In the framework of The Rental and Lending Law, 5731-1971 defined the essence of the lease In Section 1 The law has 20"a right granted in consideration (hereinafter – rent), Possess and use the property Not Permanently".
- From this we learn that in order for a person to be considered the holder of a "lease" right, he must have the rights to use and possess the land. In this context, attention should also be paid to this, that the lease right is derived from the right of ownership, and that what distinguishes between a "lease" right and a "ownership" right is the scope of the right. Defined "ownership" In section 2 of the Real Estate Law asThe right to hold, use and make any transaction in real estate, subject to restrictions by law or by agreement".
Thus, the main characteristic of both the right of ownership and the right of lease is the existence of the right to "hold and use" the land, but in one case (ownership), the right is for an unlimited period, i.e., permanently, and in the other case (lease), for a period that is not permanent. Moreover, it is clear that just as the right of lease may be limited, so too can the right of ownership, since this right, by definition, is also subject to restrictions by virtue of law and by virtue of an agreement. Still, as stated, in both cases it is required, at a minimum, that the owner of the right should have the fundamental right, which characterizes both ownership and lease, which is the right to hold and use the land.
- However, the question now arises, what is the required degree of use and possession of the land, and does any possession and use of a real estate asset mean a "lease" according to the law?
It is reasonable to assume that not every form of possession or use of land will be considered a "lease". A landowner who gives another person permission to enter his property and use it for one purpose or another will not necessarily be considered to have granted that person a "lease" right. It seems, therefore, that in order for possession and use of land to reach the level of a "lease" within the meaning of the law, both the Land Law and the Real Estate Taxation Law, it is required that the lessee have the ability to have real control over the land, so that he will be able to derive for himself the maximum economic benefit from the land, and this throughout the period in which the land is in its possession and use, i.e., throughout the lease period.