A Lease is a contractual arrangement calling for the lessee (user) to pay the lessor (owner) for use of an asset. Property, buildings and vehicles are common assets that are leased. Industrial or business equipment is also leased. A Lease agreement is a contract between two parties, the Lessor and the Lessee. The Lessor is the legal owner of the Asset; the Lessee obtains the right to use the asset in return for regular rental payment.
Role of Lease Execution Section
In brief, the role of Lease Execution Section is:
- Witnessing and certification of leases and related instruments prior to approval and registration
- To Coordinate, supervise and facilitate land leases and related dealings for ministerial approval and registration in compliance with land laws, policies and Constitution of the Republic of Vanuatu.
- Dealings facilitated by Lease Execution Unit for approval includes; new leases, lease surrenders, derivative leases/subdivision/amalgamation of titles/change of lease classes, transfer of leases, mortgages, lease variations and subleases..
Terms and Condition
The provisions of a lease agreement binding on the lessee and lessor. The lessor and lessee must 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.