Ch.24 Leasehold Interests Flashcards
Leasehold Interests
Arises when landowner grants possession of land to another for fixed period of time
Either expressed or implied contract
Lessor
landlord
Lessee
tenant
Lease
agreement that constitutes a grant of possession of property for a fixed term in return for the payment of rent
Tenancy
relationship between parties governed by a lease
Creation of tenancy creates two interests in land:
- Leasehold - tenant’s right to exclusive possession
- Reversion - return of the right to possession to the landlord at the end of the lease
At expiration of lease, the two interests (possession and title) merge
Anything attached to land is part of leasehold interest
Commercial leases:
- Negotiated and terms set forth in the contract
Creation of a Tenancy
Lease contract:
Made between landlord and tenant
Gives tenant exclusive possession of the property for a specified term
Not the same as a license
- Lease exclusive possession and interest in land
- License grants right to use property in common with others and no interest in land
- Test: one of intention
Express agreement (verbal or written) or implied from conduct of parties
Terms set out specific rights and duties of parties
Cannot override certain parts of legislation
Elements of contract required for validity:
- Offer and acceptance
- Consideration
- Legality of object
- Parties must have capacity to contract and intention to create legal relationship
Legislation in provinces:
Distinction between residential vs. commercial leases
Residential tenancies:
- Provide greater security for tenant
- Additional obligations on landlord
Commercial and other tenancies:
- Common Law rules for landlord and tenant
- Legislation pertaining to tenancy relationship
Characteristics of a Lease
Term certain
Periodic tenancy
Sub-tenancy
Term certain
fixed term of a lease
Periodic tenancy
lease that automatically renews at the end of each rent period until notice of termination
Sub-tenancy
lease of leased premises by a tenant-in-chief to another tenant for a shorter term than the original lease
Landlord and tenant specify rights and duties in lease agreement
Binding for duration of lease
Rent is the amount paid by the tenant
Form is up to the parties