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Lease Terminology


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What are some of the important terms we should know?

The following are some of the terms used when referring to the registration of lands documents:

Lease - A document whereby the owner of a plot of land agrees to grant the right to use the land in question in accordance with the terms of the agreement made between the two parties for a period of time agreed to by the parties concerned.

Lessor - This refers to person who owns a land and leases it out to another person. If the land is in turn leased to a third party, the initial lessor is called the head-lessor.

Lessee - The person who is given a lease by the lessor.

Sub-lease - Lease of land that has already been leased from another person (head-lease).

Sub-lessor - A person who has granted a sub-lease. The sub-lessor is the lessee of the first lease. (head-lessee).

Sub-lessee - A person who has taken out a sub-lease.

Lease Forfeiture - This term means to 'forfeit a lease' and return this to the:

  • Custom owner (if the land is located in the rural area).
  • Government (if the land is located in the urban area or is a public land, for instance clinic, school).

Lease Transfer - A lessee may obtain a lease for the purposes of selling or granting the lease to another person, if the lessor agrees. He may transfer the land if he does not owe any payment on the land.

Terms and Conditions - The provisions of a lease agreement binding on the lessee and lessor. The lessor and lessee may negotiate the terms and conditions before signing the lease. Some examples of terms and conditions are:

  • the type of development that the lessor will allow to occur on the land in question.
  • the number of years within which the lessee must develop the land.
  • the lease term.
  • the lease rental or premium.
  • the rights still retained by the lessor to use the leased land (e.g: using the area near the sea, using a road that passes through the land, harvest fruit trees or hunt for birds in the land).

The land owner should think about what they still want to do on the land before they grant a lease, and is not obliged to agree to everything the lessee wants. The land owner has the right to negotiate the terms and conditions before they agree to sign a lease.


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