Define: Canon Emphyteuticus

Canon Emphyteuticus is a legal concept that refers to a long-term lease agreement for immovable property, typically for a period of 99 years or more. It grants the lessee certain rights and obligations over the property, similar to ownership, while the lessor retains the ultimate ownership.

Unlike a regular lease, Canon Emphyteuticus grants the lessee more extensive rights and responsibilities over the property. The lessee has the right to use, enjoy, and even modify the property, subject to certain limitations and obligations, for an extended period of time.

The lessee has the right to possess, use, and enjoy the property as if they were the owner. They can make improvements, lease the property to others, and even transfer their rights to a third party, subject to any restrictions specified in the agreement.

The lessee is typically responsible for paying an annual ground rent to the lessor, maintaining the property in good condition, and complying with any specific obligations outlined in the agreement. Failure to fulfill these obligations may result in termination of the lease.

In general, the lessor cannot terminate the lease unless the lessee fails to fulfill their obligations or breaches the terms of the agreement. However, specific termination clauses may be included in the lease, so it is important to review the agreement carefully.

Yes, the lessee can sell or transfer their rights to a third party, subject to any restrictions specified in the lease agreement. However, the lessor usually has the right of first refusal, meaning they have the option to purchase the property before it is sold to a third party.

Yes, the lessee generally has the right to make modifications or improvements to the property, subject to any restrictions or conditions specified in the lease agreement. However, major modifications may require prior approval from the lessor.

The lease agreement may include provisions for periodic increases in the ground rent, typically based on a predetermined formula or index. However, any rent increase must be reasonable and in accordance with the terms of the agreement.

In general, the lessee cannot terminate the lease before its expiration unless there is a specific provision allowing for early termination in the agreement. However, the lessee may have the option to sublease or assign their rights to another party.

At the end of the lease term, the property typically reverts back to the lessor, unless there is an option to renew or purchase the property specified in the agreement. The lessee may be entitled to compensation for any improvements made to the property, subject to negotiation or legal provisions.