Interests in Land - Leases Flashcards
S4 PLA
Lease of property incl short term/long term agreement to lease
Leasee - landlord
Leasor - tenant
Fatac Ltd v CIR
Essential entitlements of lease
- Right to exclusive possession
- Finite Term
- intention to transfer rights/be legally bound
- Proper Creation
Lease v License
Lease - equitable estate; binds succesors; remedies differ
License - personal permission to enter land/use for purpose
Kinds of a Leases:
8 Kinds
Fixed Term - e.g 5 yrs, 10 yrs
Periodic Tenancy - weekly/monthly/quarterly
Implied ‘statutory’ lease - s210 PLA; applied if no other lease agreed; terminable at will; must give 20 days notice
Tenancy at ‘will’ - applies at end of tenancy, tenant stays in occupation, continues until either party decides
Tenancy at ‘sufferance’ - similar but landlord does nothing in agreement; avoids tenant from being an adverse posessor
Lease for life - life estate
Lease by estoppel - where one party tries to claim no lease; is estopped from doing so
Short term lease - s209 applies to short term lease:
- made in orally/in writing,
- by leasee who occupies land
- in good faith, who
- holds legal interest and priority
- has given valuable consideration
in relation to unregistered interest in land
Termination of Lease
s212ttterrmination
Lease may be terminated:
- On occurance of specified event
- Not more than 10 years on
Sub-leases
COMMON LAW RULE - a sub lease for a term equal to/exceeding the term of the head lease will be treated as an assignment
MODIFIED by PLA - s215
If the terms of the sublease will expire later than expiry term of sublease:
a) term of sublease is reduced and will expire at same time
b) sublease cannot be registered under Land Transfer Act 1952 – but is to be treated as creating an equitable interest in the land
Creation of Lease
i. Statutory creation
Land Act 1948; Crown (Pastoral) Act 1998 - allow lease of Crown’s land
Maori Land Act 1993 - allow lease of Maori land
ii. Lease of mortgage
Mortgagee in posession may lease [s119 LTA] w/ consent of mortgagor
iii. Formal Leases
s115 LTA - Lease Instrument required to register lease
s116 LTA - lease variation instrument required to vary lease
iv. Informal/Unregistered leases
Creates a executed deed; usually legal, equitable rights
Covenants of Landlord
PLA s217-220 - implied covenants, unless contrary intention expressed
R.G.D.C
Obligation to repair
Obligation to guarantee quiet enjoyment
Obligation not to derogate from grant
• Norden v Blueport
- N leased premises to brothel; building was only zoned for ordinary commercial permises
- Held - this lease created a substantial reduction in benefit of lease; breach of quiet enjoyment and derogation of grant
Power to cancel
• Landlord may apply to court for order of possession/ lease to be cancelled, serve notice to tenant if:
i. Rent not paid (10+days + notice of cancellation)- s245 cancellation
ii. Breach of covenants - s246 cancellation
Covenants of Tenant
WRANER
- Obligation not to commit waste
- To pay rent
- Not to alterate buildings unless consent
- Noxious/offensive acts or things
- To keep premises in existing condition
- To use premises reasonable
Covenants for benefit of both parties
CCP
Neva Holdings v Wilson
Right of renewal ; can be caveated
Right to cancel ; lease can only be cancelled according to s243
• s253 - relief against cancellation
Right to purchase reversion
• Can be an option as part of tenancy; or
Neva Holdings v Wilson
Facts -
• A leased to B; B subleased to C
• C’s sublease expired on same day as headlease
HC - Held arrangement between sublessor and sublessee was an assignment; therefore B no longer had an interest
C Appealed
CoA - was this a reversion or an assignment
