Pratiucal Question For Land Lease Agreement And Superficies

[OKF]

Hello @ all

may I ask a couple of questions.....

I have drafted a land lease aggreement where I used the content of several. I have a clause in which says:

2. OPTION TO PURCHASE FREEHOLD

2.1 The Parties agree that in return for the Rental, the Lessor will grant a lease of the Land, as detailed herein, in favour of the Lessee (the “Lease”).

2.2 Further, in return for the Rental and for no additional consideration beyond the Rental, the Lessor also hereby irrevocably and unconditionally grants to the Lessee or the Lessee’s designee, an option to purchase the freehold title to the Land at any time during the Term. The Freehold Option shall be exercised by the Lessee at anytime during the Term by giving written notice to the Lessor.

2.3 In order to better secure the Freehold Option for the Lessee, the Lessor, on or before the Registration Date, will provide to the Lessee a signed power of attorney transferring the freehold ownership to the Land from the Lessor to one transferee to be designated by the Lessee (the “Land Transfer Power of Attorney”). The Lessor agrees that such power of attorney shall be binding on all transactions taking place during the Term, under the terms and conditions provided herein

2.4 Any and all government transfer fees and taxes associated with the transfer of the freehold title to the Land into the name of the Lessee or his designee will be borne solely by the Lessee.

I assume somebody else has done this. If so it would be very kind if someon could provide me with the document in 2.3

I also have put 3 Lessee's in as the lease is not inherritable. I have formed a clause which says:

Each Lessee can Act on behalf of the other and has every single duty and obligation resulting from this contract. It is seen as being a single lessee throughout this contract.

I am not a native English speaker so I think that clause is not right wording. What I want to say is that all the lesses do not act in a group. If one does or say something that is binding for everybody as if there is one Lessee only. Maybe someone can put in right english for me?

Also I have found a very straight forward Superficies agreement. From what I know they are very straight forward. Would it be okay like this:

...Contract berween X and Y for ...

Parties to the contract agree as follow:

1. The Grantor agrees to grant the Grantee the right of superficies on the above-mentioned land, with the right to own, upon or under the land, building, structures or plantations.

2. Such right of superficies above mentioned in Clause 1. shall be enforced for a period of 60 years.

3. In case of destruction or loss of buildings, structures of plantations, even if caused by the force majeure, the Grantee’s right of superficies on this land shall not be extinguished.

4. When the right of superficies is extinguished by any cause, the Grantee agrees to take away his building, structures or plantations from the land of the Grantor immediately, at the Grantee’s own expense.

In case the Grantor does not wish the Grantee to take away the objects listed in the preceding paragraph, and declares his intention to purchase such buildings, structures and plantations at their market value, the Grantee agrees to sell such objects to the Grantor.

5. The Grantee shall not transfer the right of superficies according to this contract to other persons or outsiders, except with the prior written approval of the Grantor.

6. In case of death of the Grantor or Grantee, the right of superficies granted in this contract shall remain binding unto their heirs who shall comply with this contract; and it shall not be deemed that the contract expires because of such cause.

This contract is made in duplicate. The parties to the contract having read and understood the entire substance of the contract hereby sign their names in the presence of witnesses

There was clause in about payment, I have take it out (As remuneration for the use of Land, the Grantee agrees to pay consideration to the Grantor in the form o/for a total of_ which shall be paid monthly/annually throughout the period of this contract, payable every last day of the month/year.). Is it okay to take it out? Do I have to put in somewhere that this has to be seen in conjunction with the lease agreement? Would that clause been sufficient?

And one more practical question:

I assume the the lessees and the lessors do not have to go to the land office themselves and sign meaning someone with a power of attorney signed by the lessor and the lesse can go ad register or better a lawyer?

Thanks & regards

Oliver

[thaiwanderer]

I suspect you may have difficulty registering the lease with clause 2.3.

Even if you can, if the lessor later changed their mind I imagine they could probably resist it.

Generally your post throws up a variety of issues and I'd suggest you take decent legal advice.

[OKF]

THX

I am very aware of these isues.

I know that such agreement was registered with that clause. I just do not have the document 2.3 it refers to. Again, not being an English speaking native I cannot do it myself properly worded.

...and yes I will take advice but want to prepare verything. By the end of the day these things are more or less very straight forward. If read all the postings here that are about these issues.

I would appreciate if somebody just could answer my question. Thanks a lot.

[Sunbelt Asia]

All lawyers have their own templates for lease agreements but the final agreement almost always ends up with changes due to negotiations between the two parties.

In order to ensure that your lease agreement is fully legal and enforceable it is better to have a law firm draw it up. Sunbelt Asia has extensive experience in drawing up legal contracts and can assist you in this matter if needed.

http://www.sunbeltlegaladvisors.com/