Recent estimates suggest about 640,000 hectares is rented by way of conacre, which is the right to sow and harvest crops on another’s land. Under the current system, conacre agreements involving an auctioneer usually involve the landowner and farmer signing a standard licence agreement.
This system changed on 1 July due to new legislation which requires a full letter of engagement, or contract, to be signed by the landowner or person appointing the auctioneer. The letter of engagement will help protect the client and has all of the advantages of a contract and statutory law in relation to an agreement.
In the majority of cases under the new system, the landowner will now be obliged to pay the agent’s fee and not the farmer, which was traditionally the case.
The legislation comes from the Property Service (Regulation) Act which came into law in 2011. This led to the establishment of the Property Services Regulatory Authority (PSRA) in 2012.
The purpose of the new legislation is to protect the public. The main function of the PSRA is to licence and regulate property services providers and to put in place a complaint, investigation and redress system for consumers. Under the 2011 Property Services Regulation Act, conacre is now deemed a property service, and an auctioneer or estate agent is referred to as a property service provider.
One of the new legal requirements is that a letter of engagement must be provided by a property service provider (PSP) and signed by a client (ie, a landowner or farmer) before the agent/PSP can act on behalf of the client. This is now a statutory requirement for new lettings in conacre and agistment. The agreement is usually on a seasonal basis for normally 11 months but never for a full 12 months to avoid creating a relationship of landlord and tenant. Therefore, it is not a lease and the farmer taking the land is not a lessee
The nature of this agency agreement is that of sole agency and the named agent is the only agent with the right to let or auction the agricultural land for the duration of the agreement.
The letter of engagement must be issued by an agent to a landowner within seven days of agreeing or beginning to provide a property service, whichever is the earliest. The landowner must return the letter of engagement, duly signed, within seven working days.
If an agent does not receive a signed letter of engagement returned from the landowner, they must cease to provide or shall not start to provide the property service. The letter of engagement is between the landowner and the agent and, therefore, the landowner is liable to pay the agent’s fee.
* Tom McDonald is chair of
the Society of Chartered
Surveyors Ireland (SCSI)
Rural Professional Group.
The Property Services (Regulation) Act 2011 will change the conacre system from 1 July. A letter of engagement (ie, a contract) will be required to be signed by the party appointing the auctioneer/estate agent.If a landowner is letting the land and appointing an agent, he/she must now pay the agent’s fees. If a farmer is seeking land and appointing an agent, he/she must pay the agent’s fees.The agent can only have one client in the transaction and can only be paid by one party.
Recent estimates suggest about 640,000 hectares is rented by way of conacre, which is the right to sow and harvest crops on another’s land. Under the current system, conacre agreements involving an auctioneer usually involve the landowner and farmer signing a standard licence agreement.
This system changed on 1 July due to new legislation which requires a full letter of engagement, or contract, to be signed by the landowner or person appointing the auctioneer. The letter of engagement will help protect the client and has all of the advantages of a contract and statutory law in relation to an agreement.
In the majority of cases under the new system, the landowner will now be obliged to pay the agent’s fee and not the farmer, which was traditionally the case.
The legislation comes from the Property Service (Regulation) Act which came into law in 2011. This led to the establishment of the Property Services Regulatory Authority (PSRA) in 2012.
The purpose of the new legislation is to protect the public. The main function of the PSRA is to licence and regulate property services providers and to put in place a complaint, investigation and redress system for consumers. Under the 2011 Property Services Regulation Act, conacre is now deemed a property service, and an auctioneer or estate agent is referred to as a property service provider.
One of the new legal requirements is that a letter of engagement must be provided by a property service provider (PSP) and signed by a client (ie, a landowner or farmer) before the agent/PSP can act on behalf of the client. This is now a statutory requirement for new lettings in conacre and agistment. The agreement is usually on a seasonal basis for normally 11 months but never for a full 12 months to avoid creating a relationship of landlord and tenant. Therefore, it is not a lease and the farmer taking the land is not a lessee
The nature of this agency agreement is that of sole agency and the named agent is the only agent with the right to let or auction the agricultural land for the duration of the agreement.
The letter of engagement must be issued by an agent to a landowner within seven days of agreeing or beginning to provide a property service, whichever is the earliest. The landowner must return the letter of engagement, duly signed, within seven working days.
If an agent does not receive a signed letter of engagement returned from the landowner, they must cease to provide or shall not start to provide the property service. The letter of engagement is between the landowner and the agent and, therefore, the landowner is liable to pay the agent’s fee.
* Tom McDonald is chair of
the Society of Chartered
Surveyors Ireland (SCSI)
Rural Professional Group.
The Property Services (Regulation) Act 2011 will change the conacre system from 1 July. A letter of engagement (ie, a contract) will be required to be signed by the party appointing the auctioneer/estate agent.If a landowner is letting the land and appointing an agent, he/she must now pay the agent’s fees. If a farmer is seeking land and appointing an agent, he/she must pay the agent’s fees.The agent can only have one client in the transaction and can only be paid by one party. 
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