Lease / License Flashcards
What is a lease?
A lease is an agreement that grants exclusive possession of land or property for a specified period, typically with the intention of creating a legal relationship
What is a license?
A license is a personal permission to use land or property without granting exclusive possession or creating a legal interest in the property
What is the key distinguishing factor between a lease and a license?
Exclusive possession—a lease provides exclusive possession, while a license does not
What are the 3 essential elements needed to create a lease?
- Exclusive possession
- A definite term or duration
- Intention to create a legal relationship (usually shown through language in the agreement)
What is meant by exclusive possession in the context of a lease?
Exclusive possession means the tenant has control over the property, can exclude others (including the landlord), and has the right to use the property as they wish within the terms of the lease
Can exclusive possession be shared in a lease?
No, exclusive possession means the right to use and control the property is given exclusively to the tenant, excluding others, including the landlord
What does a definite term mean in a lease?
A definite term means the lease specifies a clear start and end date or duration (e.g., 12 months, 5 years)
How does uncertainty of term affect a lease?
If the term of the lease is uncertain or indefinite (e.g., “for the duration of the war”), it is likely to be invalid, as the lease must have a fixed or ascertainable duration
How did the court rule in Street v Mountford?
The court ruled that the agreement created a lease because it granted exclusive possession to the tenant, despite the landlord’s attempt to label it a license
Is payment of rent a necessary element for a lease?
No, rent is not essential to create a lease. What matters is the intention to create a legal relationship and exclusive possession
(rent can be an indication of intention)
What are the four unities required to create a joint tenancy?
Possession, Interest, Time, and Title (PITT)
What happens if any of the unities are missing in a joint tenancy?
If one of the unities is absent, the tenancy may be considered a tenancy in common instead of a joint tenancy
What is a fixed-term lease?
A fixed-term lease is an agreement where the tenant has the right to occupy the property for a specified period, such as 1 year, after which the lease expires automatically
What is a periodic lease?
A periodic lease continues indefinitely, typically on a weekly or monthly basis, and automatically renews until terminated by either party
What is an implied term in a lease?
An implied term is a provision that, though not written in the lease, is assumed to be part of the agreement based on law, custom, or necessity (e.g., the landlord’s obligation to maintain the property)
Why do we need formalities in property law?
Formalities ensure clarity, protect parties involved, and maintain legal certainty
What historical context supports the need for formalities in property law?
The feudal system favoured the wealthy, reinforcing land ownership as a significant source of social and political authority
What are the 4 key statutory provisions for land conveyance under the LPA 1925?
- S.52 LPA 1925: Conveyances of land must be made by deed (with exceptions)
- S.53 LPA 1925: Governs equitable interests, requiring evidence in writing
- S.54 LPA 1925: Leases under three years can be created without a deed
- Law of Property (Miscellaneous Provisions) Act 1989: Defines deed requirements and contract formalities
What is the role of compulsory registration under the Land Registration Act 2002?
Registration is mandatory upon triggering events like sales or leases over seven years. Failure to register makes rights unenforceable at law but valid in equity
What are the requirements for legal leases under the LPA 1925 and LRA 2002 (years)?
1) Leases under three years: Oral agreements are sufficient
2) Leases over three years: Must be made by deed (S.52 LPA 1925)
3) Leases over seven years: Must be registered (S.27(2) LRA 2002)
What is an equitable lease and when does it arise?
An equitable lease may arise if formalities fail but certain criteria are met, including written terms
What is proprietary estoppel and its core elements?
Proprietary estoppel allows equity to intervene and enforce rights based on unconscionable behaviour
Core elements: Assurance, reliance, detriment, and unconscionable conduct
What are 3 key cases of proprietary estoppel?
- Crabb v Arun DC: Assurance, reliance, and detriment led to property rights
- Taylor Fashions v Liverpool Victoria Trustees: No estoppel due to lack of clear assurance
- Thorner v Major: Assurance inferred through conduct
What 4 remedies are available in proprietary estoppel?
- Full Ownership: When assurances are clear and reliance significant (e.g., Pascoe v Turner)
- Compensation: A monetary sum to address detriment (e.g., Jennings v Rice)
- Easements: Limited rights to use property (e.g., Bibby v Stirling)
- Life License: A right to live in property for life (e.g., Matharu v Matharu).
What are some limitations of proprietary estoppel?
- Uncertainty of outcomes
- High burden of proof
- No automatic rights
- Statutory overrides like the
- Land Registration Act 2002
Reliance on conduct
What are some limitations of leases?
- Strict formalities can render agreements invalid
- Ambiguities in determining exclusive possession
- Risk of termination due to breaches
- Limited protection for tenants, especially in short-term leases
- Short leases may not be registered
What are some limitations of licences?
- Lack of security
- No proprietary rights
- Can be revoked at any time
- Limited legal protection for licensees
