Landlord & tenant Flashcards

(52 cards)

1
Q

Examples of what a surveyor needs from a client at the beginning of an instruction?

A

Agreed terms of engagement
A copy of the existing lease and any plans or deeds of variation.
Contact details for the tenant

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2
Q

What can fees for rent reviews and lease renewals be based on?

A

Fixed fee
A percentage of the new rent agreed
A percentage of the saving made from the quoting rent

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3
Q

If a lease doesn’t mention anything about the Act, what does this mean?

A

It is inside the Act.

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4
Q

What does ‘Subject to contract’ mean?

A

The contents of the email are not legally binding until a formal contract is signed.

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5
Q

What does ‘Without Prejudice’ mean?

A

During negotiations the opposing party cannot rely on anything said by the surveyor when they have labelled it with this and cannot be used as evidence in litigation.

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6
Q

What are the attributes of a lease?

A

Exclusive possession of a defined area of land/property.
For a fixed term.
Rent but also doesnt need to be

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7
Q

What is required for a lease of more than 3 years?

A

terms must be in writing, signed and registered as a deed.

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8
Q

What is the difference between a lease and a licence?

A

A lease grants exclusive possession of a property for a fixed term (an estate in land), whereas a licence is a permission to make it lawful for them to use the land.

A lease can be assigned, a licence is a personal right that cannot be assigned.

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9
Q

What case law sets out the differences in lease and licences?

A

Street v Mountford [1985]

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10
Q

What is a tenancy at will?

A

Form of licence created by written agreement for an unspecified time, in which the landlord may evict the tenant at anytime.

Not a legal interest in land with no right of renewal.

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11
Q

Examples of when a tenancy at will could be used…

A

Allowing a tenant early entry for fit out works
Whilst a tenant is agreeing a new ‘contracted out’ lease after the expiry

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12
Q

What is a wayleave?

A

A temporary right with an annual payment.
The right for a company to install and maintain their apparatus (often used by utility companies).
It is personal to the company.
Doesn’t need registering

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13
Q

What is an easement?

A

A permanent right for a capital payment
It can be registered

(1) There must be a dominant and servient tenement.
(2) The easement must accommodate the dominant tenement.
(3) The dominant and servient tenements must be owned or occupied by different persons.
(4) The right claimed must be capable of forming the subject matter of a grant

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14
Q

How is a prescriptive right or easement obtained?

A

Proved through uninterrupted use of the land for not less than 20 years.

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15
Q

What is a permissive right?

A

Can be granted by a landowner to grant access over the land.

NOT public rights of way.

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16
Q

What is adverse possession?

A

Adverse possession is a legal process that allows someone to claim ownership of land or property without the owner’s permission.

10 years of occupation is required if the land is registered but 12 if the land is not registered.

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17
Q

What are some common basis’s for rent reviews?

A

Upwards only to open market rent using standard assumptions and disregards
Indexation (CPI or RPI) possibly with caps and collars.
turnover rents

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18
Q

Examples of usual assumptions for a rent review…

A

Property is fit and available for immediate occupation and use
Let as a whole
Willing landlord and willing tenant

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19
Q

Examples of usual disregards for a rent review…

A

Tenants improvements to the property
Any goodwill from the tenant attached to the property

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20
Q

What did Basingstoke and Deane Borough Council v Host Group (1987) decide?

A

If the assumptions and disregards of a rent review clause is silent about the hypothetical term, assume the remainder term.

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21
Q

What case law deals with time of the essence?

A

Bello v Ideal View (2008)

A rent review had not been carried out for 13 years, the court held the rent review could proceed as time was not of the essence.

22
Q

Can post rent review date evidence be taken into account when negotiating a rent review?

A

Yes – eg if there was a letting a month later than the rent review date, you can use this

BUT a letting 6 months later, will hold less weight.

23
Q

What is at the top of the hierarchy of comparable evidence?

A

recent open market lettings

24
Q

What is a Calderbank offer?

A

A binding offer to settle a rent review.

The offer must set out all the terms to settle the dispute and a time limit in which the other party must accept the offer (often 21 days).

25
What must a Calderbank offer be marked?
without prejudice save as to costs
26
What is the version of a Calderbank offer called for lease renewals?
Part 36 offer
27
In a rent review dispute, how do you establish the method of determination?
It will be stated within the rent review clause of the lease
28
What are the types of 3rd party surveyor?
independent expert and arbitrator
29
Tell me about an arbitrator...
Form of dispute resolution for rent reviews. They can act only on evidence and arguments submitted They are not liable for negligence and cannot be sued. Regulated by statute Discretion on costs
30
Tell me about an independent expert...
Can make own investigations and use own knowledge and expertise to reach decision. Liable for negligence, can be sued. Contract with the parties No automatic discretion on costs
31
What is the RICS professional standard for arbitrators?
Surveyors acting as arbitrators in commercial property rent reviews April 2013
32
What is the RICS professional standard for independent experts?
Independent expert determination 2016
33
What is an advocate?
an advocate represents their client at a hearing in court
34
What must expert witnesses do?
Evidence must be impartial and objective Duty of the surveyor is to the court The evidence must be independent work of the surveyor The surveyor must believe their opinions are true
35
What section of the Landlord and tenant act 1954 states that to gain protection under the Act , there must be a business tenancy?
Section 23
36
What are the 6 basic elements of a business tenancy?
It is a tenancy Premises must be used for a business Must be occupation of at least part of the premises by the tenant Term longer than 6 months Must not be an exempt tenancy, eg tenancy at will Competent landlord
37
What sections are the security of tenure provisions in the 54 Act?
sections 24 - 28
38
Tell me about what a Section 25 non-hostile notice?
Lease renewal initiated by the landlord Served by the landlord to the tenant, requesting a new tenancy. Must state the date the landlord wants to end the lease Given not more than twelve nor less than six months before the date of the termination specified therein. Must contain the landlord’s proposals (property, rent & “other terms”). Neither party is bound by the proposals in the Notice. The tenant is not required to respond to the Notice but must take appropriate action by the termination date specified in the Notice if a renewal is required to avoid losing renewal rights.
39
Tell me about what a Section 25 hostile notice?
Termination of the lease initiated by the landlord. * Must specify the date the landlord wishes to end the tenancy * Must give not more than 12 and not less than six months notice * Must specify which of the grounds for termination the landlord is relying on.
40
Tell me about what a Section 26 notice?
Request by tenant to the landlord for a new tenancy. Must state the date the tenant wants to end the lease. Notice must be given not more than twelve nor less than six months before the date of the termination specified therein. Must contain the tenant’s proposals (property, rent & “other terms”) Neither party bound by the proposals in the Notice. The tenant does not have to have a genuine intention to renew Landlord need not respond unless he opposes a renewal on one of the statutory grounds, in which case he must serve a counter notice within 2 months of the S.26 Request.
41
Tell me about what a Section 27 notice?
Served by a tenant to the landlord to terminate the lease. If the lease has a fixed end date – No formal notice is required and they can just vacate, but serving a Section 27 notice confirms that the tenant will leave. If the lease continues under the Act – A Section 27 notice is needed to formally terminate the lease continuation.
42
What does section 30 set out?
The landlords grounds for refusal of a new lease
43
What are the 7 grounds for opposition to a new tenancy?
a. Failure to maintain or repair b. Persistent delay in paying rent c. Substantial tenant breaches d. Offer of alternative accommodation e. Uneconomic sub-tenancies f. Redevelopment g. Owner occupation
44
What must a landlord prove for owner occupation?
they have owned the property for 5 years prove intention to occupy and run business
45
What does section 33 set out?
Duration of the new tenancy – if tenant wants 20 year lease and landlord doesn’t, if it goes to court most they can agree is 15 years. Can have more than 15 yrs if both parties agree to that. Courts will give regard to the sector/market norm lease length
46
What is interim rent?
the rent that is paid between the end of the original lease term and the start of the new lease
47
What is a section 40 notice?
Request for information by either party within the last 2 years of the tenancy.
48
What are the choices for third party determinations for lease renewals?
County Court or Professional Arbitration on Court Terms (PACT)
49
What section sets out the procedure which must be followed for the landlord to contract outside the Act?
Section 38A
50
Why might a landlord want the lease contracted out?
To keep future flexibility may want to re-develop or occupy the property at lease end
51
What is known as a 'health warning'?
The notice served by the landlord to the tenant that the lease will be contracted outside of the Act/ not protected. Must be issued before the lease is signed. Then a statutory declaration must be signed by the tenant. A simple one can be signed if 14 days prior to lease start date.
52
Give me example ways to terminate a lease?
Forfeiture Surrender and negotiation Break clauses Lease expiry and services of notices under the LTA 1954