Deed Provisions

(1) The deed of easement conveyed in connection with the purchase of an easement under the program shall incorporate an exhibit containing the following provisions: (a) A granting clause stating: “NOW, THEREFORE, for ______ dollars and for the reasons given and other good and valuable consideration and in consideration of their mutual covenants, terms, conditions, and restrictions contained herein, the Grantor hereby voluntarily grants and conveys to the Grantee, and the Grantee hereby voluntarily accepts, a perpetual conservation easement in the protected property, which is an immediately vested interest in real property of the nature and character described herein.” (b) “The primary purpose of this deed is to preserve the protected property for agricultural and forestry use by maintaining its viability and productivity. Non-agricultural and non- forestry uses that significantly impair the current or potential agricultural or forestry uses of the protected property, or that otherwise conflict with this purpose, are prohibited.” (c) “Except as provided in this paragraph, Grantee shall not sell, transfer, release, or otherwise divest itself of any rights, title, or interests in this deed without the Grantor’s prior consent. If the Grantee dissolves, ceases to exist, or no longer qualifies as a holder under Tenn. Code Ann. § 43-1-110 (2025), the Grantee shall, within 180 days of dissolution, termination, or disqualification, transfer any right, title, and interest in this deed to a third party that at the time of transfer is a qualified easement holder under Tenn. Code Ann. § 43-1-110 (2025), provided the third party expressly agrees to assume the responsibilities imposed on the Grantee by this deed. If transfer of this deed fails to comport with this provision or if the Grantee fails to timely transfer this deed in accordance with this provision, the State of Tennessee may petition a court of competent jurisdiction for transfer of this deed, and the rights and obligations created hereunder, to a qualified easement holder under Tenn. Code Ann. § 43-1-110 (2025) that agrees to assume the obligations imposed on the Grantee by this deed.” (d) “This deed imposes legal rights and obligations running with the land in perpetuity. Every provision of this deed that applies to Grantor and Grantee shall also apply to and be binding upon their respective agents, heirs, executors, administrators, assigns, and all other successors as their interests may appear.” FARMLAND PRESERVATION CHAPTER 0080-01-04 (e) “Grantee and Grantor may amend this deed by an amended deed of easement, provided that an amendment shall not affect this deed’s perpetual duration or conflict with the purposes of Tenn. Code Ann. § 43-1-110 (2025). No amendment shall be effective unless documented in a notarized writing executed by Grantee and Grantor and recorded in the register’s office of the county in which the protected property is located.” (f) “With reasonable notice to the Grantor, the Grantee and its employees, agents, successors, and assigns, shall have the right to enter the protected property at reasonable times to inspect for compliance with the terms, conditions, and restrictions of this deed.” (g) “Grantee shall not restrict Grantor’s rights to engage in agriculture or forestry on the protected property, or Grantor’s rights to permit others to engage in agriculture or forestry on the protected property, as agriculture and forestry are defined in Tenn. Code Ann. §§ 1-3-105 (2023), 11-4-103 (1986), and 43-1-113 (2014), provided that such agricultural or forestry activities conform with applicable federal and state law or regulation.” (h) “The terms and provisions of this deed shall be interpreted in accordance with the laws of the State of Tennessee, including Tenn. Code Ann. § 43-1-110 (2025).” (i) A clause prohibiting use or improvement of the protected property that may irreparably harm the agricultural or forestry use of the property, to include limitation of impervious surfaces on the protected property to no more than five percent of its area, when applied in conformance with Tenn. Code Ann. § 43-1-110 (2025): “Grantor is prohibited from using or improving the protected property in a manner that irreparably harms the agricultural or forestry use of the property, and impervious surfaces shall not exceed ____ percent of the protected property, when applied in conformance with Tenn. Code Ann. § 43-1-110 (2025), excluding public roads or utilities.” (j) “On-site energy production is permitted for localized needs of the protected property. Structures or facilities with a primary purpose for commercial production of energy are prohibited.” (k) “If the fee and the easement interest in the protected property become vested in the same party the doctrine of merger shall not operate to extinguish this easement. Within 180 days of acquiring ownership of the fee and the easement interest, the Grantee, Grantor, or any successor thereof shall transfer the fee or the easement, but not both, to a third party. The easement interest may be transferred only to a third party that at the time of transfer is a qualified easement holder under Tenn. Code Ann. § 43-1-110 (2025) and expressly agrees to assume the obligations imposed on Grantee by this deed. If the Grantee fails to timely transfer the fee or the easement in accordance with this provision, the State of Tennessee may petition a court of competent jurisdiction for transfer of this deed, and the rights and obligations created hereunder, to a qualified easement holder under Tenn. Code Ann. § 43-1-110 (2025) that agrees to assume the obligations imposed on the Grantee by this deed.” (l) “In the event of conflicting terms, terms of this exhibit shall supersede any other terms of this deed.”