---
title: "Agricultural Land Transactions"
url: "https://legal.ge/en/service/real-estate-law-en/agricultural-land-transactions-en"
field: "Real Estate Law"
description: "Agricultural land lease in Georgia: form, termination terms, capital expenditures and continuation. Legal.ge."
reviewed: "2026-03-25"
updated: "2026-11-05"
publisher: "legal.ge"
---

# Agricultural Land Transactions

> Source: legal.ge, https://legal.ge/en/service/real-estate-law-en/agricultural-land-transactions-en

## The Lease Model of Agricultural Land and Its General Framework

The most widespread form of transactions involving agricultural land is lease: the landowner hands the plot over to an entrepreneur for farming use and receives rent in return. Article 592 of the Civil Code defines the concept: under a lease of agricultural land, the plot is transferred for an agricultural purpose together with residential or farm buildings (an enterprise) intended for farm use, or without such a building. The general rules of lease apply to this lease, unless something else is established for agricultural land.

The general framework is Article 581 of the Code: the lessor transfers the property for temporary use and ensures the possibility of receiving fruits, if they are received as income as a result of the proper management of the farm; the lessee pays the agreed rent. The rent may be determined in money or in kind, and the parties may agree on other means of determining it as well. In agricultural practice, payment in kind — a share of the harvest — is a traditional form that the Code directly envisages.

The full text is available on legal.ge after signing in: https://legal.ge/en/service/real-estate-law-en/agricultural-land-transactions-en

### What form is required for a lease of agricultural land?

Written. If the form is not observed, the contract is presumed to have been concluded for an indefinite term.

### When may an open-term land lease be terminated?

Only at the end of the lease year, and the contract may be terminated no later than one month after the end of the lease year. The rule governs early termination as well.

### Must the lessor compensate improvements of the land?

Yes — capital expenditures incurred to improve the leased property provided for by the contract, including the land, must be compensated by the lessor.

### May the lessee demand continuation of the lease?

Yes — if the lease is an existential foundation for the lessee’s farm, the land is vitally necessary, and termination is so painful that even the lessor’s worthy interests do not justify it.