Remedies For Breach Of Leasehold Covenants Flashcards
What is the liability on covenants in OLD leases?
Original tenant remains liable under privity of contract
Current tenant is liable under privit of estate
Landlord MAY be ablet o sue any intervening tenants in privity of contract, f the landlord required each tenant to give a direct covenant on assignment.
What is the liability of covenants in a NEW LEASE?
LT(C)A replaces privity of contract and estate.
Original tenant is RELEASED from liability for covenants in leaes as soon as it assigns lease to another.
Landlord is allowed to stipulate certain circumstances and conditions that must be met before consent is given to assign - AGA, a promise by the outgoing tenant that it will be LIABLE for any breaches of covenant in the lease by the incoming assignee
How long does an AGA last?
Only lasts for the duration of that assignees ownership of the lease, therefore the tenant who gave the AGA will be released once the assignee assigns the lease on.
What are the remedies for breach of the covenant to pay rent?
Action in debt
CRAR
Pursue guarantors or rent deposit
Forfeiture
What is the limitation period for action in debt?
6 years on recovery of rent
What is CRAR and when can it be used?
Commercial rent arrears recovery.
Permits landlord to enter property and seize and sell goods belonging.
Only available to commercial premises, strict procedural rules
Must give 7 days notice of intentions and use enforcement agency to move
What ist he max value that a landlord can recover through CRAR?
Landlord is not allowed to remove cetain gods, which include items up to the value of 1350 which are necessary for tenants usiness (computers, phones)
What are guarnators and when can the landlord pursue?
Landlord shoudl consider who can be sued.
If there is a guarnator, or former tenants and their guarnators, who remain liable.
In writing, will be obliged to pay rent and make other sue due.
What is s 17 of LT(C)A
When landlrod intends to pursue former tenant or guarnator of a former tenant for failure to pay rent, landlrod must comply with s 17
Landlord must serve default notice
Must be served within 6 months of the current tenants breach
Applies to ALL leases, not just new.
How can rent deposits be a remedy for breach of rent?
Can require tenant to deposit a cash sum as security for payment of rent and performance of tenants covenants.
Usually 6-12 months rent under the lease
When can forfeiture be used for non-payment of rent?
Any rent is outstanding for 21 days aft becoming payable
Tenant is in breach of ANY tenant covenants
What are the remedies for breach of covenant to repair?
Specific performance
Damages
Self help
Forfeiture
When can specific performance be a remedy for breach of covenant to repair?
ONLY granted when other remedies are not appropriated.
Available to force tenant to comply with positive covenant (repair)
When can damages be used as a remedy for repair?
Always available for breach of contract.
However, landlord MAY not be able to recover the full amount:
- s 18 LTA limits the amounts of damages to the amount that the landlrods reversion has DIMINISHED in value as a result of the disrepair
- LP(R)A applies to leases granted more than 7 years with more than 3 years left to run. Special procedure - notice must be served on tenant, and tenant has a right to serve a counter notice within 28 days, and if the tenant does so, landlrod CANNOT proceed any further with the client without leave of the court.
What does the leasehold property (repairs) act limit damages to when in breach of repairs covenant?
LP(R)A applies to leases granted more than 7 years with more than 3 years left to run. Special procedure - notice must be served on tenant, and tenant has a right to serve a counter notice within 28 days, and if the tenant does so, landlrod CANNOT proceed any further with the client without leave of the court.
