Land lease contracts: properties and the value of bundles of property rights | Land Portal

Resource information

Date of publication: 
December 2008
Resource Language: 
ISBN / Resource ID: 
NARCIS:wur:oai:library.wur.nl:wurpubs/367652
Pages: 
16
Copyright details: 
Open Access, this refers to access without restrictions, and without financial incentives. Access to the resource is gained directly, without any obstacles. From info:eu-repo/semantics/openAccess

Contracts are mechanisms for carrying out transactions. Leasing land is a voluntary transaction in which property rights - such as user and income rights - are transferred from landowners to tenants. The bundle of property rights transferred within a lease transaction varies with the type of contractual arrangement. Analysis shows that for the landowner the value of the bundle of property rights to land is determined by the type of lease contract. Landowners prefer lease contracts with as little regulation as possible. Lease regulation can be characterized as a `handbook¿ for concluding lease contracts. However, reducing regulation requires a shift in co-ordination mechanisms from that of the handbook to that of the `invisible hand¿ (prices) and `handshake¿ (e.g., mutual adjustment). Making use of the handshake and price as co-ordination mechanisms implies that the importance of trust and reputation will increase for both tenant and landowner. In 2007, the Dutch government introduced two new types of formal lease that rely less on handbook co-ordination. Whether a more liberalized lease system will lead to a change in the area leased not only depends on landowners but also on tenants, because contracts are two-sided mechanisms.

Authors and Publishers

Author(s), editor(s), contributor(s): 

Slangen, L.H.G.
Polman, N.B.P.

Data provider

National Academic Research and Collaborations Information System (NARCIS) is the main Dutch national portal for those looking for information about researchers and their work. NARCIS aggregates data from around 30 institutional repositories. Besides researchers, NARCIS is also used by students, journalists and people working in educational and government institutions as well as the business sector.

 

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