Legal Issues in a Commercial Lease: Arrears of Rent and Repair Covenants
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This article discusses the legal issues related to arrears of rent and repair covenants in a commercial lease. It covers the liabilities of tenants and remedies available for breach of covenants.
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Lease by deed to Ted Ted covenanted to pay rent carry out repairs
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Table of Contents INTRODUCTION..........................................................................................................................3 TASK..............................................................................................................................................3 a) Is Ted liable for the arrears of rent Advise on all relevant issues and procedures..................3 b) Is Azim liable for the repair and user covenants....................................................................4 c) What remedies are available against Azim for breach of the repair and user covenants........5 d) How would your answer to parts a and b above differ if the lease had been granted in 1995 .....................................................................................................................................................6 CONCLUSION...............................................................................................................................6 REFERENCES................................................................................................................................7
INTRODUCTION Lease deed is that kind of legal document which is been used in order to mark out terms and conditions within which property is been leased out. The lease deed contains all information regarding lessor, lessee, tenure of lease, payment over lease and other terms which is to be followed by both lessor and lessee within the term of lease. Such deed is been used for making property which is been given over lease attain legality within the eyes of law. It is mainly used in order to make all kinds of leased payment done on time. Scope of these laws are wider as they cover various aspects which is related to lease taking place between lessor and lessee. Nature is dynamic as it directly affects lease deed. In this file things covered is based over arrears of rent and remedies are available for breach of the repair. TASK Case study:In 2018 Layla has registered proprietor over commercial unit which is granted over 20 years of lease which makes deed to be carried out over repairs which is used for the premisses of business purpose only Earlier this year Ted is been assigned to Azim and he did not pay rent for six months and refused over carrying out repairs and has been using premises over dwelling.With full reference to legal authority advise Layla on the following: a) Is Ted liable for the arrears of rent Advise on all relevant issues and procedures The above case scenario shows that the main topic of discussion is lees of deed which is an instrument that is been used over land or premises that has been rented to the owner over fixed period of time. In this leasee is having exclusive used of land over premises during the term of lease subject over conditions contained over lease(Decker, 2017). This is covered within the legislation that is property act 1925. The key policies of the act is to reduce over number is legal estates within which freehold and leasehold of been generally made over the transfer of interests within the land easier for purchases. In this other policies is been regulated over mortgage and leases making regulation over assignment over tackling some of the short coming of law within the property law. Innovation is been included over default creation upon easement within section 62making denial over asses and statutory applications to be covered over very long leasehold. In the above case it can be observed that Section 25A is been applied. It says that the amount of arrears of rent received form tenant that is unrealised over making subsequently from tenants. In the case assesses should be deemed over income from house property in respect of financial
years that is received over total income within the head of “Income from house property” within which owner of property or not within financial years. Further the act covers that paying rent from the date over tenancy started. In this tenancy is known as'assignment' or 'succession' which is responsible for rents arrears within the case. The case scenario explains that Ted is been assigned to Azim and Azim did not pay the rent. So, as per the section mentioned above it can be observed that Ted is nit required to pay the rent as Azim did not pay it. b) Is Azim liable for the repair and user covenants In this case another aspect is covered which is based over making repair upon property which is required to be done by the landlord. Further the concept of covenant to repair makes agreement made between lessor and lessee obligating over adjusting which makes defects corrected over premises during the term of lease which is been allotted. Full repairing is that part of lease within which an tenant is required to take all costs over repairs and insurance over property which is been leased by the landlord. In this mots common exemption is that tenant is required to give back the property as it is when lease is ended. In order to make it more significant two important condition for this purpose has been given as follows: Tenant is not responsible upon the state of repair of premises over the beginning of lease. If any disrepair exists to property at the time lease is taking place(Brady, 2020). Also it is been observed that any lease which is containing through an agreement within landlords and tenant is made over deed. Then in such agreement if evidence lacks upontaking covenants two condition is been applied that is given as follows: The agreement within certain circumstances binds successors over title while being an covenant. If breach has taken place then either party is not allowed to treat the lease as the emnd until breach is proved. Termoverleaseagreementisbeengenerallytreatedovercovenantswherethe agreements has been made over deed. Lease over duration is than three years and is not even made in writing over certain consonants which is to be existed. So, it can be observed from the above case scenario that Azim is not liable for the damages which has to be prepared since rent has not been paid by him. Further the case observed that the property is been registered in the name of Lylan that makes him the original owners of the property as per the property law of UK. Since landlord is always responsible for repairs to the
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property's structure and exterior,basins, sinks, baths and other sanitary fittings including pipes and drains(Ballem, 2019). c) What remedies are available against Azim for breach of the repair and user covenants Breach of covenant in this violation of agreement over promise is been made upon written over property deeds and is been refereed over making implied condition over which agrees. In this covenant is always been part of an contract or property deed. This is been refereed over an expressed or implied condition over which party agrees. Covenant is part of an contract. It is frequently related over way of real property over home or vehicles in case when the contract isnot been live up to covenant is considered as breach which is been sued over damages. In order over making sure the promise is been refer over something within the breach of covenant is suedover damages. The promise is been referred over something that is made over promise related to something in future which is important enough and termination of an action is done. In case where Tenant dos not pay rent Landlord can as the court to passed an order of evocation for tenant and also request upon money damages in relation to rent late fees and, court costs. Complain can be launched by landlord over filling an complain immediately regarding failure to pay rent.Filing a failure to Pay Rent- Landlord's Complaint:Complain launched must be completely filled out and filed within the lower court that is having jurisdiction over property. Then court issued summons. The summon can be posted through mail only when action is for repossession of property. The summon says that tenants is required to appear before the court and should answer over landlord complain. In this tenant is required to "answer" the landlord's complaint to "show cause" why the landlord's demand to repossess the property should not be granted. Other remedies which can be used by landlord is Eviction within which landlord must file a “Petition for Warrant of Restitution”. In case tenant is having various judgement passed against him or her over failing to pay rent then eviction can be done immediately even if willingness is shown by tenant over paying rent. It can be observed form the above case scenario that Azim has no paid the rent so the above remedy can be used by Lylan in order to make evocation of Azim as the Ted has assigned the property to Azim which makes Azim liable to pay rent not Ted. d) How would your answer to parts a and b above differ if the lease had been granted in 1995 In the year 1995 new act has been introduced in order to deal with landlord and tenant name of the act is Landlord and Tenant (Covenants) Act 1995. The act says that any lease which
has been granted on or after 1996 forms “new” tenancy within which exemption has been made over the old act. As per the exception original tenant is been made liable over covenants involved in lease that makes tenants assigned the lease. According to the act “new” tenancy has been released automatically over the lease that is been assigned. Then as per section 24(2) of the act tenant remains liable over the breach of covenants. In section 16 of the act landlord is required to enter into an sanctioned guarantee agreement which makes tenants liable till the time agreement is been released over tenant covenants within the lease. In the above case scenario it can be observed thatLayla has registered proprietor over commercial unit which is granted over 20 years of lease in the year 2018 which makes both the sections applicable within the case. Thus Azim is liable over committing breach by not paying the rent on time. (Adler, 2018). CONCLUSION From the above discussion it can be concluded that lease deed is the process by which an agreement is been signed over the tenant which is been issued in order to make possession over property attained in more effective way. Thein this file various aspects related over tenant is been covered.
REFERENCES Books and Journals Adler, L., 2018. 5 Making the Distributive Turn. InGay Priori(pp. 175-211). Duke University Press. Ballem, J.B., 2019. 14. Termination of the Lease. InThe Oil & Gas Lease in Canada(pp. 339- 355). University of Toronto Press. Ballem, J.B., 2019. 7. The Habendum and Interpretation Clauses. InThe Oil & Gas Lease in Canada(pp. 149-177). University of Toronto Press Brady, M.E., 2020. Turning Neighbors into Nuisances.Harv. L. Rev.,134, p.1609. Decker, A., 2017. Community Land Trusts and State Legislation: A Model Act to Enable This Affordable Housing Tool.J. Affordable Hous. & Cmty. Dev. L.,26, p.489. EmmeusDavis,J.,2017.CommonGround:Community-OwnedLandasaPlatformfor Equitable and Sustainable Development.USFL Rev.,51, p.1. Glotzer, P., 2020. 6. ADAPTATIONS. InHow the Suburbs Were Segregated(pp. 183-211). Columbia University Press.