Leases 1

Question 1

What is a Licence in property law?

Answer 1

A mere permission or privilege given by the occupier of land to a person to do an act upon his property which otherwise would amount to trespass.

A Licence does not create proprietary rights.

Question 2

What is the key difference between a Lease and a Licence?

Answer 2

In a lease, possessory interest in property is transferred, while in a licence, there is no transfer of interest.

Question 3

What is the relationship between the lessee and the lessor in a Lease?

Answer 3

There exists a direct relationship.

Question 4

How does a Sub-Lease differ from a Lease?

Answer 4

In a Sub-Lease, there is no direct relationship between the headlessor and the sub-lessee.

Question 5

What is an Assignment in property law?

Answer 5

The grant of the remainder of the term in a lease.

Question 6

How can a Lease be created?

Answer 6

1. Oral
2. In writing
3. By deed

Question 7

What is Rent in the context of a Lease?

Answer 7

The consideration paid by the tenant for the use and enjoyment of the landlord’s property.

Question 8

Is Rent mandatory for the validity of a Lease?

Answer 8

No, rent is not a compulsory element for validity of a lease.

Question 9

What is Rack Rent?

Answer 9

Economic rent payable for the land and improvements on the land, representing the full value of the property.

Question 10

What is Ground Rent?

Answer 10

The rent paid on the land itself, representing the value of the ground.

Question 11

What are the types of Rent?

Answer 11

1. Ground Rent
2. Rack Rent
3. Premium Rent

Question 12

What is the significance of certainty of parties in a Lease?

Answer 12

The parties to a lease must be known and described under the contract/lease agreement.

Question 13

What is required for a valid Lease regarding the term?

Answer 13

Certainty of term, including commencement and expiration dates.

Question 14

What are the essential elements for a valid Lease?

Answer 14

1. In writing/by deed
2. Certainty of term
3. Certainty of property
4. Certainty of parties
5. Capacity of parties
6. Exclusive possession
7. Rent

Question 15

What does the term ‘Exclusive Possession’ mean in a Lease?

Answer 15

The lessee must have the right to exclude every person from the property, including the lessor.

Question 16

What is a Rent Review Clause?

Answer 16

A clause that enables the landlord to review the rent periodically, usually upwards.

Question 17

What should a Rent Review Clause include?

Answer 17

1. Method of initiating the review
2. Time frame for the review
3. Method of calculating new rent
4. Procedure for resolving disputes

Question 18

True or False: A Lease can exist in perpetuity.

Answer 18

False.

Question 19

What happens to a Licence upon the death of the grantor or licensee?

Answer 19

It terminates the license relationship.

Question 20

What is the consequence of a landlord failing to issue a receipt for rent payment?

Answer 20

It is a violation of the law, punishable with a fine or imprisonment.

Question 21

Fill in the blank: A lease is an agreement under which the owner gives up _______ and use of his property for a definite term.

Answer 21

possession

Question 22

In which case was it established that the terms in leases must be ascertainable?

Answer 22

Bosah v. Orji; Okechukwu v. Onuorah.

Question 23

What is Premium Rent?

Answer 23

A lump sum paid in addition to other rents, regarded as a fine and prohibited in some states.

Question 24

What are the factors to be considered in fixing Rent payable?

Answer 24

1. Location of the property
2. Development
3. Extant laws
4. Tax implications
5. Inflation

Question 25

What does the landlord have the right to review upon tenant's option to renew the lease?

Answer 25

The rent payable in accordance with the following formula: * The rent at which the premises might reasonably be expected to be let in the open market by a willing landlord for a term equivalent to the term granted under this lease * The rent at which the premises might, in the opinion of a Registered Estate Surveyor, be let.

Question 26

What must the landlord ensure for the tenant regarding the property?

Answer 26

Quiet possession of the property. ## Footnote This implies that the tenant has exclusive rights to the property without interference from the landlord.

Question 27

What is the difference between a tenant and a licensee in terms of property rights?

Answer 27

A tenant enjoys exclusive possession, while a licensee does not. ## Footnote This distinction affects the rights and obligations of the parties involved.

Question 28

What notification requirement does a lessor have before entering the property?

Answer 28

The lessor must notify the lessee before entry to inspect the property.

Question 29

What is the encouragement regarding dispute resolution mentioned in the law?

Answer 29

Arbitration and amicable settlement is encouraged. ## Footnote Refer to sections 30 & 32 of the law.

Question 30

Which types of premises does the Tenancy Law of Lagos State apply to?

Answer 30

Business and residential premises only.

Question 31

What types of premises are exempt from the Tenancy Law of Lagos State?

Answer 31

The law does not apply to: * Educational Institutions for its staff * Hospitals * Emergency Centre.

Question 32

What does the law state about rent increases?

Answer 32

There should be no arbitrary increase of rent; landlords cannot unilaterally increase rent.

Question 33

What is unlawful regarding rent in advance?

Answer 33

It is unlawful for the landlord to demand rent in excess of 6 months for monthly tenancy or in excess of one year for yearly tenancy.

Question 34

What happens if no agreement on rent is reached within 30 days of a new lease term?

Answer 34

The question shall be referred to a single arbitrator appointed by the parties.

Question 35

What jurisdiction do the Magistrate Court and High Court have under this law?

Answer 35

Both courts have jurisdiction to entertain matters, depending on the amount of money involved.

Question 36

What determines whether a case goes to the Magistrate Court or the High Court?

Answer 36

The amount of money involved in the case.

Question 37

Which areas are exempted from the Tenancy Law under Section 1 (3)?

Answer 37

Exempted areas include: * Apapa * Ikeja * GRA * Ikoyi * Victoria Island.