What's Written In The Contract

[Tonyks]

I recently posted a question here about the lessor having to be present when the lease is transferred. The answer I got was yes, which is what I was expecting. However, I have a clause in the contract which reads:

"The Lessee shall be allowed at any time during the term hereof let on sublease or otherwise transfer the lease rights to all or part of the land with structure to any other third party(s) whereby no further permission need to be obtained from the Lessor"

So does that mean I'm in the clear or will the Land people just laugh at me?

[monty]

The land department will NOT change the lease as registered on the back of the land title deed, unless either the lessor is present, or a third person with a proper power of attorney issued by the lessor, along with proper signed copies of lessor's ID card etc, allowing him to register a lease of that property.

That little clause you have in the contract is not a proper power of attorney!

Of course, you as the lessee, or a person appointed by you (again with proper power of attorney) has to be present as well!

The only thing the clause in the contract says is that the lessor "should" allow the transfer unconditionally (by being present and signing everything of), but since this right is not noted down on the land title deed (which can't be done anyway), makes it impossible for the land office to enforce it.

So if the lessor does not show up to sign, your only recourse would be to start a court case against him! And I'm not all that sure you can win such case, which anyway could be a very lengthy thing of up to several years until a verdict could be reached!

[quiksilva]

I think the legalese could be better, so perhaps the way I interpret this is slightly different.

First off this has nothing to do with what happens on the day of the actual "transfer" (the proper terminology for leasehold interest should really be assignment). When this is registered at the land office he/she would have to be present or at least grant POA to someone to register the changes on their behalf.

Rather what this deals with is the process of approval for assigning or sub-letting the lease to someone else (i.e. get someone else to take responsibility for the terms therein, or to sub-lease it and enjoy a profit rent (I'd hope).

This states that you do not need to ask for the landlord's permission to do so, it is inferred that he will grant permission to do so, just so long as all the clauses and conditions are the same.

You need to clarify with their legal counsel to see if this was how they meant for it to be interpreted.