---
kind: "section"
citation: "7 C.F.R. § 767.101"
title: "7"
number: "767.101"
heading: "Leasing real estate inventory property."
url: "https://uscodex.org/cfr/7/767.101"
---

# §767.101. Leasing real estate inventory property.

- (a) The Agency may lease real estate inventory property:
  - (1) To the former owner under the Homestead Protection Program;
  - (2) To a beginning farmer selected to purchase the property but who was unable to purchase it because of a lack of Agency direct or guaranteed loan funds;
  - (3) **When the Agency is unable to sell the property because of lengthy litigation or appeal processes.**
- (b) The Agency will lease real estate inventory property in an “as is” condition.
- (c) The Agency will lease property for:
  - (1) **Homestead protection in accordance with part 766, subpart D, of this chapter.**
  - (2) A maximum of 18 months to a beginning farmer the Agency selected as purchaser when no Agency loan funds are available; or
  - (3) **The shortest possible duration for all other cases subject to the following—**
    - (i) **The maximum lease term for such a lease is 12 months.**
    - (ii) **The lease is not subject to renewal or extension.**
- (d) The lessee may pay:
  - (1) A lump sum;
  - (2) On an annual installment basis; or
  - (3) **On a crop-share basis, if the lessee is a beginning farmer under paragraph (a) of this section.**
- (e) The Agency leases real estate inventory property for a market rent amount charged for similar properties in the area.
- (f) The Agency may require the lessee to provide a security deposit.
- (g) Only leases to a beginning farmer or Homestead Protection Program participant will contain an option to purchase the property.

## Notes

### Amendments

[72 FR 63358, Nov. 8, 2007, as amended at 73 FR 74345, Dec. 8, 2008; 90 FR 30559, July 10, 2025]

### Authority

Authority: 5 U.S.C. 301 and 7 U.S.C. 1989.

### Source

Source: 72 FR 63358, Nov. 8, 2007, unless otherwise noted.

### Amendments

[72 FR 63358, Nov. 8, 2007, as amended at 73 FR 74345, Dec. 8, 2008; 90 FR 30559, July 10, 2025]