A
lease, also referred to as tenancy, is a specific property transaction in
Nigeria in which possession and use of premises is
given for a definite term. It is a transfer of interest in property for a term
of years usually three years and above. A formal lease is differentiated from a
mere tenancy agreement because it has to be three years and above.
Again, a leasehold
relationship or interest exist between two or more parties where one party
gives out or lets out his property to another person to use for a period and
usually, though not always, in consideration of payment of rent. It is a
contract for the exclusive possession and profit of land for some definite
period: Prudential Assurance Co. Ltd. v London Residuary Body (1992)
2 AC 286.
In a lease, the
consideration flowing from the lessor to the lessee is the demised premises. On
the other hand, the consideration paid by the lessee is the rent and the
observance of any condition or covenant in the lease. The title to the land is
not conveyed, only the use and occupation of the property is in issue; the
property reverts back to the lessor after the expiration of the term.
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