LANDLORD COVENANTS Flashcards
What are the three implied covenants for Landlords?
- Covenant for quiet enjoyment
- Covenant not to derogate from the grant
- Covenant to maintain the premises in good repair
How can covenants arise?
- By implication of law
- Agreement between parties of the ‘usual covenants’
- Express agreement in contract
4 Combination of express agreement and implication.
What is the covenant for quiet enjoyment?
A Landlord must not interfere with the tenant’s peaceful possession of the premises. Aussie Traveller v Marklea
What happened in the case of Aussie Traveller v Marklea?
The LL entered into a lease with Aussie Traveller.
The freehold land was sold to Marklea.
Aussie Traveller had a term not to use the premises other than for manufacturing camping equipment.
Marklea (the new LL) leased the adjacent premises to Top Flight who specialised in manufacturing staircases.
In doing so, it producd alot of saw dust and there were high noise levels.
Both tenants complain to the LL, who does nothing whatsoever even though in the lease with Top Flight, there is a clause saying they undertake not to engage in any activity which might disturb other tenants of the LL.
AT sues the LL for damages for breach of quiet enjoyment and not to derogate from land.
Court held:
- AT is entitled to damages for loss of options and both covenants
- Court also developed requirements for liability of third parties.
What is the test where LL is liable for the acts of third parties?
This test comes from Aussie Traveller v Marklea. There are three elements:
- The LL is aware of the actions of a tenant that is disturbing others.
- The LL has power of control under the lease
- The LL fails to exercise that control.
What is the covenant not to derogate from the grant?
The Landlord must not interfere with or do anything inconsistent with the purpose for which the land is leased, which will harm the tenant and make the leased premises unfit or less fit for the purpose for which it has been leased. (Aldin v Latimer Clark)
What are the facts of Aldin v Latimer Clark?
The premises was leased with an express term that the tenant would carry on the business of a timber merchant.
LL organised works on adjacent land to build an electric generator.
The generator depleted air supply and dried up sheds used in timber business.
Held:
- It was derogation from the grant. The drying process was a necessary incident of the timber business and it was interfered with.
- The tenant was allowed an injunction
With a derogation from grant, can a tenant sue for economic loss?
No. Economic loss from a competition is not derogation from grant: Port v Griffith.
The lost must be in a physical sense.
What is the covenant to maintain the remises in good repair?
This is implied under s106(1)(a)
This must be for a short term lease.
The obligation, where the lease of premises is for the purpose or principally for the purpose of human habitation, to provide the premises in a condition fit for human habitation.
However s27 of the RTRAA indicates the PLA does not apply to residential tenancies.
So where to go? COMMON LAW
What is the covenant to maintain the premises in good repair and what authority?
Summers v Salford Corporation:
- IF the state of repair of a house is such that by ordinary user damage, may cause personal injury to life, or limb, or health, the house is not fit for human habitation.
- The LL’s obligation only arises where the LL knows or ought to have known of the defect. (O’Brien’s case)
What are the facts of Summer v Salford Corporation?
This was a UK case.
The tenant was cleaning the window upstairs and the sash cord broke. She subsequently had a serious injury to her hand.
The brought an action claiming damages on the basis that the ouse was unfit for human habitation.
HOL held: tenant succeeds.
What are the facts of O’Brien’s case?
A tenant was in bed and the ceiling suddenly falls on him. The court worked out that the ceiling had an undiscoverable structural weakness, it was a latent defect.
Held: LL no liability as he had no means of knowledge.
