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1R FAQ
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LAND LEASE SYSTEM IN URBAN ETHIOPIA In Ethiopia, land is constitutionally state owned. The Constitution provides that the right of ownership of all rural and urban land is exclusively vested in the State and in the peoples of Ethiopia. As a result, land can be acquired through lease hold system.
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A land lease can benefit both the landowner and the tenants and can be a great alternative to a more traditional lease. Most land leases range between 50 and 99 years and are passed down through families.
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A written lease agreement must contain: The names and addresses of both parties; The description of the property; The rental amount and reasonable escalation; The frequency of rental payments, i.e. monthly; The amount of the deposit; The lease period; The notice period for termination of contract;
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In Ethiopia, land is a public property. Both urban and rural land is available for investment on leasehold basis. Lease right over land can be transferred, mortgaged or sub-leased together with on-built facilities. Urban Land.
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Access to land in Ethiopia Investors can lease land from smallholders and regional states and large-scale investors can lease but not purchase land from the government. The transfer of land is both contractual (leasing, renting or share-cropping) and time-bound.
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Today, in Ethiopia, lease is the “cardinal” and “exclusive” land-holding system to transfer urban land to users in ance with the master plans of each urban area. Hence, unlike the housing sector, urban land is governed by a special legislation, namely, the Lease Holding of Urban Lands Proclamation No. 272/2002.
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“Lease” under the FDRE lease proclamation 272/2003 has been define as “lease-hold system in which use right of urban land is transferred or held contractually (Art. 2(1). The 1960 Ethiopian civil code under article 2896 on its part defines lease as follows: Land Law. Last Updated: 24 April 2023.
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