Landlord and Tenant Flashcards
(3 cards)
What were the key lease clauses you reviewed before recommending assignment?
The alienation clause, which required landlord consent; the AGA clause; and provisions regarding arrears and covenant strength of the assignee. I confirmed these were met before proceeding.
Why was an Authorised Guarantee Agreement required even though the assignee had a stronger covenant?
The lease mandated an AGA regardless of covenant strength. This is a common clause designed to protect the landlord, and complies with the 2020 Lease Code
What other remedies were available to the landlord due to arrears, and why did you recommend a payment plan?
The landlord could have used CRAR or court proceedings. I advised against this due to potential cost and reputational risk. The payment plan was proportionate, fair, and effective in recovering the arrears.
