Section 12 Leasehold Interests

• Library: Condemnation Practice 2009

A lease is an interest in land that transfers possession of the property to the lessee and requires a writing to comply with the statute of frauds. State ex rel. State Highway Comm’n v. Johnson, 592 S.W.2d 854 (Mo. App. E.D. 1979). Conversely, a license conveys no interest in land but merely confers a privilege to use or occupy the land by permission of the owner. Id. A leaseholder possesses an interest in the leased property entitling the leaseholder to just compensation when the property is condemned, but a mere licensee does not. Id. Likewise, the owner of the fee must be
made a party defendant along with the lessee even though no property rights or interests are to be acquired from the fee holder and the taking is for an easement only for the unexpired term of the leasehold. Union Elec. Co. v. Slay Bulk Terminals, Inc., 475 S.W.2d 136 (Mo. App. E.D. 1971).

Not all persons designated as lessees or sublessees are necessarily entitled to damages upon the taking of their interest in condemnation. There are commonly recognized leasehold interests that are not sufficient to support a claim for a share of compensation awarded for property appropriated in condemnation. State ex rel. State Highway Comm’n v. Demarco, 445 S.W.2d 379 (Mo. App. S.D. 1969). A month-to-month tenancy is not a compensable interest in condemnation when the rental property is condemned. Land...