Legal and Regulatory Compliance Flashcards
(118 cards)
What are the different types of party structure?
- A wall that stands astride the boundary of land belonging to two or more different owners
- ‘Party fence walls’ (e.g. a garden wall), but not things like wooden fences
- A wall that stands wholly on one owner’s land but used to separate two or more owners’ buildings
- Any wall, floor partition or other structure separating parts of buildings approached by separate entrances or staircases (e.g. flats)
When is a tenancy classed as a business tenancy?
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Why should a terminal schedule not be served under S146 of the Law of Property Act 1925?
Terminal Schedules should not be served under S146, as the tenant cannot forfeit a lease that is about to terminate naturally
Can you list the building regulations?
- A - Structure A=acro prop
- B -Fire Safety B = BURNS
- C Site preparation and resistance to contaminates and moisture C=contaminate
- D Toxic substances D is for DEATH
- E Resistance to sound E=EAR
- F Ventilation F=FART
- G Sanitation, hot water safety and water efficiency: G=GROSS
- H Drainage and waste disposal H=looks like a drain pipe.
- J Combustion appliances and fuel storage systems: J= JOTUL woodburner
- K Protection from falling, collision and impact: K looks like a person falling
- L Conservation of fuel and power: L=lighting
- L1B: Conservation of fuel and power in existing dwellings
- M Access to and use of buildings
- P Electrical safety P=POW
- Q Security in dwellings Q=M15
- R High speed electronic communications networks
- 7 - Material and workmanship: Approved Document 7
What types of dilapidations schedules are available?
- Interim Schedule
- Terminal Schedule
- Final Schedule
How can a tenancy be brought to an end?
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What might you expect to find in a landlord’s claim served after the end of a 25 year lease?
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What is a section 146 notice?
What is the notice?
It is a notice served under section 146 of the Law of Property Act 1925 by a landlord to their tenant to terminate a lease early due to a breach by the tenant of the terms of the lease.
It is only possible to issue such a notice if there is a right to forfeit the lease (a right of re-entry) written into the lease. The notice confirms that forfeiture proceedings (to terminate the lease) will be brought because a covenant (a contractual promise) in the lease has been breached unless the breach is not remedied (assuming the breach is capable of being remedied).
The types of covenant that are commonly breached include:
A covenant to maintain and repair the property; or
A covenant not to keep pets at the property.
What items would you expect to see within a ‘quantified demand’?
- Cost of repair works
- Loss of value of the property
- Loss of rent and service charge
- Insurance
- Security
- Utilities
- Cleaning
- Fees (e.g. professional/legal)
- Can you explain what you did at Wigmore Lane for the dilaps assessment?
- My instruction was on behalf of the tenant
- they were looking to assign their lease over to a new tenant including their dilapidations liability.
- The new tenant had provided a terminal schedule of dilapidations
- They wanted me challenge the costs the other party had established.
- The assignee also stated they were looking for a service charge cap in respect of the landlord’s plant which they deemed to be in poor condition, this was threatening negotiations.
- I carried out a full dilaps assessment - bascially I looked at it as if doing a terminal schedule of dilapidations to ascertain the tenants liabilities, I also reviewed the lease beforehand.
- I comissioned an M and E consultant to review the plant on the floor and also to review trhe landlords plant with their permission and comment.
- If they probe deeper you can mention the landlord plant was chillers and assignee tenant surveyor had done a visual inspection only. On review of maitnenace records by my M and E consultant we were able to reduce their concerns.
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What are dilapidations and what is a schedule of dilapidations?
Dilapidations
- refers to breaches of the lease covenants by either landlord or tenant, though mainly the latter, and the process of remedying the breaches.
Schedule of Dilapidations
- This is the formal listing of the alleged breaches of the contract.
- Dilapidations are not intended to profit the landlord. Any claim is merely intended to return the landlord to the same position as if the Tenant had performed their lease obligations.
What remedies are available to a landlord for dilapidations?
DURING THE COURSE OF THE LEASE:
- Specific performance (courts frown upon near end of lease say last 18 months)
- Court order complelling party to perform duties
- Apply to the Courts to end the lease under S146 of the Law of Property Act 1925 (can also use fofeiture but courts tend to favour tenant)
- erved by a landlord who wishes to commence forfeiture proceedings against a leaseholder following a breach of a lease.
- specify the breach complained of,
importantly if the breach is capable of remedy, require the leaseholder to remedy the breach, and
in any case require the leaseholder to make compensation in money for the breach.
The leaseholder is afforded a reasonable time to remedy the breach if it is capable of remedy following service of the section 146 notice.
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Jervis v Harris Clause
- Serve an interim schedule formally under the landlord’s right of repair clause .
- If the tenant defaults on the notice enter the premises and undertake works.
- Costs may not be recoverable unless specified in the lease.
AFTER THE LEASE
- ONLY Damages recoverable- tenant cannot be asked to do the works.
What is the difference between a terminal and a final schedule of dilaps?
- terminal
- produced in last 18 months of tenancy or at the end.
What is the controlling legislation applicable to party walls?
Party Wall etc Act 1996
What is the dilapidations pre-action protocol and what is it’s objective?
The Dilapidations Pre-action Protocol
- produced by the Property Litigation Association in consultation with RICS.
- It relates to dilapidations claims for damages against tenants at the termination of a tenancy
- First published in 2002
- Requires the landlord’s surveyor to sign an endorsement confirming, amongst other things, they had followed the protocol.
- Adopted under the Civil Proceedure Rules in 2012
- The protocol applies to commercial property situated in England and Wales.
OBJECTIVE
- aim of preventing landlords exaggerating claims and to lead the way for early settlements without involvement of the courts.
- encourage the exchange of early and full information about the dispute;
What different party wall notices are there?
- Section 1 - Line of Junction Notice
- Section 3 (for Section 2 works) - Party Structure Notice
- Section 6 - Notice of Adjacent Excavation
What clauses would you typically consider when undertaking a schedule of dilapidations?
When should a schedule of dilapidations be served and how long after the expiry of the lease?
- A schedule of dilapidations can be served at any time during a lease
- Up to twelve years after expiry if the lease is under seal
- Six years after expiry if the lease is under hand.
- Some leases do impose other caps on timing of service.
- There are differences in the type of schedule served depending on the timing in relation to the lease duration.
Explain how the Landlord and Tenant Act 1954 protects business tenancies.
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What documents would you examine prior to preparing a Schedule of Dilapidations?
- Lease
- Schedule of condition (including photos)
- Inventories
- Scaled plans
- Licenses or other consents for alterations
- Fit-out specifications
- Side letters or other written agreements
How would you limit a dilapidations claim being made?
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When should a terminal schedule of dilapidations be served?
- In the last 3 years/18 months of the lease.
What is a FRI lease?
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Explain your understanding of Capitol Park Leeds v Global Radio Services (2020).
The lease gave the tenant the right to determine it if, amongst other things, it “gave vacant possession of the Premises to the Landlord on the relevant Tenant’s Break Date”. “The Premises” was a defined term, including the original building on the property and landlord’s fixtures, whenever fixed.
The tenant started dilapidations work and in that context stripped out significant elements of the base build and landlord’s fixtures including radiators, lighting and ceiling tiles and grids. It stopped work in the hope of negotiating a settlement and surrender with the landlord, but was unable to do so. It did not replace the elements of the building which it had removed, leaving it, in the Judge’s words, “an empty shell of a building which was dysfunctional and unoccupiable”.
The Judge, Deputy High Court Judge Benjamin Nolan QC, however, held that the tenant had not complied with the break condition. What it had delivered up on the break date was not “the Premises”, as that term was defined in the Lease. He also held that the tenant had not established, on the facts, that the landlord was estopped from relying on the failure to comply with the break condition.
Permission to appeal to the Court of Appeal has been granted.