Currently, there are two types of land lease for any activity: short-term and long-term lease. Which can only rent vacant land for building construction for cultivation or business Or you can rent land with buildings. Type of land lease agreement In English, it is called Land Lease Agreement, it is divided into short-term land lease and long-term land lease agreements with different terms depending on the purpose of the lease. In the part of the long-term land lease agreement The type of contract is further subdivided, such as ordinary lease and reciprocal lease. How is each type of lease agreement? What type of rental contract must be made? We will solve the answer.
Short-term land lease agreement
The short-term land lease agreement is a contract for the lease of up to 3 years which is not necessary to enter into a contract at the land office and has the following key characteristics
1. Lessor and tenants can enter into a land lease agreement between themselves.
2. Clear details of “tenant” and “lessor”.
3. Clearly specify compensation or "rent"
4. Clearly state the rental period From the beginning to the end
5. Specify the agreed terms.
6. Sign the sign of both parties completely.
Read more about important details that should be stated in the contract in the section. “Example of drafting a contract” at the bottom of this article.
Long-term land lease agreement
A long-term land lease agreement is a lease for more than 3 years in which the lessor and the lessee are required to register the lease agreement at the land office in the area where the land is located.
- A contract that looks like a general real estate lease where the lessee pays the rent (compensation) to the lessor.
- The tenant is unable to transfer the leasehold, for example, if the tenant dies during the period of the contract. The contract is final. Unable to pass the burden on to the heirs
- In case of prosecution The person who wishes to sue must have a clear lease document to be executed, for example, the building owner can sue for an offense or damages from the tenant only if there is a lease agreement made at the land office.
- In case of prosecution If the land lease contract is 3 years, it must be sued within 3 years.
- A contract in which the tenant will have to pay other compensation as agreed with the lessor Apart from the rent
- The tenant can transfer the lease to the heir. In the event that the tenant dies while still in the contract The heir will be responsible for the remaining tenants.
- In case of building a building on the leased area The tenant will have to pay the construction cost. And the completed building will become the property of the lessor
- In the event that the rental building is damaged The tenants have to improve by themselves. Where the ownership of the renovation or addition will be vested in the lessor
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What should I know about subleasing?
Sublease is where the tenant brings the property he leased to another person (3rd party) for another lease. In which a contract must be agreed between tenants (That takes the real estate to be rented) and third parties
Caution for Lessors
Whether to rent out land for short term and long term The lessor should agree with the lessee that they can allow sublease or not. And should be specified in writing in the land lease agreement as well To prevent improper sublease
Example of drafting a land lease contract
Two copies of the land lease contract must be prepared for the tenant and the lessor. Both editions must have the same content. And there should be some basic information contained in the land lease contract as well.
1. Date of Agreement
2. Place of contract
3. Name and address information of tenants
4. Name and address information of the lessor
5. Rental Agreement
- Information of the property for rent, including address, area number, deed number, purpose for rent. And activities to be performed at the rental facility
- Agreement for rental period
- Advance deposit Including the amount, payment method and payment schedule
- Rental rates and rent payments, including through banks, placing checks or cash.
- The tenant agrees to pay the land tax to the tenant.
- The lessee agrees not to use the land for any other purpose than specified in the land lease contract. Unless with a written permission from the lessor
- Tenant agrees not to sublease the leased land. Unless with a written permission from the lessor
- The lessee agrees to facilitate the lessor or lessor's agent when coming to inspect the land for the specified period.
- If the lessor sells the land before the lease is expired The lessor must notify the tenant in advance for the specified period.
- If the tenant does not comply with any of the contracts. The lessor has the right to notify the tenant to follow. Or terminate the contract and claim reasonable damages
- If the tenant has a reason to leave the leased land for any reason Tenants cannot claim damages or demolition fees from the lessor.
- On the date of the land lease agreement The tenant has inspected the land and buildings (if any) that they are in perfect condition for the lease. And has been successfully delivered to the tenant
6. Signatures of the tenant and the landlord.
Making a land lease contract requires careful consideration. Because if there are any problems or conflicts that arise This contract made up will be an important document of confirmation in court. Therefore, whether it is a big or small matter You must clearly and concisely state all the terms of the land lease agreement so that both parties have a common understanding and know exactly how to act. This clarity is essential to a smoother lease. And when you understand and prepare the lease Go ahead and post a land rental announcement