THE LEASE OF LAND

ECOVIS Miškinis, Kvainauskas ir partneriai advokatų kotora

The general provisions of a land lease contract are mainly defined by the Civil Code of the Republic of Lithuania. Under a land lease contract, one party (lessor) takes an obligation to transfer for payment a plot of land to the other party (lessee) in temporary possession and use for the purposes specified in the contract and under conditions established therein, while the lessee undertakes an obligation to pay the payment of land rent indicated in the contract. Separate laws of Lithuania may stipulate the peculiarities in respect to the lease of land to diplomatic and consular missions of foreign states, likewise, the lease of land plots located in free economic zones, the territory of the seaport or any other specific locations.

The subject matter of a land lease contract is a plot of land (or a part thereof) in state or private ownership formed in accordance with the project of land-use planning or any other detailed document of territorial planning, and registered in the Public Register within the procedure established by law. A land lease contract must be made in written form. A land lease contract may be invoked by the parties against third persons only if it is registered in the Public Register within the procedure established by law. A land lease contract must be appended with the plan of the land plot to be leased, and in the event of the land to be leased for a period of up to three years, with the scheme of the land plot. These documents form an inseparable part of the land lease contract. Lessees of land may be natural and legal persons of Lithuania and foreign states.

(continued in next issue)