Understanding emphyteutic lease

An Emphyteutic lease is a type of real estate contract specifying that the lessee must improve the property with construction. The term is commonly used in Quebec. These sorts of leases are usually associated with government properties.

Real estate or immovable property is a legal term (in some jurisdictions) that encompasses land along with anything permanently affixed to the land, such as buildings. Real estate (immovable property) is often considered synonymous with real property (also sometimes called realty), in contrast with personal property (also sometimes called chattel or personalty). However, for technical purposes, some people prefer to distinguish real estate, referring to the land and fixtures themselves, from real property, referring to ownership rights over real estate.

An emphyteutic lease is a long-term contract that requires the lessee to improve the property. French cities have been using the mechanism to transfer land to Muslim groups for rates as low as one euro per year, thus provoking outrage.

Emphyteusis is usually created for a term of 10 - 100 years. Although the emphyteusis lease resembles full ownership, it remains a leasehold interest; indeed, as is noted in the above extract of the Québec Civil Code, the tenant is called a emphyteutic lessee or, in some older references, the emphyteuta. When an emphyteutic lease ends, the owner regains real rights of usus, abusus, and fructus to the immovable.

Source:civil code of Quebec