A lease is a contract by which a rightful possessor of property conveys the right to use and occupy that property in exchange for consideration usually rent. It has been defined by the law dictionary as a contract in writing, under seal, whereby a person having a legal estate in hereditaments, corporeal or incorporeal, conveys a portion of his interest to another, in consideration of a certain annual rent or render, or other recompense The person who grants the lease is called the “lessor” and the person to whom it is granted is called “the lessee”. The following are the essentials of a valid lease in Nigeria;
- Certainty of terms: A lease is an agreement concerning the right to use a property for a period of time between two parties. These agreements are usually expressed in form of clauses on the face of the lease agreement. The agreements otherwise known as covenants must be clear and unambiguous. The covenants must not be capable of another meaning.
- Certainty of commencement date and duration of lease: Usually, the commencement date is inserted in the lease agreement. It must be expressly stated and not ambiguous or predicated upon the happening of a contingent that is not probable.
- Certainty of parties: The parties to a lease must be identified and mentioned in the agreement.
- Certainty of property: The property must be well described in the lease agreement. It is common to describe a property by the street number. However, this might not suffice. The nature of the property for instance, a bungalow or a duplex apartment should be included.
- Exclusive possession: A leased property must be held to the exclusion of other persons including the landlord. It must not be subject to any disturbances or other conditions of sharing with the lessee. Where there is no exclusive possession, there is no lease and thus such purported lease will be void from the beginning.
- The lease must be properly created: By proper creation, we mean that lease should be evidence in a document as stipulated by law. A lease agreement less than 3 years usually referred to as “tenancy agreement” may be made orally or in writing. However, the law is that a lease of a term of 3 years and above must be by deed. As such, it must be signed, sealed and delivered by the parties making it. Where this is not so, it is void and unenforceable in law.
- Tenant must have interest in demised premises: A lease creates an interest in land. Such an interest can be alienated subject to the reversionary interest of the lessor/landlord. The lessee is therefore not just an occupier of the premises but has an interest in the estate of the land.
- The rent must be clearly stated: The rent is the consideration for which the lessee takes possession of the property. It is usually monetary but not always. The rent for which the property is given must therefore be clearly stated.
Ensuring these essentials of a valid lease are present in a deed of lease can help create a legally enforceable lease agreement that protects the interests of both the lessor and the lessee.
We provide Real Estate Attorney services
CONTACT US via telephone call or whatsapp on 0708 424 1826 or send an email to info@thejubileelegal.com
