitutive elements are described by law (the civil code in both legal systems), and it is a special type of lease. It is what is called a "speciale overeenkomst". Once your contract has all the essential elements of what the law describes, all conditions for it apply. You can't make a contract for a lease that has all the elements of a "pacht" and pretend it is something different.

While the term is also used, in common speech, for other types of "rent", when lawyers talk about "pacht" they are talking about agricultural use. The reason why this arrangement is separate from the normal legislation that governs leases is that it is meant to protect those who use land to make a living (farmers). In Dutch law, this commercial use is an explicit condition for the application of this particular arrangement. A farmer (unlike for example a hairdresser) can't just pick up and move, which is why a more secure and stringent arrangement is necessary.

So, "pacht" is a lease, yes, but it is a special kind of lease. I would not expect to see the word used in a contract if it is meant to just mean "lease".

sindy cremer Mar 1, 2013:

Given Asker's origin I have assumed that the question relates to Belgium. Also, the word 'pachtverbrekingsvergoeding' is not used in NL.

Katie, could you please enlighten us?

Adrian MM. (X) Mar 1, 2013:

Dutch vs. Belgian Flemish Do we need to worry about the meaning of pacht if this is not the Netherlands, but Belgium where the asker seems to be and Sindy's refs. allude to?

sindy cremer Mar 1, 2013:

@ Phil No, not a lease of any kind, but specifically involving 'land- & tuinbouw':

http://is.gd/Wpkvyx

"De huidige Pachtwet [...] sinds 1929 [...] de belangrijkste wetgeving voor land- en tuinbouw"
------------------------

http://www.notaris.be/verkopen-kopen-huren-lenen/huur-volgen... :

De pachtwetten van 4 november 1969 en 7 november 1988 die betrekking hebben op huurcontracten in verband met onroerende goederen die hoofdzakelijk gebruikt worden in het landbouwbedrijf.
-------------

http://lv.vlaanderen.be/nlapps/docs/default.asp?fid=69 :
Ministerie van Landbouw & Visserij

--------------
http://kbc-pdf.kbc.be/ltb/pachtwet_N.pdf :

De pachtwet is slechts van toepassing wanneer de
pachter onroerende goederen huurt die hoofdzakelijk
worden gebruikt voor een landbouwbedrijf.

etc., etc.

sindy cremer Mar 1, 2013:

@ Steven Excellent explanation.

Steven Segaert Mar 1, 2013:

Not weird at all A property is being sold, and in or on that property, there currently is someone renting it. This rent is apparently called "pacht". Andrew is right that this term is normally only used for farmland (not buildings and such), so it might be that the land is currently (before the sale) used as agricultural land.

It is also used when a private partner is allowed to offer a public service for a profit (such as for instance "pachten" of a ferry line), but that doesn't seem relevant here. "Pacht" should by the way also not be confused with "erfpacht".

The person renting it has to get out, and that necessitates the payment of a compensation - in this case a "pachtverbrekingsvergoeding".

This contract merely stipulates that the seller of the property will pay that indemnification.

You can keep it neutral and get around the agricultural use by calling it "compensation for termination of lease", because it is in essence the same thing. But to be very precise, you would need to point to the agricultural use...

Caroline Hartigan Mar 1, 2013:

Does it concern the "sale of a leasehold property"?

Andrew Howitt Mar 1, 2013:

If it's a sales agreement, then it's an odd way of using the word 'pacht' which is a lease. However, taking that as said, then it presumably would be "Compensation for breaking sales agreement on industrial property"

W Schouten Mar 1, 2013:

Also no sub lease/tenant present?

Caroline Hartigan Mar 1, 2013:

The word "pacht" would imply that it is a lease.

Katie Van Keijenberg (asker) Mar 1, 2013:

It is a sales agreement of a industrial property. No lease involved.

W Schouten Mar 1, 2013:

does the sale involve a lease?