Think you can write a lease with a tribe and be done with it?  Not so fast, especially if the tribe hasn’t qualified under the Hearth Act. The Hearth Act is a federal law  passed in 2012 which allows Indian tribes to write business leases for a primary term of 25 years and with 2 extensions of 25 years without having to get Bureau of Indian Affairs review and approval.  69 tribes are approved under the Hearth Act and another 21 tribes have requested approval.  You can find a list of Hearth Act qualified tribes here.

If a tribe has not qualified under the Hearth Act then any business lease which it or its members write must must be approved and recorded by with the Bureau of Indian Affairs (“BIA”).  The requirements summarized in 25 CFR Subpart D.  Here are just a few of the rules for tribal leases:

• A business lease can’t exceed 25 years with one 25 year renewal.
• The lease must contain a legal description, survey grade global positioning system description or description prepared by a registered land surveyor
• Lease payments must be fair market unless the tribe provides a written waiver of the right to receive fair market value.   This may include the requirement for a valuation of fair market value.
• A performance bond is required unless the tribal landowners agree to waive and the BIA determines a waiver is in the landowner’s best interest.
• Insurance is required unless a tribe determines to waive the requirement.
• The BIA must review and approve the lease and any amendments to the lease or assignments of the lease.
• The BIA must record the lease in its Land Titles and Records Office.

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