99-year lease

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A 99-year lease was, under historic common law, the longest possible term of a lease of real property. It is no longer the law in most common law jurisdictions today, yet 99-year leases continue to be common as a matter of business practice and conventional wisdom.

The law[edit]

Under the traditional American common law doctrine, the 99-year term was not literal, but merely an arbitrary time span beyond the life expectancy of any possible lessee or lessor.[1][2]

William Blackstone states that a lease was formerly limited to 40 years, although much longer leases (for 300 years, or 1000 years) were in use by the time of Edward III.[3] The 40-year limit was based on the unreliable text "The Mirror of Justices" (book 2, chapter 27).

In the law of several US states, a 99-year lease will always be the longest possible contract for realty by statute, but many have enacted shorter terms and some allow infinite terms.[4]

Due to the influence of the ideas of Henry George at the time the Australian Capital Territory (ACT) was established in the early 20th century, all land in the ACT is held under 99-year leases, the first of which will expire in 2023.[5]

The 99-year lease concept has been more common under the civil law regimes when it comes to concessions of territory: most concessions last for 99 years.[citation needed]

See also[edit]

References[edit]

  1. ^ Mortgage News Daily web site article on a 99-year lease. Accessed 20 February 2008.
  2. ^ Cecil Adams, Why are leases made for 99-year terms?, 22 July 1977, found at The Straight Dope article on 99-year lease. Accessed 20 February 2008.
  3. ^ William Blackstone (1753), Commentaries on the Laws of England, Book 2, Chapter IX "Of estates less than freehold"
  4. ^ Law Office of James Kaklamanos web site page on 99-year lease. Accessed 20 February 2008.
  5. ^ Taylor, Gordon (2016-07-04). "Can people own land in the ACT?". ABC News. Australian Broadcasting Corporation. Retrieved 2018-07-24.