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Real Estate > Lesson 7 > Flashcards

Lesson 7 Flashcards

1
Q

What is a license in property terms?

A

A license is a permission to use or occupy land for specific purposes, usually in exchange for payment of license fees.

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2
Q

Can property be rented under a license?

A

Yes, properties can be rented under a license.

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3
Q

Who grants a license in a property agreement?

A

The Licensor (Landlord) grants a license to the Licensee (Tenant) through a contract.

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4
Q

What happens to a licensee’s rights if land ownership changes?

A

The licensee does not have rights against the new owner and the license does not bind third parties.

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5
Q

Does a licensee have exclusive possession and control over the property?

A

No, a licensee has no exclusive possession or control and has no interest in the land.

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6
Q

Is a license transferable?

A

No, a license is not transferable; it cannot be assigned or passed upon death.

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7
Q

When is a license terminated?

A

A license is terminated when the landlord withdraws permission to occupy.

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8
Q

What are the two main types of licenses?

A
  1. Bare License
  2. Contractual License
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9
Q

What is a Bare License?

A

A Bare License grants the licensee a personal privilege to be on the licensor’s land without any proprietary rights.

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10
Q

Can you provide an example of a Bare License?

A

A member of the public entering a café for commercial or consumer purposes (by implication).

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11
Q

What is a Contractual License?

A

A Contractual License gives the licensee permission to occupy land for a fixed term and in exchange for a fee.

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12
Q

Can you provide examples of a Contractual License?

A

Examples include being a cinema patron, a soccer match spectator, or attending a concert.

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13
Q

What is a Temporary Occupation Licence (TOL)?

A

A TOL allows for the renting out of State land or properties for temporary purposes.

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14
Q

What are some examples of Temporary Occupation Licences?

A

Examples include temporary car parks, open spaces for landscaping, mini fairs, trade expositions, carnivals, temporary workers’ quarters, and site offices.

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15
Q

Under which act is a Temporary Occupation Licence created?

A

TOLs are created under the State Land Act and issued by the Collector of Land Revenue (SLA).

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16
Q

What types of TOLs are issued under specific authorities?

A

HDB: Contractor Site Office, Work Site, or Show-flat
JTC: Temporary Site for Storage Purposes
STB issues NRTOL for Orchard Road Pedestrian Mall on a short-term and temporary basis.

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17
Q

How long can a license period for a Temporary Occupation Licence last?

A

The license period shall not exceed 10 years, with options to issue new licenses or renew existing ones.

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18
Q

How can licenses be obtained for Temporary Occupation?

A

Licenses can be obtained through applications, auctions, or tenders.

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19
Q

Can a Temporary Occupation Licence (TOL) be transferred or assigned?

A

No, a TOL cannot be transferred or assigned without written consent.

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20
Q

What happens to a Temporary Occupation Licence upon the death of the licensee?

A

The licence ceases to be valid upon the death of the licensee.

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21
Q

Is subletting allowed under a Temporary Occupation Licence?

A

No subletting is allowed unless there is written consent.

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22
Q

Can permanent buildings or structures be erected under a Temporary Occupation Licence?

A

No, permanent buildings or structures cannot be erected without prior consent

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23
Q

Can a landlord grant a license instead of a tenancy agreement to rent out property?

A

Yes, a landlord can grant a license instead of a tenancy agreement.

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24
Q

What is a lease?

A

A lease is a proprietary interest to possess and use land during an agreed tenure, granting the tenant legal rights to occupy the land.

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25
Q

How is a lease established?

A

A lease is made through a contract, which can be a tenancy agreement for shorter durations or a lease agreement for longer durations.

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26
Q

What is another term for a lease?

A

A lease is also known as a leasehold estate.

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27
Q

What does a lease involve in terms of payment?

A

A lease is based on a fixed or periodic term in consideration of the payment of rent.

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28
Q

What is the landlord’s interest in a lease?

A

The landlord must have an interest to retain the land in the future, known as reversion.

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29
Q

What is one essential characteristic of a lease?

A

Payment of Rent: Rent must be paid for occupying the property.

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30
Q

What does “Certainty of Duration” mean in a lease?

A

The length of the lease must be clearly defined.

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31
Q

What is meant by “Exclusive Possession”?

A

Exclusive possession allows the tenant to occupy the property to the exclusion of anyone else, including the landlord.

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32
Q

Does “Exclusive Use and Control” imply “Exclusive Possession”?

A

No, exclusive use and control (enjoyment) does not mean exclusive possession.

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33
Q

What is the general lease duration requirement for a tenancy agreement?

A

A tenancy agreement is typically for 7 years or less.

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34
Q

What formalities are needed for a tenancy agreement?

A

There are no formalities required; it can be made as a verbal agreement or in other languages.

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35
Q

What is the requirement for leases longer than 7 years?

A

A lease longer than 7 years must be in writing and signed by the person.

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36
Q

What language must a lease longer than 7 years be written in?

A

The lease must be written in English.

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37
Q

Is registration required for leases exceeding 7 years?

A

Yes, leases of more than 7 years must be registered.

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38
Q

What is the rent period that qualifies as short-term rent?

A

A rent period of 7 years or less is considered short-term rent.

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39
Q

Is a written agreement common for short-term tenancy?

A

Yes, a short-term tenancy is usually written and signed by both the landlord and the tenant.

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40
Q

What are the consequences under the Planning Act for engaging in short-term accommodation on residential property for less than 3 months?

A

Anyone found guilty may face a fine of at least $200,000 and/or imprisonment for up to 12 months, or both.

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41
Q

What is required for a lease renting period that exceeds 7 years?

A

The lease must be in writing and executed as a deed.

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42
Q

What does Section 33(d) of the Residential Property Act state regarding foreign tenants?

A

Foreigners (including Singapore Permanent Residents) cannot lease restricted property for more than 7 years.

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43
Q

Can a lease on mortgaged property bind the lender?

A

No, unless the mortgage allows it, the law permits it, or the lender consents.

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44
Q

What does “void” mean in the context of lease agreements?

A

It means that the lease is legally unenforceable and has no legal effect.

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45
Q

What is a legal lease?

A

A lease that meets all formal requirements and is fully enforceable by law.

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46
Q

What happens if a lease does not comply with formal requirements?

A

It is considered an equitable lease, which is based on an enforceable agreement but lacks full legal status.

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47
Q

What is an equitable lease?

A

A lease that arises when the formalities of a legal lease are not met, yet the intention to create a lease is clear and enforceable in equity.

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48
Q

Give an example of an equitable lease.

A

A lease over 7 years not in the prescribed form, or a 5-year tenancy agreement written in a non-English language when legal requirements demand otherwise.

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49
Q

What happens when an equitable lease is assigned to another tenant?

A

The new tenant becomes the landlord’s tenant under the equitable lease too.

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50
Q

What is the maximum number of unrelated persons allowed in a property with a strata area of less than 90 m²?

A

6 unrelated persons.

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51
Q

What is the maximum number of unrelated persons allowed in a property with a strata area of 90 m² and above?

A

8 unrelated persons.

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52
Q

How many tenants are allowed in private property before needing to register with URA for approval?

A

8 tenants.

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53
Q

What is the minimum tenancy period required by the Planning Act?

A

3 consecutive months.

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54
Q

What is the maximum number of persons allowed to reside in a private residential property under URA regulations?

A

6 to 8 persons, depending on the strata area.

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55
Q

Are partitioning of rooms allowed to create more living spaces in private residential properties?

A

No, partitioning to create more rooms is not allowed.

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56
Q

How many persons are allowed per 10 m² according to URA regulations?

A

1 person per 10 m².

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57
Q

Are private residential properties allowed to be used for short-term accommodations?

A

No, private residential properties are not allowed for short-term accommodation.

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58
Q

What role does the Management Corporation Strata Title (MCST) play in private residential properties?

A

MCST plays an important role in tightening security measures to minimize short-term accommodation activities in their developments.

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59
Q

How can the MCST enhance security measures against short-term accommodation?

A

By stepping up the screening of visitors, noting luggage, and recording details of units and entry/exit dates.

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60
Q

What governs the rights and duties of landlords and tenants?

A

They are governed by clauses (express covenants) in the lease (contract).

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61
Q

What is a Habendum Clause in a lease agreement?

A

This part describes what rights the tenant has over the property and for how long. It sets the terms of the tenant’s interest in the property.

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62
Q

What is a Reddendum Clause in a lease agreement?

A

This part states how much rent the tenant needs to pay, how often to pay it, and any special terms related to the payment. It can also reserve certain rights for the landlord, like keeping control of certain parts of the property.

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63
Q

What does the implied covenant of quiet enjoyment by the tenant guarantee?

A

It guarantees that the tenant will have no disturbance by the landlord during their tenancy.

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64
Q

What is one of the landlord’s implied duties regarding taxes?

A

The landlord is responsible for paying taxes associated with the property.

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65
Q

What is meant by “fitness for habitation”?

A

The landlord must ensure that the rental property is suitable for living, meaning it should not be infested with bugs or otherwise unfit for habitation.

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66
Q

What duty does the landlord have regarding common property?

A

The landlord must upkeep the common property in a reasonable state of maintenance.

67
Q

What is the Right of Re-Entry according to S93(3) of the Land Title Act?

A

It allows the landlord to re-enter the property for breach of any express or implied covenant in registered leases.

68
Q

How can a landlord effect re-entry?

A

Re-entry can be effected by a writ of possession, but the landlord may also physically re-enter the property peacefully.

69
Q

What advance notice must a landlord give to view the state of repair of the property?

A

The landlord must give 2 days’ advance notice.

70
Q

What can a landlord do if the tenant fails to make repairs as required?

A

The landlord may enter the premises to carry out the repairs themselves.

71
Q

When can the landlord or their agents enter the property?

A

They may enter at reasonable times to comply with public notice or statutory requirements, such as checking for illegal immigrants.

72
Q

What occurs if rent is not paid or a covenant is breached for 30 days?

A

The landlord can enter the property and terminate the lease.

73
Q

What does the principle of Non-Derogation from Grant imply for landlords?

A

If a landlord agrees to confer a benefit on a tenant, they should not take actions that substantially deprive the tenant of enjoying that benefit.

74
Q

What is a key express covenant of tenants regarding assignment or subletting?

A

Tenants must not assign or sublet the premises without the landlord’s consent.

75
Q

What is a tenant not allowed to do concerning illegal persons?

A

Tenants are not allowed to harbor illegal persons in the property.

76
Q

For what purpose should tenants use the premises?

A

Tenants must use the premises for the purpose stated in the lease and not for illegal or immoral activities.

77
Q

What utility responsibilities do tenants have?

A

Tenants are responsible for paying utilities and telephone charges for their own usage.

78
Q

What is one implied covenant of tenants regarding rent?

A

Tenants have an implied duty to pay rent.

79
Q

What maintenance duty do tenants have regarding the property?

A

Tenants are required to repair the property as needed.

80
Q

What is the tenant’s responsibility in relation to the property’s condition?

A

Tenants must not allow the property to fall into disrepair or waste.

81
Q

What is “Waste” in the context of real property law?

A

Waste is an unreasonable or improper use of land that alters the nature of the land, changes its condition, or damages its value.

82
Q

Who can sue a life tenant or lessee for waste?

A

The landlord or owner of a vested future interest can sue for waste.

83
Q

What are two remedies for waste?

A
  1. Damages
  2. Restoring the property to its original condition
84
Q

What is Voluntary Waste?

A

Voluntary waste refers to changes made to the property that intentionally or negligently cause harm, including structural changes.

85
Q

What is Permissive Waste?

A

Permissive waste occurs when an individual fails to maintain the property, either physically or financially.

86
Q

Give an example of Voluntary Waste.

A

Damaged walls

87
Q

Provide an example of Permissive Waste.

A

Failing to repair water pipes that cause damage to the floor or wall.

88
Q

What is Ameliorative Waste?

A

Ameliorative waste involves making changes that alter the property’s characteristics, typically considered improvements.

89
Q

What is a Security Deposit in a lease?

A

A sum of money (usually 2 to 3 months’ rent) held by the landlord until the end of the lease, subject to deductions for damages caused by the tenant. It cannot be used to offset outstanding rent unless agreed upon by both parties.

90
Q

What is an Option to Renew clause?

A

It allows the tenant to request a renewal of the lease for a further term, provided it is done within a specified timeframe and no breaches of the lease exist at the time of the request.

91
Q

What does a Rent Review Clause do?

A

It provides conditions for when rent will be reviewed and how the revised rental amount will be determined, such as based on market rates or price indices.

92
Q

What is covered by a Minor Repair Clause?

A

This clause takes effect after 30 days from the start of the tenancy and stipulates that repairs under $200 are the tenant’s responsibility, while costs above that are borne by the landlord.

93
Q

What is the Default & Re-entry clause?

A

It outlines conditions under which the landlord can re-enter the premises due to non-payment of rent, failure to perform obligations, or other specified defaults by the tenant.

94
Q

What is a Diplomatic Clause?

A

It allows a tenant to terminate the lease early under specific circumstances, such as job transfers out of Singapore, with a defined notice period and the requirement to provide proof.

95
Q

What does the En-bloc clause entail?

A

This clause is included for older properties, allowing the lease to cease upon an en-bloc sale of the property.

96
Q

What is one way a lease can be terminated?

A

Expiry of Lease Term.

97
Q

How can a lease for periodic tenancies be terminated?

A

By giving a Notice to Quit.

98
Q

What is “surrender” in the context of lease termination?

A

It occurs when the landlord agrees to terminate the lease before its expiration.

99
Q

What does “merger of interest” mean in lease termination?

A

It refers to a situation where the tenant buys the property, resulting in the termination of the lease.

100
Q

What is meant by “frustration” in lease termination?

A

It occurs due to unforeseen events such as en-bloc sales or compulsory acquisition that make the lease impossible to fulfill.

101
Q

What is the exercise of a Diplomatic Clause or Exit Clause in lease termination?

A

It allows a tenant to terminate the lease under specific conditions, such as job transfers.

102
Q

What is forfeiture in the context of lease termination?

A

It occurs when the lease is terminated upon a breach of covenants by the tenant.

103
Q

What is a general remedy for breach of leases?

A

Damages for Breach.

104
Q

What constitutes an action for rent?

A

An action for rent refers to a legal action taken by the landlord to recover unpaid rent from a tenant. If a tenant has not paid rent as agreed in the lease, the landlord can sue the tenant for the amount of rent owed.

105
Q

What is the Action for Distress?

A

It involves a court process to recover up to 12 months of unpaid rent by impounding the tenant’s goods, excluding personal items like clothing and bedding.

106
Q

What happens if a tenant refuses to move out after breach?

A

The landlord can apply for a Writ of Possession, a court order requiring the tenant to vacate the premises by a certain deadline.

107
Q

What is one remedy for breach of leases or tenancy agreements?

A

Forfeiture of Lease.

108
Q

What does the landlord have the right to do under forfeiture of lease?

A

The landlord has the right to re-enter the property and forfeit the lease.

109
Q

What must the landlord prove to effectuate a forfeiture?

A
  1. Evidence justifying forfeiture.
  2. No waiver of the right to forfeit.
  3. Satisfy statutory requirements governing forfeiture.
  4. Exercise the power of re-entry physically or serve a Writ of Possession.
110
Q

According to S18 of the Conveyancing and Law of Property Act, how much notice must the tenant generally be given before leaving?

A

Generally, 1 month’s notice.

111
Q

What must the forfeiture notice contain?

A
  1. Specify the exact breach.
  2. Provide an explanation of the breach and remedies.
  3. Request a remedy within a reasonable time.
  4. Seek compensation.
  5. Give the tenant a chance to rectify the breach to prevent forfeiture.
112
Q

What happens if the tenant pays after receiving a notice of forfeiture?

A

The landlord cannot repossess the property.

113
Q

Can a tenant apply for relief against forfeiture?

A

Yes, the tenant can apply for relief against the landlord’s right of re-entry.

114
Q

What may the court do regarding the tenant’s application for relief against forfeiture?

A

The court may grant or refuse relief based on the circumstances (e.g., whether the tenant’s conduct disqualifies them).

115
Q

What is a Fixed Lease?

A

A lease with a predetermined period (e.g., 3, 6 months, 1, 2, or even up to 99999 years) that automatically terminates at the end of the lease, requiring no notice.

116
Q

What is a Tenancy at Will?

A

A tenancy arrangement where the tenant takes possession with the landlord’s consent after a fixed term expires, without paying rent, allowing either party to terminate the arrangement at any time.

117
Q

What does a tenant have in a Tenancy at Will?

A

The tenant has no interest in the land.

118
Q

What is a Tenancy at Sufferance?

A

A situation where the tenant remains in possession of the property after the fixed term lease expires without the landlord’s consent.

119
Q

What is the status of a tenant in a Tenancy at Sufferance?

A

The tenant is considered a “holdover tenant.”

120
Q

What can the landlord claim if a tenant remains in possession under Tenancy at Sufferance?

A

The landlord can claim “back rent” under Section 28(4) of the Civil Law Act.

121
Q

What is a Periodic Lease?

A

A lease that runs for an unspecified duration (daily, weekly, monthly, yearly) and continues indefinitely until notice is given by either party.

122
Q

What does “Privity of Contract” refer to?

A

It refers to the relationship between two parties that is recognized by law in a contractual agreement.

123
Q

What is the significance of privity in contracts?

A

Parties to a contract should be able to sue to enforce their rights or claim damages.

124
Q

Can a contract confer rights on non-parties?

A

No, a contract cannot confer rights or impose obligations on any person who is not a party to the contract.

125
Q

What is Privity of Estate?

A

It refers to the relationship that exists between parties concerning their rights and duties related to land.

126
Q

What are the characteristics of Privity of Estate?

A
  1. Rights and duties enforceable against original parties.
  2. Rights and duties touch and concern the land.
  3. Binds successors.
  4. Successive relation to the rights and duties in property.
127
Q

What does an assignment involve?

A

The transfer of an interest or benefit from the Assignor (Tenant A) to the Assignee (Tenant B), while the burden or obligations under the contract remains with the Assignor.

128
Q

Can obligations under a contract be transferred in an assignment?

A

No, the obligations (burden) under the contract cannot be transferred.

129
Q

Who is the Assignor in the context of an assignment?

A

The Assignor is the tenant (Tenant A) who transfers their interest or benefit but retains responsibility for contract obligations to the landlord.

130
Q

What happens to the Assignor’s responsibilities after an assignment?

A

The Assignor remains liable to perform any part of the contract that must be fulfilled since the burden cannot be assigned.

131
Q

What is novation?

A

Novation is the transfer of all benefits and obligations under a contract to a third party (Assignee), effectively replacing the original party (Assignor) in the contract.

132
Q

How many parties are involved in a novation?

A

Three parties are involved: the Assignor, Assignee, and Landlord.

133
Q

What is a key document related to novation?

A

A Deed of Novation is the document that outlines the transfer of obligations and benefits.

134
Q

Is consideration paid in a novation?

A

Typically, no consideration is paid in a novation between the incoming tenant and outgoing tenant.

135
Q

Does novation change the clauses of the original contract?

A

No, there is typically no change of clauses in novation; it simply transfers the original agreement to the new party.

136
Q

What is a tort?

A

A civil wrongful act done by a person or company that causes injury or loss to another party.

137
Q

What is the purpose of tort law?

A

To protect individuals from damage to their:
a) body,
b) property,
c) reputation,
d) unfair competition,
e) peaceful enjoyment of property.

138
Q

What does tort law allow an injured party to do?

A

It allows the injured party to seek legal liability for the wrongful act.

139
Q

What is a key characteristic of a tort?

A

It is an infringement of a right other than under a contract.

140
Q

What is Negligence in tort law?

A

It refers to situations where an accident is caused due to the failure to take reasonable care.

141
Q

What does Nuisance refer to in the context of tort law?

A

It describes noise, smells, or substances that affect a person’s enjoyment of their space.

142
Q

What is Defamation?

A

It is a tort that occurs when someone damages another person’s reputation through false statements.

143
Q

What do Assault and Battery refer to in tort law?

A

Assault is when someone threatens to harm another, while battery is when someone physically beats or harms another person.

144
Q

What are the four elements of negligence?

A
  1. Duty of Care
  2. Breach of Duty
  3. Damage
  4. Not too Remote
145
Q

What does “Duty of Care” mean in the context of negligence?

A

It refers to the obligation one party has to avoid causing harm to another party.

146
Q

What happens if there is a “Breach of Duty”?

A

It means that the party failed to meet the standard of care required, leading to potential liability for negligence.

147
Q

What does “Not too Remote” imply in negligence?

A

It indicates that the harm caused must be a foreseeable consequence of the breach of duty, not an unforeseen event.

148
Q

When does Duty of Care arise?

A

Duty of care arises based on specific relationships, such as:

Doctor & patient
Professionals & clients
Manufacturer & consumer
Drivers to road users

149
Q

Who else do agents owe a duty of care to?

A

Agents owe a duty of care not only to their principals but also to third parties, allowing buyers to sue sellers’ agents for negligent misstatements.

150
Q

What needs to be established to determine if there was a breach of duty after duty of care is confirmed?

A

The standard of care must be evaluated to determine if it was breached.

151
Q

What is the “Reasonable Man” test in negligence law?

A

It assesses whether a person acts with a reasonable level of skill in their profession or activity.

152
Q

What must a victim show to establish damage in a negligence claim?

A

The victim must demonstrate that they suffered losses, damages, or injury as a result of the breach.

153
Q

What are some common remedies for negligence?

A

Remedies include:

Damages
Injunctions
Rescission
Rectification

154
Q

What does “Volenti Non Fit Injuria” mean?

A

“To a willing person, Injury is not done,” indicating that if a victim has full knowledge of the risks and consents to them, they cannot claim damages for resulting injuries.

155
Q

How does the defense of Illegality apply in negligence cases?

A

No claims can be founded on an illegal cause; if an action arises from illegal activities, the injured party cannot sue for negligence.

156
Q

What are Exemption/Indemnity Clauses?

A

Contract terms that exclude liability for negligence causing certain types of damage, which are valid if they are reasonable.

157
Q

What do Limitation Periods refer to in negligence claims?

A

The Limitation Act sets time limits for bringing claims: 6 years for torts or contracts and 3 years specifically for negligence.

158
Q

What is Contributory Negligence?

A

It occurs when a victim fails to take reasonable care for their own safety, leading to injuries that are partly their own fault and partly the result of another party’s wrongdoing.

159
Q

What is a key characteristic of Negligent Misstatement?

A

In Negligent Misstatement, there is an establishment of Duty of Care.

160
Q

Is there a need to establish Duty of Care in Negligent Misrepresentation?

A

No, there is no need to establish Duty of Care in Negligent Misrepresentation.

161
Q

What is a distinguishing factor regarding contracts in Negligent Misstatement?

A

Negligent Misstatement occurs without any contract between the parties.

162
Q

What does Negligent Misrepresentation typically do in relation to contracts?

A

It induces a party to enter into a contract based on false information.

163
Q

What is the remedy for Negligent Misstatement?

A

The remedy is typically damages.

164
Q

What are the remedies for Negligent Misrepresentation?

A

The remedies include rescission (cancellation of the contract) and damages.

Real Estate (19 decks)

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