Dilapidation + Leases

Question 1

Definition of a lease

Answer 1

a contract between a landlord and tenant whereby the landlord grants the tenant a right of occupancy and possession of a property for a period of time, in return for the payment of a consideration, in other words a rent

Question 2

Why do we use leases? (4)

Answer 2

• it is legally binding
• defines responsibilities of parties
• defines context of contract
• states penalties for non-preformance

Question 3

What information should a commercial lease contain? (4)

Answer 3

• the subjects
• rent
• duration
• the parties

Question 4

What is a schedule of condition?

Answer 4

a table stating the precise condition of a building (lets the tenants know. which bits of the building they are obliged to repair)

Question 5

What is the purpose of a schedule of condition? (3)

Answer 5

 The Schedule of Condition is a table stating the precise condition of the building;
 it is concentrated on the areas that the Tenant is obliged to repair;
 the purpose of the Schedule is to clarify or modify the repairing obligation;
 The proposed Tenant should be encouraged to have this Schedule appended to the Lease

Question 6

What is a schedule of dilapidations

Answer 6

a document which typically identifies relevant lease/tenancy obligations and alleged breaches of those obligations

Question 7

What is the purpose of a shcedule of dilapidations (3)

Answer 7

This is a document which typically identifies relevant lease/tenancy obligations, alleged
breaches of those obligations;
 any wants of repair/remedial works suggested, or proposed, or completed in order to rectify
each alleged breach;
 and, in certain circumstances, the estimated or actual cost incurred in rectifying those
breaches. The document is usually prepared by a building surveyor.

Question 8

What options does a landlord have in dealing with dilapidations (3)

Answer 8

Terminate Lease

Implement Repair Work

Claim for damages