Difference Between A Certificate of Lease and a Title Deed

This article explains the difference between a certificate of lease and a Title Deed.

When it comes to matters of land use, ownership, and lease, there are several documents used to identify or authenticate ownership or use of land either permanently or temporarily for a specific period of time.

These documents include the Title Deed and a Certificate of Lease. Many people find it hard to differentiate between the two documents. That is why I decided to shed some light on this issue in this particular article.

Read on to know the difference between these two fundamental documents.

A certificate of Lease  

A leasehold title or leasehold Land certificate refers to the interest in Land for a specific period of time that is subject to payment of a fee or rent.

Leases are granted by the government for public land, the local government for trust land, and individuals with freehold titles.

For all agricultural land, the maximum term for government leases is 999 years, while the term for urban plots is 99 years. However, 33-year leases are very common in urban trust land.

Lease terms for individuals with freehold titles are solely determined by what the landlord and tenant agree on.

The owner repossesses the land when the lease expires. The tenant and landlord will sign a contract outlining each party’s legal rights and responsibilities.

The tenant may request a lease extension. This is in case he/she wants to redevelop the property but the lease is about to expire or the time is insufficient to recoup the investments.

Leaseholders may be required to obtain permission for any major work on the property.

If the leaseholder fails to fulfill the terms of the lease, such as failing to pay the agreed-upon fees, the lease can and will be forfeited.

Read List of Places to Buy Cheap Land in Kenya

A Title Deed

A title deed is a legal document that establishes legal ownership of land or other immovable property. A clear land title protects the title holder’s rights against other claims to the property made by anyone else.

Having a title deed in your name means you are the owner of a piece of land and have permanent legal rights to the property and anything else on that land. Your descendants will be able to inherit the property for as long as the family lineage exists and the property is not sold.

A freehold title represents the greatest and most considerate interest that one can have in land, with no restrictions on use and occupation.

Having a title deed ultimately means that you own property for as long as your ancestors live.

Difference between a CERTIFICATE OF LEASE and a TITLE DEED

The possession of a Certificate of Lease simply means that you own the property for a limited time. When that time period is up, the land reverts to the grantor of the lease.