Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
55 Cards in this Set
- Front
- Back
|
Lease (other names) |
Lease=long Tenancy=short Term of years=statutes Demise=property covered by a lease -All mean the same thing and all bind 3rd parties |
|
|
Leases |
-Bind 3rd parties -Remedy: forfeiture |
|
|
Fixed Term Lease |
A lease stated to end on a particular date and has a maximum term, can be as long or short but the end is stated -> Break Clause: Can break a fixed lease if you give notice |
|
|
Periodic Tenancy |
The length is not stated and rent determines the notice period -Implied: Live casually -Expressly stated -Statute |
|
|
Licence |
An agreement regarding the occupation and use of the land which is not a lease, at best a contract -It will not bind 3rd parties |
|
|
Language |
Licensor: Grant the lease Licensee: has the lease Landlord/lessor: gives the lease (freeholder) Tenant/lessee: The person who takes the lease Sub-Lease: Original tenat grants a further leases of the premises-cant be longer than theirs |
|
|
Reversion |
The proprietary (exclusive) interest retained by the landlord after giving a lease, at the end of the lease row whole interest in the property reverts back to the landlord -can be sold or given away so is valuable since it carries the right to receive rent |
|
|
Assignment |
The transfer of either the lease or reversion to another person, NOT the creation of a new interest, just a transfer |
|
|
Types of payments |
-Premium: A single payment as consideration -Ground rent: Pay premium but pay a small annual rent -Service charge: pay premium as a service charge (maintence) -Rent: Periodic payment in consideration for the use and enjoyment of the land |
|
|
Characteristics of a lease (Street v Montford)-Defines lease/how it differs from a licence |
Contractual requirements: S. 205 (1)(xxvii LPA 1925) 1. Consideration or deed: Need if want tit to be legally binding, and exhcnage or promise 2. Intention to create a tenancy: Need intention to create a legal obligation |
|
|
Montague v Browning |
Consideration doesn't have to be money, it can be a service |
|
|
Bostock v Grant |
Paid heating, not consideration as it was their own expense |
|
|
Booker v Palmer |
Presumption that friends and family don't have an intention but here friends did a favour held it was a license |
|
|
Exclusive Possession |
Main factor: Having an exclusive right to physically and legally occupy and exclude others -Differs from exclusive occupation (fact), -Possession is in both fact and law -Possession means to have control over land |
|
|
Street v Mouuntford |
Was a lease and establishes the essential elements of a lease and how to distinguish |
|
|
Antonaides v Villiers |
Held as joint tenants and had exclusive possessoion |
|
|
AG Securities |
Held a license since no exclusive possession as they didn't collectively or individually have possession-distinction b/w lease and licence |
|
|
Exclusive Possession-Empployment (Other relationships) |
Employee-Employer=Licence, especially if occupation is linked with the work (Norris v Checkerfield) |
|
|
Exclusive Possession-Trust (Other relationships) |
Trustee-Benefiacry= The label is not determinative what matters is an objective view of what actually intended (Gray v Taylor): only a licence |
|
|
No exclusive possession -ways to tell if occupier has EP |
-Lodgers: Receivieng a service along with accommodation where the service requires routine access to the premises -Shared rented premeis: 2+ ppl occupy and landlord has genuine right to bring in new occupiers |
|
|
A Term certain |
A requirement that a valid lease must have a fixed term. The lease must say with certainty when the lease will end -s. 205(1): A term of years must be stated --> Exception: Lease for life S. 149(6) |
|
|
Prudential Assurance v London Residuary |
Had no fixed term just an implied periodic tenancy so could terminate based on rent -Must have a fixed term |
|
|
Fixed Term Lease |
A fixed time that states when the lease is up |
|
|
EX: End of war |
Northern Railway v Arnold: Terminate at the end of the war. Held as an implied term of 99yrs or end when the war ended=lease Lace v Chantler: The duration of the war=invalid |
|
|
Periodic Lease |
Lease keeps going until someone gives notice |
|
|
Ashburn v Arnold |
Terminate only if landlord wanted to demolish or redeveloped=lease |
|
|
Formalities |
Things thats must be complied with when creating a lease. Differ depending if in law or equity |
|
|
S. 52 LPA 1925 |
Requirements of a deed: Conveyance by deed All legal leases are made by deed (over 3yrs) Exception: deeds don't apply to leases that by law arrant required to be in writing |
|
|
S. 205: Define conveyance |
Disposition (transaction) other than a will, will dispose of rights to property |
|
|
S. 54 LPA 1925 |
Create an interest in land orally (parol) rather than writing -A lease not exceeding 3yrs, possession starts immediately, best rent |
|
|
Leases not in S. 54 LPA 1925 |
A deed will be required when to have a legal lease when -More than 3yrs, expressed to start at some point in the future and less than market rent |
|
|
Is registration required |
If a lease is granted out of unregistered land (S. 4 LRA) the legal lease will bind whole world |
|
|
Leases within S. 27 (2)(b) LRA 2002 |
Dispositions required to be registered and if not the lease will not operate at law |
|
|
Registered Land S.27 LRA 2002 |
Must be registered if: -Term of more than 7yrs -Take effect in possession -Possession is discontinous (time share) |
|
|
Not within S. 27 (2)(b) |
Registration will not be required if: -A lease is for 7yrs or less -AND the lease takes effect in possession -AND the right of possession is continuous |
|
|
Assigning/transferring a legal lease |
1. Always requires a deed (Cargo v Julina) -Must always use a deed when transferring |
|
|
Assigning/transferring a legal lease -Is registration required? |
Legal lease is registered the transfer must be registered s. 27 -A legal lease will bind anyone the reversion is transferred to |
|
|
Assigning/transferring a legal lease -If not registered? |
If it's not registered it can be an overriding interest Sched 3: -A leasehold that isn't exceeding 7yrs and has to be a legal lease |
|
|
Creation of equitable leases |
Where a deed is required: When a legal lease needs a deed but a deed isn't used then will result in an equitable lease Formalities: S. LP(MP)A A contract of sale must be in writing, all terms incorporated and all documents are exchanged If a deed is required and not used and S.2 isn't complied than not even an equitable lease |
|
|
Creation of equitable leases Proprietary estoppel |
Equitable lease created when the landlord gives away or sells the reversion |
|
|
Protect an equitable lease |
S. 28 & 29 LRA 2002 Protected as a notice S.29(2)(a)(i) S. 33- excludes some interests |
|
|
Sched 3: Overriding |
Only applies to legal leases and actual occupation |
|
|
Forfeiture for breach of covenant |
S. 1(2) LPA 1925: lists things capable of being a legal interest S. 1(2)(e): right of re-entry |
|
|
Right of re-entry: Right of forfeiture |
If a covenant is breached, the landlord can re-entrer the premise and forfeit (terminate) the leases |
|
|
Forfeiture Restrictions |
-Statuatory restrictions -Equity is inclined to grant relief from forfeiture -When tent stops the breach and compensates the landlord for any loss the lease will continue-courts discretion (Cukurova V AlfaTelecom) |
|
|
Rectification of the register and lease |
Gold Harp v Macleod: Legal lease and breached anf removed title, but register has retrospective effect, went back to original tenant |
|
|
Essential Characteristics |
1. Exclusive Possession 2. Certainty of term 3. Rent: Not essential but proves intention |
|
|
Formalities |
Agreement to grant a lease Grant a lease -Under 3 years -Over 3yrs: Deed -Over 7: Deed +Registration *Fail to meet then at best be equitable |
|
|
Terminate |
Forfeiture -Non-payment of rent -Breaches of all over covenants |
|
|
Terms/Definitions |
-Legal ownership: Formal paper owner and deal with at law -Equitable ownership: Hold beneficial interes so can live in property and receive income -Tenure: Describes the basis of which land is held -Estate: Period which the tenure is held (time) Freehold (unlimited) Leasehold(fixed) -Land: S. 205 (1)(ix) LPA 1995 Fixture: Objects that form part of the land and transferred automatically when sold -Chattels: Personal possessions, no connection with land |
|
|
Formalities for sale of land 5 steps in conveying land (ownership of land in transferred) |
1. Investigate title: Actual owner and can sell the reversion. Check land register or title deeds 2. Physical condition: Inspect land 3. Contract: S. 2 LP(MP)A-comply -In writing, incorporates all terms, signed -exceptions: no writing if short lease 3yrs less 4. Completion: Transfer the deed S. 2(1)LPA 1925, clear its a deed, signed/witness, delivered S.58 land register to give legal effect 5. Registration: Must be registered to give legal effect S. 4+27 LRA 2002 Buyer beware:Seller not liable if buyer fails to discover problems |
|
|
Essential requirements |
Exclusive Possession Term is certain Rent |
|
|
Formalities |
Legal leases must be created by deed -Over 7yrs=Deed+registration -3-7yrs=overriding so don't require registration -3yrs or less: At market rent, possession and no formalities S. 54 (2)-Parol (no writing) Equitable leases: -Must be protected by a notice -Leaseholder is in actual occupation they could have an overriding interest Sched 2 para 2 LRA -Unregistered land protected as Class C (iv) |
|
|
Forfeiture |
By conduct: Non-pay,went of rent or other breaches By peaceable re-entry: S. 6 criminal offence |
|
|
S. 205 (1)(xxvii) LPA 1925 |
Defines Lease: One of the 2 legal estates in land S. 1(2)LPA 1925, where the landlord allows a tenant to pass property to the landlord of fixed or certain period |
