Chapter 6 Flashcards
Lease
An instrument granting exclusive possession of land to another for a specified term, usually at a rent.
Licence
A privilege to enter onto premises for a certain purpose without conferring any title, interest, or estate in such property.
Difference between Lease and Licence
A lease creates an interest in land and the relationship of landlord and tenant, while a licence only grants a contractual privilege without creating such an interest or relationship.
Commercial Tenancy
Governed mostly by common law and the terms of the lease, and to a lesser extent by the Commercial Tenancy Act. Examples include leases of factories, warehouses, stores, and offices.
Residential Tenancy
Governed almost completely by statute law, particularly the Residential Tenancy Act. It applies to agreements for possession of rental units, including caretakers’ premises and residential premises provided to employees.
Tenancy Agreement
The contract between the landlord and tenant, pertaining to the letting of residential premises.
Fixed Term Tenancy
A tenancy with a predetermined expiry date. In commercial tenancies, it ends automatically at the end of the term. In residential tenancies, it may continue as a periodic tenancy unless otherwise agreed.
Periodic Tenancy
A tenancy that automatically renews itself on the last day of the term for a further term of the same length until it is terminated by either party with proper notice.
Termination of Tenancy
Different rules apply for commercial and residential tenancies. Commercial tenancies can be terminated with reasonable notice, while residential tenancies require specific reasons and proper notice according to the Residential Tenancy Act.
Security of Tenure
In residential tenancies, security of tenure means that a tenancy cannot be terminated except for specific reasons listed in the Residential Tenancy Act.
Notice of End of Tenancy for Non-Payment of Rent
In residential tenancies, if rent is unpaid, a landlord can give a notice to end the tenancy effective 10 days after the tenant receives the notice. The notice can be canceled if the tenant pays the overdue rent within 5 days.
Notice of End of Tenancy for Cause
Under the Residential Tenancy Act, a landlord can give notice for various causes such as repeated late payment of rent, significant disturbance, or illegal activities.
Quiet Enjoyment
The right of a tenant to enjoy their rental premises without significant interference from the landlord or other parties. This includes reasonable privacy and freedom from unreasonable disturbance.
Rent Increase Notice
In residential tenancies, a rent increase notice must be given at least three months before it becomes effective. The increase must comply with limits set by the Residential Tenancy Act.
Security Deposit
A sum of money paid to the landlord as collateral in case the tenant damages the premises or violates a term of the tenancy agreement. In residential tenancies, it may not be more than one-half of one month’s rent.
Distress
A remedy available to commercial landlords allowing them to seize and sell a tenant’s personal property to recover arrears of rent. This remedy is abolished in residential tenancies.
Mitigation
The obligation of a party suffering a loss to take reasonable action to minimize the amount of loss suffered. Both commercial and residential landlords and tenants have a duty to mitigate damages resulting from breaches.
Assignment
The transfer of a tenant’s entire interest in the leased property to another party. In commercial leases, this is allowed unless expressly prohibited. In residential tenancies, it requires the landlord’s consent.
Subletting
Leasing a portion of or the entire premises to a third party for a period less than the remaining term of the original lease. Allowed in commercial leases unless expressly prohibited and requires landlord’s consent in residential tenancies.
Landlord’s Right to Enter
In residential tenancies, landlords must give at least 24 hours’ written notice for entry and can only enter for reasonable purposes between 8 a.m. and 9 p.m. unless otherwise agreed by the tenant.