6. Leases Flashcards

1
Q

Requirements for a valid lease or 3 years or less?

A

parole lease

  1. 3 years or less, including month to month
  2. Market rent
  3. No premiums
    4.Immediate right to possess
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2
Q

Requirements for a valid lease or 3 years or more?

A

by deed:
* in writing
* signed
* witnessed
* delivered
* clear it is a deed on the face

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3
Q

When will equity intervene?

A
  • Tried to make a deed but failed or made a contract
  • clean hands
  • specific performance available
  • formalities met: writing,signed and contains agreed terms
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4
Q

Characteristics of a lease?

A
  1. Fixed time peroid
  2. exclusive possession
  3. correct formalities
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5
Q

What if a lease doesnt have one of its features, what is it called?

A

license

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6
Q

What does exclusive possesion mean?

A
  • control over property
  • can exclude others including landlord
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7
Q

Explain periodic tenancy simply

A

Runs from month to month, renews automatically at the end of every month and is only termianted by notice from either side

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8
Q

Katie is the freehold owner of 32 Mabel Grove (‘the Property’). Katie allows Sally into occupation of the Property and Sally pays a rent of £600 per calendar month. Sally has now been in occupation for five years.

Has a legal lease been created?

A

Yes it is a parole lease - look at how often rent is paid (monthly = less than 3 years = parole lease)

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9
Q

Difference between assignment and underletting?

A

Assignment: pass whole lease to somoene else (step in old shoes)

Underletting: new lease created and tenant beocmes sub-landlord

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10
Q

Tenant covenant in lease?

A
  • pay rent
  • contribute to insurance
  • repairs
  • alterations/assignment
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11
Q

Landlord implied covenant in lease?

A
  • not interrupt tenant’s quiet enjoyment of land
  • repair external/structure of propery/water/gas/electric/sanitation etc.

only liable once notified

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12
Q

Can landlord deny giving consent?

A

Yes but cannot be unreasonabley witheld or delayed (reason can be unreasonble)

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13
Q

If landlord denies consent, what must be given?

A

Reasons

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14
Q

What is privity of estate?

A

between current landlord and current tenant
* exclusive possession, must pay rent and lease is in your name

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15
Q

Liability under old lease?

A

Before 1996

  • T1: always liable for rest of lease (privity of contract)
  • T3: liable as long as they remain tenant (privity of estate)

new landlord can come after each or both

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16
Q

What if T1 is being sued for a breach T3 committed?

A

indemnify T1 for the breach T3 did

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17
Q

Liability under new lease?

A

after 1996 - only pursue current tenant + anyone gave AGA

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18
Q

Is outgoing landlord released from liability in new leases?

A

NO - must apply to be released otherwise still liable (tenant can pursue old/new landlord or both)

19
Q

What is an AGA?

A

Promise by outgoing tenant to the landlord guaranteeing the (only immediate next in line) incoming tenant will follow covenants and if they dont, former tenant will be liable

20
Q

What if former tenant is pursued via AGA for breach they didnt commit?

A

Indemnity if given by assignee

21
Q

Procedure for landlord to pursue tenant for non payment of rent?

A

S17 - give notice within 6 months of rent due (can only recover the last 6 months rent)

22
Q

If T1 pays for the rent T3 failed to pay, what can they request?

A

S19 - overriding lease from landlord to become T3’s landlord

23
Q

How long is overriding lease?

A

Same as orginan lease - 3 days

24
Q

Landlord’s remedies for non-payment of rent?

A
  1. Rent deposit or guarantors
  2. Debt Action
  3. CRAR
  4. Forfeit
25
Debt Action
* OG and current tenants * ends lease * could waive forfeit right * serve 6 month notice under s17
26
Commercial Rent Arrears Recovery (CRAR)
* tenant in possesion * 7 days notice of intention to enter * enter property, seize assets + sell = proceeds make up rent arrears * cannot use business/up to £1350 assets * can waive forfeit right * MUST BE COMMERCIAL USE
27
Forfeiture
* Tenant in possession * end lease * take possesion of property + sell * need forfeiture clause * 21 days unpaid rent * waived by asking or accepting late rent * Section 146 notice for all other covenants
28
Tenant's relief from forfeiture?
* pay all arrears and costs before trial * or apply within 6 months re-entry but court decides = treat as if forfeiture never happened
29
Landlord’s remedies for breach of other covenants
1. Damages 2. Self help 3. Specific performance 4. Forfeiture
30
Damages
* former or current tenant * doesnt end lease * over 3 years left on lease - s146 notice * only claim up to amount property diminished in value
31
What is a s146 notice?
* 28 days on which tenant can counter notice * if counter - no further action without court permission
32
Specific performance
Against tenant in possession (rare)
33
Self help
* Landlord inspect property + ask for repair within certain time * if tenant doesnt complete by then - landlord enters + does work + recover costs from tenant
34
Remedies for tenant if landlord breaches?
* self help * damage s * specific performance
35
Self help remedy for tenant?
* tenant ask for repair and landlord doesnt = can withold rent until repair done
36
effluxion of time
fixed- term lease comes to an end when the term comes to an end
37
Notice to quit
A periodic tenancy will continue indefinitely from one period to the next until either party gives the other notice to quit (one period notice)
38
Surrender
the landlord and tenant to mutually agree to end tenancy + go back to landlord
39
Disclaimer
bankruptcy/ liquidation of the tenant -releases the tenant from further liability but it does not end any sub- tenancy.
40
Frustration
something unexpected happens (through no fault of either party) which makes the performance of the contract significantly different from what was agreed
41
Repudiatory breach
one party to a contract commits a breach which goes to the root of the contract, the other party can end it
42
Merger
tenant purchases the freehold reversion and holds both interests at the same time
43
Difference between lease and license?
**Lease**: owner the right to exclude all others, including the landlord, from the land for the duration of the term - certainty. **Licence**: merely gives the licensee personal permission to be on the land. Licences can be granted formally or informally - will NOT bind 3rd parties and can only be enforced against the original licensor. Even so, the court will not necessarily enforce a licence by granting the licensee access to the land but may grant damages instead.