Parol leases (The Transfer deed - Legal formalities required to create and transfer interests and estates in land (Core principles of land law)-FS Flashcards
(8 cards)
What is a parol lease in the context of English property law?
A parol lease is a lease created orally rather than in writing. Despite lacking formal documentation, it can still be legally enforceable if it satisfies specific statutory conditions.
Which statute governs the enforceability of parol leases in English law?
Parol leases are governed by Section 54(2) of the Law of Property Act 1925, which provides an exception to the general rule that leases must be made by deed.
What is the maximum term allowed for a lease to qualify as a parol lease under Section 54(2)?
The lease must be for a term not exceeding three years. Any oral lease exceeding this duration must be made by deed to be valid.
When must the tenant be entitled to begin occupation under a valid parol lease?
The tenant must be entitled to immediate possession. Delayed possession disqualifies the lease from being considered valid under parol lease rules.
Can a lease qualify as a parol lease if the landlord charges a lease premium?
No. A valid parol lease must not include a lease premium (a one-off capital payment). Only rent is permitted as consideration.
What condition regarding rent must be satisfied for a lease to be enforceable as a parol lease?
The rent must be at the market rate. The lease must involve the tenant paying a reasonable commercial rent for the property.
Is it a legal requirement for a parol lease to include rent review provisions?
No. Rent review dates are not a condition for the validity of a parol lease under Section 54(2). Their inclusion is irrelevant to enforceability.
What is the legal impact if all statutory conditions for a parol lease are met?
If all conditions under Section 54(2) are satisfied, the oral lease is enforceable, even though it is not in writing and not executed as a deed.
