Emphyteutic lease

Description

An emphyteutic lease is the agreement by which the owner of a property leases it to a lessee who undertakes to carry out work on it in order to improve it. It may have as its object a rural building, a residential building or a building for industrial or commercial use. Such a lease must be the subject of an authentic instrument received by a notary and must be published in the real estate file. The term of the lease must be between eighteen and ninety-nine years. No early termination clause may be stipulated. Throughout the term of the lease, the lessee has a real property right in the leased property which may be mortgaged. This right may also be assigned and seized in the forms prescribed for seizure of immovable property. In return for this right, the lessee pays the lessor a fee, the amount of which must be modest because the lessor becomes the owner of the improvements made by the lessee at the end of the lease, without compensation.