nature of the right i.e. immovability until statutory conditions LANDLORD & TENANT are met. THE RELATIONSHIP OF LANDLORD &TENANT The relationship of landlord and tenant arises where a person who 8. has an estate in real property grants or is deemed to have granted to Tenancies at will and at sufferance are not real tenancies, although the relationship of landlord and tenant exists. another an estate which is less than that of the grantor. Creation of the Relationship A lease is an estate less than the freehold so there is always a A tenancy may arise in one of three ways: reversion on a lease. The relationship is also a contractual one; 1. It may be created by an express or implied agreement between thus the creation of such a relationship will be affected by the the parties. This may be by way of a simple oral agreement fundamental requirements of a contract as to capacity, offer and with the most elementary terms, i.e. the parties, the property, acceptance, misrepresentation, privity etc. Now it may even be the rent and the period. Or it may be a formal document by possible for a contract of landlord and tenant to be frustrated, at way of a deed, which runs into many pages and which deals least in theory. with every possible eventuality from responsibility for cleaning windows to liability in the event of destruction, by Subject to any statutory provisions, the rights and obligations of the parties will be only those, which the parties have agreed on. And hurricane, aircraft or civil commotion. 2. It may be created by attornment i.e. an acknowledgement by in the absence of specific provision in the agreement, will be the tenant that s/he is in fact a tenant e.g. where a mortgagee determined with reference to practice and common law e.g. a forecloses under a mortgage and the tenant acknowledges the landlord cannot unreasonably withhold consent even without mortgagee as the landlord (cf. Dorchester dispute where the statutory provision setting this out. tenants are likely to have to take out inter-pleader proceedings). However, because this contract confers on the tenant an estate in 3. It may be created by statute, e.g. where a dependent of the land, which may exist at law or in equity, it is a unique form of tenant on the tenant’s death becomes a tenant by express contract e.g. the court of equity may grant relief in forfeiture, even statutory provision. though there is no such common law right. Two stages to the creation of a lease: Thus a lease arises where, a landlord confers on a tenant by way 1st – the agreement for a lease – By an agreement for a lease the of a contract, the right to exclusive possession the land. This may parties agree that the landlord will grant and the tenant will take a be for a period which is either subject to a definite term, or can be lease. made subject to a definite term by either party. 2nd – the grant of a lease – the subsequent granting of a lease is the realisation of the lease previously agreed. Consequences of an Estate being Created 1. 2. The relationship is one of tenure and therefore the covenants However in law, it is not necessary that there be both an agreement that touch and concern the land and run with the land will bind for a lease and the lease itself. Often the parties will proceed to the the assignees of the lease and of the reversion. lease without a written agreement. More often they will not Payment of rent is deemed to be for the land and arising from proceed beyond the agreement; i.e. is to say having agreed the this is the right to distress i.e. the right of the landlord to levy tenant will enter into possession of the premises. The legal effects distress on the goods of the tenant to recover rent. The right to of the two steps are however, different. distrain on the goods of a tenant is no longer available in Jamaica. Since 1978 (Joke on Mushette LLB) 3. The tenant is estopped from denying the landlord’s title and vice versa. There is no requirement in law for the landlord to prove title, but this can be made a term of the agreement to lease. 4. There can exist concurrent interests on the same land i.e. freehold and leasehold. 5. The duration of the tenure must be certain or capable of being made certain before the commencement. Lace v Chantler and Prudential Assurance v London Residuary Body. 6. Sub-tenancies can be created and a tenant can assign a lease unless otherwise stated in the lease. 7. The estate ends on the expiry of the contract. A statutory tenant has no estate in the land because of the purely statutory Landlord & Tenant Page 1 of 47 2 AGREEMENT FOR A LEASE Tiverton Estates Ltd v Wearwell [A document setting out the - By this, the parties agree that the landlord shall grant and the terms of the alleged contract which was expressed to be, or tenant shall take a lease. formed part of correspondence expressed to be “subject to Often a document entitled a tenancy agreement is often not an contract” would not constitute a sufficient memorandum in agreement for a lease at all but an actual lease. writing of the agreement.] - - Whether there is a binding agreement for a lease or not is to be decided by reference to the ordinary rules of the law of Essentials for memorandum in writing to establish an contract – agreement for a lease: Rossiter v Miller. The action was brought to compel the 1. It must be in writing Burgess v Cox; North v Loomes specific performance by the respondent of an agreement to 2. It must contain the material terms of the agreement i.e. purchase plots of land belonging to the appellants, and the A full description of the parties main question was whether letters which had passed between The consideration i.e. the rent and any premium the agent of the vendors and the respondent constituted a A description of the property adequate for its clear binding contract within the meaning of the Statute of Frauds. identification Held: It is a necessary part of a claimant’s case to show that - - the 2 parties had come to a final and complete agreement. If Harvey v Pratt [Was not a valid agreement, as the not there was no contract. So long as the parties are only in document did not specify any date from which the lease negotiation either may retract. Though the parties may have was to commence. Therefore it failed for certainty.] agreed on all the cardinal points, if some particular essential Jaigobin v Dias [The plaintiff was held to be in a position to the agreement still remains to be settled afterwards, there is of a person who had a mere permission or licence to go on no contract. the land because the duration of the lease, not being stated, In the case of an agreement for a lease, the offer will be to let the document was not effective as an agreement for a or demise the land lease,] (i) at a certain rent Chew v Richmond [Memo was insufficient, as it (ii) for a certain period and contained no provisions with regard to the commencing (iii) from a certain date. date of the term or with respect to the rent, the (iv) Under the best rent possible without taking a fine consideration.] A formal written document is not necessary to bind the parties Knight v Pratt [Held: the agreement lacked 3 of the and the agreement may be formed equally by word of mouth requisites of a lease: (i) a definite or ascertainable period; or by an exchange of correspondence. (ii) a definite thing demised; (iii) exclusive possession.] However, while a formal written agreement is not necessary, it has the practical 4. advantage of reducing possible disputes between the parties because it will be clear that there is an agreement upon - - The period of the tenancy: It must be signed by the parties especially the party to be charged. Statute of Frauds 5. It must contain an express or implied recognition that a specified terms. contract in fact had been entered into. Tiverton Estates v Although an agreement for a lease need not be in writing to be Wearwell valid it might nevertheless be unenforceable because of the Analogous situation of contract for sale of land where the provisions of the Statute of Frauds or similar successor purported agreement contained the phrase “subject to provisions. The object of that statute was to prevent fraudulent contract”. Held to be insufficient memorandum even when practices in relation to various sales including the disposition read in conjunction with other documents. of land. The difficulty facing the courts at that time was that In practice a memorandum may be derived from a letter setting in the absence of evidence such as a document the parties were out the terms or a receipt or even a note of a conversation or willing to perjure themselves in order to establish or avoid an from several documents, provided there is some link between oral contract. The Statute therefore required that the party them. seeing to enforce an agreement had to produce some evidence Timmins v Moreland Street Property Co. Limited: in writing of the agreement signed by the other party, i.e. “the Analogous situation of a contract for sale. Purchasers argued party to the charge”. that the documents, a cheque and a receipt, were insufficient If the parties do not yet wish to bind themselves it is to constitute a memorandum because they omitted a material sometimes the practice to add the words “subject to contract” term, property subject to a lease. Held: the omission to refer to their negotiations and correspondence. If the agreement is to the lease did not vitiate the memorandum. “subject to contract” there is a risk that at the end of the day, either side may back out: Derby & Co. Ltd. v ITC Pension Trust LANDLORD & TENANT 2003-04 Page 2 of 47 3 Doctrine of Part Performance Taking possession of the premises by one party with Where there is an oral agreement for a lease but there is no the consent of the other: memorandum in writing, the agreement may still be enforceable if Morphett v Jones:: The Defendant J agreed to lease there are acts of part performance of the agreement. land to the Plaintiff M. - In order to establish this the parties seeking to enforce the plaintiff to enter into possession, which later took agreement must show: place. Held A party who has; permitted another to He then authorised the that there is a binding agreement perform acts on the faith of an agreement is not there have been sufficient acts of part performance allowed to insist that the agreement is bad and that those acts of part performance indicate the existence of an he is entitled to treat acts partly performing it as if agreement and are consistent with the agreement alleged, they never existed. Between landlord and tenant i.e. referable to the agreement. admission into possession, having unequivocal The plaintiff must show that he had acted to his detriment reference to the contract, has always been considered and that the acts in question were such as to indicate on a an act of part performance. balance of probabilities that they had been performed in reliance on a contract with the defendant and were to be leased at the specific instruction/suggestion of consistent with the contract alleged: the other party: Steadman v Steadman: Husband and wife agreed to Rawlinson v Ames [The defendant frequently visited transfer of her interest in house to him for a specified sum, the flat and made suggestions for further alterations for discharge of her maintenance proceedings against him which were carried out by the plaintiff at her request. for herself and her child and husband to pay arrears in When the defendant repudiated the contract the maintenance. Agreement confirmed by court and husband plaintiff sued for specific performance. Held: the acts performed as promised. On an application by the wife to done at the request of the defendant were acts of part repudiate performance taking the case out of the Statute of the agreement because of insufficient memorandum in writing and no act of part performance, Fraud] Held: the husband’s payment plus actions were sufficient. Carrying out of repairs and alterations to the premises The payment of rent in advance may constitute an act It would be inequitable for wife to rely on defence. of part performance: The courts have sometimes said that a condition is that it overruling Chaproniere v Lambert and Maddison would be a fraud for the defendant to rely upon the absence v Alderson of the contract being in writing: Brough v Nettleton Steadman v Steadman The payment of and acceptance of a higher rent where the plaintiff was a previous tenant who merely The principle underlying the doctrine of part performance is that continued in possession: where 1 party to an agreement has carried out whether in whole or Miller & Aldworth Ltd v Sharp: The landlord in part, the contract, it would be inequitable to allow the other party verbally agreed with tenant to grant a lease at an to rely on the Statute of Frauds. increased rent. Held: the payment of the extra rent Wakeham v Mackenzie [Woman moved out of her house and into was a sufficient part performance to take the case out the deceased’s to take care of him because he promised to leave her of the Statute of Frauds. the house and contents when he died. Held: sufficient acts of part performance that must be and were referable to some contract.] Remedies for non-performance Cf. Maddison v Alderson (HL) [Woman worked as deceased’s If either party refuses to go ahead with the lease agreement the housekeeper without pay for many years because he promised other party has two remedies orally to leave her a life estate in is will. Held: her actions did not 1. Specific performance – an equitable remedy by which the unequivocally point to a contract.] Lord Selbourne also said that court orders that the party shall perform his/her side of the part payment of purchase money is not enough as the payment of agreement. money is an equivocal act in the absence of parol evidence indicative of a contract concerning land. However the House of Lords, in Steadman v Steadman, subsequently said that there was no general rule that the payment of money could never constitute part performance. Because of its equitable nature specific performance is a discretionary remedy. In exercising its discretion the court has regard to a number of matters: (i) The conduct of the parties e.g. if the party seeking specific performance is guilty of bad conduct or - - If there are sufficient acts of part performance, the court will has delayed unreasonably in enforcing his rights grant specific performance. the court is not likely to grant the decree. Examples: Pillersdorf v Denny 1975 10 B’dos LR 30 Plaintiff sought specific performance of a contract LANDLORD & TENANT 2003-04 Page 3 of 47 4 for sale of land. The land purchase was delayed because of delay in getting planning permission. Held: contract was conditional on the permission. Without the condition precedent there was no right of performance on either side. (ii) whether the order would cause undue hardship; thus the court will not grant specific performance where it would result in a course of action not permitted by the lease held by the landlord: Warmington v Miller [Defendant’s lease contained covenant against assignment or parting with possession. Court would not enforce an oral agreement for the defendant to grant a lease to the plaintiff. Held: the plaintiff was not entitled to specific performance since the court would not order the defendant to do that which he could not do under the terms of his lease under which he held the premises and which, if he did, would expose him to proceedings for forfeiture.] 2. Damages – Where there is non-performance by the landlord due to a defective title, the tenant cannot recover damages for loss of his bargain but only to the actual expense that he has been put. If, however, landlord’s default is wilful then tenant can recover damages directly resulting from the default. Note: In Broughton v Snook it was held that the first step is to prove the existence of an oral contract. If there was evidence of such a contract then the plaintiff can enforce the contract unless the defendant sets up the Statute of Frauds. If this is done then the plaintiff relies on the doctrine of part performance. LANDLORD & TENANT 2003-04 Page 4 of 47 5 LEASES Lack of Formalities A lease is created when the landlord grants to the tenant the right of Prior to the Judicature Act 1873 a tenant under an informal lease exclusive possession of land or buildings for a definite term or for a would have different rights depending on whether the matter was period which can be made definite by either party and if for more before the courts of law or equity. The Judicature Act, applicable than 3 years or otherwise provided by statute complies with certain in all Commonwealth Caribbean jurisdictions, resolved this formalities. conflict by providing that where there was a conflict between law and equity the equitable principles apply Walsh v Lonsdale. CHARACTERISTICS OF LEASES 1. - Thus a lease which is void at law because it fails to comply Exclusive possession with the requirements of formality, if sufficiently evidenced in - Definition: The right to control the demised property and writing or supported by acts of part performance is treated by to exclude all persons from it including the landlord. If equity as an agreement for a lease for which specific landlord wishes to enter, he must specifically reserve the performance might be granted. right to do so. - - Further where the tenant has the right to apply for specific Where a person is granted the right to use premises performance the lease will be deemed to be granted whether or without the right to exclusive possession, the grant is a not the tenant asserts specific performance. licence and not a lease. Although the right to exclusive Nixon v Richards [Held: In the absence of a special possession does not necessarily preclude the existence of a agreement, a purchaser of land let into possession thereof licence. Street v Mountford under a contract of sale but who has not paid the purchase 2. Definite period money and to whom no conveyance has been executed is a - This requirement is not always free of difficulty. In the vast tenant at will to his vendor. If however, purchase money paid majority of cases the period is clear and definite. Occasionally then equitable agreement for a lease arises.] however, persons enter into unusual agreements that make the - Further, if tenant pays rent, a periodic tenancy is created. period of the tenancy uncertain e.g. a demise “until the river - As a result of Walsh v Lonsdale it is often said that an changes its course”. This kind of situation, however, should agreement for a lease is as good as a lease and generally not be confused with the situation where a grant is made for a speaking this is so. But there are instances where an equitable definite period, but there is provision for termination at an lease is not as good as an actual lease. earlier time upon the occurrence of a specific event e.g. a diplomat’s period of service in a jurisdiction until recalled or Why an equitable lease is not as good as an actual lease declared persona non grata or e.g. a person working in the - jurisdiction on contract, if their contract is terminated earlier. Equitable lease dependent on equitable remedy of specific performance which is discretionary. Thus a tenant guilty of breaches under the lease would not be granted this remedy. FORMALITIES: Coatsworth v Johnson: The plaintiff entered into possession At common law a lease can be validly created by a purely oral of land under an agreement for a lease, but no rent was paid transaction. and a covenant to cultivate the land was broken. Nevertheless there are statutory provisions which The require that certain formalities be established. defendant gave notice to quit and turned the plaintiff out of 1. Except in the case of Barbados, all leases of unregistered land possession. On an action for damages for trespass it was held over 3 years must be by deed i.e. under seal. In the case of the plaintiff would not have a remedy because he was only a Barbados, leases of unregistered land for more than one year tenant at will. He could not have sought specific performance need only be created by an instrument in writing. because of his breach of covenant. 2. 3. Once however a lease has been validly created, whether oral or - En equitable lease not enforceable against 3rd parties acting in written, it must be assigned by deed or by transfer for there to good faith and without notice, especially the bona fide be a valid legal assignment. purchaser for value without notice i.e. “equity’s darling”. In the case of registered land, a lease for more than 2 years, Metcalfe v Edgehill except in the case of Jamaica, where it is one year, must be in writing and noted by the Registrar of Titles. S. 70 Creation of a lease: Registration of Titles Act. The various registered land A lease may therefore be validly created as follows: statutes provide a pro forma example of a basic lease that can 4. (1) If it is for registered land and more than a year, it must be in be used as is or modified to suit the particular circumstances. writing: See however, section 70 Registration of Titles Act With the exception of Barbados, leases for more than 21 years “…the proprietor of any estate in land under the operation of are entitled to be evidenced by way of a certificate of lease as this Act shall, except in case of fraud, hold the same as the distinct from the lease merely being endorsed on the title or same may be described or identified in the certificate of lodged in the registry or titles office title…” LANDLORD & TENANT 2003-04 Page 5 of 47 6 (2) If it is for less than 3 years and it is unregistered land – may be made orally or in writing or by deed (3) If it is for more than 3 years and is unregistered land it must be by deed. (4) If it is for more than 3 years and is made orally but there are sufficient acts of part performance – equitable lease (5) If it is for more than 3 years and there is sufficient memorandum in writing – equitable lease (6) If it falls under (4) or (5), but tenant has been guilty of bad conduct or 3rd party rights will be affected which will prevent the grant of specific performance there will be no equitable lease (7) If it is for more than 3 years and no sufficient memo or acts of part performance, specific performance will not be granted BUT if tenant enters into possession and pays rent – periodic tenancy will arise. LANDLORD & TENANT 2003-04 Page 6 of 47 7 LEASES AND LICENCES Thereafter the position was that even if exclusive - The distinction between a lease and a licence is very important possession was granted you had to consider all the other today particularly in jurisdictions with rent restriction relevant factors and decide whether these pointed to a legislation that is designed primarily to protect tenants against lease or not. It is arguable today that some of these are exploitation by landlords. Rent Restriction Act applies only still relevant in certain circumstances, the most important to tenancies and not licences. of which is the nature of the relationship between the Thus in recent times attorneys, particularly in Jamaica and parties. - Trinidad and Tobago, have been called on to address II. agreements purporting to create licences meant to avoid the - - Whether the terms of the agreement are such as are normally found in a lease e.g. covenant to repair: effect of legislation for the protection of tenants. Addiscombe Estates v Crabbe The trustees of a tennis club In England such a practice has been taking place for a long took occupation of tennis courts and a club house the time now as evidenced by the number of decisions in this area. activities of the club were held to be business purposes. More recently in Street v Mountford the court had to The agreement which was termed a licence contained construe a document described as a licence to determine covenants of insurance, delivery of premises, and quiet whether in fact it was what it said it was. The House of Lords enjoyment. Held: tenancy. held that it was in fact a tenancy agreement. Since Street v III. Relationship between the parties - if arms length or Mountford there have been a number of decisions which have commercial. The latter suggests a lease, whereas if the applied that case, including in the Caribbean. relationship Ramnarace v Lutchmann: plaintiff occupied land on friendship or between family then suggests licence: understanding she could live there until she could afford to Ramnarace v Lutchman; is personal, employer-employee, long buy it. She was served a notice to quit but it was not enforced. Romany v Romany: A mother allowed her son and his She claimed a declaration of tenancy. PC held that she had wife to remain on premises after their marriage until they entered the land as a tenant at will, not a licensee, because of found alternative accommodation. Court found that a the agreement to eventually sell. Under Trinidadian legislation licence existed. the notices to quit without more were insufficient to stop time In family situations where one member helps another in a running on adverse possession, extinguishing the respondent’s period of difficulty over accommodation there is usually no title. intention to create legal relations so that there is no tenancy at will but merely a licence. NB: The fact that the mother DISTINCTION BETWEEN A LEASE AND A LICENCE repeatedly protested their possession after a while revoked - In order to determine whether the relationship between the the licence and her mere inaction after every protest did not parties is that of landlord and tenant or licensor it is necessary serve to extend the licence. to consider a number of factors The general rule is that a tenancy-at-will exists when a I. Primary consideration: whether exclusive possession has person occupies the land of another on the understanding been granted to the occupiers. If it is has not there cannot that he may go when he likes and that the owner may be a lease. terminate his interest at any time. To distinguish this At one time the law was that if exclusive possession had tenancy from a licence, Court looks to the intention, i.e. been granted then this was conclusive of a lease. But this whether the occupier was intended to have an interest in was later modified. the land or merely a personal privilege without any such In Street v Mountford Lord Templeman said that where exclusive possession is interest.] granted a tenancy arises unless there are special The more formal the agreement the more likely that is a circumstances which negative the presumption. Then it lease may be necessary to consider the intention of the parties. IV. Amount of money involved – whether commercial rate Isaac v Hotel de Paris: The respondent let the appellant V. Whether the occupant has previously occupied the into occupation of a separate property in order for the premises or is being let in de novo: appellant to run a bar there on behalf of the respondent. Dean v Mahabir [Held: where exclusive possession is They later signed an agreement, “subject to contract” given to a new occupant, it is almost decisive of the involving a share swap for a lease agreement. creation The of a tenancy so that special agreement was never executed and the respondent gave circumstances/conduct must be shown in order to negative the appellant notice to quite. He remained in occupation a tenancy. As there were no special circumstances here, paying expenses and taking profits. Held by the PC: the the appellant was allowed to live rent free in the circumstances in which the appellant was allowed to respondent’s dwelling house for a period while the occupy show he was never intended to be a tenant, and former’s house was being constructed it was a tenancy that he was aware of this. LANDLORD & TENANT 2003-04 Page 7 of 47 8 VI. Sylvestre v Cyrus: Cyrus, the tenant of a house moved out condition and therefore could not expect to have the taking her telephone and electric meter and let Sylvestre property for life or as long as he wished. Condition that the into exclusive possession for payment of a premium and at defendant should “command respect” not specifically met. a monthly rent. When Cyrus moved back in two years later, Sylvestre brought an action in trespass. The court However, the licence is revocable subject to the limitation held that in the absence of special circumstances the that the licensee must be given a reasonable time to vacate exclusive possession was sufficient to establish a tenancy. the premises: the capacity of the grantor to grant the tenancy: Singh v Singh [Licensee could maintain an action for Spencer v Esso Standard Oil [Arrangement between trespass because he was given no time at all in which to parties that the respondent company would erect a service cut his rice and quit the land. Here the licensor had station and the appellant should manage it accordance entered onto the land and reaped the licensee’s crops.] with various terms and restrictions. Held: Licence. The Where the licensee was not given reasonable time in which respondent had sued for “rent due” but he should have to vacate the premises, then the court will not grant the sued for damages for use and occupation of its station, licensor an injunction to prevent the licensee from which ran from the time when the appellant should have occupying it: Crawford v Ramnarine yielded up the premises under a notice to do so.] VII. II. Licence coupled with an interest – such as the right to Whether a joint tenancy exists enter land and enjoy an incorporeal heridatement e.g. AG Securities v Vaughan [4 separate agreements easement or profits a prendre. Here, the licensor cannot granted on 4 different dates to 4 different persons where revoke the licence if the licensee is thereby prevented each was granted the exclusive right to use a 4 bedroom from exploiting the interest which the licensor has flat in common with 3 other persons who had or who granted: Binyon v Evans, Cherrington v Hoare might from time to time be granted the same right. Each III. Contractual licence – any licence that is not coupled with agreement also differed in the amount payable. Held: not a grant but which is supported by valuable consideration a joint tenancy. If this were so, then on the death of 1 e.g. right to enter a cinema. This is terminable upon the occupant the remaining three would be entitled to joint contractual terms. If no express terms are discoverable and exclusive possession and could exclude a 4 th person then reasonable notice is implied. Contractual licences are nominated by the grantor. This was not the case.] by far the most important types of licences in matters Cf. Antoniades v Villiers [L, by separate but identical relating to landlord and tenant law, because property agreements entered into contemporaneously with a owners sometimes in trying to avoid the consequences of couple, granted a “licence” to occupy flats whereby it rent restriction legislation attempt to create contractual was provided that the rooms were to be used in common licences. These are governed by the law of contract only. with L and such other licensees or invitees that L may IV. Licence by estoppel: Clarke v Kellarie [Plaintiff assured permit. Held: was a joint tenancy – the agreements were the defendant that he had use of the premises until his interdependent as both would have been signed or neither. death. Defendant erected buildings and the Plaintiff Was clear from negotiations that L did not intend to share acquiesced. Held: plaintiff estopped from defeating occupation or to authorise any other person to deprive the defendant’s expectations by dispossessing him of the parties of exclusive possession. However the tenancy property.] could have been converted into a licence as soon as L exercised his power to share occupation.] Licences A licence does not create any estate in the property (just like a tenancy at will) Thomas v Sorrel {liquor licence case] Types of licences: I. Bare licence – Granted without valuable consideration so that it does not even amount to a contract. Cherrington v Hoare (Belizean case) Plaintiff purchased lot from D’s father with D living in smaller of 2 houses on the lot. P claimed D was a tenantat-will and claimed possession following notice to quit, while D claimed proprietary estoppel granting him tenancy-for-life. Held: D only held a bare licence, despite his expenditure on the house, he had not met a prior LANDLORD & TENANT 2003-04 Page 8 of 47 9 - Licence Arrangements 1) Employees – - the same house as the occupier. A lodger who has no separate May involve an employee such as a caretaker, farm overseer, or university warden. It is a service licence apartment is generally a licensee. - where occupation is for the better performance of employee’s duties. - possession in the room then he will generally be a tenant. employee’s contract of employment or implied from the However, if it was intended that he should merely have circumstances of his employment. personal permission to occupy the room he will generally be a R v Spurrell [The essential question was whether or not licensee. - Lord Templeman in illustrating the meaning of exclusive his services, or whether the occupation was subservient to possession in Street v Mountford explained the lodger as and necessary to the service. If the occupation is not against the tenant in the following way, “In the case of necessary to the service, then the fact that the advantage residential accommodation there is no difficulty in deciding of the occupation is part of the remuneration for the whether the grant confers exclusive possession. An occupier service will not render the occupation less an occupation of residential accommodation at a rent is either a lodger or a qua tenant.] tenant. The occupier is a lodger if the landlord provides Phillips attendance or services that require the landlord or his servants [Respondent lived at his employer’s premises. He agreed to exercise unrestricted access to and use of the premises. A that either he or someone would always be there to take lodger is entitled to live in the premises but cannot call the orders and answer messages and enquiries for the place his own. employer. Held: the substance of the agreement was for accommodation is granted for a term at a rent with exclusive the respondent to occupy in order to perform his services possession the landlord providing neither attendance nor in part in those premises. services the grant is a tenancy. Any express reservation to the (Funeral Furnishers) Ltd v Thus not a tenancy but a If on the other hand residential service occupancy.] landlord of limited rights to enter and view the state of the Langley v Appleby [Held: a policeman occupied special premises and to repair and maintain the premises only serves housing not as tenant but as a licensee not because it was to emphasise the fact that the grantee is entitled to exclusive essential to the performance of his duties, but because it possession and is a tenant.” was an essential term of his employment that he should - Landlords wishing to avoid the statutory protection offered to occupy the premises. Failure to do so would have meant tenants have attempted to draft lodging agreements. termination. 2 such agreements came before the court in Crancour Ltd v An employee may however be a service tenant, in which DaSilvaesa: The UK Court of Appeal held that the following case he would be in the same position as a legal tenant. variables pointed to lodgings: The test to distinguish the two categories is whether the 1) fact that occupant had right to the room only during a employee is required to occupy the premises for the better performance of his duties as an employee. Torbett v certain time; 2) provision of attendance and services meant unrestricted access was reserved and exclusive possession destroyed; Faulkner - If it is intended that the occupier should have exclusive The requirement to occupy may be contained in the Thompsons - Whether the occupier of a single room in a house is a licensee/tenant is dependent on the quality of the occupancy. – the servant simply occupied as part of remuneration for - The word lodger is used in cases where the landlord lives in Whether the test has been met must always be determined 3) right was reserved whereby occupant would have to move by a consideration of the substance of the agreement and out of his flat into any other of comparable size in the not by use of particular terms. building.] Glasgow City Corporation v Johnstone The courts lean in favour of tenancy especially because of In many cases if the right to occupy is not required for the protection offered by Rent Restriction Acts. better performance of the employee’s duties, but is in reality a part of the remuneration for his services then a tenancy is prima facie created. - The relationship of licensor/licensee terminates upon the entering of an agreement between the parties to purchase the premises and the licensee thereafter becomes a tenant at will: Bertram Palmer v James 2) Lodgers/Boarders LANDLORD & TENANT 2003-04 Page 9 of 47 10 TYPES OF TENANCIES - 1) Where a lease takes effect in the future it is called a The important thing to remember with respect to periodic tenancies is that the parties must avoid any provision that is reversionary or future lease. repugnant to the nature of such a tenancy and would therefore make it void and unenforceable i.e. either party restricting his 2) A lease may also be granted for a term that commences before right to terminate. If the periodic tenancy is not capable of a previous lease expires or is otherwise determined. This type termination it cannot be said to be for a definable period and of lease is known as a concurrent lease. Such a lease operates therefore cannot be a tenancy at all. as a lease of the reversion and has the effect of substituting the Centaploy Ltd. v Matlodge; A term in a periodic lease which new tenant of the reversion as landlord in relation to the permitted only the tenant to terminate the lease was held to be existing lease as long as the 2 interests subsist concurrently. void by the CA 3) Tenancy for a fixed term 5) Yearly tenancies - - - - The simplest kind of term is a lease for a fixed period, whether a week, month or a number of years. It may be made to begin agreement or by implication and may be determined at the end immediately or at some time in the future or at a date earlier of the first or any subsequent year by service of a valid notice than that of its execution. The term must however be certain. to quit. The test of certainty will be satisfied if the period is capable of - tenancy from year to year” or that “the tenant shall be a yearly A lease for a fixed term comes to an end automatically without tenant”, or words of similar effect. However a tenancy for “1 notice when the term expires. It should be noted however that year and so on from year to year” is a tenancy for a fixed term in practice, notice is usually given with respect to property of 1 year followed by a yearly term. Such a tenancy cannot be subject to rent restriction legislation when let for a fixed term. terminated before the end of the 2nd year. - statutory tenant, the statutory provisions require that notice be a) but not as a licensee and not for an agreed period and the more recent decisions of Crampard v Thomas and rent is paid and accepted and is expressed to be or Dabdoub v Saba have overruled Yap Young. Nevertheless calculated as a yearly sum b) A tenant holds over after the expiry of a fixed term Fixed term tenancies may be made terminable before the tenancy as a tenant at will or at sufferance but expiration of the term on subsequently pays or agrees to pay rent on the same notice being given by one party, or the other, to terms as under the expired lease in so far as they are terminate the tenancy at given intervals during its not inconsistent with a yearly tenancy. currency i.e. a break clause. c) - The lease granted to the tenant is in fact void because the happening of some specified event e.g. the tenant it was not made by deed or in writing, as the case may ceasing to reside on the premises. be. In such instances if the tenant can show that he Fixed term leases raise difficulties particularly when the term has in fact entered into possession of the premises and is very long. There is a need to moderate that but not by has paid a yearly rent he becomes a tenant from year converting it to a monthly tenancy. to year upon such terms of the lease agreement as are 4) Periodic tenancies - A person occupied land with the owner’s permission to commercial lettings in Yap Young v Reynolds. However the practice continues. - A yearly tenancy will arise by implication whenever the following conditions are satisfied: given. Rowe J was [persuaded to this view at least in respect - A yearly tenancy may be created by the parties agreeing to “a being rendered certain before the lease takes effect. The usual reason given is that if the tenant holds over as a - Tenancies from year to year may be created by express applicable to a yearly tenancy. These continue automatically from period to period until they d) The tenant has entered into possession and paid part are determined by a valid notice to quit given by one party to of a yearly rent but there is nothing in writing. The the other. A periodic tenancy therefore differs fundamentally mere fact of payment of the rent and acceptance of it from a fixed term tenancy in that in the latter the total duration will, if not otherwise explained be admission of the is fixed from the outset. fact that a tenancy exists. The usual periods for periodic tenancies are a week or month evidence to the contrary, this would be deemed to be or quarter or year, but any period may be chosen. a tenancy from year to year. Whatever period is chosen, that is the minimum duration of the - In the absence of any The requirement that there be a yearly rent is satisfied if the tenancy, but until notice is given its total duration will not be rent figure is expressed as an annual sum. It does not matter certain. As the tenancy progresses from one period to another by what instalments the annual sum is payable e.g. “rent = the tenancy is regarded as one continuous tenancy without $12,000.00 per year payable monthly” will give rise to a break or renewal. yearly tenancy LANDLORD & TENANT 2003-04 Page 10 of 47 11 - Where a tenancy from year to year arises by implication, the tenant holds under such terms of the former or intended lease as are not inconsistent with those of a yearly tenancy e.g. a covenant to pay rent in advance or to keep the premises in good and tenantable repair. So, a covenant to do extensive repairs or to give two years notice to quite or to paint every 3 years would obviously not be consistent with a yearly tenancy. - The creation of a yearly tenancy by implication is a rebuttable presumption. The payment of rent does not of itself create a tenancy from year to year. When such a tenancy does arise as a result of the tenant “holding over” and paying rent after the original lease has ended that tenancy will be determinable on the anniversary of the determination of the original term. The minimum period of such notice would have to be 6 months. [Landlords should be advised that where a tenant holds over and rent restriction legislation exists the tenant becomes a statutory tenant. Apart from six months notice the landlord will have to give a reason for notice to quit where the tenant is not willing to move. 6) Other periodic tenancies - What has been said with respect to yearly tenancies applies mutatis mutandis to quarterly, weekly and monthly tenancies i.e. they can be created by express agreement or by implication where rent is paid and accepted on a quarterly or weekly or monthly basis. LANDLORD & TENANT 2003-04 Page 11 of 47 12 7) Tenancy at will - Usually arises where a person occupied land with the permission of the owner but does not pay any rent. - A tenancy-at-will is the lowest estate known to law and does not comprise a legal estate. - It can be terminated at any time by the landlord withdrawing permission for the occupier to be on the premises and therefore is for an uncertain duration. - A tenancy at will can be created by express agreement but usually it will arise by implication (i) where a tenant holds over at the end of a fixedterm tenancy - (ii) before the actual grant of a tenancy (iii) before the sale of a freehold If a tenant-at-will begins to pay rent the tenancy-at-will may be converted into an implied tenancy if the intention to create a tenancy can be inferred between the parties. If the circumstances indicate there is no intention to create a tenancy the tenant will remain at will. - In some situations it will be difficult to distinguish a tenant at will from a licence and the courts prefer to opt for the latter. Street v Mountford 8) Tenancy at sufferance - Will arise when a tenant holds over at the end of his or her tenancy without the permission of the landlord. - Is not a real tenancy at all but just a glorified trespasser, to whom the landlord has not given permission, but to whom the landlord has not actively objected. - However, like a tenancy at will a tenancy at sufferance may be converted into an implied periodic tenancy if the landlord accepts rent and an intention to create a tenancy can be inferred. LANDLORD & TENANT 2003-04 Page 12 of 47 13 CAPACITY TO GRANT OR HOLD LEASES government officer who wields this power is the There is often a need to establish whether transactions can be Commissioner of Lands. pursued with the consent available. 8. Tenant for life – Under settled land legislation the tenant-for- 1. Absolute owners life can grant leases. He is the person who is for the time 2. Joint tenants being beneficially entitled under a settlement to possession of 3. Aliens – the right of aliens to own or lease land is governed by the settled land for his life. There are however, certain statute in most jurisdictions e.g. in BVI “non-belongers” or in statutory restrictions with respect to the duration of the demise. Barbados “aliens”. Jamaica is the only Caribbean jurisdiction 4. administrators regard. But in other jurisdictions, before granting a lease the administration are placed in the shoes of the deceased and can lessor and/ or lessee must meet some statutory requirements grant leases though of course it is the duty of personal including re nationality. Also in Jamaica the distinction is representatives to realise the property within a reasonable time. made between residents and non-residents through legislation 10. Trustees – Where a person wishes to guide the affairs of his appointed the grant of letters of property after his death he may settle the property or create a Minors/Infants – By various property statutes an infant or trust for sale. By the latter land is granted to trustees to hold minor can neither grant nor accept a legal lease. A minor can on trust to sell and pay the proceeds of sale to named however, acquire and hold and therefore also assign an beneficiaries. NB The trustees have a power to postpone sale equitable interest under a trust of a legal lease. If s/he does not and manage the land in the interim. Thus trustee can lease the repudiate that interest within a reasonable time after attaining land for any number of years consistent with the estate they majority s/he will be bound by it. Therefore a grant by or to an hold. 11. Married women – by statute a married woman is capable of trust, but voidable nevertheless until s/he becomes 18. acquiring, holding and disposing of any property in all respects In the law of contract a minor can be held liable on a contract as if she was a single person and so she may create and accept for necessities supplied to him/her. Such a contract is valid leases of land. 12. Power of attorney – An agent acting under a power of attorney minor’s status. may grant or accept a lease if expressly given the power to do Mentally disordered persons – There is a question whether the so. Generally powers of attorney are strictly construed and so party has the capacity to participate in the tenancy. The general general clauses contained in the power are not likely to be position is that the lease is binding provided that the other interpreted as granting specific powers. party did not know of his disability so as to take advantage of 13. Mortgagors and mortgagees – A mortgagor of land who it. If the other party was aware of the disability the lease is remains in possession or a mortgagee who is in possession voidable at the election of the disabled person. may lease land subject to express statutory limitations and Like an infant/minor a mentally person may be liable for subject to the terms of the mortgage. necessaries supplied to him under the law of contract. In Jamaica NHT mortgages restrict the right to grant lease Necessaries therefore may include suitable accommodation. because the property is meant to be owner-occupied. Corporations – A corporation exists as a legal person in its NB: the rules relating to a mortgage differ according to own right but is subject to certain disabilities which vary whether the property is registered or unregistered land i.e. an according to the method by which the corporation was created. unregistered legal estate vests in the mortgagee with the equity In the Caribbean corporations are usually created either by an of redemption in the mortgagor. Whereas with unregistered Act of Parliament or under the provisions of the various land the legal estate remains in the mortgagor with the right to company acts. sell or foreclose being granted to the mortgagee. A corporation created by statute will possess only those powers that are expressly conferred upon it by the enabling law or derived by necessary implication from its provisions, otherwise the lease will be void. A company incorporated under the Companies legislation must set out the objects for which it was incorporated. Any transaction, including the granting or accepting of leases inconsistent with this objects will be ultra vires and therefore void. 7. by such as Exchange Control Act. and binding and might include accommodation suitable to the 6. Personal representatives – Executors under a will or that does not have legislation to deal with non-nationals in that infant/minor will be valid in equity under the device of the 5. 9. The Crown/State – The Sovereign is a corporation sole and at common law can grant leases and accept them. In Jamaica the LANDLORD & TENANT 2003-04 Page 13 of 47 14 DRAFTING OF LEASES They will also contain the parcels i.e. a description Statutory provisions of the property demised and any exceptions and - The problem is knowing how to use and apply legislation. reservations e.g. any easements. The description of Skills and knowledge are pre-requisites for those drafting the property will obviously vary e.g. the number and leases since they demand a clear understanding of landlord and name the road on which the premises are located, or it tenant law coupled with a knowledge of contemporary local may be by means of a plan endorse on the lease, or by practice. E.g. although many examples can be found of means of a description of the location and a repairing covenants as they relate to the UK local building description of the premises, or may be by means of practices could affect the implementation of such covenants. metes and bounds and measurements (surrounding Drafters also require the vision to anticipate future trends. premises and roads) - From time to time it will be necessary to incorporate novel (ii) the habendum – The fixed duration and clauses and great care must be taken to draft these as simply commencement of the term of the lease. If the and precisely as is possible, for in the event of litigation the commencement is not stated it begins, in the absence court will at least appreciate there was no intention to confuse of anything to the contrary, from the delivery of the or mislead. deed. In the case of a lease not under seal, i.e. a deed under hand, it begins from the date of entry. The duration of the lease must be certain and the date Form and Requisites of a Lease 1. A lease by deed – A deed is a formal written document for signed, sealed and delivered by the parties. Sometimes it may commencement of the term. be delivered as an escrow, to take effect upon the performance must be ascertainable at the the redendum – This is the clause in the lease by of some condition. which the lessor reserves the payment of the rent to The traditional approach was one where the lessor executed himself and is usually made by the words “yielding the deed and the lessee executed a copy called “the and paying”. counterpart” to be kept by the lessor. 2. (iii) expiration The deed and the (iv) the covenants – The rights and obligations of the counterpart were then indented. This “indenture of lease” is landlord and the tenant will be set out in the now found only in the Bahamas. covenants contained in the lease. The lease should Generally an indenture is a document written in duplicate on contain all the covenants agreed between the landlord the same parchment or paper and divided into 2 by cutting and the tenant with regard to the tenancy and the use through in a wavy or patterned line. The 2 parts could then be and enjoyment of the demised premises. fitted together to prove their authenticity. There is no particular form required and generally A deed between parties has the effect of an indenture today, any words in the lease showing an agreement that though it is no longer indented. Any deed, whether or not it is something shall or shall not be done will be treated as indented may be described as a deed simpliciter. a covenant. The deed must then be properly stamped and recorded or Covenants however have to be distinguished from registered as the case may be, so it is complete on its face. In conditions. Jamaica if there is a failure to record or register within the time determine whether a provision is a covenant or a provided a penalty may be levied of 100% plus $10.00 condition. A lease of unregistered land – The format of a lease of The covenants that are contained in a lease will vary registered land should follow the appropriate statutory according to the nature of the property. The lease of requirement. These however, are fairly flexible and are a single dwelling house usually contains the more usually given as a guide only. Nevertheless they must be in common and usual covenants. Commercial mining writing and signed by the parties to the document. Where and agricultural leases are often more complicated appropriate they should be stamped and registered. and a lease involving an apartment in a block in a Sometimes it will be difficult to condominium or strata complex will usually contain a Parts of a lease large number of covenants. The tenant will find his The traditional lease is usually divided into 4 to 8 parts use of the apartment controlled by the covenants in (i) the premises – the first part of the lease. It should the interests of the community of occupants. contain the dates, names, addresses and occupation/ addition, there might also be by-laws, over and above status of the parties and the operative words i.e. the the statutory ones that will govern the use of the demise or lease. But any words showing the intent of apartment if it is part of a condominium or apartment the parties to give and take exclusive possession for a complex. certain term are sufficient e.g. “agree to let” or “lets”. 1st question: should bylaws be included in or referred to in the lease. LANDLORD & TENANT 2003-04 Page 14 of 47 In Because the law allows strata 15 complexes to make or repeal their own bylaws, if the provision is included in the lease it will be applicable even when the bylaws are amended. 2nd question: townhouse complexes do not enjoy any special legal provisions. However, strata provisions may be incorporated by making 1 of the townhouses into two apartments with separate titles, therefore converting the area into a strata complex. (v) provisos (if any) – This section of the lease will contain the limitation which operate to qualify, enlarge or defeat the estate which has been granted. A proviso for re-entry on non-payment of rent is regarded as usual. A proviso for re-entry upon the breach of any other covenant is however, not usual. (vi) options (if any) – Options to purchase the reversion and options to renew are clauses sometimes included in a lease where specifically required by the parties. However, a lease will not be bad because it doesn’t include options. (vii) costs (viii) schedules (if any) LANDLORD & TENANT 2003-04 Page 15 of 47 16 RENT - Rent goes beyond a mere covenant even though it is usually set out in this section. It is fundamental to the tenancy, but it - - - - Rack rent – full annual value of the property or within a reasonable margin of it at the commencement of the lease. 3. Ground rent – less than a rack rent, the difference having been is a provision that may be included in the lease [NB: don’t capitalised in the form of a premium taken by the landlord confuse rent with “a sum payable for occupation” or “mesne from the granting of the lease. This type of rent is more profits” which are not badges of a tenancy.] commonly found in long leases and building leases. Tenant still under obligation to pay rent even if the premises 4. Peppercorn rent – very nominal ground rent e.g. 10 cents per rented are destroyed or otherwise made uninhabitable. Note: annum. All it does is ensure that the relationship of landlord this is why many leases contain an express clause suspending and tenant is established and ensure there can be no question tenant’s obligation to pay rent in such circumstances. National of adverse possession. This is often the type of rent used Carriers Ltd v Panalpina stated that the lease may be between family members. frustrated in certain restricted circumstances. - 2. 5. Dead rent – reserved on the lease of a mine or other wasting Rent is defined as the compensation or consideration which the asset, which is payable throughout the term. tenant pay to the landlord for the exclusive possession of land increased by royalties payable in addition to the rent. under a lease royalty is a true rent if properly reserved. Rent does not have to be money. It may be the performance of 6. It may be A Variable or sliding scale rent – Fixed by reference to the cost services, or payment in kind, or value of some commodity e.g. gold or the cost-of-living Montague v Browning. Landlords let a dwelling house to the index, or the value of a foreign currency, or where the rent caretaker under an arrangement where his wages were reserve is fixed by reference to a factor e.g. the tenant’s trade deducted from the rental value. It was held that where rent is as it relates to his net or gross profits. These arrangements payable in kind by goods or services and the value quantified often create difficulty and conflict and therefore a client needs in terms of money the sum is the rent for the purpose of the to be advised of the implications if this form of rent is Rent Restriction Act. proposed. Rent must be certain or capable of being ascertained with These methods of fixing rent are not, however, as popular as certainty e.g. rent varying with the value of gold was said to be the use of a rent review clause, which is an attempt to ensure certain in Treseder-Griffin v Co-operative Insurance that the rent reserve keeps pace with inflation or the cost of Society Ltd NB: Setting rent in $US may be a breach of the living. Rent Restriction Act because of the possibility of devaluation - of the Jamaican dollar against US currency allowing for an Distinction between rent and other periodic payments increase greater than that statutorily allowed. On the other - hand rent based on “as many hours as the landlord required”, payment, though called rent is indeed rent, because if it is not, in Barnes v Barrett was said to be not sufficiently certain it cannot be distrained for and it may be enforceable only Rent is payable by the tenant to the landlord or to his between the original parties and not e.g. against an assignees authorised agent and it must be paid in the manner specified in of the tenant. the lease James v Venezuela - - complexes where charges in addition to rent e.g. maintenance payable at the end of each period of a periodic tenancy or at and security are applied. - arrears unless specifically stated that it is payable in advance. Rent is payable without deductions unless the lease authorises the making of deductions or the tenant has paid sums which - This tenancy would also arise in sums paid e.g. in strata If the lease does not state the manner of payment, rent is the end of each year of a term of years. NB: Rent is payable in - It is important to be able to determine whether a particular Further, if the payment is not rent the agreement between the parties may not be a tenancy, Barnes v Barrett - The following are not rent: 1) A rent charge – e.g. father charges property so money can the landlord has a legal duty to pay. be paid to daughter. A sum of money charged upon land Unless there is an express covenant to the contrary the for a term or for life with an express power of distress to obligation to pay rent will continue unaffected by any changes secure the payment of the money. But it is not an incident in the nature of the demised premises. The Court in National of tenure and the owner of the rent-charge has no Carriers Limited v Panalpina Northern Limited has said reversion in the land charge. however, that the doctrine of frustration may apply although in a restricted way, to a contract for a lease. Thus the obligation to pay rent could be ended by a frustrating event. 2) A rent seck – similar to a rent charge but without an express power of distress 3) A payment in gross – a payment reserved in favour of someone other than the landlord. Types of Rent 1. 4) A premium – At common law a premium is not rent and Best rent – the highest rent that can be reasonably be obtained the obligation is purely contractual. for the duration of the lease. Younis v Azan Restriction Act the imposition of a premium is illegal. LANDLORD & TENANT 2003-04 Page 16 of 47 Under the Rent 17 The question arises in relation to the Jamaican practice of of the rent due and therefore cannot be distrained for. But security deposits. where payment by a tenant gives a right of set-off, distress can 5) Service charges and other payments – e.g. insurance be brought for the full rent even though if sued for the full premiums and the use of facilities such as swimming pool, rent, the tenant could set-off those payments. tennis courts. These payments are incidental to the use of the premises and are not distrainable unless an express Remedies for non-payment of rent power is given. There is a debate in Jamaica about giving A landlord usually has 3 distinct remedies against a tenant in power to distrain because it is argued that this right was arrears with the rent brought to an end in the 1970s with the amendment of the 1. may levy distress upon the tenant’s goods which ultimately he Landlord & Tenant Act. It is suggested that the better may sell to pay off such arrears as remain unpaid (not option is to go to court for an order to recover from goods applicable in Jamaica) seized. 2. Action for rent – action for debt on the covenant to pay rent o Forfeiture – The landlord may seek to terminate the Payment of Rent tenancy by forfeiture in exercise of a right of re-entry - The rental periods and the dates on which the rent is expressly reserved under the lease in the event of payable for each period should be clear from the lease. non-payment of rent. However the Registration of But if there is no stipulation as to the periods a yearly rent Titles Act implies a covenant for the landlord to re- will be implied. enter for breach of covenant to pay rent or other Rent is payable in arrears unless expressly agreed to be covenants. paid in advance. Any such agreement will be construed Turner v Walsh [Section 12 Conveyancing Act strictly against the landlord. gives to a mortgagor entitled to possession or to Rent is due on the morning of the day specified for receipt of rent and profits of land subject to a lease, payment, but it is not in arrears until after midnight. Re whose mortgagee has neither taken possession nor Aspinall v Aspinall given notice of intention to take possession, the right Rent paid before the due date is not strictly satisfaction of to sue the lessee for breach of a covenant to repair.] the obligation so that if a 3rd party acquires the landlord’s Connaught Restaurants Ltd v Indoor Leisure [Term reversion after payment, but before the due date the tenant that stipulated that the rent was to be paid w/o any may be obliged to pay the rent to the new landlord unless deductions did not preclude tenant’s right to set-off. the tenant has had no notice of the assignment before the Held: clear words were needed to exclude tenant’s due date. James v Venezuela equitable right of set-off.] Rent is payable either to the landlord or his agent Lee-Parker v Izzet [Tenant held entitled to recoup expressly or impliedly authorised to receive it. On the themselves from future rent when they expended death of the landlord, the rent is payable to his personal money on repairs. However, it did not follow that the representative until the reversion becomes vested by their full amount expended by tenant on such repairs can assent or by conveyance or transfer in some other person. properly be treated as payment of rent. Note: this Where the landlords are joint tenants any one of them can course can only be exercised when and so far as sue or give good receipt for the entire rent. On the death landlord is in breach of covenant to repair and any of any joint tenant the entire rent is due to the survivors. necessary notice must be given to him.] Where the reversion is assigned, the assignee becomes White v Cotterell [Tenant ceased paying rent to the entitled to receive the rent, but the tenant will not be grantor of the lease and started paying to 3rd party prejudiced if he continues to pay rent to the assignor until who claimed to be the landowner. Held: Tenant he has received notice of the assignment. estopped from denying that the grant was ineffective - - - - - - to create the tenancy that it purported to create. In Deductions permitted from rent any event the grantee had failed to show a better title - A tenant may only make deductions from the rent where in anyone else.] Cf. Meredith v Gray [Grantor not permitted by the lease or by statute or where the sum paid entitled to rent arrears as tenant made new ought to have been paid by the landlord. If so he can treat the arrangement with co. with title paramount.] sum as a set-off or by way of a counter-claim. Smith v Cox [Landlord’s agent frequently rendered Where the lease provides that no deductions are to be made a/c to her when tenant failed to pay. Issue: whether whatsoever then only statutory deductions can be made e.g. payment good if paid by agent. Held: the agent did property taxes. not intend the payment to be made on behalf of tenant The difference between a right of deduction and a right to set- and did not have tenant’s authority to make the - - off is the amount of a lawful deduction is pro tanto satisfaction LANDLORD & TENANT 2003-04 Page 17 of 47 18 payment, nor was the payment subsequently ratified by tenant.] Premiums Coombes v Sampson [No rent but person given - A premium is a sum paid for the grant of a lease or for the exclusive possession. Held: no special circumstances renewal of a lease, a premium is a contractual obligation that is to negative a tenancy in favour of a licence.] not attached to the leasehold estate and is therefore not rent. Thus the obligation is not transferred upon an assignment and a landlord cannot levy distress for its non-payment. Rent Review Clauses - In many medium and long-term leases, particularly of - a premium especially where a premium is paid in instalments. property, it is common today for rent review clauses to be Samuel v Salmon & Gluckstein - that the requirement of a premium in return for the grant or fixed intervals during the term. assignment of a statutory tenancy is illegal. This prevents At each review date the market rent then current for the landlord from collecting any sum other than the rent he is demised property will be assessed and substituted for the rent entitled to. - described as “the payment of any sum by way of a premium or clause; loan in addition to the rent.” A premium will also include any a) fine or pecuniary consideration that is paid in addition to rent. c) whether time is of the essence - the effect of the delay by the landlord e) The majority of residential property landlords require a deposit, which is stated to cover damage to fittings and d) the position where no formula is provided for determining furnishing to ensure against non-payment of public utility bills. a new rent It is submitted that most security deposits are illegal with the duty of an arbitrator/valuer respect to controlled remises i.e. under statutory provisions. In order to be operative, landlord has to trigger the procedure See however, R v Ewing (1977) 65 Crim AR 4 and by Jerome by serving intention upon tenant although in some cases it is Lee Drafting Commercial Leases automatic. Tenant then responds with counter-notice stating - For the purposes of the Rent Restriction Act a premium is The following should be considered when drafting such a b) the position when time is of the essence - Statutory restrictions against premiums – The general rule is Such a clause usually provides for the rent to be reviewed at previously payable. - However, it is not always easy to distinguish between rent and commercial property, though it is not restricted to commercial included in leases. - - - A security deposit that will yield no additional financial his intentions. benefit and designed to protect the reversion against certain Rent review provision in the lease should provide a table charges does not, it is submitted, breach the legislation e.g. a setting out the dates and time limits within which the parties deposit in an escrow account. should act - Time is of the essence only if: [United Scientific Holdings v Service charges Burnley Borough Council]: - (a) the terms of the lease expressly provide that time should residential or business complex the lease often provides for the be of the essence, or payment of a service or maintenance charge. (b) the terms of the lease imply that time is of the essence, (c) - This sum ought to reflect the value of services provided by the for e.g. where the rent review clause is linked to a clause landlord or the body managing the complex in a strata or providing an option and that option must be exercised condominium situation. within strict time limits landlord it is generally more convenient for him to provide the surrounding circumstances indicate that time is of common services for all the tenant rather than leaving the essence. individuals with this responsibility e.g. removal of garbage, Where the complex is owned by C.H. Bailey Ltd v Memorial Enterprises Ltd [Rent was to be cable and security services. In addition it enables him to retain reviewed on Sept. 21, 1969. Landlord did not seek to review a high level of control and to preserve uniform standards of until the next year. Held: on a true construction of the maintenance agreement, Sept 21 was the date by reference to which the new - rent was to be ascertained. It was not necessary that the new rent should be determined before or on that date. Accordingly of the fact that the date had passed.] The liability to pay a service charge will arise as a result of a covenant in the lease and not otherwise. - landlord was not precluded from invoking the clause by reason - Where the leasehold premises is only one of several units in a Service charges may be made payable to a 3rd party e.g. a management agent or maintenance company. - A service charge is a payment that is separate from and The fact that there may be a provision in the lease allowing additional to rent, but it is possible to include a service charge landlord to vary the rent is not necessarily a bar to the rent as part of the rent and thus enjoy the remedies available for being certain if a provision is included that the amount of rent non-payment of rent. due can be calculated properly at the date of payment. LANDLORD & TENANT 2003-04 Page 18 of 47 19 - Statutory Restrictions - Where leases premises are governed by rent restriction legislation, the general position is that the standard of assessed rent should reflect the total consideration for the use and occupation of the premises i.e. the landlord cannot increase the assessed rent by imposing service charges which would amount to additional rent. This would not however include services that would not have been considered when rent was being determined e.g. security costs and other facilities that fall outside of valuers’ terms of reference. - Business tenancies - Business tenants, except those protected by statute, must comply with their leasehold obligations to pay service charges. Sometimes disputes arise when tenants believe that the standard of service provided is inadequate or where the amount charged seems unreasonable. The solution is to provide a satisfactory mechanism for reviewing the facilities provided and the costs involved. - The most usual method is to apportion the service charge on a fixed percentage basis. This is usually based on the floor area of the premises. But many also consider the type of business being carried on e.g. use of power a restaurant versus by a boutique. Statutes: Rent Restriction: First Schedule Part II (b) & Registration of Titles: s. 95(a) LANDLORD & TENANT 2003-04 Page 19 of 47 20 - COVENANTS - Definition: express or implied by common law or statute contractual promise contained in a tenancy that can bind 3 paying money such as repayment of security deposits Hua rd parties if it “runs with the land” Covenants which do not touch and concern the land include: Chiao Commercial Bank v Chiaphua Industries - However, if the obligations are merely personal covenants between the originsl parties to the lease then there is no Privity of Contract requirement for either assignee (new landlord or new tenant) to - Every landlord and tenant relationship originates in contract. honour those promises. So the original parties to the contract can enforce its terms. Hua Chiao Commercial Bank v Chiaphua Industries: The There is thus a legal relationship between the original parties, landlord and tenant provided in the lease that the terms namely privity of contract. “landlord” and “tenant” would include assignees. When the - 3rd parties under this rule are excluded from being able to enforce any terms of the contract. 3 rd lease was forfeited by the assignee of the landlord the tenant party interests in the requested repayment of a 2-month security deposit as provided contract might have arisen either by an inter-vivos sale or in the lease. Held, by the PC, the obligation to return the transfer or by succession upon the death of 1 or both of the deposit was merely personal and unless expressly assigned parties. with the conveyance of the reversion could not be required of the new landlord. The tenant’s remedy was against the old Privity of estate landlord even if he no longer had an interest in the land. - At common-law, covenants that touched and concerned the Woodall v Clifton: A lease of land for 99 years gave an option land could only be enforced where there was privity of estate. for the tenant to purchase the freehold at any time during the These covenants only bound assignees if and so long as they term. The tenant brought an action against the successor in held the estate with which the covenants ran. Therefore the title of the lessor to exercise the option. Geld, the liability did covenants could not bind sub-tenants. not run with the reversion and could not be enforced against the assignees of the lessor. Liability for covenants after assignment - When a tenant assigns his lease he hands over his interest in the property entirely. The original tenant or assignor retains no interest and the assignee or new tenant steps into the shoes of the old tenant. - However, any covenants in the agreement which the old tenant was required to comply with, must also be performed by the new tenant, as long as they “touch and concern the land demised or deal with the subject matter of the lease. - The original tenant’s covenants remain throughout the lease, even if he assigns his interest. The ability to enforce them against him passes to the assignee of the reversion although there had never been any privity of estate between the assignor of the lease and the assignee of the reversion. Arlesford Trading v Servansingh - When a landlord assigns his reversions he also hands over his interest in the property entirely the original landlord or assignor retains not interest and the new landlord or assignee steps into the shoes of the old landlord. - However, any covenants in the agreement that the old landlord was required to comply with, must also be performed by the new landlord, as long as they “touch and concern the land demised or deal with the subject matter of the lease. - A covenant by a tenant which touches and concerns the land runs with the reversion and the benefit of such a covenant vests in the successors in title of the landlord. The successors in title may sue upon the covenants although the benefit of the covenants may not have been expressly assigned. - Covenants which touch and concern the land include: rent P. & A. Swift Investments v Combined English Stores LANDLORD & TENANT 2003-04 Page 20 of 47 21 COVENANT FOR QUIET ENJOYMENT the court held that there was only a loss of privacy but no - Traditionally was not a covenant in the acoustic sense of the physical interference. However in Owen v Gadd the UK word quiet but imposed an obligation on the landlord to ensure Court of Appeal held that the erection of scaffolding in close that the tenant would have exclusive possession of the proximity to the entrance of a shop constituted a breach of the premises. Thus it was originally described as a “covenant to covenant. secure title and possession.’ - - - - Today there is a movement away from the traditional view that Provides tenant with a cause of action arising from many there must be physical interference before a tenant can situations, ranging from harassment to landlord’s failure to establish breach of the covenant. repair. Kenny v Preen [landlord sent threatening notes, banged on If a 3rd party commits acts of nuisance the tenants remedy the door and shouted abuse] Tapper v Myrie [the appellant under this covenant will be against the 3rd party and not against disconnected tenant’s electricity in order to get him out]. the landlord. The present cases illustrate that the crux of the matter is that The covenant only applies to; the acts must interfere with the tenant’s freedom of action in (i) exercising his rights as tenant. acts done by the landlord, whether on or off the premises regardless of whether the acts are unlawful (ii) or lawful Express covenants acts done by the landlord’s servants or agent acting - under the landlord’s authority (iii) lawful acts of persons claiming title under the an express covenant for quiet enjoyment (or for title) - landlord Rickards v Lothian - - Most express covenants are qualified and will have the same effects as the implied covenant. As long as the covenant is The implied covenant for quiet enjoyment at common law is limited to protecting the tenant from lawful eviction or not an absolute covenant, but is restricted to the landlord and interruption by the landlord or anyone claiming by or from or persons for whom he is responsible. It does not therefore under him it will be construed as qualified and will not protect protect the tenant from someone with a superior title. So if a the tenant from eviction by a person with a superior title. landlord turns out to have a defective title, the tenant will not - The implied covenant for quiet enjoyment will be displaced by - Even an unqualified covenant by the landlord or any person be able to bring proceedings against the person with a superior claiming under him or any other person will not protect the title to the landlord. Jones v Lavington tenant against claimants of a superior title. For as it is said, Covenant for quiet enjoyment is implied from any contract of acts of strangers will only be included if they are mentioned letting; even an agreement for a tenancy: Jones v Lavington expressly either by name or as claimants to a superior title. [Tenant couldn’t sue superior landlord who prevented him Ram v Ramkisson [Landlord removed the iron sheets from from carrying on his lawful business as the covenant was the roof of the 2 end sections of a building the centre portion implied] of which was occupied by tenant – was guilty of breach and Implied by statute but the covenant will not be implied where nuisance] there is an express covenant. Sampson v Hodson – Pressinger [Tiles improperly laid on terrace. Noise of treading feet penetrated to tenant’s flat below. Nature of the Covenant: a) Held: landlord liable for breach and nuisance even though the qualified undertaking as to title – landlord undertakes that tenant in the flat above was using the premises for ordinary he has sufficient interest in the property to be able to put use.] tenant into possession b) an undertaking to put tenant into possession – requires c) Remedies for the breach that landlord must permit tenant to be put into possession (i) Damages a qualified undertaking to allow tenant quiet enjoyment of - premises An action for breach of covenant for quiet enjoyment is an action for breach of contract. Contractual damages are limited to losses that follow naturally from the breach. Thus a tenant Application of the covenant can recover damages for inconvenience, for damage to his or - her property and for the costs of any court proceedings. At one time the rule was that a tenant had to show that there was a substantial interference with his ordinary enjoyment of If the breach has been so severe as to force the tenant to leave the premises. This is a question of fact. The classic illustration the property the tenant will also be able to recover moving of the application of the covenant is Lavender v Betts [doors costs and windows removed by the landlord without any judicial - - - Exemplary damages may be awarded where a landlord has permission] calculated that he will make a profit above any compensation Further the tenant also had to show some physical interference to the victim by committing an act in tort. The purpose of to constitute a breach of covenant. Browne v Flower where exemplary damages is essentially punitive and they will be LANDLORD & TENANT 2003-04 Page 21 of 47 22 awarded where e.g. the landlord had committed an act of trespass. Drane v Evangelou [landlord, in tenant’s absence, forcibly entered the premises and put all tenant’s belongings outside. Additionally, he had bolted the premises from the inside with several people within. Held; the facts particularised the tort of trespass and tenant was entitled to exemplary damages.] - Aggravated damages would be awarded to compensate the tenant for injury to feelings and mental distress resulting from the aggravation caused by the landlord’s actions. With respect to mental distress however, see Branchett v Beaney but those remarks were obiter. (ii) Injunction - May be given in addition to damages to restrain the landlord from breaching the covenant for quiet enjoyment. - If tenant has been removed from the premises an injunction may be awarded to put him back into possession; Drane v Evangelou - Note that this is a discretionary remedy and will only be granted where damages would not be sufficient; damages are usually adequate. Davis v Town Property Investment Corp [Tenant couldn’t sue landlord for building so high on adjoining premises that his chimneys smoked because those premises were acquired subsequent to his lease. Statutes: Lessor covenant: Rent Restriction Act: First Schedule Part I (b) Registration (Strata Title) Act: First Schedule 1(d) – obligation on proprietor. NB: some statutes prohibit a tenant/proprietor from causing an annoyance/nuisance to adjoining occupiers: Rent Restriction: s. 25(c) – court may grant order for ejectment. Also it in an implied covenant under First Schedule Part II(c) Registration (Strata Titles) Act: First Schedule 1(e) – duty on the proprietor. Note that under Second Schedule 1(b) – proprietor refrained from making undue noise in or about any strata lot or common property. LANDLORD & TENANT 2003-04 Page 22 of 47 23 COVENANT FOR THE NON-DEROGATION FROM - --This covenant is only seen to be useful where there is no other GRANT cause of action, either by way of contract or tort, i.e. where This covenant embraces the principle that a landlord shall not landlord has not acted unlawful b/c this covenant is restrictive by his voluntary acts affect any rights that he has created. --To be operative, landlord must know or be aware of the particular Having given a tenancy with one hand, he is not to take away sensitivity at the time of letting the means of enjoying it with the other. - Up until recently there was a clear distinction between the covenant for quiet enjoyment and the obligation not to derogate from grant. The obligation only applied where the landlord retained adjacent land. The underlying principle was that a landlord could not do any act that was inconsistent with the purpose for which the demised premises were let. - Thus to constitute derogation from grant, there had to be some act by the landlord which rendered the land substantially less fit for the purpose for which it was let. Aldin v LattimerClarke - The obligation was also applied where a landlord granted easements over retained land. - Now Garner says that the two covenants are almost exactly the same .p. 64 - Landlord breaches this covenant if he retains land adjacent to tenant’s premises and he, or someone deriving title from him, performs some action which makes the premises substantially less fit for the purposes for which it was let where at the time of the letting landlord knew the purpose for which the premises were demised. - Underlying principle is that landlord may not do any act which is inconsistent with any purpose for which the demised premises were let - Only applies where landlord retains adjoining land - Applies where landlord has granted easements over retained property – he cannot derogate from these - No breach where landlord’s action results in tenant’s land being less profitable - Most cases the breach of this covenant is the same as that for quiet enjoyment – to interfere with tenant’s quiet enjoyment is also to do something incompatible with the rights granted under the agreement Aldin v Lattimer, Clark, Muirehead and co. [Premises let for the purpose of running a timber yard. Landlord erected buildings on the adjacent land which interfered with the flow of air to tenant’s drying sheds Harmer v Jumbil Tin Areas Ltd [Purposes let for purpose of storing explosives. Condition of licence was that there should be no buildings within a specified distance of the storage area. L, who retained neighbouring land, erected buildings on the land. Breach.] Grosvenor Hotel Co. v Hamilton [Tenant’s house was damaged by vibrations caused from pump operated by landlord on adjacent land. Was evidence that the house was old and unstable and that a house of ordinary stability would have withstood the vibrations. Held: landlord liable nonetheless.] LANDLORD & TENANT 2003-04 Page 23 of 47 24 COVENANT TO REPAIR - - - - It has been said that a tenant from year to year must keep the NB: An area much affected by: premises “wind and water-tight” and to make “fair and the need for expert advice on repair and constructions tenantable repairs”. But in Warren v Keen the scope and techniques meaning of these obligations were said to be doubtful. At the the nature of building stock in UK most it would seem that a tenant from year to year is only the wider range of building materials in the UK liable for minor repairs. life expectancy of various types of buildings duration of the tenancy in question Care should be taken in proposing the need for repair to a Standard of repair - The standard of repair required under a repairing covenant will landlord as a tenant because it is a legitimate reason to give a depend on the terms of the particular covenant and the tenant notice to quit. condition of the building. The parameters of “repair” in the context of the law of - With regard to the latter, the general rule, as described by Lord landlord and tenant are not clearly defined, as the cases will Esher in Proudfoot v Hart is, “such repair as having regard to demonstrate. Nevertheless the definition given in Calthorpe v the age, character and locality of the house as would make it McCosker is a good starting point. In this case it was said by reasonably fit for the occupation of a reasonably-minded Atkin LJ that repair means, “making good damage so as to tenant of the class who would be likely to take it.” leave the subject as far as possible as though it had not been Tenant promised in a 3 year lease to keep and leave in damaged. It involves renewal of existing parts”. tenantable repair. Damages were originally awarded against It may also involve replacing a worn-out or damaged article him for the cost of re-papering, repainting, whitewashing and with one that is new corresponding as closely as possible to the cleaning and replacing the kitchen floor. Held: as above original. - - - Further in determining the standards, this must be considered The current approach by the courts in England is to see at the beginning of the lease and not at the end. Calthorpe v whether on a common sense approach the work required falls McCosker within the ambit of “repair”. Brew Brothers v Snax - In a14 year lease tenants covenanted to repair, keep in repair Types of repairing covenants and maintain. A year later the wall tilted and was shored up - to prevent collapse on neighbouring property. Held: definition requires the landlord or tenant to repair the premises up to the of repair versus inherent defect was a question of degree in standard described in the covenant and may require that the every case to be assessed by considering all the work to be premises be put into repair if necessary and left in repair done and not just the cause. (Proudfoot v Hart) At common law if there is no express covenant or statutory entered into cautiously] If a tenant leases premises that are in requirement to repair by either party neither party is obliged to disrepair he will be required to put the premises in a proper repair the demised premises and neither can require the other state of repair and to keep them that way. to carry out repairs. It is therefore normal to make express - - - - - [A very demanding covenant to be To leave (deliver, yield up) in repair: This type of covenant provision for 1 party to repair or for the repairs to be usually found in short leases, is commonly expressed to be an apportioned as between the parties. obligation to deliver up the premises at the end of the tenancy There are a number of statutory provisions however that do in the same state of repair as they were at the beginning of the govern the obligation to repair: Rent Restriction Act and in tenancy, fair wear and tear accepted. In this type of covenant the Registered Land Act no liability can arise until the end of the tenancy. “Fair wear In short term leases the landlord will often be responsible for and tear excepted” is intended to relieve the tenant from most of the repairs that are likely to arise, while in long-term liability for disrepair due to the normal action of time and the leases the tenant will be responsible. elements and from normal and reasonable use by the tenant for In leases of apartments or offices which form part of a larger the purpose for which the premises were let. This covenant is building it is the usual practice to require the tenant to keep the often expressed as "Acts of God and the Queen’s enemies interior in repair and for the landlord to be responsible for excluded”. exterior and structural repairs. Property v Dudley Gutteridge v Nunyard (1834) and Regis At common law there is an implied obligation on the part of the landlord where the premises are furnished that the premises - To put in repair: imposes burden on tenant to perform work upon the premises to bring them up to standard are habitable at the beginning of the tenancy. - To keep in repair: or To keep in good tenantable repair: There is also an implied obligation on the part of the tenant to use the premises in a “tenant-like manner” i.e. he must take proper care of the premises. Warren v Keen - To keep in tenantable condition: goes further than a covenant to keep in repair – there does not have to be actual disrepair to give rise to an obligation under such a covenant. Premises to LANDLORD & TENANT 2003-04 Page 24 of 47 25 be repaired up to the standard described in the lease and may value or cost of the whole premises may sometimes be require that the premises be put into repair, if necessary, and helpful as a guide.” left in repair This dictum was approved in a number of subsequent cases including Elmcroft Development Limited v Frankersley- - To repair and renew: unless clear words are used such a Sawyer. However the fact that there is an inherent defect does covenant does not impose any wider an obligation on the not by itself exclude a liability to repair. burdened party than a covenant simply to repair. Repair in this adopted by the courts is sense means the restoration by renewal or replacement of Begin by identifying the parts of the premises that are subsidiary parts of the whole. Renewal by itself means the out-of-repair. reconstruction of the whole or substantially the whole e.g. condensation due to lack on insulation at windows Lister v Lane. and inadequate heating caused furniture and fixtures The tenants agreed to a repair covenant for a 100 year-old to rot. There was no breach of repair covenant by property on boggy soil. The wall began to bulge out before the landlords because there was no physical condition end of the lease and afterwards the house was condemned and that called for repair. pulled down. On an action to recover the cost of rebuilding the house, Held: the defect had been caused by the natural Quick v Taff-Ely BC. Very severe Then determine whether it is necessary to remedy a design fault when carrying out the repairs. operation of time and the elements of a house poorly - The approach If not then the tenant will not be required to carry-out constructed and the defendants were not liable to make it repairs to the inherent or design fault. Post-Office v good. Aquarius Properties To carry out structural repairs: this requires repairs to the There was a defect in an office building basement, main structure of the building i.e. walls, roofs, and floors. which led to flooding when the water table rose. Note: in Jamaica, the Occupiers Liability Act allocates Held: The building was not out of repair. A covenant responsibility for damage suffered by persons lawfully on the to keep in repair did not impose a duty to remedy premises. Therefore an occupier may need to carry out repairs structural defects from faulty design or workmanship upon pains of the Act and which caused no damage to the to the structure The rule had been that a repairing covenant did not include However, if there is damage, which requires repairs renewal where this amounted to a reconstruction of all or most and this is as a result of an inherent defect then the of the premises. Lister v Lane The rule was also that the defect will have to be repaired. covenant did not include putting right defects by substituting Davestone something different from the original since this would amount Ravenseft v Review Evans & Smith ,The Law of Landlord & Tenant p. 185 to an improvement. Sotheby v Grundy In a 99-year lease for a newly-constructed house, the house - - - Fair wear and tear excepted: excludes tenant from liability to was condemned and demolished 80 years in. It was found to repair damage which occurs due to the natural process of be badly constructed. ageing – such damage could be caused by the elements or by Held: no breach of the tenants’ covenant since the expenses were incurred because of inherent tenant’s normal and reasonable use of the premises. defects. At common-law a tenant will therefore be excused from Accordingly a repairing covenant did not include any carrying out repairs which become necessary through the obligation to repair inherent defects. Collins v Flynn passage of time, bit it will not exempt him from liability for The lease contained covenants to repair and renew. The pier repairs necessary as a result of Acts of God, fire or accident supporting walls subsided and these all had to be rebuilt with never contemplated by the parties. newly-designed foundations. Held: the work was an important Note that various statutory provisions also except Acts of God improvement outside the covenant that did not require him and the Queen’s enemies, when dealing with registered land. rendering up the premises in a different condition. The tenant is also bound to do such repairs as may be required In theory it is easy to distinguish between repair and to prevent the consequences flowing originally from wear and improvement and renewal. In practice, it is often very tear from producing other damage which wear and tear would difficult. The approach adopted by Forbes J in Ravenseft not directly produce if it had been corrected at the time. Regis Properties Ltd v Davestone Holdings Ltd is, Property Co Ltd v Dudley (1959) The true test is as the cases show that it is always a question of degree whether that which the tenant is being asked to do can Note: It will not extend to the following: properly be described as repair or whether on the contrary it (a) If tenant uses premises in a way not envisaged when they would involve giving back to the landlord a wholly different were let which puts greater strain on the building and thing from that which he demised. In deciding this question, accelerates wear and tear the proportion which the cost of the disputed work bears to the LANDLORD & TENANT 2003-04 (b) If the damage is caused by extraordinary natural events Page 25 of 47 26 (c) Where the cause of the damage can be traced back to a defect which was originally due to fair wear and tear but Notice the damage itself is not caused by fair wear and tear: - Landlord must have notice – doesn’t matter that he has Regis Property v Dudley; reserved the right to enter the premises to inspect it: Haskell v Marlow [Wife under covenant to keep place in Morgan v Liverpool Corp [Defective window. Held: landlord good repair. She did nothing actively to injure the not liable for repairs as no notice given even though landlord premises, but did nothing to counteract the natural had a right of access to inspect the state of repair of the process of decay. Held: breach.] house.] - If tenant has not directly informed landlord then he may be - To rebuild: landlord is under no obligation to rebuild the premises able to establish liability if it can be shown that the landlord if they are destroyed unless he has expressly covenanted to do so. knew about the defect through a reliable source. Tenant must Note: tenant, on the other hand, who has covenanted to keep the show that landlord received info about the defect that would be premises in repair will be obliged to rebuild the premises if they are sufficient to put a reasonable person on enquiry as to whether destroyed unless this obligation is expressly excluded by the terms work was necessary: of the lease. Uniproducts Ltd v Rose Furnishes Ltd [Store room floor collapsed and injured P’s manager. Held: no breach as landlord was not informed and actual knowledge of the defect Conditions precedent to repair - It is common for lease to contain a provision that landlord’s could not be proved.] obligation to repair arises provided that the tenant pays all rent O’Brien v Robinson [Ceiling of bedroom fell in on the and service charges. Note: However, landlord cannot use plaintiffs while they were in bed. Held: no notice; landlord not tenant’s breach of an obligation to pay rent or service charges liable.] as an excuse not to carry out repairs. What is repair? When will a liability to repair arise? - - - The test for determining the effect of a repairing covenant An obligation to repair will arise when (a) there is disrepair; is now the DEGREE TEST i.e. whether the work required and (b) the party under an obligation to repair has notice of the is repair as a matter of fact and degree : RAVENSEFT disrepair. PROPERTIES LTD V DAVESTONE [ cost of repairs a For a condition of disrepair to exist, 2 factors must be factor] satisfied: 1. there must be some deterioration of a part of the premises from a previous better condition; Lister v Lane: covenant does not mean that landlord should get a different thing from that leased - Brew Bros. Ltd v Snax: the correct approach is to look at the Post Office v Aquarius Properties Ltd [Basement particular building, to look at the state that it is at the time of was prone to flooding and tenant under obligation to the lease, to look at the precise terms of the lease, and then to repair. However held that no breach as the structure come too a conclusion as to whether, on a fair interpretation of of the basement had not deteriorated from a better those terms in relation to that state, the requisite work can previous condition.] fairly be called repair. This is a question of degree. Quick v Taff Ely BC [Severe condensation caused by Lurcott v Wakely: [24 ft wide front wall of a building that big metal framed windows. Damage to tenant’s went back 100 ft required rebuilding – repair and not renewal. clothes, linen, and furniture. Some of the rooms were An old house must be kept in repair as an old house, but it rendered inhabitable. Landlord not liable as also must be kept in repair even if that means replacing parts until covenanted to repair the structure and interior the the whole is replaced. walls and the windows themselves were undamaged Per Cozens-Hardy M.R.: (1)essential question is whether what and so there was no disrepair. If there was no has occurred is of such a nature that it can fairly be said that condition of disrepair, there could be no liability to the character of the subject matter of the demise, or part of the repair.] demise has changed?; (2) is it something which goes to the Cf. Staves and Staves v Leeds City Council [Here, whole or substantially the whole, or is it simply an injury to a damp and condensation caused small parts of plaster portion, or a subsidiary portion of the demised property. Here: to perish and tenant was able to recover b/c the held that restoration of the wall would not change the character structure had exterior of the flat had deteriorated.] or nature of the building. (b) the burdened party must be under an obligation to repair what Per Buckley L.J: house would be put in repair in the sense that has deteriorated. there has been renewed or replaced a worn-out subordinate part of the whole. LANDLORD & TENANT 2003-04 Page 26 of 47 27 Per Fletcher-Moulton L.J.: when a man undertakes to keep a Good tenantable repair thing in repair, and it is not in that condition when the demise --This is such repair as, having regard to the age, character, and commences, the covenant implies that he is to put it in that locality of the house, would make it reasonably fit for the state as well as keep it in that state. occupation of a reasonably minded tenant of the class who would Point to note: the building here was old. Wall could not have be likely to take it: Proudfoot v Hart. been repaired w/o rebuilding. Submitted that would not have Note: Calthorpe v McOscar [Houses leased for term of 99 years. been repair if house was new.] At the beginning of the term, they were country houses in a nice Lister v Lane: [The wooden foundations of a house built on soft neighbourhood. At the end of the term they had deteriorated so ground rotted. To remedy would have involved digging down 17 ft much that the only tenant likely to take them would be short term. to solid gravel and putting in new foundations – renewal. Was held Issue: whether the standard of repair was to be determined by the that it would have been just as costly to underpin as to pull the class of people likely to take it at the beginning (Proudfoot) or end whole house down and rebuild it.] of the term. Held : CA – to be determined at the commencement of the term.] Inherent defects - It had once been argued that the obligation to repair did not Common law obligations on landlord extend to repairing defects in the construction of a building b/c - Exception to caveat emptor. a building w/o an inherent defect is in fact a wholly different - In the case of furnished premises, it was held that the common thing from a building with an inherent defect: Sotheby v law will imply into a tenancy of such premises a condition that Grundy the premises are fit for human habitation at the start of the Collins v Flynn [Due to inadequate foundations, a structure tenancy Smith v Marrable. supporting part of the back and side wall of a house collapsed. - Held: to replace the foundations and rebuild the structure Note: would be an improvement of the premises and that the (a) applies only to furnished premises covenant to repair did not extend to remedying an inherent (b) applies to residential tenancies defect.] (c) applies only at the commencement of the tenancy Approach adopted by the court: (d) covers only fitness for human habitation (1) One must begin by identifying the parts of the premises (e) landlord’s liability arises from contract and so only the that are out of repair: Quick v Taff-Ely B.C. tenant can bring an action under the implied condition (2) Then one must determine whether it is necessary to (f) the condition may be excluded from the tenancy by express remedy a design fault when carrying out the repairs. If terms of the contract not, then tenant will not be required to carry out repairs to the inherent defect Note: This implied term is a condition and not a covenant. Breach Post Office v Aquarius Prop. [Defect in the structure of of the covenant does not entitle tenant to quit. the basement by reason of porous concrete and defective However, if the premises are not fit for human habitation the tenant construction joints-caused basement to be flooded. Held: is entitled to quit and will not be liable for rent; he will also be able no breach of covenant by tenant since no damage to the to recover damages. building had been caused and the wetting of the floor together with the inconvenience caused could not amount - There is an implied contractual duty of care to keep the to disrepair. Would have been different if flooding affected the wall plaster or electrical fittings.] common parts in repair. - This implied duty is closely related to the implied duty not to derogate from grant – if landlord rents a top floor to a tenant - This view of inherent defect was changed in Ravenseft Ltd v and then refuses or fails to maintain the means to access to that Davestone [Stone cladding on a large block of flats cracked flat, effectively landlord would be depriving the tenant of the and became detached from the building itself due to the failure means of enjoying the flat. to install expansion joints. Relative to the value of the building the value of the cost of the work required to remedy the Note: inherent fault was small. Held: tenant under obligation to (a) “repair’ this inherent defect. The true test is that it is always a matter of degree. Joints were a trivial part of the building and applies only to the common areas of the building which are kept in landlord’s possession and control (b) The term will be implied only in circumstances where it is the cost of inserting them was trivial compared to the value of necessary, where not to imply the term will render the the building.] contract ‘inefficacious, futile and absurd.’ LANDLORD & TENANT 2003-04 (c) Duty is not absolute – only reasonable care need be taken (d) Can be excluded by express contractual terms Page 27 of 47 28 (e) Duty owed only to parties to the contract the lack of repair. Tenant may withhold the rent if not (f) Landlord may not need notice restricted by the covenant to pay rent and then if sued by landlord for arrears of rent, set-off landlord’s claim. (b) Common law obligation on tenant bring an action for specific performance of the - Implied covenant for tenant-like user and doctrine of waste landlord’s covenant: In appropriate cases a court will - Tenant-like user = tenant must perform the everyday tasks compel a landlord to perform his covenant to repair if he around the home that a reasonable tenant would do : Warren v is clearly in breach and if it is clear what has to be done Keen [tenant should do things such as turn off the water, clean to make good the repairs June v Queens Cross Prop. the chimneys and window, unstop the sink…] Ltd [Landlord covenanted to keep external structures Note: This implied covenant remains quite limited; it does not including walls. Failed to repair balcony.] - extend to replacing or repairing things which become defective (c) self-help: do the work himself and then recover the through age or the everyday actions of the elements. expenditure from landlord. A tenant may carry out - Tenant from year to year is only liable for minor repairs. repairs to the demised premises where the repairs fall - If the landlord is under the obligation to repair it will be within the scope of the landlord’s covenant and the implied, in the absence of any express provision, that the landlord having been given notice of the need for repairs tenant has granted landlord the right to enter to inspect and fails to act within a reasonable time. The tenant may carry out repairs. then recoup the expenses out of future rent. Lee-Parker v Izzet; Granada Theatres v Freehold Investments REMEDIES FOR BREACH OF COVENANT Leytonstone However, statutory tenants i.e. under rent A. The landlord may restriction legislation may be best advised to bring an 1. Sue for damages action rather than adopting a self-help remedy because 2. If there is a provision for forfeiture, forfeit in the manner the statute treats any expenditure on repair as excess rent laid down by statute. which is recoverable in court. Note that the landlord Measure of damages recoverable by landlord must have obtained notice of the need for repair and had - The amount of damages depends on whether the action is failed to carry them out w/n a reasonable time : British brought during the currency of the lease or at the end. If the Anzani v International Marine Management Ltd former the measure of damages is the diminution of the value [Also, at common law, the amount claimed to be set off of the reversion that results from the breach. This is the must be certain and could not be disputed or challenged amount by which the market value of the premises is affected as to quantum. Otherwise tenant can rely on an equitable by the lack of repair. It depends on the length of the unexpired right to set off.] Note that does not arise in a monthly term. Accordingly, the longer the residue of the term, the less tenancy the diminution should be. - In the latter case the measure of damages is based on the - The extent of a landlord’s remedy to repair like that of a tenant’s covenant to yield up the premises in repair. Here the tenant depends on the extent of the exact wording of the measure of damages is the actual cost of carrying out the covenant. repairs necessary to put the premises into the state of repair required by the specific covenant. Joyner v Weekes - The measure of damages recoverable by a tenant This is the difference in value to the tenant of the premises B. The tenant repaired and not repaired. Hewitt v Rowlands The tenant may - A landlord is not in breach of a covenant to repair unless he initiate proceedings to recover such damages or may withhold the has been given notice by the tenant or a third party of the need rent if not restricted by the covenant to pay rent and then when for repair. O’Brien v Robinson : This is so even if the sued by the landlord for arrears of rent set-off the landlord’s landlord has the right to inspect the premises. So in practice claim. British Anzani v International Marine Management Ltd the lease should include a right to inspect plus a provision that The tenant is also entitled to recover the amount of damage to his where there is disrepair the landlord would have notice of personal property during the period of the landlord’s default in disrepair upon exercising his right to inspect. repairing and damages for injury to himself arising from the lack The tenant may: of repair. - (a) Bring action for damages for breach of covenant – difference in value to tenant of the premises repaired General Points: and not repaired: Hewitt v Rowlands. Tenant is also - Covenant is sometimes implied in order to make the tenancy entitled to recover the amount of damage to personal workable: Barrett v Lounova property during the period of landlord’s default in [Tenancy agreement contained covenant that tenant keep the repairing and damages for injury to himself arising from inside in repair. Nothing said re outside. Outside fell into bad LANDLORD & TENANT 2003-04 Page 28 of 47 29 state of disrepair and tenant alleged that this caused damage to the interior. Held: an obligation to repair the outside could be implied into a tenancy agreement where it was necessary to do so to give business efficacy to the agreement.] - An assignee of a term is not liable for particular breaches of the tenant’s repairing covenant committed by his predecessor, though he is liable for the disrepair of the premises as they stand when he takes over so far as their then state of disrepair falls within the scope of the tenant’s repairing covenant to keep the premises in good and substantial repair. Granada Theatres Ltd v Freehold Statutes: Rent Restriction Act: Part I(a) – landlord under obligation to keep premises in a tenantable state of repair and to observe reasonable standards of maintenance Part II(a) – tenant under obligation to keep premises in good order and condition, fair wear and tear excepted. Under subsection(f) tenant covenant to allow landlord to enter premises to carry out inspection and repairs. Strata Titles Act: First Schedule 1(c)- proprietor under obligation to maintain the strata lot and keep it in a state of good repair, reasonable wear and tear and damage by fire, storm, tempest or Act of God excepted. First Schedule 2(b) – the corporation (the body of proprietors) responsible to keep in repair the fixtures and fittings including elevators. First Schedule 2(d) - corporation to maintain and repair pipes, wires and cables used in the connection with more than one strata lot in the common areas. Under 1(a) proprietor should permit the corporation, upon notice, to enter strata lot to effect repairs. Registration of Titles Act: s. 95(b) : tenant to keep and yield up premises in good and tenantable state of repair, excepted are accidents, Act of God, fair wear and tear. Note that under s. 96(a) it is implied that landlord may enter the leased premises only to view the state of repairs. LANDLORD & TENANT 2003-04 Page 29 of 47 30 COVENANT REGARDING USER not to carry on or permit any trade, profession or business user to be carried on upon the premises. Here, even a partial or - The general rule at common law is that the tenant is entitled to minor business use of the premises will be a breach of use the demised premises for any lawful purpose – This is in covenant. keeping with the proprietary rights that a tenant enjoys. - in breach of such a user covenant, but not a tenant who takes Note: landlord is able to evict a tenant who uses the premises in a lodger who lives with the tenant as part of the family : for illegal or immoral purposes even if the lease does not Segal Securities Ltd v Thoseby – however, there will be a contain a proviso for re-entry : Litvinoff v Ken. See however, breach of covenant if this activity is an arms length business Rent Restriction Act whose provisions require the person to be transaction and the guest or lodger does not live as a member found guilty and convicted so it is not a subjective assessment of the family. A positive obligation to use a premises for a particular purpose does not mean that that tenant must use the premises for that notice to quit. purpose; the tenant will not be in breach of covenant if he Otherwise, if landlord wants to retain any control over the use makes no use of the premises at all. Non-user was not one of to which the premises are put, he will have to include an the grounds on which the possession of property protected by express provision in the lease or have the benefit of statutory the Rent Restriction Act could be sought : Greaves v Field - Covenant may also be included on the part of the landlord not Landlords have traditionally included covenants in leases to let adjoining premises for a particular use, such as a restricting the tenant’s use of the premises. Today restrictions business that competes with that of the tenant. are inserted for a variety of reasons in residential lettings to - - the court determine and if the tenant is convicted then serve instructions implied in the lease - Tenant who takes in lodgers on a commercial basis would be Solomon v Khan by the landlord. He will have to lodge a complaint and have - - - Tenant does not breach covenant by changing user if no ensure that the right ambience of the neighbourhood is retained provision in the tenancy agreement which prevents this: and to prevent nuisance and annoyance to other residents. Solomon v Khan [Premises were let as a dwelling house. No Nuisance = nuisance in law; Annoyance = broader, non- express covenant against their user for any other purposes. technical meaning and will cover the majority of acts that Held: no breach where premises were being used for business.] cause disturbance to neighbours. However the tenant will be guilty of a breach where premises The covenant will not however preclude tenants from taking in let to be used as a dwelling house and tenant subsequently uses paying guests or lodgers if they share in the family life. it for business or trade purposes w/o landlord’s consent – s. Seagal Securities v Thoseby. 25(m) Rent Restriction Act – However, there will be a breach of covenant if this activity is an arms length business Gittens v Bernard [Also held that consent to vary user could transaction and the guest or lodger does not live as a member not be implied from the acceptance of rent after knowledge of of the family. Thorn v Madden the change where landlord protested from beginning to end In commercial lettings a user covenant will be included to against it.] avoid competition from other tenants e.g. letting units in a Atkin v Rose [ At the time of payment of rent landlord did not shopping arcade will usually contain a provision which know that tenant had breached the covenant as to user and restricts the trade of individual shop units to prevent subletting. Held: receipt of rent not equal to waiver. Even if competition between businesses within the same shopping landlord had knowledge of the breach, the receipt, in the development. Where this occurs it is not regarded as an act in circumstances, would amount, at most to a waiver of the restraint of trade. breach up to the date thereof. There will be no implied release - Burden of proof on landlord to prove breach of covenant from the covenant for the future.] - Covenant which prohibit specific trades/businesses will not be Cf. Central Estates Ltd v Woolgar [Notice served on tenant broken if there is only a slight breach of the prohibited b/c he was using the premises for illegal purposes. Held: activity: landlord’s demand for and acceptance of rent through their Calabar (Woolwich) Ltd v Tesco Stores [held: covenant agents with knowledge of the breach of covenant effected a restricting use to a supermarket and allied purposes was not waiver of the forfeiture even though the demand was as a broken by the ancillary sale of freezers.] result of a clerical error.] - - A covenant against carrying on a noisome or offensive trade will not be broken by carrying on a dangerous trade that is neither noisome nor offensive. Change of use - Absolute covenants - Where there is an absolute covenant restricting user the landlord cannot be forced to agree to an Business User - Majority of residential leases will contain a covenant requiring alteration in use, even if the refusal can be shown to be unreasonable. Landlord may refuse to change user or may tenant to use the property only as a private dwelling house and LANDLORD & TENANT 2003-04 Page 30 of 47 31 demand that tenant pay sum that can be agreed b/n them in return for landlord waiving his right to rely on the covenant. - Qualified covenants - If the lease specifically states that consent to a change of user is not to be unreasonably withheld and a landlord refuses to agree to a change of use the tenant is entitled to ask the court for a declaration that consent was unreasonably withheld. Waiver of covenant - If a landlord accepts rent in full knowledge of the breach of covenant restricting user over a long period of time there is good argument to say he waived or acquiesced in the breach. Central Estates Belgravia v Woolgar However, if the rent was accepted with knowledge of the breach for a short period, only the past breaches would have been waived and there would have been no implied release for future breaches. Acceptance of rent under protests however, does not waive the covenant. Gittens v Bernard Remedies for breach of covenant - Unless landlord waives breach, his remedies will consist of an injunction to restrain a breach of a covenant, or damages to compensate for the breach. - As the breach will be of a continuing nature, the waiver will have to be of a positive nature. LANDLORD & TENANT 2003-04 Page 31 of 47 32 WASTE premises in as good a state of repair as at the outset of the - tenancy subject to age and reasonable user. Waste is any act which alters the leasehold premises for better or worse – tenant commits waste if he causes, by act or - omission, any lasting alteration to the land or premises to the prejudice of the reversioner by way of damage, destruction, permissive waste - addition, improvement or neglect. - Tenant-at-sufferance - liable for voluntary waste but not for permissive waste The obligation not to create waste is founded on tort and is - independent of any contract, express or implied. - Tenant-at-will – not liable for voluntary waste nor for Periodic tenant – liable for voluntary waste but not liable for permissive waste and is not liable for fair wear and tear. Tenant is not liable for waste where the tenancy agreement I. provides for the act in question: a yearly tenant also under the obligation to keep the premises wind and water tight Meux v Cobley Agricultural lease permitted tenant to improve II. farm. Thus not a breach of covenant to convert a farm into a Weekly tenant – use the premises in a tenant-like manner: Warren v Keane. market garden since it was not prejudicial to the inheritance of the reversioner.] Remedies - of voluntary waste only. Types of waste: (a) Landlord may claim damages or seek an injunction in the case Voluntary waste – positive act of destruction e.g. felling - Damages = based on the damage to the reversion and is not trees, pulling down buildings, removing tenant’s fixtures related to the actual cost of making good the damage to the and leaving the place exposed to the weather premises. Mancetter Development Ltd v Garmanson [Held: Burden of filling up holes left in walls upon removal of fixtures lay Section 25(c) Rent Restriction Act states that the landlord may go on the person who removed the fixtures b/c that was when to court for an order where the tenant or any person residing or the waste occurred (building no longer weather-proof) and lodging with him or being his sub-tenant: not on the person who made the holes.] (a) has been guilty of conduct which is a nuisance or annoyance Omission can hardly constitute an act of voluntary waste. or (b) has been convicted of using the premises or allowing it to be (b) Ameliorating waste – form of voluntary waste that usually used for an immoral or illegal purposes or improves the value of the land e.g. putting up a building on (c) has allowed the premises to deteriorate or become unsanitary the land or extending the existing building . Unless there is owing to acts of waste or the neglect or default of the tenant or a substantial alteration, the court will not restrain such waste any such person by injunction nor will the alteration be a basis for forfeiture NB: Where such person is a lodger or sub-tenant, the court must be under a proviso to forfeit. Nor in general can damages be satisfied that the tenant has not taken all reasonable steps to remove recovered as there is no damage to the reversion. the lodger or sub-tenant. So although ameliorating waste is a breach of the tenant’s obligation not to commit waste, in practice it is a breach w/o Defences a penalty: - Meux v Cobley [Held: the court would not grant an The damage resulted from the ordinary, reasonable and proper use of the premises e.g. cutting down a poui tree. injunction where ameliorating waste was committed. To - Damage caused by an act of God. obtain an injunction against the tenant, landlord must prove - Where the claim is that wood and timber have been cut, tenant that what tenant did was prejudicial to the inheritance.] was entitled to do so by reason of his common law right as to estovers i.e. to use wood for the purpose of carrying out (c) Permissive waste – based on the negligence and omission repairs. of tenant e.g., allowing a building to collapse for want of necessary repair. Covenant breached if the building was in Alterations and Improvements repair at the time of the demise but not if it was in disrepair. - A landlord may be satisfied to rely on the law of waste to protect his reversion against any damage caused by the tenant (d) Equitable waste – aggravated form of voluntary waste i.e. making alterations or improvements to the demised premises. extreme acts of damage for which a tenant for life can be But he will only obtain damages if he can prove that liable. substantial damage was caused to the premises. Most leases therefore contain a covenant by the tenant not to make any Liability for waste - alterations to the demised premises. There is in fact no need to Fixed term tenant – liable for voluntary and permissive waste provide for improvements since an improvement will normally – must carry out the necessary repair so as to keep the be an alteration and therefore will fall within the covenant. LANDLORD & TENANT 2003-04 Page 32 of 47 33 - An alteration occurs when the actual fabric of the demised premises is altered. Duke of Westminster v Swinthon - The covenant may be an absolute one or it may be qualified by words such as “not without the consent of the landlord, such consent not to be unreasonably withheld.’ LANDLORD & TENANT 2003-04 Page 33 of 47 34 ASSIGNING AND SUBLETTING 3 years can be created orally, an assignment of the same - In the absence of a stipulation to the contrary or implied lease must be by deed. In jurisdictions with registered land statutory provisions a tenant may assign or sub-let the demised legislation, it need not be by deed, but must satisfy the premises freely because he is the holder of an estate. requirements of the respective statutes. In JA needs to be in However, a covenant against assigning/subletting restricts the writing. right that the tenant has at common law and acts to the benefit - of landlord. - Where there is an agreement to assign for value, this may pass an equitable interest to the assignee. Assignment = transfer by the tenant to another person of the entire interest in the property for the whole of the residue of Subletting: the term of the lease. Documents operating as assignments of - Same principles as apply to creation of a head lease. lease are rarely found in practice because their effect is to - - avoid original landlord’s agreement. Landlord’s remedies Subletting = tenant parts with the entire demised premises or a Under Section 25 (1) (l) of the Rent Restriction Act, part of it for less than the residue of his whole term. Therefore “Subject to section 26, no order or judgement for the an additional lease is created. The period must be at least 1 day recovery of possession of any controlled premises or for less than the unexpired period of the lease. If therefore the the ejectment therefrom, shall, whether in respect of a tenant purports to sub-let for a period equal to or more than the notice to quit given or proceedings commenced before or unexpired period of his own lease this will in fact be an after the commencement of this Act, be made or given assignment. unless – the tenant has sub-let, or parted with the City Enterprises v Esso Standard Oil: The appellant leased possession of, the whole or any part of the premises land from the council for 20 years. The lease contained a without either obtaining the consent of the landlord or covenant for the erection of a gas station. Consent was given being expressly authorized by or under the tenancy by the council for the lease to be assigned to the respondent. agreement or lease so to do”. The appellant purported to lease the land for 20 years but The landlord may go to court for an order to recover premises without the option to renew in the head lease. On appeal where the tenant has sub-let or parted with the possession of, the against an action by the respondent for the option to be whole or any part of the premises w/o either obtaining the consent included in the sub-lease the court held the appellant had of the landlord or being expressly authorised by or under the disposed of his entire interest in the land, but did not take the tenancy agreement or lease so to do. benefit of the option because that covenant did not touch and Ashby v Jerome it was held that where there was no term in the concern the land. tenancy agreement prohibiting assignment without consent, the Note: Because a periodic tenancy is regarded in law as a position of an assignee would be affected by the Rent Restriction continuing tenancy until it is determined, a periodic tenant can Ordinance to the extent only that he might be ejected at the suit of grant a sublease for a term in excess of his own without it the landlord on proof that his refusal to consent was reasonable. being treated as an assignment. However, sublease will end with the determination of the head lease. Covenant against assigning &/or subletting may be a) Implied into the lease under (i) Rent Restriction Act S 4 1st Schedule Part II “not to sublet the premises or any part thereof without the prior consent in writing of the landlord” or b) Express and be either: Formalities (i) absolute Assignment (ii) qualified or - (iii) absolutely qualified “such consent not to be An agreement to assign a lease will not be enforceable unreasonably withheld” (equitably) unless: a) the agreement is in writing or b) there is a memorandum or note of it signed by the party to be charged Statute of Frauds or c) - there is part performance: Express Qualified Covenant - The most usual form in which this covenant is found is, “the tenant covenants not to assign, sub-let Rampersad v Phagoo There was an assignment when the or part with possession of the demised assignee moved into the premises despite the absence of a premises or any part thereof without the prior formal document evidencing the assignment. written consent of the landlord, such consent Must be by deed if the legal estate is to pass to the assignee. not to be unreasonably withheld.” As a result, while a periodic tenancy or a tenancy for less than LANDLORD & TENANT 2003-04 Page 34 of 47 35 - Courts tend to construe the covenant against the landlord under the meaning of the statute as a statutory tenant had only a the contra proferentum rule. If the landlord wishes to include personal right of occupation that could not be assigned or a clause that limits a tenant’s common law rights it is transferred. Even so the acceptance of rent from a statutory incumbent on him to do it in a clear and unambiguous fashion. tenant is prima facie treated as a mere acknowledgement of If it is unclear the covenant will be construed against the the tenant’s protected occupation. Landlord - - Lam Kee Ying v Lam Shes Tong; Waiver of covenant If tenant assigns/sublets in breach of covenant the equitable - Landlord waives the covenant where he agrees to a single estate still passes to the assignee / sub-lessee. But the landlord assignment/subletting without restriction. Such an agreement is entitled to damages or forfeiture and re-entry if the lease operates as a total waiver of the covenant for all time. It is a contains a proviso to that effect. Conveyancing Act recommended practice when the landlord is giving his consent If tenant is a company, covenant broken if all the company’s to state that it is being given for that request only and does not shares apply to future assignments/sub-lettings. or voting rights are transferred by sale/assignment/bequest/trust or other disposition during the terms of the lease so as to result in a change in the control of How to apply for a waiver: the company: Lake v Camacho. 1. Must apply to landlord for his consent. Lam Kee Ying v Lam Shes Tong: Plaintiff leased building to 2. If landlord withholds consent, apply to the court for a D for 25 years with a covenant not to assign or sublet. D and partners bought out the tenant company changing its legal - - - Onus on tenant to show that the assignment is status. On proceedings for forfeiture for breach of covenant reasonable so that before tenant applies to the court Held: breach of covenant since a different legal entity now he should consider such factors as the character and occupied as lessee reputation of the prospective assignee and proposed Covenant broken where tenant subsequently forms a use of premises. partnership having as its place of business the demised - declaration permitting the assignment/subletting Landlord is not entitled to withhold his consent with a premises. Landlord’s consent will also be required where the view to gaining some advantage personally which is tenant is a partnership, which is subsequently dissolved, and not incidental to his reversionary status. But he is one partner continues to occupy the premises. However, the entitled to take into account the possible depreciation court will not treat a partnership deed per se as an assignment: of other parts of his estate: Gian Singh v Devraj Nahar and ors. Parker v Boggan [held that it was not reasonable for Covenant ‘not to under-let or part with possession’ is breached the landlord to refuse his consent to subletting on the by an assignment: Marks v Warren ground that the proposed sub-tenant was entitled to Covenant is also breached where, without consent, the diplomatic premises are let to a tenant who already occupied under the proceedings in English courts] lessor and to whom no objection could reasonably be taken: Bates v Donaldson [said that landlord may Eastern Telegraph Co. v Dent reasonably object even though the proposed purpose Covenant is not broken where: was not forbidden by the lease or by law]. (a) privilege and thus immune from the term is dealt with by executors/administrators or a NB: In Jamaica it is assumed that landlord is not to withhold his trustee in bankruptcy or is compulsorily acquired by a consent unreasonably although there does not appear to be any public body or is the subject of a bequest; or statutory provision to that effect unlike Belize, Montserrat or (b) a licence is granted provided that the tenant is not Barbados. entirely ousted from the legal possession or the covenant (c) does not include a prohibition against occupancy by NB: One does not need to consider the question of waiver where another person; or the agreement does not contain a provision against assigning, but the term is used as security for a loan or mortgage; or the question of statute may come into play nonetheless and the (d) the term is assigned by one joint tenant to another in the same joint tenancy - question becomes whether the landlord consented expressly or impliedly. Note: a statutory tenant cannot assign property as he does not Duverney v Dass: The tenant of controlled commercial premises hold an estate – has a statutory right to occupation which parted with possession without the consent of the landlord . Upon cannot be assigned/transferred: finding out he protested but accepted rent nevertheless . Held on Gayadeen v Glasgow: Statutory tenant, sold the house she appeal there was no question of waiver of the covenant in the lease occupied without the landlord’s consent. Landlord accepted as there was no breach of tenancy agreement. rent from assignee but signed receipts in assignor’s name. covenant was implied by statute so the question of consent arose. Held: no question of giving/withholding consent arose within The court held it had not been given to the transaction as although LANDLORD & TENANT 2003-04 Page 35 of 47 However the 36 rent was accepted from assignee the receipt was in the assignor’s General Points name. - An option to renew does not make a term longer than that Bates v Sylvester [Held: by continuing to accept rent from the originally granted unless the option is exercised: Therefore any tenant w/o qualification, landlord had by implication acted in such sub-letting into the extra term without renewal will be an a manner as to bar himself from alleging that he had not consented assignment. to the breaches.] City Enterprises Ltd v Esso Standard Oil [Appellant leased land for a term of 20 years with an option to renew. Then Liabilities upon assignment granted lease for a term of 20 years with no option to the - Assignee assumes all the benefits, burdens and rights of the “sub-lessee.” Held; was an assignment.] assignor including the liability for rent to the landlord, but the Lake v Camacho [Assignment in breach of covenant. Held: By assignor also continues to be liable for rent unless he is parting with possession w/o the landlord’s consent, the tenant released by the landlord and this is so even where the landlord could not create the relationship of landlord and tenant has consented to the assignor and accepted rent from the between the landlord and the assignee. The assignee therefore assignee. became a trespasser liable to pay for his use and occupation, Re: liability upon sub-letting see also section 25 (1) (c) Rent not by way of rent, for he was not a tenant, but by way of Restriction Act. mesne profits. As between the assignee and the landlord, no A release may be impliedly granted, e.g. landlord enters into question of unreasonable withholding of consent arose as he lease with assignee, or landlord and assignee agree to vary the was not a party to the lease.] - - terms of the lease. - A tenant who fails to obtain consent, even if the landlord in the circumstances could not have reasonably withheld consent, (ii) Absolute Covenant - Tenant has no power to create a legal assignment if the lease is subject to an absolute prohibition against assignment. - will be liable to have the lease forfeited if this is provided for. If a tenant under a lease containing an absolute covenant Remedies wishes to assign/sublet the property, the tenant’s only option is to negotiate with the landlord to try and gain consent. Landlord the breach may grant the consent but there is nothing to stop him from requiring payment for the granting of this permission. - if it says the tenant shall not sublet the demised Landlord may seek an injunction to prevent the proposed assignment/subletting Governed by the words of the covenant a) Landlord may sue for damages = loss flowing from If a right of re-entry has been preserved, bring proceedings for forfeiture. If tenant feels that consent was withheld premises, the prohibition will apply to the entire unreasonably, he may go to the court to get a premises but not to the subletting of a part of it: declaration to that effect. Cook v Shoesmith [Tenant, without landlord’s consent sublet some rooms in a building. Held not be Statutes: a breach of a covenant phrased in this way] Rent Restriction Act: prohibition against in the absence of b) If it provides the tenant shall not sublet the premises c) consent or authorisation by the lease: s. 25(l); also Part II (g) of the or any part thereof, then neither the whole nor a part first Schedule. may be sublet. Registration of Titles: s. 98 – transferee indemnifies transferor re If the covenant is against subletting or parting with non-payment of rent and non-observance of covenant. possession, it will be broken by a tenant if he allows another person into exclusive possession of the whole or part of the demised premises, but the grant of a licence will not amount to a subletting. Lam Kee Ying v Lam Shes Tong [Held: a covenant which forbade a parting with possession was not broken by a lessee who in law retained the possession even though he allowed another to use and occupy the premises.] Thus a provision prohibiting a tenant from parting with possession of the premises will not prevent the tenant from taking in a lodger or otherwise allowing another person to share occupation. LANDLORD & TENANT 2003-04 Page 36 of 47 37 COVENANT TO INSURE - - - - - (b) If there is an express term, providing for At common law there is no obligation on landlord or tenant to reinstatement – money must be applied in accordance insure with that term. Under the Condominium/Strata legislation there is a (c) If landlord covenants to insure at tenant’s expense but requirement for the corporation or committee to insure the there is no covenant to reinstate – landlord must apply complex. Other than this, the parties are free to decide on the money towards reinstatement: Mumford Hotels Ltd v matter of insurance. Wheeler. Short lease: usually no party insures but when insured, usually (d) If the landlord is obliged to insure at his own expense – its the landlord that does this at his own expense, submission that landlord must apply money towards Long lease: usual to have covenant to insure which may be reinstatement (b/c the obligation is intended to inure to placed on either party, particularly the tenant. the benefit of both parties). If tenant has obligation to insure, he must arrange the insurance and pay the premium. (e) This covenant will be If both tenant and landlord are liable to insure – loss will be apportioned between the 2 policies. breached at any time that whole premises or any part is - uninsured irrespective of whether damage occurs. Note the following: Sometimes landlord insures the premises and recoups this - from tenant. However this may be contrary to the section 24(1) Rent Restriction Act if it will result in an amount that is - Basic insurance covers fire. Additional risks have to be covered by supplemental perils endorsement - Coverage should be for the full replacement value because the in excess of the standard or controlled rent. average clause provision will be applied. Therefore the parties Much depends on the wording of the covenant: should be advised that they should have an appraisal done at (a) if the covenant is to insure with a named company or the beginning of the term, and at reasonable intervals other company approved by the landlord, the landlord thereafter. can refuse to approve any company other then the - A breach of this covenant is a continuing one and so named company without giving a reason: Viscount acceptance of the rent by the landlord where tenant is in breach Tredegar v Harwood. only operates as a waiver up to the time of acceptance. Tenant covenanted to insure property with a particular company. another Remedy: Damages for the actual loss incurred. Landlord refused to approve insurance inconvenience. - company because of Held: Landlord’s consent was a condition precedent and could refuse consent without a reason (b) if the covenant is to insure with a named company and the tenant enters into a usual policy with certain risks excluded with the named company, the tenant is not liable if there is a loss within one of the exceptions: Upjohn v Hitchens. Tenant covenanted to insure against loss from fire and insured. However Landlord wanted policy extended to include loss from fire from enemy aircraft. Held: the covenant was to effect the usual policy and there had been no breach. (c) where the landlord covenants to insure, but requires the tenant to pay the premium, there is no implied term that the premium will be reasonable: Bandar Holdings v Durwen. Reinstatement - If the demised premises suffer damages for which it has been insured, the position is as follows: (a) If landlord/tenant takes out a policy w/o being obliged to do so – not liable to spend the insurance money on reinstatement. LANDLORD & TENANT 2003-04 Page 37 of 47 38 4. DISTRESS (a) wearing apparel and bedding of the tenant and his family and, to the value of $50, the tools and implements of his trade. BELIZE Note that this does not apply where the lease has expired and Landlord and Tenant Act Cap. 153 possession is claimed and the distress is not made earlier than - Landlord has, as an incident to his reversion, a right to distrain 7 days after the demand for arrears of rent upon certain goods found upon the premises (b) re agricultural/grazing land: - General common law rule is that all personal moveable goods (i) agricultural or other machinery belonging to another on the demised premises are subject to distress: if on the premises under an agreement for hire or use Crossley Bros. Ltd v Lee [A gas engine was affixed to the floor in the conduct of the business of the premises by bolts and screw and was used for the (ii) live stock belonging to another and on the premises for purposes of trade. The engine was seized for distress for rent breeding purposes due. Held: the engine had become a fixture and therefore was (iii) live stock belonging to another and taken in by the not distrainable.] tenant to be fed at a fair price where there is other sufficient distress. Note that there if no sufficient distress Requisites for distress then there shall not be recovered for distress a sum - The r/ship of landlord and tenant must exist. exceeding the amount of the sum agreed to be paid for the - No need for a formal lease as the principle in Walsh v feeding or any part that remains unpaid. - Lonsdale applies – mere agreement with possession. Right s. 44: extends to a tenancy at will but not one at sufferance. In the - latter, the remedy is one for use and occupation. seized are not those of an under-tenant or lodger) distrains any The reversion must be in the person distraining for rent unless furniture, goods or chattels belonging to any under-tenant, exempted by agreement or statute: lodger or other person who does not have an interest in the Lewis v Baker [Held: If a lessee with an original lease and a land then such person can serve a written declaration on the reversionary lease or an agreement therefor under-lets the landlord or his bailiff. premises for a term exceeding the original lease, he cannot - If a superior landlord (which includes a landlord if the goods - The declaration must: distrain for rent during the original lease under the common have a properly signed inventory of the goods annexed to it law for want of a reversion.] state that the tenant has no property or beneficial interest in The rent must be certain both in amount and the terms of the goods payment. Note that the mere fact that the rent fluctuates having regard to an accepted formula does not necessarily make it possession of the declarant uncertain. - The rent must be in arrears: s. 36 – tenant may recover double state that the goods are not goods/livestock protected by the Act the value of the rent that was claimed and distrained for within 3 months after the date of the distress. - state that the goods are the property or are in the lawful confirm the amount of rent due from the subtenant/lodger to his landlord and the times that future rents will be due If the rent is payable in advance then the rent is in arrears as soon as the period for which it is payable commences: s. 28 contain an undertaking that the declarant will pay to the superior landlord all the rents due or to become due until the arrears distrained are paid off. Goods that cannot be distrained Common Law Things of a perishable nature Note: Loose money but not money in a bag/chest - Fixtures including a chattel house if it is adjudged to be a declaration and the rent has been paid in accordance with the fixture undertaking, then an illegal distress would have occurred – Things in actual use declarant may apply to court for restoration of the distrained Property delivered to a person in public trade to be used in the goods. exercise of his trade Property in the custody of the law Property belonging to the Crown Property belonging to persons enjoying diplomatic privilege Statute s. 35: LANDLORD & TENANT 2003-04 - where the superior landlord distrains after receiving this the superior landlord may serve a notice on the under-tenant requiring all future rents to be paid to him where the immediate tenant is in arrears until such arrears have been paid off: s. 49 The following goods are not protected under the above section: s. 47 goods belonging to the husband or wife of the tenant where the rent is in arrears Page 38 of 47 39 goods in the possession, order or disposition of the tenant with - if bailiff not certified then bailiff and the person who has the consent of the true owner, but under such circumstances authorised him to levy shall be deemed to have committed a that the tenant is the reputed owner of the goods trespass and are guilty of an offence: s. 41(5) goods comprised in a bill of sale , hire purchase agreement or - goods may be sold at public auction after appraisal for amount settlement made by the tenant due with surplus left in the court for owner’s use if the tenant certain livestock to which s. 35(b) applies or owner of the goods does not, within 5 days after distress or goods of a partner of the immediate tenant such period not exceeding 15 days as the landlord or other goods (not being goods of the lodger) upon the premises where person levying distress may grant at the tenant’s request and any trade or business is carried on in which both the immediate after notice is given by the landlord to the tenant, reply the landlord and the under-tenant have an interest goods with sufficient security: s. 42 goods (not being goods of the lodger) upon premises used as offices or warehouses where the owner of the goods neglects Applicable to both for a month after notice to remove the goods and vacate the - of the landlord or his agent, may break open in the daytime premises any place where the goods are locked up or whither they have goods belonging to and in the offices of any company/ been fraudulently removed, but if that place is a dwelling corporation on premises in the immediate tenant where he is house, the landlord or his agent shall first satisfy the magistrate the director/officer/in the employ of such company/corp. by sworn testimony that there is reasonable ground to suspect goods belonging to any under-tenant where the under-tenancy that the goods are concealed in it: s. 30 was created in breach of any covenant in writing b/n the landlord and his immediate tenant: s. 48 The police officer or bailiff, under warrant and in the presence - Persons involved in the fraudulent removal of goods liable to forfeit to the landlord double the value of the rent: s. 31 - at common law there are certain goods that may be distrained - removed: s. 32 for where there is an insufficiency of other goods: tools of a man’s trade/profession even though they are not in actual use, - Below $BZ 600: - Seizure, Impounding and Sale - magistrate issues warrant authorising any police officer/bailiff he intends to prevent its removal from the premises - - distrain between 8 a.m. & 4 p.m.: s. 29(2) - if sufficient goods not found then police officer/bailiff may distrain any goods fraudulently carried off the tenement to prevent the landlord from distraining the rent in arrears the amount owed and the authorised fees and charges. - - Illegal - where it is wrong ab initio e.g. where the landlord does not have the reversion when distress is illegal, a 3rd party who buys the goods distrained is not protected. carrying off unless they’ve been sold to innocent 3rd party: s. - Notice of the distress should be given to the tenant. Illegal, Irregular and Excessive Distress wherever they are found within the space of 30 days after such 29(3) B/n seizing and impounding the distrainor should draw up an inventory of the goods distrained and include the particulars of presence: s. 29(2) - After the goods have been seized they must be impounded, the effect of which is to place them in the custody of the law to enter, and if necessary to break open the tenement in respect of which the rent is due, to distrain in landlord/agent’s For distress to be complete the goods must be seized – actual seizure or the distrainor laying his hands on it and states that 7 days after it becomes due then the landlord or his agent may go before a magistrate and make a sworn claim: s. 29(1) - Question: whether the common law rules re entry are applicable in light of this provision beasts of the plough and sheep and instruments of husbandry. Method of Distress Police officer may detain furniture being clandestinely - Irregular - distress is initially lawful but by some act or omission it then becomes irregular e.g. where goods sold Goods distrained shall be sold at a public auction at the before the expiration of 5 days. The tenant may go to the court expiration of 5 days after the distress unless the tenant or to recover any special damage suffered therefrom where owner of the goods distrained replevy them: s. 34 amends have not been made before the action is brought: s. 38 - Excessive - more goods are seized than the amount needed to cover the rent due. Francis v Daley [ The appellant levied a distress for rent Above $BZ600 - Only landlord or certified bailiff may distrain: s. 41(2) claiming an amount for $4 owing for rent when in fact only $2 was owing. Held: mere fact that goods were distrained for an amount of rent in excess of the amount actually due is not per se evidence that the levy was excessive in the strict sense of the word, and will not give rise to a cause of action if the LANDLORD & TENANT 2003-04 Page 39 of 47 40 goods seized were not disproportionate to the amount actually owed.] Remedies for tenant - damages – tenant can sue landlord for the loss sustained. - Where no rent due: s.36 - Replevin (s. 34) If distress illegal– tenant may bring an action for replevin (this is a remedy which entitles the owner of the goods distrained to recover them). Replevin must be exercised before actual sale. If the goods are sold before replevin the proper remedy is by an action for damages for wrongful seizure. tenant should serve notice to this effect to the bailiff and at the same time deposit the amount of rent due $25 as security for costs tenant should sign an act of deposit or, in lieu of deposit, enter into a recognisance with at least one sufficient surety to the satisfaction of the magistrate. Then the bailiff shall return the goods. If the replevisor succeeds in his action – sum deposited for the amount of rent shall be paid over to him as well as costs If the defendant succeeds- the court shall find the value of the goods so distrained and judgement will be given for the amount of that value if it does not exceed the amount of rent for which the distress was made. Where the amount of the value so found exceeds the amount of the rent, the judgement shall be given for the amount of the rent, and the replevisor shall pay the costs to which the defendant has been put, or such costs as are awarded by the judgement and the judgement with the costs shall be satisfied out of the sums so deposited. - distress may be made within 6 months after the lease has been determined where the tenant is one for years or yearly or at will and during the continuance of the landlord’s title and during the possession of the tenant from whom such arrears is due: s. 40 Second distress Generally, a landlord cannot distrain twice in respect of the same rent and this includes the case where the landlord has voluntarily abandoned a first distress, Where, however, there are insufficient goods on the 1st distress or a landlord is prevented from realising the levy by a tenant, the landlord may be allowed to make a 2 nd distress. LANDLORD & TENANT 2003-04 Page 40 of 47 41 5. RENT RESTRICTION ACT - rent is deemed as increased if the landlord changes the Applies to “controlled premises” i.e. building land, dwelling circumstances referable to the shared accommodation and the houses, public and commercial buildings let furnished or alteration is less favourable to the tenant unfurnished - - - Note exemptions (s. 3(1)): (a) dwelling houses let at a rent which bona fide includes a It is a criminal offence if the landlord receives rent in excess of the standard rent : S.20(3) - payment for board if the landlord or tenant objects to the standard rent, either may, within 60 days, apply to the Rent Assessment Board for a (b) building land let on a building for a term of 25 years or review of the rental assessed: s. 19A(3) more (c) dwelling houses let by the Ministry of Housing pursuant Increases in Rent to the Housing Act - the rental can be increased if (d) any class of premises specified by the Minister in an (e) order substantial improvements (Couch v Morrison) or a public or commercial building that exceeds 1000 sq. ft. structural alterations to the premises or to the and is primarily designed to be used as a warehouse (see amenities and in the case of improvements, a period the provision in the Act itself as it contains more detail of 2 years must have elapsed, or which I thought was essentially irrelevant.) - the landlord has incurred expenditure in effecting there has been an increase in the rates and taxes but Note the requirement for exemption: to be legally outside the the increases have to be certified by the Assessment operation of the act the premises 1st have to be certified by an Officer: s.21(1) Assessment Officer on an application for a certificate of - exemption by the landlord. Recovery of Excess Rent The provisions of the Act also apply to sub-tenants whether of - apply to the Rent Assessment Board or the court the whole or part of the demised premises. - right to appeal to the Court of Appeal from the Board on questions of law and mixed questions of law and fact Determination of Rent - - the landlord may require from the tenant reimbursement for Standard rent (maximum chargeable) arrived at on assessment sums paid by him for water, electricity, gas or other services or by an Assessment Officer, to whom application has been made such sums for these services as are known or reasonably by the landlord. Until such assessment, standard rent = rent at estimated by the landlord to have been used or enjoyed by the which the dwelling house was let on July 1, 1976 + such tenant:s.24(3) increases as were sanctioned by the Rent Assessment Board - - after that date – section 17 Implied Covenants Note that the standard rent is not mandatory, just the maximum, and the parties may negotiate a lower rental Landlord: First Schedule If the landlord fails to apply to have the rental determined the tenancy is still valid though he is guilty of an offence under the and to observe reasonable standards of maintenance Act. - Standard rent: Quiet enjoyment so long as the tenant is paying rent and fulfilling obligations Building land: 5% Pay all rates/taxes payable by him on time Unfurnished dwelling house: 12 ½ % of the value of Indemnify tenant from any loss arising from any act, the building + 5% of the value of the land Furnished dwelling house: 12 ½% of the value of the building + 5% for the land + 20% for the furniture negligence default of landlord or agents Tenant: Public and commercial buildings let unfurnished: Keep premises in good order, fair wear and tear excepted 15% of the value of the building + 5% of the value of Pay rent on due date the land Refrain from acts of nuisance/annoyance to adjoining Public and commercial buildings let furnished: 15% of the value of the buildings + 5% of the value of the occupiers and keep place sanitary land + 20% of the value of the furniture - To keep the premises in a tenantable state of repairs Refrain interfering with trees or damaging premises w/o consent in the case of dwelling houses divided into separate lettings, Avoid waste each accommodation let is deemed a separate dwelling house Permit landlord to enter premises to inspect and repair LANDLORD & TENANT 2003-04 Not to part with possession w/o consent Page 41 of 47 42 Notify the landlord about rent arrangements if tenant - 25(2) has to vacate property and rent is owing - - Court can extend the period given by it for possession: s. Landlord required to keep rent book – contains relevant details criminal offence for landlord to make it a condition of the of the tenancy and payments made to landlord by tenant re dwelling house that no children should reside therein: s. 4A rent. Failure to keep this book = criminal offence: s. 29 The landlord may apply to the Rent Assessment Board or the - Landlord also guilty of an offence if he forcibly removes the Court to recover rental which has been overdue for more than tenant from the premises or does any act calculated to the 30 days (s. 25(a) ), and at the hearing of the matter the Court interference with the quiet enjoyment or does anything to or the Board may order the tenant to pay the amount due up to compel the tenant to deliver up the premises: s. 27(1) - that time. If landlord obtained order by misrepresentation or concealment of material facts then the court may order damages to be paid to the tenant: s. 25(6) Termination of the Tenancy - the tenant cannot be evicted from the premises except by a court order for recovery of possession: s. 27 - application for possession made either by writ in the Supreme Court or by Plaint in the Resident Magistrate Court, Civil Division. - Notice to quit must be given in writing by the landlord and must state the reason for the requirement to quit: s. 31(1) - Note that if the reason given in the notice is that rental is overdue and the amount is paid by the tenant before the expiry of the notice, then the notice ceases to have effect from the date of payment: s.31(2) - Where tenant fails to give notice – landlord may bring an action to recover rent for notice period. - Please note the reasons where a court will grant an order in SECTION 25. Ones of special importance: Rent overdue (a) Tenant has broken some obligation and has been in default for at least 30 days (b) Tenant/his sub-tenant/lodger/person residing with him convicted of using premises for illegal/immoral purpose this is also found in the Second Schedule section 1(a) of the Strata Titles Act) ; cause nuisance/annoyance to adjoining occupiers; premises deteriorated or unsanitary owing to acts of waste (c) Assign/sub-let/part with possession without landlord’s consent in the absence of a provision to do so (l) Uses premises intended for dwelling purposes mainly for trade or business with landlord’s consent or authorisation under the lease (m) Dwelling house let as incident of employment (p); (q) - whenever the ground on which the premises are required is that the landlord requires it for his own purposes or for a person wholly dependent on him or for the purposes of being rebuilt/repaired, the Court must further be satisfied that less hardship would be caused by granting the order for possession that by refusing to grant it. Relevant considerations – alternative housing for landlord or tenant : s. 25(1) LANDLORD & TENANT 2003-04 Page 42 of 47 43 RE-ENTRY AND FORFEITURE for the exact sum due - At common law there is no implied covenant for re-entry and on the day it falls due forfeiture for non-payment of rent or breach of covenant. at the demised premises - Remember distinction between covenant and conditions. Breach of latter entitles landlord to re-enter whether or not the - lease contains a forfeiture clause. “Provided always” or “upon No formal demand needed where the lease states that it is not needed. condition that” sometimes construed as giving rise to a condition. Relief Against Forfeiture For Non-Payment Of Rent - Courts construe forfeiture clauses in favour of the tenant. - - Note that the tenant’s breach does not entitle tenant to tenant, before the return date of a summons issued by the determine the lease but makes it determinable by the landlord court, pays into court all the rent in arrears or a sum sufficient at his option. to cover any damage for a breach of covenant, the action If the landlord decides to forfeit the lease he may actually go thereafter ceases. - Section 87 Judicature (Resident Magistrates) Act: if the onto the land OR institute proceedings for recovery of possession. - - If landlord decides to re-enter premises then he cannot do so - - Before landlord can enforce his right to re-enter, he must forcibly: Statutes of Forcible Entry. serve the tenant with a notice specifying the breach and, Normal method of enforcing a right of re-entry is by issuing where possible, request the remedy of the breach or/and proceedings claiming possession of the premises. compensation in money and a reasonable time should be Plaint/writ must contain an unequivocal demand for possession given to remedy/pay: s. 17(1) to operate as an effective re-entry. - Section 17 Conveyancing Act: Lease is at an end from the date of service of the plaint/writ. Once a valid notice has been given, the landlord may then start proceedings for forfeiture of the lease. It the tenant is required to remedy the breach, however, it is only at the expiration of the period given to do so that the proceedings The Effect of Forfeiture Lease comes to an end can be started and only if the tenant has failed to remedy Any existing under-lease also determines the breach. Landlord can only claim rent due before the forfeiture and remedied – i.e. a once and for all breach such as sub- thereafter his claim is for mesne profits letting. Right of re-entry is no longer capable of being waived - Note that there are breaches that are incapable of being Note that the Court has power to order an injunction to It is a prerequisite for waiver that the landlord knows of the restrain any breaches, whether committed by the landlord breach. or tenant: s. 17(2) - Knowledge may be actual or constructive - Examples of waiver: where landlord demands or accepts rent due after the breach where landlord distrains for rent where landlord expressly consents to the breach where the landlord accepts rent “without prejudice” Note that the tenant has a right to apply for relief against forfeiture: s. 17(2) Note the exceptions to this section set out in s. 17(6): (a) mining leases which contain a covenant/condition for allowing the lessor to have access to or inspect books, accounts, records, weighing machines or other things, or to enter or inspect the mine or the workings of it. (b) A covenant or condition against the assigning, Types of Breach - subletting, parting with the possession or disposing of If there is a waiver of a single act the right to forfeit for that the land leased. breach is permanently lost. However, with respect to a (c) A condition for forfeiture on the bankruptcy of the continuing breach, if there is a waiver on one day a fresh right lessees of forfeiture will arise on the day after the waiver because the (d) The taking in execution of the lessee’s interest breach continues from day to day. - At common law, a landlord could only forfeit a lease for nons. 17(7) states that S.17(6) does not affect the law relating payment of rent if he had made a formal demand for the rent to non-payment of rent. due. If no formal demand made then no forfeiture possible. Formal demand: - Has to be made by the landlord/authorised agent LANDLORD & TENANT 2003-04 - Section 96(b) Registration of Titles Act: landlord may reenter upon land and take possession of the property where the tenant has been in arrears of rent (whether or not there has Page 43 of 47 44 been a formal demand) or has breached covenants for more than 1 month. Look at the 2 cases briefed at the back of the handout. LANDLORD & TENANT 2003-04 Page 44 of 47 45 7. OPTIONS - It usually takes the form of a covenant by the landlord that if There are 3 types of options that can be contained in a lease: the tenant, within a specified period, gives to the landlord - an option to renew notice in writing of his intention to purchase the landlord’s - an option to determine interest in the premises the landlord shall, on payment of the - an option to purchase purchase price and of any arrears of rent, convey his interest to However the absence of any of these options does not make the lease bad. the tenant. - Such an option is collateral to, independent of and not a part of the relationship of landlord and tenant OPTION TO RENEW - - - - Further the option does not constitute a contract because until It is not uncommon in fixed term leases to include an option to it is exercised, neither party is obliged to purchase or sell. renew, particularly when the period fixed is a fairly short one Griffith v Pelton e.g. 1 – 5 years. - - - An option to purchase is in the nature of an irrevocable offer to Such an option gives the tenant the right to continue the lease sell and upon the exercise of the option a binding contract for for a further term which may be for a greater, lesser or the sale arises and the relationship of vendor and purchaser is same period as before Wong v Calneck created Normally such an option will be worded so that the new lease - An option to purchase does not run with the land excludes the option itself. If the option to renew does not - Any matters, which by the terms of the option are made exclude the option itself the lease may be perpetually conditions precedent to its exercise must be strictly observed renewable. The rule against perpetuities does not apply in this e.g. the notice must be given within the time specified and the situation. Parkus v Greenwood purchase price paid in the manner prescribed. However strict A properly drafted option to renew is usually made expressly compliance with the terms of the option may be waived. dependent upon the tenant complying with all the covenants in Robertson v Surbiton Property Development Ltd. The the lease. So that if there is a breach of any covenant, no plaintiff was to exercise an option to purchase on not less than matter how minor, the tenant will be unable to exercise the 6 months notice. Held: options must be exercised strictly and option. E.g. West County Cleaners Falmouth Ltd. v Saly here it was served out of time so it was not validly exercised. Usually the option to renew will state at what time or within - The terms of the option usually require that it is exercised in what period the option shall be exercised and will require that writing. But even if this is not so stated, it is implied, since the it be given by written notice. If the option does not state the resulting contract will be binding on both parties. terms of renewal the new lease will be for the same period and on the same terms as the original lease. Brown & Gould & Caribbean Asbestos v Lopez OPTION TO DETERMINE - a lease for a fixed term may give either party the right to determine the lease at an earlier time or on the occurrence of a specific event e.g. where the tenant is a diplomat – in the event he is recalled or declared persona non grata. Such a provision does not negative the principle of certainty in leases generally. - Sometimes called a break clause, - The exercise of this option will depend on its precise terms – if e.g. the terms of the option require that the tenant shall have paid all arrears of rent and performed the covenants on his part, such payment and performance are a condition precedent to the exercise of the option and must be carried out. Since the exercise of the option by the tenant avoids the covenant to pay the rent during the residue of the term, the requirements of this proviso conferring the option must be strictly observed. OPTION TO PURCHASE - An option to purchase is a term that gives the tenant the opportunity to buy the landlord’s interests in the demised premises. It is NOT the same as a 1st refusal to purchase. LANDLORD & TENANT 2003-04 Page 45 of 47 46 8. TERMINATION effective if it takes effect either on January 1st or December Methods of termination: 31st. I. effluxion of time - II. by exercise of option to determine a tenancy began and thus difficult to know when a notice to III. by operation of a condition subsequent quit should take effect. IV. by merger of the lease and reversion V. by surrender following general words after specifying the date on which it VI. by disclaimer i.e. by trustee in bankruptcy or is believed that the tenancy expired: “or at the end of the liquidator year/month/ quarter of the tenancy which will expire next after VII. by forfeiture the end of half year/month/quarter from the date of the service VIII. by reason of compulsory purchase of this notice.” IX. POSSIBLY by frustration X. by notice to quit - It is sometimes difficult to ascertain the precise date on which To avoid the error of an incorrect date, it is usual to include the Form of the notice - The notice must be clear and unambiguous, though it need not NOTICE TO QUIT be in any specific form unless required by the terms of the - Most common method use to determine tenancies tenancy or by statutory provisions. - May be served by either the landlord or the tenant - In the absence of an express term in the lease, or statutory relate to the whole premises e.g. the demise relates to provisions the period of notice is determined by the common commercial and residential premises or where parts of the law rules premises are let. - Neither party can deprive himself permanently of his right to - - serve a notice to quit. It is, however, open to either party to Must not be conditional e.g. upon not paying rent and must It may be oral, although this is inadvisable because of evidential problems that may arise. limit their right to serve a notice to quit provided that they do - not permanently deprive themselves of this right. Service In the absence of any contrary provision, - I. a yearly tenancy is determinable on 6 months immediate tenant or by the tenant to his immediate landlord or notice; the authorised agent of either II. quarterly tenancy on ¼ notice - In the case of joint tenants, notice to one binds all. III. monthly tenancy on 1 month’s notice, - May be given by ordinary post or registered post or by IV. weekly tenancy on 1 week’s notice personal service or as otherwise prescribed by the lease. - Statutory provisions - The Conveyancing Act S 71 makes provision with respect to the notice to be given under the statute - the notice to quit must be given by the landlord to his Notice may be served on the spouse or employee provided it is made clear to the recipient that the notice is to be delivered. - If the notice is left by the landlord on the premises it must be shown that it came to the attention of the tenant in time The Law Reform (Landlord & Tenant) Act S. 4 and the Agricultural Small Holdings Act s. 20 cover a situation where there are growing crops. In such a situation, because such a long period of notice is required, notice is usually given as soon as the lease is executed, usually at the beginning of a 5 year lease - S. 26 of the Rent Restriction Act governs the extent of the period of notice for business lettings where S. 25 does not apply - The way the notice to quit is drafted is very important. If incorrectly drafted, it is invalid. RRA S. 31 Expiration - At common law the notice must expire at the end of a period of tenancy. If this requirement is not met then the notice is bad. - The courts have construed the end of the period to include the anniversary of the commencement of the tenancy. E.g. if a yearly tenancy began on January 1st a notice to quite will be LANDLORD & TENANT 2003-04 Page 46 of 47 47 CONDOMINIUM/STRATA - The words apartment (or flat) represent the more formal legal terms of condominium or strata lot unit - They both represent a unit which forms only part of a building, which is usually, though not always self-contained and on a single level. The building may be a large house converted for the purpose or a multi-storied building designed for the purpose. - A number of easements will be created because: I. an apartment forms only part of a building its satisfactory enjoyment demands the use of ancillary rights over the property. Ideally, the rights should be expressly granted so that their adequacy can be expressly established. II. Similarly the apartment will need to be subject to rights in favour of others which should also be clearly expressed. - Where a lease does not set out the relevant easements these are implied by statute, specifically the Registration of Strata Titles Act in Jamaica - However, in addition, provision should be made for access, storage, parking, postage, fixtures, fittings and other common facilities e.g. laundry, swimming pool etc. - How these will be treated in the lease will depend on the type of facilities which exist in the complex By-Laws - Except in the case of St. Kitts-Nevis, the condominium strata legislation contains in the schedule a standard set of bye-laws. But these may be replaced or amended by the strata corporation under express statutory power to do so. - An attorney representing a tenant in such premises must inquire of the proprietor/landlord if there are special by-laws or statutory ones are in use. They can vary a great deal. - Whatever form they are in they can be amended, changing the rights of the tenant without his involvement. Yet the tenant is still bound by them. The question then arises whether they should be attached to the lease or whether provision for their change should be made in the lease. LANDLORD & TENANT 2003-04 Page 47 of 47