Commercial

Question 1

Purpose of a sinking fund

Answer 1

To periodically set aside money for the replacement of a wasting asset

Question 2

Impact of CRCA

Answer 2

Granted temporary relief on the payment of certain debts and introduced a arbitration scheme for the settling of debts

Question 3

Legislation covering covid arrears

Answer 3

Commercial Rent (Coronavirus) Act 2022 post placement

Question 4

What does contracted out mean

Answer 4

Remove a tenant security of tenure, which protects the tenant’s right to remain in occupation of the premises and its right to the grant of a new lease following the expiry of the existing lease.

Question 5

When contracting out which sections are removed

Answer 5

sections 24-28

Question 6

What is security of Tenure

Answer 6

the legal right to continue living in or using a building, land, etc. that is rented from the owner:

Question 7

How do you contract out

Answer 7

serving a statutory notice at least 14 days before the lease commences

Question 8

Section 25 notice

Answer 8

Friendly notice from the landlord for the tenancy to end and the landlord is prepared to grant a new one.

Or a hostile notice A “hostile” notice which ends the existing lease and opposes a new lease on one of the limited grounds available

For both

The landlord must serve a prescribed notice not more than 12 months and not less than 6 months before the termination date specified in the notice.

Question 9

Section 26 notice

Answer 9

notice for a tenant to request a new tenancy

In the prescribed form, and
Served on the competent landlord not more than 12 months and not less than 6 months before the proposed commencement date specified in the request (which cannot be before the contractual expiry of the current lease).

Question 10

Commercial why can a landlord oppose the grant of a new tenancy

Answer 10

A landlord can only oppose the grant of a new lease on the following grounds:

Premises are in disrepair
Arrears of rent
Other breaches of covenant
Suitable alternative accommodation
Tenancy was created by a sub-letting
Landlord’s intention to redevelop
Landlord’s intention to occupy

Question 11

Section 27 notice

Answer 11

tenants right to end your lease iTo do this, you must give your landlord a written notice at least three months before the original lease would naturally end.

Question 12

How is a lease contracted out

Answer 12

the tenant must respond by making a declaration in a prescribed form, outlining that they understand the effect of the lease being excluded from the protection of the Act.

the landlord must serve a formal notice on the tenant in a prescribed form;