Leases

Question 1

Which feature most clearly distinguishes a lease from a licence?
A. Exclusive possession
B. Requirement for a deed
C. Presence of covenants
D. Payment of a premium

Answer 1

A. Exclusive possession
Explanation: Leases grant exclusive possession; licences only personal occupation

Question 2

Under LPA 1925, a “term of years absolute” refers to:
A. A leasehold estate
B. A tenancy at will
C. A licence agreement
D. A bare trust

Answer 2

A. A leasehold estate
Explanation: “Term of years absolute” is the statutory definition of a leasehold

Question 2

A lease for two years may be created orally if it grants:
A. Immediate possession at best rent, no premium
B. Exclusive possession with a premium
C. License to occupy sublet
D. Periodic tenancy

Answer 2

A. Immediate possession at best rent, no premium
Explanation: Under LPA 1925 s 54(2), short leases can be legal if “best rent” and no premium

Question 3

Which element is NOT required for a valid lease under Street v Mountford?
A. Certainty of term
B. Payment of “best rent”
C. Registered title
D. Exclusive possession

Answer 3

C. Registered title
Explanation: Street requires term, possession, and rent; registration applies only to long leases

Question 4

Which clause could defeat exclusive possession?
A. Tenant’s covenant to pay rent quarterly
B. Landlord’s reserved right of entry for inspections
C. Lease term of uncertain duration
D. Deed requirement

Answer 4

B. Landlord’s reserved right of entry for inspections
Explanation: Genuine, limited access clauses can negate exclusive possession

Question 5

Which tenancy is certain in term despite lacking a fixed end date?
A. Tenancy at will
B. Licence to occupy indefinitely
C. Periodic tenancy with max one-year intervals
D. Lease “until I need the property”

Answer 5

C. Periodic tenancy with max one-year intervals
Explanation: Periodic tenancies of no more than one year count as certain

Question 6

Which formal requirement applies to a lease of five years?
A. Deed plus registration
B. Oral agreement suffices
C. Must be by deed, no registration needed
D. Written only, no deed

Answer 6

C. Must be by deed, no registration needed
Explanation: Leases 3–7 yrs require a deed; registration only if over 7 yrs

Question 7

Which factor defeats a lease under “factors that defeat a lease”?
A. Absence of exclusive possession
B. Failure to insure
C. Non-payment of a premium
D. Lack of covenants

Answer 7

A. Absence of exclusive possession
Explanation: Exclusive possession is essential; its absence indicates a licence

Question 8

Which is a covenant implied into all residential leases?
A. Tenant’s covenant to pay rates if specified
B. Landlord’s covenant for quiet enjoyment
C. Tenant’s covenant to surrender keys
D. Landlord’s covenant to allow subletting

Answer 8

B. Landlord’s covenant for quiet enjoyment
Explanation: Quiet enjoyment is implied by common law

Question 9

Under LTCA 1995, when a tenant assigns a new lease, the original tenant is:
A. Liable only for rent
B. Automatically released from covenants
C. Liable for breach of alienation covenant only
D. Still liable unless court order

Answer 9

B. Automatically released from covenants
Explanation: LTCA 1995 abolishes privity of contract on assignment for post-1996 leases

Question 10

Which covenant does NOT “touch and concern” the land?
A. Tenant’s covenant to repair premises
B. Tenant’s covenant to insure
C. Tenant’s covenant to pay a personal indemnity
D. Tenant’s covenant to pay service charge

Answer 10

C. Tenant’s covenant to pay a personal indemnity
Explanation: Personal indemnities are collateral and do not affect land use or value

Question 11

Under the Code (LTA 1927), landlord must respond to a consent application within:
A. 7 days
B. 15 days
C. 28 days
D. 30 days

Answer 11

B. 15 days
Explanation: The Code requires consent grant/refusal within 15 days

Question 12

Tenant sublets without landlord’s consent. Landlord’s best immediate remedy is:
A. Forfeiture for rent arrears
B. Injunction to restrain subletting
C. Damages for premium loss
D. Specific performance

Answer 12

B. Injunction to restrain subletting
Explanation: Injunction prevents unauthorised sublets

Question 13

A trustee holds a 10-year residential lease granted orally. Tenant in occupation at market rent. The lease is:
A. Periodic tenancy
B. Equitable only (fails formalities)
C. Licence
D. Legal lease (over 7 yrs)

Answer 13

B. Equitable only (fails formalities)
Explanation: Over 7 yrs require deed + registration; oral lease yields equitable estate

Question 14

Tenant served notice to quit a quarterly periodic tenancy on 1 Jan. The lease says notice ‘not less than one quarter’. Earliest valid quit date is:
A. 1 Apr
B. 30 Apr
C. 1 May
D. 31 Mar

Answer 14

A. 1 Apr
Explanation: One full quarter Jan–Mar, so expires 1 Apr

Question 15

Landlord wants to recover arrears on a commercial lease of £5,000 due. They can:
A. Forfeit immediately
B. Use CRAR after 7 days’ arrears
C. Sue after 3 years only
D. Seize tenant’s car without notice

Answer 15

B. Use CRAR after 7 days’ arrears
Explanation: CRAR (Commercial Rent Arrears Recovery) applies after 7 days

Question 16

A lease grants a break clause: “Either party may end the lease by 6 months’ notice to the rent day.” The tenant serves notice 3 months early. The notice is:
A. Valid (break clauses are flexible)
B. Invalid (must be 6 months)
C. Invalid (needs court order)
D. Valid if landlord consents

Answer 16

B. Invalid (must be 6 months)
Explanation: Break clauses require strict adherence to notice period

Question 17

Trustee sells leasehold premises with trust funds and pays personal debt. Beneficiary’s remedy is:
A. Injunction against sale
B. Forfeiture of lease
C. Specific performance of trust
D. Proprietary tracing into proceeds

Answer 17

D. Proprietary tracing into proceeds
Explanation: Equity traces misused trust funds

Question 18

Landlord refuses consent to assignment without reason. Tenant’s remedy is to:
A. Apply to court under LTA 1927 s 19
B. Assign anyway risk-free
C. Seek security of tenure
D. Claim CRAR

Answer 18

A. Apply to court under LTA 1927 s 19
Explanation: Unreasonable withholding can be challenged

Question 19

Landlord accepts rent for 6 months after breach of repair covenant. This conduct:
A. Creates a periodic tenancy
B. Extends the lease by 6 months
C. Triggers LTCA 1995 relief
D. Waives right to forfeit for that breach

Answer 19

D. Waives right to forfeit for that breach
Explanation: Accepting rent post-breach waives forfeiture rights

Question 20

Original lease covenants passed to T₁ under PoE but not PoC. This scenario applies to:
A. Equitable leases
B. Periodic tenancies
C. Post-1996 leases
D. Pre-1996 leases

Answer 20

D. Pre-1996 leases
Explanation: Pre-1996, PoE passes burden and benefit; PoC remains with the parties

Question 21

Which combination defeats a lease and creates a licence?
A. Grant of exclusive possession + certain term
B. Deed + registration
C. Allowing landlord unfettered right to relocate tenant + sharing occupation
D. Lease for 5 yrs + rent

Answer 21

C. Allowing landlord unfettered right to relocate tenant + sharing occupation
Explanation: These features show lack of exclusive possession

Question 22

A covenant “at landlord’s sole discretion” without reasonableness is, under LTA 1927 s 19A:
A. Void unless it states discretion must be exercised reasonably or subject to third-party review
B. Fully valid
C. Void for uncertainty
D. Upgraded to absolute prohibition

Answer 22

A. Void unless it states discretion must be exercised reasonably or subject to third-party review
Explanation: s 19A requires a reasonableness safeguard

Question 23

In Birch v Walker, the court held that:
A. Privity of contract transfers on assignment
B. Assignment without deed is void
C. Privity of estate arose between successor L and T absent PoC
D. Licence and lease can coexist in same agreement

Answer 23

C. Privity of estate arose between successor L and T absent PoC
Explanation: PoE binds successors without direct contract

Question 24

Which statement on CRAR is correct? A. Only for commercial tenancies, not residential B. Abolished in 2007 C. Requires court order before enforcement D. Applies after 3 months’ arrears

Answer 24

A. Only for commercial tenancies, not residential Explanation: CRAR replaces distress for business leases

Question 25

Under LPA 1925 s 54(2), which is true of a 3-year lease? A. Automatically periodic tenancy B. Must be by deed and registered C. No deed required if best rent and no premium D. Void unless in writing

Answer 25

C. No deed required if best rent and no premium Explanation: Parol leases up to 3 yrs legal if s 54(2) conditions met

Question 26

A landlord fails to serve a s 146 notice before forfeiting a repairing covenant in a 10-year lease. The forfeiture is: A. Valid if rent arrears exist B. Valid after court confirmation C. Invalid for lack of notice D. Automatically converted to licence

Answer 26

C. Invalid for lack of notice Explanation: s 146 notice is mandatory for covenant breaches

Question 27

Which of these automatically ends a lease by operation of law? A. Assignment without consent B. Tenant’s insolvency absent disclaimer C. Failure to pay a premium D. Frustration due to destruction of premises

Answer 27

D. Frustration due to destruction of premises Explanation: Frustration ends a lease when performance becomes impossible

Question 28

A 4-year legal lease granted orally in unregistered land where tenant is in occupation is: A. Equitable lease B. Licence only C. Void for lack of deed D. Binding as an overriding interest

Answer 28

D. Binding as an overriding interest Explanation: Short legal leases bind as overriding interests if in occupation

Question 29

Landlord grants lease then sells freehold without notice to tenant. The new owner is: A. Bound by the lease as successor in title B. Free of all covenants C. Must re-grant the lease D. Holds only a licence

Answer 29

A. Bound by the lease as successor in title Explanation: Leases bind successors under the doctrine of binding covenants

Question 30

Which statutory implied covenant requires landlords of residential properties to keep structure and exterior in repair? A. Housing Act 1985 s 8 covenant B. Defective Premises Act 1972 covenant C. Landlord and Tenant Act 1927 s 19 covenant D. Law of Property Act 1925 s 146 covenant

Answer 30

A. Housing Act 1985 s 8 covenant Explanation: Under the Housing Act 1985 s 8, a landlord of a dwelling house is statutorily bound to keep in repair the structure and exterior (including drains, gutters, and external pipes)

Question 31

In an Authorised Guarantee Agreement (AGA), the outgoing tenant guarantees which of the following? A. The assignee will pay all future rent and perform all covenants under the lease B. The landlord will renew the lease under the Landlord and Tenant Act 1954 C. The outgoing tenant’s indemnity to anyone else under the lease D. The assignee’s obligation to register the lease

Answer 31

A. The assignee will pay all future rent and perform all covenants under the lease Explanation: An AGA under LTCA 1995 s 4 makes the outgoing tenant unconditionally guarantee the assignee’s performance of all lease covenants (rent and other obligations).

Question 32

Which of the following is NOT one of the “four unities” required for co-tenants to hold joint tenancy of a lease? A. Unity of possession B. Unity of interest C. Unity of duration D. Unity of title

Answer 32

C. Unity of duration Explanation: Joint tenants must share possession, interest, time and title. “Unity of duration” is not the correct term—“unity of time” is the requirement that all interests start together

Question 33

Under the Protection from Eviction Act 1977, before a landlord can forfeit a lease of mixed residential and commercial premises, he must: A. Serve a section 146 notice B. Obtain a court order C. Make a formal demand for rent D. Register the forfeiture clause at Land Registry

Answer 33

B. Obtain a court order Explanation: For residential or mixed premises, forfeiture by peaceable re-entry is prohibited; a court order is mandatory before the lease can be terminated

Question 34

Under LPA 1925 s 54(2), a short fixed-term lease (three years or less) need not comply with deed formalities provided it: A. Is granted at a premium of market value B. Includes a break clause C. Is expressed by deed but not registered D. Takes effect in possession immediately

Answer 34

D. Takes effect in possession immediately Explanation: Section 54(2) allows parol creation of short leases if (1) immediate possession, (2) best (market) rent, and (3) no fine or premium are met