Landlord and Tenant AI Q's Flashcards

1
Q

What is the first piece of information required from the client at the commencement of the instruction?

A

Agreed terms of engagement

This sets the framework for the working relationship and expectations.

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2
Q

What is important to understand about the client’s needs?

A

Understanding your clients strategy and objectives

This helps tailor the approach to meet the client’s specific goals.

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3
Q

What document should be obtained that outlines the current usage of the property?

A

Copy of the existing lease and plans

This document provides crucial information about the property’s legal standing and usage.

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4
Q

What types of licenses should be copied from the client?

A

Copies of licences, e.g. alterations, improvements, sub-letting or assignment, any deeds of variation

These licenses inform about any modifications or agreements affecting the property.

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5
Q

What type of memoranda should be obtained related to rental agreements?

A

Copy of any rent review memoranda

This document contains important information regarding changes in rental terms.

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6
Q

What contact information is necessary to facilitate property inspections?

A

Contact details for the tenant/landlord to arrange an inspection of the property

This is essential for scheduling access to the property.

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7
Q

Who should confirm the responsibility for serving notices?

A

Confirmation of which party will be responsible for the service of notices

This ensures clarity on communication responsibilities.

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8
Q

What file should be obtained to review historical rental information?

A

Copy of the property management file

This file may contain historic rental evidence or background info relevant to the property.

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9
Q

What details regarding rental evidence should the client provide?

A

Details of any comparable rental evidence held by the client

This helps in assessing the property’s rental value in the market.

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10
Q

What must be agreed in writing at the start of the instruction?

A

Terms of engagement

This ensures clarity and mutual understanding between the parties involved.

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11
Q

What are the three bases for fees for rent reviews or lease renewals?

A
  • A fixed fee (or fixed stages e.g. report, negotiations)
  • Incentivised fee (e.g. a percentage of the uplift)
  • An hourly rate

Different fee structures can align with the nature of the work and client preferences.

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12
Q

What actions are required by the surveyor?

A
  • Conflict of interest and competency check
  • Agree terms of engagement with the client
  • Obtain understanding of client objectives
  • Obtain all the information from the client, detailed above
  • Read the lease and any licences carefully and understand the rent review clause
  • Check that the lease is not contracted out of the LTA 1954. In the case of a lease renewal if it is silent the lease is inside the Act

These actions ensure the surveyor acts professionally and in the best interest of the client.

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13
Q

True or False: Terms of engagement do not need to be agreed in writing.

A

False

Written agreements help prevent misunderstandings and establish clear expectations.

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14
Q

Fill in the blank: The lease must be checked to ensure it is not contracted out of the _______.

A

LTA 1954

The Landlord and Tenant Act 1954 provides certain protections for tenants.

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15
Q

What should the surveyor obtain to understand client objectives?

A

All the information from the client, detailed above

Understanding client objectives is crucial for effective representation.

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16
Q

What is a potential structure for incentivised fees?

A

A percentage of the uplift

This aligns the surveyor’s compensation with the success of the negotiations.

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17
Q

What is the first action required by the surveyor?

A

Conflict of interest and competency check

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18
Q

What must the surveyor agree with the client?

A

Terms of engagement

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19
Q

What should the surveyor obtain from the client?

A

Understanding of client objectives

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20
Q

What document must the surveyor read and understand related to rent reviews?

A

The lease and any licences

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21
Q

What specific clause should the surveyor check in the lease?

A

The rent review clause

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22
Q

What must the surveyor check regarding the lease’s status under the LTA 1954?

A

Check that the lease is not contracted out of the LTA 1954

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23
Q

In the case of a lease renewal, what is the implication if the lease is silent?

A

The lease is inside the Act

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24
Q

What must the surveyor check regarding time for a rent review?

A

Whether time is of the essence for a rent review

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25
What type of inspection must the surveyor undertake?
Site inspection and measurement
26
What valuation must the surveyor undertake?
Market rent valuation, having regard to the terms of the lease
27
What document must the surveyor prepare for the client?
A report
28
What strategy must the surveyor agree with the client?
Strategy for the rent review process
29
Who should serve the notices in a rent review process?
Lawyer
30
What notices must be served according to the process?
54 Act notices
31
When should negotiations open in the rent review process?
Once notices have been served
32
What must the surveyor check regarding the notices received?
That they are valid
33
What must be instructed for lease renewal?
Solicitors to prepare new lease in accordance with HOTs
34
What does 'Without Prejudice' mean in negotiations?
During negotiations, the opposing party cannot rely on without prejudice documents or discussions ## Footnote This protects the confidentiality of negotiations.
35
What is the status of information discussed under 'Without Prejudice'?
The information is privileged and cannot be used as evidence ## Footnote This ensures that parties can negotiate freely without fear of repercussions.
36
In a rent review, what cannot be shown to the arbitrator or independent expert?
Correspondence related to the rent review ## Footnote This maintains the confidentiality of the negotiation process.
37
What does 'Subject to contract' signify?
Means exactly this ## Footnote It indicates that the terms are not final until a contract is formally executed.
38
What is a licence in property law?
Right to enter property and personal arrangement between the licensor and licensee. Licensee acquires no interest in the property. ## Footnote A licence allows the licensee to use the property without granting any legal interest.
39
What are the FOUR requirements of a lease?
* Exclusive occupation * Payment of rent * Duration for a specified term * If more than 3 years, terms must be in writing and signed ## Footnote These requirements distinguish a lease from other agreements regarding property use.
40
What is the first main difference between a lease and a licence?
A lease provides an occupier with an estate in the relevant land; a licence is permission to make it lawful for them to use the land. ## Footnote This distinction highlights the legal rights associated with each arrangement.
41
What is the second main difference between a lease and a licence?
A lease can be assigned; a licence is a personal right that cannot be assigned. ## Footnote Assignment refers to transferring rights under the lease to another party.
42
What is the third main difference between a lease and a licence?
A lease cannot be terminated until it expires; a licence can be revoked at any time. ## Footnote This gives leases more stability compared to licences in property arrangements.
43
Which case set out the differentiation between a lease and a licence?
Street v Mountford (1985) ## Footnote This landmark case provides judicial clarification on the distinctions between leases and licences.
44
Fill in the blank: A licence is a _______ arrangement between the licensor and licensee.
personal ## Footnote This emphasizes the subjective nature of a licence compared to a lease.
45
What is a tenancy at will?
A form of licence created by written agreement for an unspecified time in which the landlord may evict the tenant at any time. ## Footnote Not a legal interest in land with no renewal right.
46
What is the primary purpose of a tenancy at will?
To allow a tenant early entry for fitout works or while the tenant agrees to a new tenancy outside the Act, after lease expiry. ## Footnote This type of tenancy does not provide the tenant with a legal interest in the property.
47
True or False: A tenancy at will provides a legal interest in land.
False ## Footnote A tenancy at will does not confer a legal interest in land.
48
Fill in the blank: A tenancy at will is created by a _______.
written agreement.
49
What can the landlord do at any time in a tenancy at will?
Evict the tenant.
50
What is a Wayleave?
Temporary right, receives an annual payment ## Footnote A Wayleave is a legal agreement that allows a company to use land for specific purposes.
51
What does a Wayleave provide for an electricity company?
A right to install and retain their apparatus ## Footnote This includes the installation of power lines and other necessary equipment.
52
Is a Wayleave transferable?
No, it is personal to the company and cannot be automatically transferred ## Footnote This means that if the company changes, the Wayleave does not pass automatically to the new company.
53
What is an easement?
A permanent right that receives a capital payment ## Footnote Easements are legal rights to use another person's land for a specific purpose.
54
What is a key feature of an easement regarding land registration?
Capable of being registered at the Land Registry ## Footnote Registration provides legal recognition of the easement.
55
How can a prescriptive right of way or easement be obtained?
Through uninterrupted use over 20+ years or granted by the landowner ## Footnote This is a legal principle that allows for rights to be established based on continuous use.
56
Who can grant an easement?
A landowner ## Footnote The landowner can allow access over their land, creating a private easement.
57
True or False: Easements are considered public rights of way.
False ## Footnote Easements are private rights that do not equate to public rights of way.
58
What is Adverse Possession?
Process by which someone can become the legal owner of land through possession of the land for a specified period of time, without the owner’s permission ## Footnote This legal concept allows for the transfer of ownership based on occupation.
59
What is the required possession period for registered land before the Registration Act 2003?
12 years of possession ## Footnote This applies if the claim is made before the enactment of the Registration Act.
60
What is the required possession period for registered land after the Registration Act 2003?
10 years of occupation ## Footnote This shortened period reflects changes made by the Registration Act 2003.
61
What is the possession period for unregistered land under Adverse Possession?
12 years rule applies ## Footnote Unregistered land follows the longer possession requirement.
62
What is the normal basis of valuation for rent reviews?
Normally upwards only to the market rent using standard assumptions ## Footnote Other bases of rent review include indexation (RPI/CPI), turnover rents, and stepped increases.
63
What are the four usual assumptions in rent reviews?
* Property available to let on open market by willing tenant to a willing landlord for a term of years as stated * Property is fit and available for immediate occupation * All covenants observed by landlord and tenant * Property may be used for purpose set out in lease ## Footnote These assumptions help establish the context for rent valuation.
64
What are the three usual disregards in rent reviews?
* Any effect of goodwill on tenants occupation * Ignore goodwill attached to the property * Tenants improvements if landlord consent has been granted for the works ## Footnote Modern commercial leases typically provide an additional disregard of rent free for fitting out.
65
What does headline rent review clauses ignore?
Headline rent ignores all incentives granted on a letting ## Footnote Case law has shown it is difficult for landlords to achieve a headline rent at review unless specific lease wording is used.
66
What is the significance of the hypothetical term in rent reviews?
Length of term to be assumed for the review purposes can influence rental value ## Footnote Unless explicit wording, the assumed term is likely to be the unexpired residue.
67
What case established that time is not normally of the essence in rent reviews?
United Scientific Holdings v Burnley Borough Council (1978) ## Footnote This case provides a presumption that time is not of the essence unless there are sufficient pointers showing otherwise.
68
What happens if a tenant does not serve the appropriate counter-notice in a rent review?
Tenant is deemed to have accepted the new rent ## Footnote This is a requirement in some older leases.
69
What was concluded in Segama v Penny Le Roy Ltd (1984) regarding post rent review date evidence?
A number of transactions on comparable properties which occurred after the review date were admissible in rent review arbitration ## Footnote However, post rent review date events (like Covid-19) cannot be taken into account.
70
What is the hierarchy of evidence for rent reviews according to The Handbook of Rent Review?
* Open market lettings * Lease renewals * Rent reviews * Independent expert determinations * Arbitrator awards * Court determinations under Landlord and Tenant Act 1954 * Hearsay evidence * Sale and leasebacks * Surrender and renewals * Inter-company arrangements
71
True or False: The assumed term for a rent review is always explicitly stated in the lease.
False ## Footnote The assumed term is likely to be the unexpired residue unless explicit wording is provided.
72
Fill in the blank: The presumption that __________ is not of the essence unless there are sufficient pointers showing otherwise.
time
73
What are the implications of a headline rent review clause being rare in modern commercial leases?
They disregard fitting out rent free ## Footnote This makes it challenging for landlords to achieve a headline rent at review.
74
What is the primary purpose of a ‘without prejudice save as to costs’ offer?
To afford a party to a dispute protection against high costs of dispute resolution and to focus on achieving an agreement if the tribunal has the power to award costs
75
What must a Calderbank offer be marked as?
‘Without prejudice save as to costs’ but must not be subject to contract
76
What must a Calderbank offer clearly set out?
The offer being made and timescales for acceptance
77
What factors can influence offers in dispute resolution?
* Must be a genuine offer to settle * Must be clear * Must be capable of unconditional acceptance * Must remain open for a sufficient period of time
78
For what purposes can a Calderbank offer be used in lease renewals?
For protected tenancies, but best drafted by solicitors
79
What form can a ‘without prejudice save as to costs’ offer take for lease renewals inside The Act?
A Part 36 Offer under Part 36 of the Civil Procedure Rules
80
What is the current cost of an application to the Dispute Resolution Service (DRS) of RICS?
£425
81
How is an arbitrator appointed?
By an application to RICS DRS, but some leases allow parties to agree upon the appointee
82
What governs the procedure of an arbitrator?
Statute (Arbitration Act 1996)
83
What are the three specific grounds for appealing to the High Court after an arbitrator's award?
* A challenge to the tribunal’s jurisdiction * On a point of law * Serious irregularity
84
What is the role of an independent expert in dispute resolution?
To make determinations based on contract, not by statute
85
What must an independent expert have?
Detailed knowledge of the market/sector/location
86
Can an independent expert order disclosure or issue witness summons?
No
87
What can an independent expert determine regarding costs?
Only the costs of the independent expert, not the expert witness or legal costs
88
What distinct roles can a surveyor adopt in dispute resolution proceedings?
* Expert witness * Advocate
89
Fill in the blank: A Calderbank offer must be _______ to contract.
not subject
90
True or False: An independent expert can be liable for negligence.
True
91
What must an independent expert do under their duty?
Make their own enquiries but usually invites representations from the parties
92
What scenario is advantageous for an independent expert to deal with?
Property or lease terms for which comparable evidence is scarce
93
What are the two distinct roles a surveyor can adopt in dispute resolution proceedings?
Expert witness or advocate
94
What is included in a rent review memorandum?
* Name of landlord and tenant * Address of the property * Date of the lease and rent review * Confirmation of new rent agreed * Signed and dated by both parties * Can also be recorded by an independent expert’s determination or an arbitrator’s award or written acceptance of the Calderbank offer or an open letter (not marked subject to contract)
95
True or False: A surveyor can only act as an advocate in dispute resolution.
False
96
Fill in the blank: A surveyor's role in dispute resolution can be as an expert witness or _______.
[advocate]
97
What must be confirmed in a rent review memorandum?
New rent agreed
98
What is required for a rent review memorandum to be valid?
Signed and dated by both parties
99
What document can be used to record a rent review besides a memorandum?
Independent expert’s determination or arbitrator’s award
100
What is a Calderbank offer in the context of dispute resolution?
An offer to settle that can be recorded in a rent review memorandum
101
What happens at the end of the fixed term of a business tenancy according to Section 24?
The tenancy automatically continues on the same terms until terminated in accordance with the Act ## Footnote This is known as a continuation tenancy
102
What is a 'holding over' tenant?
A tenant whose protected lease has expired but has not vacated ## Footnote This situation falls under Section 24
103
What are the notice requirements under Section 25?
The notice must: * Be served by a competent landlord * State the date for termination * Be in the prescribed form * Inform the tenant of their rights * Specify proposed terms if a new lease is granted * State grounds for opposition if a new lease is opposed ## Footnote Notice must be served not more than 12 months and not less than 6 months before the termination date
104
What happens if a tenant passes the date for a new lease or termination as specified in a Section 25 notice?
The tenant loses their security of tenure unless: * There is a new lease in place * Either party has applied to court * The parties have agreed a deadline extension in writing ## Footnote This is crucial for maintaining tenancy rights
105
What must a Section 25 notice include?
It must include: * Name and address of landlord and tenant * Address of property * Notice of the date to end the tenancy * Confirmation of whether a new lease is to be opposed or granted * Deadline for tenant to ask the court for a new tenancy * Landlord's proposals for a new tenancy if 'friendly' * Grounds for opposition if 'hostile' * Recommendation to seek professional advice ## Footnote This structure ensures clarity and legal compliance
106
What options does a tenant have if they do not want the lease to continue beyond the original fixed term under Section 27?
The tenant can: * Vacate by the contractual expiry date * Serve a Section 27 notice on the landlord giving at least 3 months' notice ## Footnote There is no obligation to serve a Section 27 notice
107
What are the grounds for refusal of a new lease according to Section 30?
The grounds include: * Breach of repairing covenant * Persistent delay in paying rent * Other substantial breach * Providing suitable alternative accommodation * Uneconomic subdivision * Demolition or reconstruction * Owner occupation ## Footnote Grounds a to c are 'fault-based'; d to g are 'non-fault' grounds
108
Which grounds for opposition to a new tenancy are mandatory?
Grounds f and g: * Demolition or reconstruction * Owner occupation ## Footnote These require proof of intention and necessity
109
What is the significance of the case Dukeminster Ltd v West End Investments?
It involved a defective Section 25 notice and emphasized the importance of expert witness credibility ## Footnote The court preferred the landlord's valuers' approach over the tenant's expert evidence
110
What was the outcome of the case Poundland Ltd v Toplain Ltd regarding a pandemic clause?
The judgement favored the landlord, denying the tenant's request for a pandemic clause in the lease renewal ## Footnote This case reflects the court's stance on lease terms during extraordinary circumstances
111
How is compensation determined when a landlord opposes a new lease under grounds e, f, or g?
Compensation is based on: * 14 years plus occupation: rateable value X2 * Less than 14 years occupation: rateable value X1 ## Footnote The rateable value is based on the date of the hostile Section 25 or Section 26 counter notice
112
What must the terms of a new lease include as per Sections 32-35?
The terms must include: * A market rent * Ignoring previous occupation and goodwill * Tenant improvements made with landlord's consent within the last 21 years ## Footnote The maximum term can be agreed upon by the parties
113
What principles were established in O’May v City of London Real Property Co regarding lease terms?
Any changes to the current terms must be fair and reasonable, with the burden of proof on the party proposing the change ## Footnote This case set important precedents for lease negotiations
114
What is the valuation date for a renewal lease?
The valuation date coincides with the commencement date of the new lease ## Footnote This is typically 3 months and 21 days after the hearing
115
What does Section 34 state about rent under a new tenancy?
Rent should be agreed between landlord and tenant or determined by the court, disregarding: * Tenant's occupation effects * Goodwill in the tenant's business * Tenant improvements unless under obligation or over 21 years old * Additional value due to a license ## Footnote These factors help establish a fair market rent
116
What are interim rents?
Interim rents are payable after the expiry of a protected lease term before formal renewal is completed ## Footnote They can be applied for by either party after the service of a Section 25 or Section 26 notice
117
What is a Section 40 notice?
It requests information from the landlord or tenant to verify competent parties ## Footnote Failure to comply can be considered a breach of statutory duty
118
Who qualifies as a competent landlord?
A competent landlord must be a freeholder or superior tenant with an unexpired term of over 14 months ## Footnote This is essential for valid notice serving
119
What is the default option for lease renewal disputes?
The default option is determination by the county court after a valid Section 25 or Section 26 notice is served ## Footnote This process involves case management and compliance with procedural steps
120
What is PACT?
Professional Arbitration on Court Terms ## Footnote A joint initiative by RICS and Law Society.
121
What is required for a dispute to be referred to PACT?
Both parties must agree to refer the dispute to PACT.
122
What type of disputes does PACT address?
Unopposed business tenancy renewals.
123
Who decides non-rent issues in PACT?
A solicitor.
124
Who decides rent issues in PACT?
A chartered surveyor.
125
What flexibility do parties have regarding the dispute resolver in PACT?
Parties can decide if the dispute resolver acts as arbitrator or independent expert.
126
What are the two procedural types in PACT?
Pre-issue and Post-issue PACT.
127
How can a dispute resolver be appointed in PACT?
By application to the Dispute Resolution Service of RICS or by application to the Law Society.
128
What is the nature of the decision made in PACT?
The decision is binding.
129
List some advantages of using PACT.
* Faster * Costs savings * Greater flexibility and control over procedure * Decision by a surveyor on rent related items, rather than a county court judge.
130
What is the focus of S.23 in the 1954 Act?
Application of the Act ## Footnote This section outlines the scope and applicability of the 1954 Act.
131
What does S.24 address?
Holding over under the Act ## Footnote This section deals with situations where a tenant remains in possession after the lease has expired.
132
What is covered in S.24a?
Interim Rent ## Footnote This section provides provisions regarding the payment of interim rent during lease negotiations.
133
What does S.25 require from the landlord?
Landlord’s notice to end the lease or seek a new lease ## Footnote This section outlines the notice requirements for landlords wishing to terminate or renew a lease.
134
What is the purpose of S.26?
Tenant’s notice to seek a new lease ## Footnote This section allows tenants to request a new lease under specific conditions.
135
What does S.27 pertain to?
Tenant’s notice to end the lease ## Footnote This section outlines the procedure for tenants wishing to terminate their lease.
136
What is addressed in S.28?
Renewal of tenancy by agreement ## Footnote This section covers the process for renewing a tenancy through mutual agreement.
137
What can a court do under S.29?
Order by court for a new tenancy ## Footnote This section allows the court to grant a new tenancy under certain circumstances.
138
What are the landlord's grounds for opposition of new lease according to S.30?
Landlord’s grounds for opposition of new lease ## Footnote This section lists the valid reasons a landlord can oppose the granting of a new lease.
139
What do S.32-35 cover?
Terms of the new lease ## Footnote These sections outline the terms and conditions applicable to new leases.
140
What is the basis of valuation for the new rent as per S.34?
Basis of valuation for the new rent ## Footnote This section specifies how the new rent should be determined and valued.
141
What provisions are made in S.37?
Compensation provisions ## Footnote This section details the compensation that may be applicable under certain circumstances.
142
What does S.38a allow?
Contracting outside the Act ## Footnote This section permits parties to agree to terms that fall outside the provisions of the Act.
143
What is the purpose of S.40?
Notice requesting information about either party ## Footnote This section provides the process for requesting relevant information from either party in the lease.
144
How is a competent landlord defined in S.44?
Definition of a competent landlord ## Footnote This section defines the criteria for what constitutes a competent landlord under the Act.
145
What did the Law Commission announce in March 2023?
A review of part II of the LTA 1954 ## Footnote LTA stands for Landlord and Tenant Act.
146
What is the aim of the review of part II of the LTA 1954?
Ensuring Part 2 of the LTA 1954 works for today's commercial leasehold market
147
When does the Law Commission plan to publish a consultation paper?
Autumn 2024
148
What should individuals do to stay informed about the review?
Keep a watch on the Law Commission website for updates
149
Fill in the blank: The Law Commission announced a review of part II of the _______ in March 2023.
LTA 1954
150
True or False: The consultation paper regarding the LTA 1954 is expected to be published in July 2024.
False
151
What does Section 28A of the Act cover?
The contracting out of the Act procedure ## Footnote This section outlines the rules for landlords and tenants when opting to contract outside the provisions of the LTA 1954.
152
List reasons to contract outside the provisions of the LTA 1954.
* Requirement of the head lease to grant any subletting outside the Act * Landlord will want to re-occupy the premises * Landlord wishes to redevelop the property * Rent may be lower * Landlord wants future flexibility ## Footnote These reasons may influence a landlord's decision to contract outside the protections provided by the Act.
153
Is compensation payable to a tenant at the end of an outside the act lease?
No compensation is payable to the tenant at the end of the lease ## Footnote This reinforces the lack of statutory rights for tenants when a lease expires.
154
What must a landlord ensure at the lease expiry date?
The premises are vacant or ensure a new lease is in place. Accepting rent after lease expiry could create a protected tenancy ## Footnote Accepting rent after lease expiry could create a protected tenancy.
155
Why would a tenancy at will be used after expiry of an outside the act lease, before granting a new tenancy?
A tenancy at will might ensure that the tenant cannot claim statutory protection between lease expiry and commencement of a new lease ## Footnote This arrangement allows flexibility for landlords while mitigating risks for tenants.
156
Why should landlords not collect rent until a new outside the act lease has been completed?
Acceptance of rent could lead to a protected new tenancy. ## Footnote Acceptance of rent could lead to a protected new tenancy.
157
What must a landlord do to contract outside of the Act?
Serve a notice on the prospective tenant, warning that the proposed lease will not be protected - known as a 'health warning' ## Footnote This is commonly referred to as a 'health warning'.
158
What must the proposed tenant do after receiving a 'health warning'?
Take a declaration confirming they have received the notice and accept its terms ## Footnote This step is crucial for legal compliance.
159
What are the two types of declaration required in the contracting out process?
* Simple declaration * Statutory declaration ## Footnote The type of declaration depends on the time frame before committing to the lease.
160
What is a simple declaration?
When the parties have at least 14 days or more prior to committing to the lease ## Footnote This allows more time for consideration and agreement.
161
What is a statutory declaration?
When the parties have less than 14 days prior to committing to the lease, signed before an independent (not proposed tenant's retained) solicitor ## Footnote This provides a quicker process but requires legal oversight.
162
List ways to terminate a lease.
* Forfeiture * Surrender and negotiation * Merger * Disclaimer (due to insolvency) * Break clauses * Lease expiry and service of notices under the Landlord and Tenant Act 1954 ## Footnote These methods provide various avenues for landlords and tenants to end leases under different circumstances.