Leases

Question 1

What is the requirement to create a valid legal lease of over 7 years

Answer 1

• Deed must be used - valid deed
• Lease must be registered (if over 7 years)

Lease of over 7 years = dead + registration

Question 2

What is the requirement for a lease of 7 years or less?

Answer 2

• Must be created by deed
• But the lease does not need to registered
• Leases take effect as overriding interest (sch 3, para 1)

Question 3

What is the short lease exception?

Answer 3

Certain short leases have no formal requirements

Short term lease - lease with term of three years or less need not be created by deed or registered provided
- 3 years or less
- lease takes effect in possession
- lease is granted at best rent
- lease not subject to fine or premium

Question 4

When does an equitable lease exist?

Answer 4

Tenant will have equitable interest in the land providing:
- there is a document that complies with s2 LPMPA; and
- the remedy of specific performance is available

Question 5

What happens if parties enter into contract for a lease or try to grant a legal lease that ails?

Answer 5

The tenant will have an estate contract (equitable lease) if the agreement is:
- in writing
- contains all the terms
- signed by both parties