Infographic: A comprehensive legal explanation of the difference between usufruct and lease

The Public Authority for Real Estate clarifies the legal differences between usufruct and lease rights in terms of nature, duration, remuneration and expiration

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To promote real estate awareness and preserve the rights of the parties, Public Authority for Real Estate explains the fundamental differences between right of usufruct and right of lease, according to the Civil Transactions Law, which contributes to understanding the nature of each in terms of legal basis, duration, financial compensation, and expiration mechanism.

Right of Usufruct is an original right in kind that entitles the beneficiary to use and exploit something owned by others. This right is considered an offshoot of the right of ownership, and is acquired by legal disposition, inheritance, or by shafa'a. It may be for a fee or for nothing. It is often of long duration, or, if no specific duration is specified, it lasts for the life of the beneficiary. The usufruct right is registered in the real estate registry. This right expires at the end of the term if it is fixed, or upon the death of the beneficiary if it is not fixed, or upon the destruction of the thing utilized.

The right of rent is a personal right that enables the lessee to utilize a non-consumable object for a certain period of time. This right is created by a contract between the lessor and the lessee. It is always in exchange for money (rent). The term of the lease is often short and specific. Leases are notarized in the land registry if their duration exceeds ten years. A lease expires at the end of its term, and does not end with the death of the original tenant.