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