Agricultural Economics Department

 

Date of this Version

1-15-2025

Document Type

Article

Citation

Groskopf, J. “Verbal Leases: What Happens If Someone Dies?” CAP Series 25-0101, Center for Agricultural Profitability, University of Nebraska-Lincoln, Jan. 15, 2025. DOI: 10.32873/unl.dc.cap056.

Abstract

At a recent farmland leasing workshop, the question was raised, “I am a landlord with a handshake lease agreement. What happens if I die?” At the time, I gave the simple answer of “the new owners of the land will be subject to the lease.” Although this is technically correct, the situation is more nuanced than it appears. Depending on how the land is owned and passed on, there may be a period of uncertainty regarding who is responsible for the lease after the landowner’s death.

Handshake, oral, or verbal lease agreements remain common for leasing agricultural land in Nebraska. When the terms of the lease are not negotiated or written, Nebraska State Statute provides provisions for various scenarios. In the case that the landlord dies during the term of a verbal lease agreement – and no additional verbal provisions related to this scenario were discussed and agreed to – the answer will depend on how the land is owned and passed on.

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