Lease Execution Section

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.




This document gives the lender (mortgagee) the right to hold the lease of a registered lessee (mortgagor) as a security for a loan from the bank. If the loan repayment is not completed, the mortgagee may take control of the lease.


A document whereby a lessee or mortgagee agrees NOT to do something for the benefit of the lessee or mortgagee of another lease. Example: a lessee may agree that only a lessee of another lease may operate a kava bar on his leased land.

Restrictive agreements must be registered. If an agreement is not registered, it will not be legally binding.


A document whereby the lessee gives a non-lessee a right of way through the leased land.

Example: The right to pass through a leased land either by a vehicle or on foot.


A document whereby a lessee gives a non-lessee the right to go on the leased land and take a particular substance. Examples: soil, plants or wild animals.


A document which forbids the registration of any other document affecting a particular lease. A caution can only be lodged by a person with an interest in the land; or who claims a benefit under a trust or license affecting the lease; or who has presented a bankruptcy or winding up petition against the lessee.

A caution cannot be lodged to protect a right of custom ownership.


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

There are five types of leases:

Residential Lessee someone can build a house and live in it.
Commercial lease class under which a Lessee may establish a business such as a shop or undertake business activities.
Agricultural Lessee may undertake agricultural activities on the land such as planting food gardens or raise live-stock.
Industrial Lessee may operate a factory.