Lease is a contract between the lessor and the lessee for possession and enjoyment of the profits of the land on one side and recompense by rent or other consideration on the other.
Lease agreement of an immovable property can be created by two methods:
- Registered instrument in cases where the lease is from year to year or exceeding one year rent or reserving yearly rent. In such cases the instrument must be executed by both the lessor and the lessee.
- Oral agreement followed by delivery of possession in other cases.