Legal Aspects of Ohio Farmland Leases Page 3
despite the Statute of Frauds rule that requires the agreement to be in writing. For example, in a
situation where a landowner and tenant farmer agree to a farm lease and the landowner later
changes his mind about renting the land, the Statute of Frauds states that the tenant farmer will
not be able to legally enforce the contract against the landowner without a written agreement.
The partial performance rule could change this outcome and do away with the writing
requirement if the tenant farmer had taken actions such as paying rent, working ground and
purchasing inputs. The tenant farmer would have the burden of proving that the Statute of
Frauds does not apply to the lease because he had already “partially performed” under the
agreement.
A second requirement of the Statute of Frauds is that the party against whom enforcement is
sought must have signed the written agreement. If a landowner and tenant put their farm lease in
writing but neither party signs the agreement, then the agreement is not enforceable against
either party. If only the landowner signs the agreement, then the agreement may be enforced
against the landowner but is not enforceable against the tenant who did not sign the agreement.
Because of this provision of the law, it is important for each party to ensure that the other party
signs the written agreement.
2. Acknowledging and Recording the Lease
Acknowledgement. Ohio law addresses procedures that must be followed to formalize a
conveyance of an interest in real property, such as a lease. The law requires that a person
granting a property interest must sign a written instrument that conveys the interest and must
have the signing acknowledged and certified by a judge or clerk of a court, county auditor,
county engineer, notary public, or mayor. If the land is jointly owned by a married couple, both
husband and wife must sign the lease. If an agent such as a farm manager is representing a party
in the conveyance, the agent must possess the legal authority to enter into the agreement, or the
agreement will be null and void. A party should require verification that an agent representing
the other party has the legal authority to do so. A management agreement that clearly indicates
the scope of the agent’s authority to act on behalf of the party is a common tool used to verify
legal authority.
Prior to 2002, Ohio law also required that a written land conveyance be signed by two witnesses,
but that requirement no longer exists under Ohio law. The law does provide, however, that a
written lease conveyance should include a reference to the volume and page of the county deed
record containing a copy of the landowner’s title to the property.
Recording. The lease interest will not be valid against later purchasers of the property who have
no knowledge of the lease unless the lease is recorded in the county where the land is located.
Recording the lease serves to notify others of the tenant’s legal interest in the land. For example,
if a written five year farm lease is not recorded and a person purchases the farmland without any
knowledge that the farm is still under lease, the lease will not be valid against the new purchaser.
But if the lease is properly executed and recorded, the subsequent purchaser must abide by the
lease until its termination.
The Memorandum of Lease. Parties often hesitate to record farm leases because they do not
want to share the details of the agreement. Ohio law provides a remedy for this problem by
allowing the parties to record a “Memorandum of Lease,” which is a shortened form of the