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Landlord and tenant Flashcards

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1
Q

What is a FBT?

A

FBT refers to the ATA 1995 which applies to the majority of new agricultural tenancies granted after 1 September 1995.

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2
Q

What are the requirements for a FBT?

A

All or part of the land included in the tenancy must be farmed for the purposes of a trade or business throughout the agreed term. Under the ATA 1995, farming refers to any type of agricultural activity, including the breeding and keeping of livestock as well as the grazing of land.

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3
Q

How can VP be secured for an FBT?

A

Break clauses and agreed surrenders. The break notice must comply with S.7 of ATA 1995, and if the contractual requirements in the tenancy conflict with this, they will be void.

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4
Q

How does security of tenure differ between the 1986 and 1995 Acts?

A

Under the 1986 Act, there are rolling on and succession rights, allowing one to apply to the tribunal for succession and a new agreement under the same terms of the preceding tenancy. The 1995 Act (FBT) establishes a fixed term with no succession.

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5
Q

What is a PRT?

A

Private Residential Tenancy started after Dec. 2017. Comply with Private Housing (Tenancies) (Scotland) Act 2016.

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6
Q

PRT Failure to repair

A

First tier tribunal

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7
Q

What is a Short Assured Tenancy? (Scotland)

A

Jan 1989- Dec. 2017. Landlord gave you AT5 giving tenant notice of fixed term. LL can taken back at end of term otherwise converts to PRT

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8
Q

What is a Assured tenancy? Scotland

A

Jan 1989 - Dec. 2017. No AT5 served. NTQ with grounds for possession

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9
Q

What is a regulated tenancy? Scotland

A

Before Jan 1989. Right to fair rent, register rent, rent officers decided.

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10
Q

What must you do when advertising a let property?

A

Clearly state rent and deposit, other financial obligations. Pre-tenancy checks will be carried out, acting on behalf of landlord.

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11
Q

What is a Short Assured Tenancy? England

A

Feb 1997- . Fixed term. Section 21 on fault eviction at end of fixed term. Can agree new fixed term.

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12
Q

How do you end a PRT?

A

Notice to tenant(s) 28 days minimum <6 months. Must be served correctly. 84 days notice longer than 6 months. Specific grounds (sell, moving into property).

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13
Q

What legislation protects agricultural workers from 15 January 1989?

A

Housing Act 1988

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14
Q

What is an Assured Agricultural Occupancy (AAO)?

A

It is a type of tenancy granted to agricultural workers, providing them with security of tenure similar to a full assured tenancy, but with specific conditions related to their employment in agriculture.

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15
Q

Can parties contract out of an AAO?

A

Yes, parties can contract out of an AAO by giving the worker notice before the tenancy begins that it will be an assured shorthold tenancy; failure to do so can result in an AAO being created unintentionally.

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16
Q

What is included in HofT for the MLDT

A

Landlord, tenant, property, tenancy type, term, break clauses, rent, what is included in tenancy, permitted use.

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17
Q

How where the business plans assessed for Kerrytonlia?

A

Solution to milking parlour, business model, team and financial projections. And rental bid.

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18
Q

Why was an MLDT chosen for Kerrytonlia?

A

MLDT is less prescriptive than the Agricultural Holdings (Scotland) Act 1991, more freedom of contract. Break clause can be included for New Entrants 5yrs. Tenant cannot buy out LL.

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19
Q

What is required in s.13 AST? England

A

This notice must detail the proposed new rent, the start date for the increase, and include the landlord and tenant’s contact information.

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20
Q

What are the fixed equipment obligations for MLDT’s?

A

LL obliged to provide fixed equipment into the condition specified in a schedule agreed upon within 90 days of the tenancy start.

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21
Q

How do you review rent for PRT in Scotland?

A

Can only increase the rent once in a 12-month period must give tenant at least 3 months’ written notice
There is no cap on how much you can increase rent by unless your property is in a Rent Pressure Zone.

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22
Q

What legislation regulates relinquishment and assignation in Scottish Agricultural Tenancies?

A

Land Reform Act (Scotland) 2016. Tenant of secure tenancy can relinquish tenancy in return for payment by LL

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23
Q

Land Reform Act (Scotland) 2016 relinquishment process.

A

Tenant serves Notice of Intention to Relinquishment (NIR) Form 1. Copy to LL and TFC

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24
Q

What must be included in NIR (Form 1)?

A

Name, address of tenant and LL. Rent when it was last reviewed. Copy of lease and variations. Plan (steading and land). List of improvements.

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25
What must TFC do after receiving NIR?
Appoint valuer within 28 days
26
What does the valuer do once appointed by TFC?
Notice of Assessment (NOA), valuer has 8 wks, sent to Tenant, LL and TFC.
27
How to value relinquishment?
1. Difference in value between VP and value with sitting tenant. 2. Divide by 2. 3. Add compensation (s.5 1991) tenant is entitled to. 4. Deduct dilapidations (s.45)
28
How can the NIR be objected to?
LL or tenant can appeal to Lands Tribunal against NIR within 21 days of NOA, state grounds Land Tribunal decision final. The tenant can then explore other options like assigning the lease to a new entrant or person progressing in farming
29
Who pays for the NOA?
Tenant
30
Following receipt of NOA valuation can the tenant withdraw?
Yes but no later than 35 days after valuation.
31
What happens if LL withdraws from NOA valuation?
Tenant has 1 year to assign and LL must pay tenants losses from NOA.
32
What are three main ways a 91 Act can be assigned?
1. During the tenant’s lifetime the tenancy may be passed to one eligible assignees. 2. Bequeath the tenancy to a named person by making a bequest within a valid will. 3. If the tenant dies the tenant’s executors may be able to transfer the tenancy.
33
On what grounds can a LL refuse assignation (non-near relative)?
Would not have the ability to pay the rent due. Does not have the skills or experience
34
On what grounds can a LL refuse assignation (near relative)?
Person is not of good character Person does not have sufficient resources Person has neither sufficient training in agriculture nor sufficient experience
35
How does a LL object to a notice of assignation?
Must be made in writing to the tenant within 30 days of receipt of the notice of assignation, tenant can go to Land Court. Lack funds or experience.
36
How can a tenant dispute an assignation objection from the LL?
assignation of a 1991 Act tenancy or of a LDT or MLDT and the tenant believes that the LL is seeking to withhold consent unreasonably, the matter can be referred to the Land Court.
37
Can a LL buy back a MLDT tenancy?
No
38
What are the key assumptions when valuing under a NOA?
No account given to person tenancy could be assigned to. No account for interest over land by third party (sporting lease)
39
What section relates to RR in 91 Act?
Section 13 of the Agricultural Holdings (Scotland) Act 1991
40
How often can the rent be reviewed for 91 Act?
3 years
41
What is required for 91 rent review process?
In writing s.13. The notice must be given 1-2 yrs, before the date on which the new rent would take effect. Written RR notice is considered to have been served if it is delivered to the other party in person or by recorded delivery. Only the party who serves the RR can insist on the case going to the Land Court for determination. Can use LDT and SLDT evidence.
42
If a new rent cannot be agreed for Ag Tenancy what should the process be?
LL and tenants and/or their agents should meet on the farm no less than 6 months before the review date. Negotation. SAAVA Arbitration service. Scottish Agricultural Arbiters' & Valuers' Association
43
When can farm budgets be used for determining rent?
The Court of Session regarded the role of farm budgets in assessing open market rents as being one of last resort
44
When should an application be made to the Land Court for rent reviews?
when agreement cannot be reached by negotiation. Parties must make the application to the Scottish Land Court before the review date, otherwise the rent review notice which was previously served will be treated as spent.
45
What is a key difference between PRT and SAT?
PRTs have no end date and landlords cannot give tenants a "no fault" notice to quit.
46
What must accompany a PRT?
Easy-read notes for the Scottish Government model tenancy agreement
47
When does a PRT need to be in writing?
Before the end of the day on which the tenancy starts. If you are already living in the property under a different type of agreement which is being changed to a PRT, LL must provide a written copy along with one of the supporting documents within 28 days.
48
What model clauses must be in a PRT?
Details of the property Occupation and use of property Rent Rent increases Deposit Subletting The Repairing Standard and landlord’s responsibilities
49
What obligations does a LL have under a PRT?
Tolerable and Repairing Standard. Legionella test, EICR, EPC, CP12
50
What are discretionary clauses (PRT)?
optional clauses that your landlord can add to the tenancy agreement such as pets and smoking.
51
What YP would you use for valuing the passing rent of 91 act tenancy?
YP @ 2% for years until next RR
52
What PV should be used for reversion on valuing tenancy?
PV @ 4.5% in years of life expectancy of tenant (ONS)
53
Where are improvements defined in 91 Act?
Schedule 5 Part 1: Farmhouse Part 2: Buildings Part 3: Fencing/dyking Part 4: Liming, fert., reseeding
54
What is a SLDT?
agricultural tenancy with a fixed term of no more than 5 years. Introduced under the Agricultural Holdings (Scotland) Act 2003
55
Do SLDT tenants have the right to use the land for non-agricultural purposes?
No.
56
How is the rent for a SLDT decided?
No prescribed form
57
Can SLDT tenants assign or sublet?
No.
58
How are SLDT disputes resolved?
Any disputes over the tenancy can be referred to the Land Court or arbitration if both parties agree.
59
What is LDT?
LDT was created under Agricultural Holdings (Scotland) Act 2003, replaced by MLDT.
60
How do you terminate a LDT and MLDT?
Notice 1 must be served between 2-3 years before the termination date. Notice 2 must be served between 1-2 years before the termination date. (must be at least 90 days between those 2 notices).
61
What was the tenant amnesty in Scotland?
Tenant had until 12 December 2020 to consider if they have improvements to notify their landlord about, under the waygo amnesty.
62
Can a LL object to a amnesty notice?
Yes, within 2 months of receiving it. A notice of objection must be in writing, must be dated and must state the landlord’s reasons for objecting to the improvement.
63
What is the proposed Minimum energy efficiency standard for properties in Scotland?
* 270 mm loft insulation; * cavity wall insulation; * draught-proofing; * heating controls; * 80 mm hot water cylinder insulation; * Suspended floor insulation or EPC C by 2028
64
What is the latest Land Reform Bill updates?
Land holdings exceeding 1,000 Ha. must notify SG if intending to sell to inform local community bodies if they wish to purchase.
65
What were the temporary regulations for rent increases for PRTs?
Temporary Rent Ajudication 1/4/24-31/3/25 maximum rent increase of 12%
66
What is the process for RR with PRTs?
Must be in prescribed form Only every 12 months 3 monts notice to tenant
67
What can be done if either party is unhappy with rent set by Rent Officer with PRT?
Appeal to first tier tribunal within 14 days
68
What is disregarded when setting rent for PRT?
Tenants improvements Tenants failure to comply with terms of tenancy
69
What is the Temporary Rent Adjudication regulations?
Ended 31/3/25 capped rent increase to 12%
70
What must be included in NIR (Form 1)
Name, address of LL and tenant Rent and when last reviewed Copy of lease and any variations Plan of steading and land List of improvements with statement agreed with LL
71
How long does the TFC have to appoint valuer?
28 days
72
How long does a valuer have from appointment?
8 weeks
73
Following the valuation from NoA what can the LL do?
Accept within 28 days Withdraw pay tenants loses, tenant has 1yr to assign
74
What are grounds for eviction in 91 Act?
1-2yrs notice Rent arrears Breach of tenancy agreement Bankruptcy Landlord's need for non-agricultural use: Has obtained the necessary planning permission. Land Court has stated within the last 9 months that the tenant is not farming the land properly.
75
What must be done to register interest to buy for 91 Act?
Notice of interest to the Keeper of the Register of Community Interests in Land. Send a copy of the notice to LL.
76
What improvements need LL consent?
Schedule 5 Part 1 LL has 70 days to object otherwise approval given. LL needs to give grounds for refusal, if decision cannot be reached Tenant can refer issue to SLC. Laying down PP.
77
What improvements need LL notification?
Schedule 5 Part II (buildings, structures) will only be eligible if the tenant gave 3 months prior notice to the LL of the intention to carry out the improvement. New shed
78
What improvements don't need LL consent or notification?
Schedule 5 Part III (reseed, fert. spraying off weeds etc.)
79
How are improvements assessed in 91 Act tenancies?
Must be appropriate to the size and nature of the holding and they contribute to the productivity and efficiency of the holding and value of the improvement to an incoming tenant
80
Is the tenant entitled to compensation at the end of a 91 Act tenancy with a new fixed tenancy being granted over same holding?
Yes, the tenant will be entitled to compensation for eligible improvements carried out during the 1991 Act tenancy unless it is agreed that they are to be carried forward into the new tenancy.
81
Can a tenant remove tenant fixtures at the end of a 91 Act tenancy?
The tenant has the right to remove tenant’s fixtures up to 6 months after the expiry of the lease if 2 conditions are met: a) Due rents have been paid and all obligations have been met. b) The LL has been given at least 1 month’s notice and has not served a counter notice, stating an intention to purchase the fixture on the basis of its value to an incoming tenant. The LL has the right to purchase and the tenant cannot refuse to sell the fixture to the LL.
82
How can a tenant get LL consent for non-ag diversification?
S. 39-42 of the AH(Scotland) Act 2003. Serve notice of diversification 70 days notice. LL objection to diversification within 60 days activity must be based on 1 or more of the grounds set out in the 2003 Act
83
How can the tenant respond to rent review notice for a PRT?
Accept the increase. Dispute the increase Part 3 of notice apply to Rent Service Scotland (Rent Officer). If the tenant doesn't respond within 21 days, the increase will take effect.
84
What is the New Digital Economy Act 2017?
It effects new telecom mast leases.
85
What does the New Digital Economy Act 2017 allow operators to do?
Unrestricted sharing with other operators, upgrade equipment without LL consent so long as there is no additional adverse impact on LL.
86
Will new leases under New Digital Economy Act 2017 be regulated by LLTA 1954?
No giving operator security of tenure.
87
What conditions must be met for operator to be under New Digital Economy Act 2017?
LL is capable of being compensated Public benefit outweighs prejudice to LL
88
How is a record of condition handled in 91 Act?
Mandatory that parties agree in writing fixed equipment to be provided by the LL and its condition. In the case of a 91 Act tenancy, the RofC must be made at the start of the lease carried out with agreement from LL and tenant otherwise it is created by Scottish Ministers
89
How are records of condition handled in 2003 Act tenancies?
2003 Act tenancies it is mandatory that the parties agree in writing a schedule of fixed equipment to be provided by the LL
90
How can a SLDT convert to MLDT?
* Where the parties agree in writing to do so an any time before the expiry of the SLDT * Where the tenant of a SLDT for 5 yrs remains in occupation after the expiry, with the consent of the LL * Where a SLDT is for more than 5 yrs but less than 10 it is in effect a MLDT.
91
How does the Digital Economy Act affect rents?
Allows network operators to seek better terms, usually resulting in significantly lower rent payments set by case law. £1,000 pa. Disputes go to Lands Tribunal.
92
Key features of PRT?
Succession possible if qualified person lived at property, 9 mandatory clauses. 48hrs notice to access property. Open ended. Rent increase only every 12 months, 3 months notice.
93
Please advise on process and what you advised for Kerrytonlia letting?
Create SG and SLDT to ensure land was being farmed until we had longer term tenants. Re-let the lots on longer term with the First Milk contract being purchased. -Agricultural experience and current enterprise -Bid rental value placed on the Lot(s) -Finances (livestock, equipment, sources of income etc.) -Age
94
Please advise on process and what you advised for 91 Act compensation/improvements?
Schedule 5 improvements ensure proportional to holding and are of good quality, value to incoming tenant
95
Please advise on process and what you advised for expired SLDT's?
2014 SLDT expired becoming MLDT's in 2019 running until 2024. Agree new rent and longer term MLDT or taking farm back in hand if unable to agree new rent etc. Carry forward improvements.
96
What happens if you don't end an MLDT?
MLDT is not properly terminated at the end of the stated term, it will automatically continue for a further 7 years
97
What if LL (residential) is not on Landlord Register?
fine of up to £50,000. Council can issue a rent penalty notice, potentially stopping the landlord from collecting rent
98
How often must you renew Private Landlord Register?
3 yrs
99
What is needed when Registering as Private Landlord?
Contact details, address, letting agent details, repairing and tolerable standard (EPC etc.). Card details for payment.
100
What is the fee for Private Landlord Registration?
£82
101
Is MLDT tenant entitled to compensation for improvements?
Yes, Schedule 5 of 91 Act.
102
Can a LL resume a MLDT?
Yes, one year notice, Non-Ag purpose with planning permission, lease does not prohibit this.
103
Can the tenant of MLDT diversify into non-Ag?
With consent 70 days notice. LL can object with 60 days if activity would prejudice holdings agricultural business
104
What happens if a tenant under a SAT dies with a successor?
The inherited tenancy becomes a PRT
105
MLDT NTQ
Breach of tenancy, tenant has 12 month period to remedy. 1-2 yrs notice
106
Can you convert a 91 Act to a MLDT?
Yes, minimum term 25 yrs, tenant improvement must be paid.
107
What is the repairing standard?
Heating system, water supply free of lead, planned to apply to all let houses, will include farmhouses, by March 2027.
108
What notice must be given for RR in PRT?
3 months
109
How to RR SAT (Scotland)
AT2 form to propose a rent increase, 2 months notice.
110
How to end SAT?
Notice in writing 40 days notice. AT6 form.
111
Is there a no fault eviction for SAT?
No, needs listed ground.
112
What is a HMO?
a property where 3 or more people, not from the same family unit, share facilities like kitchens and bathrooms
113
What is disregarded during 91 Act rr?
Tenant improvements, scarcity, dilapidations, non-ag activities. s.13 1-2 year notice
114
How was the milking parlour at Kerrytonlia recorded as?
Tenant fixture is installed by the tenant, considered part of the property. The tenant is generally responsible for maintaining fixtures. It was agreed that parlour would be regarded as tenant fixture, agreed within 90 days of the start of the tenancy.
115
What was used for the temporary letting of sheds?
Licence to occupy, non-exclusive use

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