Duration of Leases

By Chris Micheli

Civil Code Division 2, Part 1, Title 1, Chapter 2, Article 3 deals with the duration of leases concerning the ownership of property in California.

Section 715 provides that a lease to commence at a time certain or upon the happening of a future event becomes invalid if its term does not actually commence in possession within 30 years after its execution.

Section 717 states that no lease or grant of land for agricultural or horticultural purposes for a longer period than 51 years, in which must be reserved any rent or service of any kind, if valid.

Section 718 says that no lease or grant of any town or city lot, which reserves any rent or service of any kind, and which provides for a leasing or granting period in excess of 99 years, is valid. The property owned by, or that held by, or under the management and control of, any municipality, or any department or board thereof, may be leased for a period not to exceed 55 years.

The property of any municipality not acquired for park purposes may, for the purpose of producing, or effecting the production of minerals, oil, gas or other hydrocarbon substances, be leased for a period not to exceed 35 years. Any tidelands or submerged lands, granted to any city by the State of California, may be leased for a period not to exceed 66 years unless the grant from the state of the use thereof provides specifically the term for which said lands may be leased.

Section 718f states that a lease of land for the purpose of effecting the production of minerals, oil, gas, or other hydrocarbon substances from other lands may be made for a period certain or determinable by any future event prescribed by the parties but no lease is to be enforceable after 99 years from the commencement of the term.

Section 719 says that property owned by, or held by, or under the management and control of, any city, or any department or board, may be leased for a period which exceeds 55 years but does not exceed 99 years, if all of the four specified conditions are met.