SEYCHELLES Law and Practice Contributed by: Tamara Christen, Christen Chambers
6.15 Specific Regulations All leases are regulated under the Control of Rent and Tenancy Agreements Act. 6.16 Effect of the Tenant’s Insolvency The Control of Rent Act permits lessors to seek evic - tion if a tenant fails to pay rent lawfully due, which may occur due to insolvency. This is one of the primary grounds for eviction under Section 10 (a) of the Act. 6.17 Right to Occupy After Termination or Expiry of a Lease Under Seychelles’ Control of Rent and Tenancy Agreements Act, commercial tenants do not have an automatic right to remain in the premises after lease expiry unless specific statutory provisions apply. If a commercial tenant continues occupying the premis - es after lease expiry without renewal, the lessor may apply to the Rent Board for eviction. The tenant’s right to remain depends on the Board’s assessment of fac - tors such as whether the lessor has a valid reason for repossession (eg, needing the property for their own use, renovation, or sale), and whether eviction would cause “greater hardship” to the tenant compared to the lessor. Lessors should ensure lease agreements clearly outline termination procedures and conditions, provide written notice of lease termination in accord - ance with the lease terms, apply to the Rent Board promptly after the lease expiry to prevent tenants from acquiring de facto statutory tenancy rights, and avoid unlawful eviction attempts (eg, utility disconnection), which can result in penalties. 6.18 Right to Assign a Leasehold Interest The possibility of assignment needs to be stipulated in the agreement. Where a contract is silent on assign - ment, parties will fall back on the law, which sets out that parties may assign a contract, the assignee must accept the assignment and the third party must be notified of the assignment. 6.19 Right to Terminate a Lease Lessors may seek termination through the Rent Board under the following statutory grounds: non-payment of rent, breach of lease terms, landlord’s personal needs, property renovations or demolition, and over - crowding.
For commercial developments, the common areas are maintained and repaired by the lessor. 6.10 Payment of Utilities and Telecommunications Payment of utilities is often centralised at the manage - ment corporation level or lessor level, while individual meters are installed in each unit to measure the usage per unit. The measurements are then billed individually to each unit owner or tenant. 6.11 Payment of Property Taxes Real estate taxes are focused on foreign owners and in the case of registered commercial leases, the for - eign tenant. The current immovable property tax is 0.5% of the market value payable annually. 6.12 Insurance Issues The options for insurance are: • public liability insurance covering the parties for legal liability to third parties for bodily injury or property damage arising from business operations; • property insurance; and • fire and theft insurance, which provides cover for physical damage to insured property. Depending on the type of relationship or ownership structure, the insurance policies are covered by at least one of the parties depending on the negotiated terms. Business interruption insurance is not common in Seychelles. 6.13 Restrictions on the Use of Real Estate The use of real estate can be regulated by the agree - ment between the parties. Any disagreements are argued in front of the Rental Board under the Control of Rent and Tenancy Agreements Act. 6.14 Tenant’s Ability to Alter and Improve Real Estate Usually, alterations or improvements by a tenant require written permission. The alterations do not require reimbursement from the lessor and the lessor may further require the tenant to remove the altera - tions or improvements at the end of the tenancy.
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