Senegal has established a system allowing individuals to occupy state-owned land . Various structures have been put in place to facilitate this process. Among them, the emphyteutic lease stands out. In Senegal, an emphyteutic lease grants long-term use of state-owned property, ranging from 18 to 50 years. Leaseholders are obligated to construct residential buildings or structures for various uses, such as agriculture, industry, commerce, and many others. To better understand this concept, we will explore the conditions for acquiring an emphyteutic lease in Senegal , the guarantees it provides, and the methods for terminating it.
Conditions for obtaining a long-term lease in Senegal
First and foremost, obtaining a lease requires prior occupation of the property in question. The property must be located within the state's private domain, which is the only part of the national domain that can be alienated. Additional conditions are necessary to obtain a long-term lease in Senegal .
These conditions include:
- Compliance with the legal lease term : according to Senegalese law, the lease must have a minimum term of 18 years and can extend up to 50 years. However, it is possible to extend or renew the lease beyond this 50-year period;
- The obligation to increase the value of the transferred property within 24 months;
- Advance payment of rent : the amount of rent is subject to revision each year and is calculated according to the zone and the area occupied;
- The lessee must bear all charges relating to the property , including property taxes and other taxes;
- The obligation to submit to an inspection carried out by authorized state agents to verify that the lessee complies with the obligations imposed on him.
Applications for long-term leases in Senegal are submitted to the land registry office where the property is located. An extract from the land registry plan, certified by the head of the land registry, must be included with the application. Please note that processing the application can take 3 to 6 months.
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The guarantees offered by the emphyteutic lease
Article 39 of the State Property Code stipulates that "an emphyteutic lease grants the lessee, or emphyteutic tenant, a real right that may, in particular, be mortgaged…". The leaseholder therefore possesses a real right over the property and can use it as a mortgage. By definition, a real right gives a person direct and immediate control over a property. It can therefore be considered a right of ownership. However, in the context of an emphyteutic lease, there is an important distinction.
In Senegal, like ownership, an emphyteutic lease grants
A long-term lease is also subject to mortgage under the law. A mortgage is a right granted to a creditor over real estate to secure the repayment of a debt. By obtaining this right, the leaseholder can use the occupied land as collateral with banking institutions. Thus, if the lessee wishes to obtain funds to start a business, they can mortgage their leasehold right without losing possession of the property.
Good to know: Real estate listings for land for sale in Dakar.
The end of the long-term lease agreement in Senegal
A lease agreement can be terminated in several ways. The expiration of the term is the primary cause of termination if the lessee has not submitted a request for extension or renewal. In this case, the state reclaims the property without compensation.
The lease can also be terminated at the request of either party to the contract: either at the request of the tenant or at the request of the State. Depending on which party expresses the desire for termination, different consequences may arise.
- Termination by the lessee : In Senegal, the holder of a long-term lease may terminate the contract unilaterally. They are then required to pay the outstanding rent before leaving. The State may also require the lessee to restore the premises to their original condition at their own expense.
- Termination by the State : If the lessee has not fulfilled their obligations, the State has the right to terminate the contract without compensation. A formal notice will then be sent to the lessee informing them of this situation. If the letter remains unanswered, a decree from the Minister of Finance will be published three months later.
The State may also refuse the lessee's request for extension or renewal. In this case, the State is required to pay the lessee compensation corresponding to the unamortized costs of existing improvements, buildings , and facilities.