Agriculture Act 1967

Sections 26, 28, 29 and 48.

SCHEDULE 3 U.K. Conditions applying to Amalgamated Agricultural Units

Duration of conditions, and incorporation in leases, tenancies, etc. U.K.

1 U.K. For a period of [F1 five years] from the time when the provisions of this Schedule first apply to a unit of land (but without prejudice to its application when its provisions come to apply to any part of that land on any other occasion) the conditions specified in this Schedule shall be observed as regards the unit and shall, so far as applicable, be deemed to be part of the terms of any lease, agreement for lease or tenancy of the unit of land, or any part of it, and shall be enforceable accordingly.

Textual Amendments

F1 Words substituted retrospectively by Agriculture (Miscellaneous Provisions) Act 1972 (c. 62), s. 10(5)

Registration of conditions U.K.

2 [F2 (1) As respects a unit of land to which this Schedule applies, the conditions specified in this Schedule shall (notwithstanding section 2(a) or (b) of the M1 Local Land Charges Act 1975) be a local land charge, and for the purposes of that Act the appropriate Minister or, where this Schedule is applied to the unit by a conveyance by a Rural Development Board, the relevant Rural Development Board shall be treated as the originating authority as respects such charge.] U.K.

(2), (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F3

[F4 (4) In the case of a unit of land in Scotland—

(a) where the conditions specified in this Schedule first come to apply to the unit, the Secretary of State shall cause to be recorded in the General Register of Sasines a notice of that fact;

(b) the said conditions shall not be enforceable against any third party who shall have in good faith and for value acquired right (whether completed by infeftment or not) to his estate or interest in the unit prior to the said notice being recorded as aforesaid, or against any person deriving title from such a third party;

(c) where the conditions or any of them cease to apply to the unit or part of the unit in pursuance of paragraph 6(1) or 7(8) of this Schedule, the Secretary of State shall cause to be recorded in the General Register of Sasines a notice stating that the conditions or condition no longer apply, or applies, to that unit of land or that part].

(5) The conditions applied to a unit of land under this Schedule shall be included among the matters which are required to be registered in the Statutory Charges Register in Northern Ireland . . . F5

Textual Amendments

F2 Para. 2(1) substituted by Local Land Charges Act 1975 (c. 76), Sch. 1

F3 Sch. 3 para. 2(2)(3) repealed by Local Land Charges Act 1975 (c. 76), s. 19, Sch. 2

F4 Para. 2(4) substituted by Agriculture Act 1970 (c. 40), s. 33(1)(b)

F5 Words repealed by Land Registration Act (Northern Ireland) 1970 (c. 18), Sch. 14

Marginal Citations

M1 1975 c. 76.

Condition restricting transfers without Minister’s consent U.K.

3 (1) It shall be a condition that, except with the written consent of the appropriate Minister, no person shall transfer to any other a part only, or any estate or interest in a part only, of the land comprised in the unit. U.K.

(2) References in this paragraph to the transfer of land, or of an estate or interest in land, include references to devolution on death or under the terms of a settlement and the High Court may, on the application of a person affected by this sub-paragraph, vary the way in which property is to devolve on a death or under a settlement so that there is no breach of the conditions specified in this paragraph but, subject to that, so that the persons interested in the unit of land, including those to whom property would devolve on the death or under the settlement, so far as required to surrender any interest in the unit of land, are compensated by receiving part of the proceeds of sale of the land or in any other way.

(3) References in this paragraph to the transfer of land, or an estate or interest in land—

(a) include, subject to paragraph (b) below, references to transfer by way of the creation or assignment of a lease, agreement for a lease or tenancy, including in each case a sublease or sub-tenancy,

(b) do not include references to the granting or assignment of any right of occupation the grant of which is made (whether or not expressly to that effect) in contemplation of the use of the land only for grazing or mowing during some specified period of the year, and, without prejudice to the foregoing words, in Northern Ireland do not include references to the transfer or assignment of any rights arising by virtue of a conacre agreement,

(c) do not include references to any reconveyance or other transaction by way of discharge of a mortgage, heritable security or charge, or of the release or disburdening of any land from a mortgage, heritable security or charge.

(4) The application of this paragraph to any transaction shall not invalidate that transaction, but this sub-paragraph shall not be taken as affecting the terms written into a lease, agreement or tenancy by paragraph 1 of this Schedule.

Condition restricting non-agricultural use without Minister’s consent U.K.

4 U.K. It shall be a condition that, except with the written consent of the appropriate Minister, the whole of the unit of land shall at all times be used for agricultural purposes.

Condition requiring giving of information U.K.

5 U.K. It shall be a condition that the owner of the unit of land [F6 or any such other person having an estate or interest in the unit of land as may be agreed between the appropriate Minister, the owner and that other person] shall, on being required so to do by the appropriate Minister, certify that the conditions in paragraphs 3 and 4 above are being observed with respect to the unit of land, and any tenant of the unit of land shall, on being so required in writing by the owner, [F7 or, if the tenant has been informed of such an agreement as aforesaid, by the other person in question, furnish to the owner or, as the case may be, to that other person] such information as he may reasonably require for the purpose of enabling him to comply with this condition.

Textual Amendments

F6 Words inserted by Agriculture Act 1970 (c. 40), s. 33(1)(c)

F7 Words substituted by Agriculture Act 1970 (c. 40), s. 33(1)(c)

Powers of Minister on giving consent U.K.

6 (1) The appropriate Minister— U.K.

(a) may, when giving his consent under paragraph 3 or paragraph 4 above, direct that the conditions, or any of them, specified in this Schedule shall cease to be applicable to the unit of land, or to any part thereof specified in the direction, or

(b) may give his consent under either of those paragraphs subject to the condition that this Schedule shall apply to such different unit of land as may be specified in the condition,

but shall, before exercising the power conferred on him by paragraph (b) of this sub-paragraph first satisfy himself that all persons who will have an estate or interest in the unit of land to which this Schedule is so applied are parties to the application for consent.

(2) The appropriate Minister may give his consent under either of those paragraphs subject to payment to him of all or any part of the amount which would be payable under paragraph 7(1)(a) below on a breach of the condition to which the application relates by the applicant.

Breach of condition U.K.

7 (1) A person by whom the condition specified in paragraph 3 or paragraph 4 above is breached as respects any unit of land shall be liable to pay to the appropriate Minister— U.K.

(a) an amount equal to the relevant Exchequer payments, together (except in the case of relevant Exchequer payments representing a loan or interest on a loan) with interest until payment from such date, not being earlier than the relevant date, and at such rate, as may be determined by the appropriate Minister with the approval of the Treasury, and

(b) subject to sub-paragraph (2) below, an additional amount equal to so much of the value of the unit, when subject to the conditions imposed by this Schedule, as is attributable to the land which is the subject of the breach,

and the amount which that person is liable to pay under this sub-paragraph shall be a charge on all the estate and interest in the land comprised in the unit which he had at the time of the breach, binding him and his successors in title.

(2) The additional amount payable by virtue of sub-paragraph (1)(b) above shall [F8 not exceed £1500]

(3) Before commencing proceedings against any person to enforce the liability imposed on him by, or the charge arising under, sub-paragraph (1) above, the appropriate Minister shall serve on him a notice specifying the condition alleged to have been breached and, if it is the condition relating to use, the nature of the use constituting the breach; and, unless within two months of the service of the notice that person has—

(a) admitted in writing the breach and his liability in respect thereof or, as the case may be, the breach and the existence of the charge, and

(b) agreed in writing the amount recoverable by virtue of paragraph (b) of that sub-paragraph,

the matter or matters still in issue shall be determined by arbitration.

(4) [F9 Section 84 of the Agricultural Holdings Act 1986] (procedure for arbitrations) shall have effect as if any such matter were one required by that Act to be determined by arbitration under that Act.

(5) [F10 sections 61 and 64 of the Agricultural Holdings (Scotland) Act 1991] (provisions regarding arbitrations) shall have effect as if any question in sub-paragraph (3) above were a matter required by that Act to be determined thereunder; and [F10 sections 60(2) and 80(2)] of that Act shall have effect as if the parties to the dispute were the landlord and tenant of an agricultural holding.

(6) For the purposes of [F11 the M2 Limitation Act 1980], no cause of action or right to receive money shall be deemed to have accrued to the appropriate Minister by virtue of sub-paragraph (1) above until the date on which he served the notice referred to in sub-paragraph (3) above.

(7) If a breach of either of the said conditions constitutes a breach of the terms of any lease, agreement for a lease or tenancy (whether written in by paragraph 1 of this Schedule or not) any person who is or was at any time entitled under the lease, agreement or tenancy to enforce those terms, or to exercise by forfeiture or otherwise any sanction for their breach, shall be liable to pay to the appropriate Minister the amounts specified in sub-paragraph (1) above so far as not recovered from any other person unless he shows to the satisfaction of the court in which proceedings for recovery are taken against him that he has, in exercise of those rights, taken all reasonable steps to prevent the breach, and to make good the results of the breach.

(8) On the receipt by the appropriate Minister of all sums due to him under this paragraph in consequence of a breach or, if he accepts a lesser amount in satisfaction of those sums, on the giving by him of a written discharge therefor, the conditions specified in this Schedule, so far as applied by reference to the relevant Exchequer payments taken into account in arriving at those sums or by reason of the making of any grant under section 27(1)(a) of this Act, shall cease to be applicable to the unit of land.

(9) A person shall not be liable to pay any part of the relevant Exchequer payments both under this Schedule and under some other provision of this Act, or where he has already become so liable by reason of a previous breach of condition.

Textual Amendments

F8 Words substituted by Agriculture Act 1970 (c. 40), s. 33(1)(d)

F9 Words substituted by Agricultural Holdings Act 1986 (c. 5, SIF 2:3), ss. 99, 100, Sch. 13 para. 3, Sch. 14 para. 42

F10 Words in Sch. 3, para. 7(5) substituted (25.9.1991) by Agricultural Holdings (Scotland) Act 1991 (c. 55, SIF 2:3), ss. 88(1), 89(2), Sch. 11, para. 31(a)(b)

F11 Words substituted by Limitation Act 1980 (c. 58), Sch. 3 para. 7

Marginal Citations

M2 1980 c. 58.

8 U.K. If the appropriate Minister is satisfied that a breach of any of the conditions specified in paragraph 3 or 4 above is capable of being remedied he may, subject to any conditions he may impose, direct that the operation of the last foregoing paragraphs shall in relation to the breach be suspended for such period as appears to him to be necessary for enabling the breach to be remedied, and if the breach is remedied to his satisfaction within that period he shall direct that the last foregoing paragraph shall not apply to the breach.

Supplementary U.K.

9 U.K. In this Schedule “owner”, in relation to any land other than in Scotland, means a person, other than a mortgagee not in possession, who is entitled to receive the rack rent of the land or, where the land is not let at a rack rent, would be so entitled if it were so let; and in relation to any land in Scotland, means a person who for the time being is entitled to receive, or would, if the land were let, be entitled to receive, the rent of the land, including a trustee, tutor, curator, factor or agent.

10 U.K. In relation to land which is subject to the provisions of the M3 Crofters (Scotland) Acts 1955 and M4 1961, or of the Small Landholders (Scotland) Acts 1886 to 1931, “agricultural purposes" shall, for the purposes of this Schedule, include any subsidiary or auxiliary occupation permitted by paragraph 3 of Schedule 2 to the Crofters (Scotland) Act 1955 or by section 10 of the M5 Small Landholders (Scotland) Act 1911 as the case may be.

Marginal Citations

M3 1955 c. 21.

M4 1961 c. 58.

M5 1911 c. 49.

11 U.K. In relation to Scotland, any reference in this Schedule to the High Court shall be construed as a reference to the Court of Session; and in paragraph 7(1) for the words from “and the amount" to the end of the sub-paragraph there shall be substituted the words “and the appropriate Minister may make an order in favour of himself providing and declaring that the land comprised in the unit shall be charged and burdened with an annuity to pay the amount which that person is liable to pay under this sub-paragraph, and the provisions of section 16 of and paragraphs 2 to 8 of Schedule 6 to the M6 Building (Scotland) Act 1959 shall apply in relation to any such order as they apply in relation to a charging order within the meaning of that Schedule."

Marginal Citations

M6 1959 c. 24.

12 U.K. In relation to Northern Ireland—

(a) any reference in this Schedule to the High Court shall be construed as a reference to the High Court of Justice in Northern Ireland;

(b) in paragraph 7(3) above, for the words “determined by arbitration" there shall be substituted the words “referred to and determined by the Lands Tribunal for Northern Ireland";

(c) paragraph 7(4) and (5) above shall be omitted;

(d) for any reference to the M7 Limitation Act 1939 there shall be substituted a reference to the [F12 Limitation (Northern Ireland) Order 1989].

Textual Amendments

F12 Words substituted by S.I. 1989/1339 (N.I. 11), s. 76, Sch. 2 paras. 1, 6, 7, Sch. 3 para. 3

Marginal Citations

M7 1939 c. 21.