Repair and insurance Flashcards
Who is usually responsible for the repair of their demise in a commercial lease?
The tenant
In a lease of whole, what types of repairs is the tenant responsible for?
Interior, exterior, and structural repair
What must the definition of premises in a lease of part include?
Detailed specifications including floor and ceiling coverings but not the structure of exterior
Who is responsible for areas of the building or estate used commonly by all tenants in a lease of a part?
Landlord
How does the landlord recover the cost of common area repairs?
Via service charge payments
What type of repair obligation is required for an FRI lease?
Full repairing obligation
What must a tenant do if the premises are not in good repair under a full repairing obligation?
Put the premises in good repair
What should a tenant obtain to assess the condition of the premises?
A survey
What does a Qualified Repairing Obligation include?
Schedule of condition with photographs recording state of premises
Under what circumstances will a Qualified Repairing Obligation be accepted in an FRI lease?
Exceptional circumstances by an institutional landlord
Can tenants choose whether to repair or replace an item of disrepair?
Yes, unless stated otherwise
What should a tenant do if the lease states that damaged items must be replaced?
Ensure it only applies if the item is beyond economic repair
What is considered onerous for a tenant in terms of repair obligations?
Covenant to renew the premises
What should a landlord have from contractors regarding inherent and structural defects?
Warranties
What must a tenant do when leasing a newly constructed property?
Ensure that inherent and structural defects are excluded from the tenant’s repairing obligation and service charge contributions
Who is almost always responsible for the insurance of the building in a commercial lease?
Commercial landlord
How is the cost of insuring recovered from the tenant under an FRI lease?
Under the lease
In a lease of whole, what does the tenant refund the landlord regarding insurance?
The whole of the insurance premium
In a lease of part, what does each tenant refund the landlord regarding insurance?
A proportionate part of the premium
What is the term for the amount tenants pay towards insurance in a lease?
Insurance rent
What are some examples of insured risks covered by an insurance policy?
- Fire
- Flood
- Storm
- Riots
- Political disturbance
Are insured risks included in the repair obligation?
No
