Enfiteusi (Emphyteusis)

A long-term leasehold right on land, akin to perpetual or very long-term lease with an obligation to improve the land and pay a yearly fee (canone enfiteutico). The enfiteuta (holder of the right) has most of the rights of an owner – can even transfer the property – but must pay a small annual rent to the dominus (grantor, who remains ultimate owner) and make productivity improvements. Enfiteusi can be perpetual or for a substantial term (at least 20 years). The enfiteuta can also eventually redeem the land (affrancazione) by paying a lump sum, thus terminating the emphyteusis. This institute is old (from Roman law) and now rare, but sometimes agricultural lands or historical estates may be under enfiteusi. If a property is sold with this status, the price is lower and the buyer should consider redeeming it to become full owner (by eliminating the grantor’s residual rights).