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RICS APC 2022 > Landlord & Tenant (Ag) > Flashcards

Landlord & Tenant (Ag) Flashcards

1
Q

What compensation for improvements is a tenant entitled to at the end of a FBT?

A
  • Tenants improvement they have gained either Landlords (s17) or Arbitrators (s19) written consent for.
  • Consent should be obtained before the work is started since otherwise tenant has no right to arbitration. (except routine improvements).
  • Compensation for either Intangible Advantage or Physical improvements (long or short term). - Defined in S15!
  • Compensation is often calculated on the value of the improvement to the holding (S16).
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2
Q

How are dilapidations dealt with under a FBT?

A
  • Inspect Tenancy Agreement
  • If Agricultural (Model Clauses for Fixed Equipment) (Wales) Regulation 2019 are incorporated in full the landlord can;
  • Serve a written notice on the tenant requiring him to do work (no prescribed form but must specify the repairs and works).
  • If tenant does not serve a counter notice within 1 month, start the work within 2 months or complete the work within 3 months the Landlord can then carry out work himself.
  • If Tenant wishes to contest liability, they can serve a counter notice, requiring the question of liability to be determined by Arbitration under the Act.
  • LLs right to recover reasonable costs does not happen unless the question of liability is determined by Arbitration or 3rd party determination, in favour of LL.
  • Other remedies include s146 of Law of Property Act 1925.
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3
Q

How is compensation for disturbance calculated under an AHA 1986?

A
  • Basic compensation = 1 years rent
  • Greater amount of compensation = 2 years rent
  • Additional compensation = up to 4 year rent

(Additional compensation is only available on Case B)

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4
Q

At the end of an AHA tenancy, what compensation can the tenant claim for improvements?

A
  1. Long term improvements
  2. Short term improvements
  3. Tenant right matters
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5
Q

How would the compensation for improvements be calculated at the end of the AHA tenancy?

A
  • Long term improvements = Equal to the increase attributable to the improvement in the value of an ag holding, as a holding.
  • Short term improvements = Value to an incoming tenant.
  • Tenant right matters = Value to an incoming tenant, calculated in accordance with prescribed regulations.
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6
Q

How can a Landlord claim compensation for dilapidations if Tenant quits AHA Tenancy?

A
  • 1 month prior to the termination of tenancy, LL must serve a s83 notice notifying tenant intention to claim under s72 (general deterioration of holding) confirming intention to claim.
  • 2 months prior to termination of tenancy, LL must serve a s83 notice notifying tenant intention to claim under s71 (deterioration of part) confirming intention to claim.
  • compensation payable is equal to the decrease attributable to the value of the holding as a holding.
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7
Q

When are the Agriculture (Model Clauses for Fixed Equipment) Regulations 2015 used?

A

If the tenancy agreement was granted before 1st October 2015 and refers to the 1973 Model Clauses, “as amended or replaced”.

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8
Q

How can a Landlord serve a Notice to Remedy?

A
  • Raise issue with tenant.
  • Serve a Case D notice to remedy under Sch 3, s25.
  • Notice must give reasonable time to carry out the works (at least 6 months).
  • Tenant can dispute notice, by serving a Counter Notice within one month and refer to arbitration.
  • If tenant is unsuccessful at Arbitration, LL can serve a NTQ.
  • Whatever the outcome of arbitration, the tenant can also (within one month of the arbitrator’s award or service of a notice to quit) serve a counternotice under section 28 of the Act.
  • This forces the landlord to apply for consent to operation of the NTQ within one month.
  • That means the landlord has to apply to the Tribunal and persuade it that, a fair and reasonable landlord would insist on possession.
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9
Q

How can a Landlord serve a ‘general’ NTQ?

A
  • Under s27, LL can serve a ‘general’ NTQ.
  • Tenant can challenge by serving a counter notice (s26 - No prescribed form) within one month.
  • LL has one month to apply to the Tribunal (prescribed form - state grounds on which they notice is to have effect).
  • Tribunal will then consider the 6 grounds (Good Husbandry/Sound Management of the Estate/Agri research/ Creation of allotments/ Greater Hardship and non agri use).
  • Law leans towards tenant, only very limited circumstances that a NTQ under s27 is successful.
  • LL must satisfy the Tribunal that the case falls within one of the grounds and a fair and reasonable landlord would insist on possession.
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10
Q

What are the 6 grounds under s27 of the AHA 1986?

A
  1. Good husbandry.
  2. Sound management of the estate.
  3. Agricultural research.
  4. Creation of allotments.
  5. Greater hardship.
  6. Non-agricultural use.
    & a fair and reasonable landlord would insist upon possession!
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11
Q

What section under an FBT allows the tenant right to remove any fixtures?

A
  • s8
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12
Q

How is an AHA rent assessed?

A

“the rent at which the holding might reasonably be expected to be let by a prudent and willing landlord to a prudent and willing tenant taking into account all relevant factors”.
All relevant factors include:
- Character & situation of the holding
- Terms of the tenancy
- Productive and related earning capacity
- Comparable evidence
- Non agricultural income

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13
Q

How is an FBT Rent assessed?

A

The basis of a rent review for an FBT;
“The rent at which the holding might reasonably be expected to be let on the open market by a willing landlord to a willing tenant taking into account all relevant factors”.
Relevant factors include:
- Terms of the tenancy
- Location of the holding

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14
Q

How is an AHA rent review conducted?

A
  • Review tenancy agreement.
  • Serve a s12 notice (no earlier than 12 and no later than 24 months before review date).
  • If agreement cannot be reached before notice expiry date, parties can apply to the President of the CAAV & RICS and Chair of ALA for appointment of an Arbitrator.
  • Arbitrator will conduct the rent review inline with s12 and Sch 2 of the Act!
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15
Q

What does productive and related earning capacity mean?

A

Productive capacity = productive capacity of the holding on the assumption that it’s in occupation of a competent tenant practising a system of farming suitable to the holding.

Related earning capacity = in light of the productive capacity, what a competent tenant practising such a system of farming could reasonably be expected to profit from farming the holding.

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16
Q

What is the Rent (Agricultural) Act 1976?

A
  • Lifetime security of tenure.
  • Occupied by a qualifying agricultural worker.
  • One succession right.
  • If occupier dies after 15th Jan 1989, their surviving spouse, who resides with them, can succeed and become a protected occupier.
  • Fair/regulated rent (60-70% of OMV)
  • Can transfer to another property.
  • Let before 15th Jan 1989.
17
Q

How does someone apply for Succession on retirement under AHA 1986?

A
  • Part 4, s49-58 of AHA 1986.
  • Currently min age of 65 or permanently incapacitated (age limit removed in 2024 under Ag Act 2020).
    1. Tenant serves a retirement notice on LL, nominating possible successor.
    2. Possible successor applies to Tribunal within 1 month of Tenant serving retirement notice, to grant them a tenancy.
    3. Tribunal notifies LL of application, who has 1 month (Wales), 28 days (Eng) to challenge the succession app.
    4. Potential successor must satisfy both the eligibility & suitability tests.
    5. If applicant found eligible & suitable, LL has opportunity to establish “greater hardship” under s27 (Case A or General NTQ).
    6. Note: if applicant is unsuccessful at retirement succession hearing, cannot apply again at death. Better to withdraw app before hearing if unlikely to succeed.
18
Q

What are the eligibility & suitability tests?

A

Eligibility - Close relative test
- Livelihood test
- Commercial unit test (removed 2024 under Ag act 2020)

Suitability - Training/practical experience
- Age, health & financial standing
- LL’s view on suitability
- Ability to farm to high standard of efficient production & care for the environment.

19
Q

What is the Close Relationship Test?

A

Applicant must be a close relative of the deceased or retiring tenant (spouse, sibling, child or adopted child). A succession cannot jump a generation.

20
Q

What is the Principal Source of Livelihood Test?

A

Within the previous 7 years, the tenant must prove his principle source of livelihood for a period of 5 years has been eared from Agricultural work on the holding. (Principal means 50% or more!).

21
Q

What is the Commercial Unit Test?

A

Applicant must not be occupier of a commercial unit!

22
Q

How does someone apply for Succession on death under AHA 1986?

A

Part 4, s34-48
1. Succession application made to Tribunal within 3 months of the date of death.
2. Potential successor must serve a notice on all interested parties stating intention to succeed tenancy (same time as lodging app with Tribunal).
3. Tribunal notifies LL of app. LL has 1 month (Wales) 28 days (Eng) to challenge application (s26 counter notice).
4. Potential successor must satisfy both eligibility & suitability tests.
5. LL should always serve a Case G NTQ on execs of deceased either within 3 months of formal written notice of tenant death or on receipt of application for succession (which ever happens first!)

23
Q

What factors are considered when determining an AHA rent?

A
  1. Productive capacity of the holding
  2. Related earning capacity of the holding
  3. Situation and character of the holding
  4. Terms of the tenancy
  5. Comparables
    (Disregard; Tenant’s improvements; dilapidations caused by the tenant; the fact that the tenant is in occupation)
24
Q

What was the part termination limit at Cefn Gwyn?

A

The landlord has a part termination limit of 1 hectare (2.471 acres) per year for part of the holding, for any purpose.

25
Q

How can I bring an FBT to an end?

A
  • Effluxion of time (s5 or s6)
  • Break clause (s7)
  • Surrender
  • Forfeiture (s146 Law of Property Act 1925)
26
Q

What would you do if the tenant breached the FBT Agreement?

A
  • Raise the issue in writing immediately with the tenant.
  • Serve a s146 under The Property of Law Act 1925.
  • Must specify what the breach is, timeframe to remedy the breach (must be reasonable) & if compensation is payable!
  • This warns tenant of LLs intention to forfeit the breach.
  • If the tenant does not fix the breach within reasonable time, the landlord can commence proceedings in the Court for forfeiture.
27
Q

What happens if the s146 notice does not give ‘reasonable’ time/opportunity for the breach to be resolved?

A
  • If the breach is capable of being resolved and the landlord does not give the tenant a reasonable opportunity to fix the breach, then the notice will be void under section 146(1)(b) of the Law of Property Act.
28
Q

Procedure if Tenant breaches repairing Obligations under FBT.

A
  • Inspect tenancy agreement.
  • As it incorporates the Agriculture Model Clauses for fixed equipment Wales Regulations 2019 in full, I would;
    *serve a written notice on the tenant requiring him to do the work (no prescribed form, however the notice must specify the repairs, replacement or maintenance to be executed by the tenant, for which they are liable).
  • If tenant does not respond with a counter-notice within 1 month, start the works within 2 months and complete the works within 3 months the LL can enter the property & carry out works himself.
  • If tenant wishes to contest liability, can serve a counter notice, requesting the question of liability to be determined by arbitration under Act.
  • LLs right to recover reasonable costs does not happen unless the question of liability is determined by arbitration or third party in favour of LL.
29
Q

How can you deal with a dispute under ATA 1995?

A
  • Under s28 serve a preliminary (written) notice specifying the dispute and stating unless parties jointly appoint a third party or arbitrator within 2 months, the party will apply for appointment of an arbitrator.
30
Q

How much is it to apply to the President of the RICS, CAAV or Chairman of ALA for the Appointment of an Arbitrator?

A

£115

31
Q

How is an ATA Rent Review carried out?

A
  • Review Tenancy Agreement
  • Serve a s10 Notice at least 12 months prior review date.
  • 4 options;
    *Decide rent between parties
    *Jointly appoint a third party to determine rent
    *Jointly appoint an arbitrator to determine rent
    *If no agreement can be reached - apply to RICS, CAAV or ALA for appointment of an Arbitrator within 6 months of review date.
    (No prescribed form for the notice. It must simply be in writing. It must also specify a ‘review date).
32
Q

What are the 8 grounds under s25 where a landlord can bring an AHA Tenancy to an end?

A

A - Tenant = 65+ and has alternative accommodation available
B - Land is required for use other than Agriculture
C - Not farming in accordance with Rules of Good Husbandry
D - Remedy
E - Breach not capable of remedying
F - Insolvent
G - Death

33
Q

How can a LL deal with non-payment of Rent under a AHA?

A
  • Raise issue with tenant.
  • Serve a Notice to Pay Rent on Form 1 under Sch 3, s25.
  • If the tenant fails to pay the rent due within two months from the notice to pay, the landlord may serve a Case D NTQ.
  • The tenant then has one month in which to demand arbitration.
34
Q

What type of notice needs to be served to start the process of getting a written AHA agreement in place?

A

s6

35
Q

How has the Agriculture Act 2020 impacted AHAs?

A
  • minimum age for a retirement notice of 65 has been removed.
  • Commercial Unit test being removed (2024).
  • Appointment bodies for Arbitration have been extended (RICS & ALA).
  • Appointment of 3rd party (as well as Arbitrators).
36
Q

What section of the AHA 1986 provides for a Record of Condition/List of Improvements/Tenants Fixtures to be carried out at any time during tenancy?

A

S22

37
Q

What notice would you serve to update details in a FBT/AHA agreement?

A

S48 Notice under Landlord & Tenant Act 1987

RICS APC 2022 (17 decks)

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