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LPC Law Notes Commercial Property Notes

Contract Issues Notes

Updated Contract Issues Notes

Commercial Property Notes

Commercial Property

Approximately 50 pages

A collection of the best LPC notes the Oxbridge Notes editorial team could find after having looked through dozens of applications. This single-author set of LPC notes is fully updated for recent exams.

The author of these notes earned a high 1.1/distinction at the OXILP....

The following is a more accessible plain text extract of the PDF sample above, taken from our Commercial Property Notes. Due to the challenges of extracting text from PDFs, it will have odd formatting:

Commercial Property

Contract Issues

Pre-contract issues: obtaining possession from residential occupiers:

  • Part of the land is occupied by private sector / short term tenancies

  • These tenancies have statutory protection security of tenure [Landlord and Tenant Act 1954]

Tenancies created PRIOR to 15th January 1989

  • Protection by Rent Act 1977

  • A protected tenancy: one that is protected by the RA 1977 [contractual]

  • A statutory tenancy: once the protected tenancy has terminated under common law, the occupier [or the successor if T1 has died] is entitled to remain under a statutory tenancy.

Non-assignable and cannot be left by will.

  • A regulated tenancy: this encompasses both protected & statutory tenancies.

Tenancies to which the Act applies:

A tenancy [not merely license]; and

Separate dwelling-house [purpose of the tenancy must be residential and must be a single unit]

i.e. a protected tenancy

How can Landlord obtain possession – Grounds for possession:

LL does not have right to possession.

LL can terminate tenancy by Court order – available on limited grounds. LL must apply for ‘Cases’

  1. S.98(1) Rent Act 1977:

  • Court is satisfied that suitable alternative accommodation is available for T and will be available when the order takes effect.

  • Circumstances specified in Cases in Part I of Schedule 15 to this Act applies. [Discretionary]. Fault grounds:

  • It must be reasonable to grant possession to LL

Case 1 Non-payment of rent / breach of obligation
Case 2 Nuisance / immoral or illegal use
  1. S.98(2): Circumstances in any of the Cases – Schedule 15, Part II of the Act applies. [Mandatory]. Does not need to be reasonable

Case 12 LL intends to occupy the house as a retirement home
Case 15 Dwelling house occupied by minister of religion is required for that purpose

Tenancies created AFTER 15th January 1989

  • Protected by Housing Act 1988

  • Rights of succession are restricted

  • Tenancies the Act protects:

Tenancy TYPE Grounds for possession
Assured Tenancy

Basic form of tenancy

Fixed or periodic term

  • Must be bought to an end in accordance with the Act.

  • Periodic = S.5. LL must obtain court order under a ground of possession under the act. LL CANNOT serve a notice to quit.

  • Fixed: Under S.8 LL must serve notice on T – telling him he intends to bring proceedings

S.5 Fixed term is replaced by Periodic Statutory Tenancy.

Assured Short-hold Tenancy [AST]

Fixed term [6 months min]

At the end of the fixed term – tenancy can be terminated by 2 months notice.

  • At the end of the fixed term converted into a statutory Periodic tenancy [T is holding over]

  • All grounds of possession are available to LL

  • S.21 = allows LL to serve 2 months notice and be guaranteed possession once the fixed term has expired.

Statutory Periodic Tenancy

Once the AST or fixed term assured tenancy has come to an end without LL obtaining court order for possession.

T entitled to remain in possession under this tenancy

Excluded tenancies Schedule 1 Housing Act 1988 Excluded from the Act

Statutory rights of succession

A big problem for landlords! Significant rights under the Rent Act – later curtailed by Housing Act. To give LL greater rights – ensuring there will be more properties available for rent.

  • When a Tenant of a protected tenancy dies –

Death of protected tenant Succession rules
First succession to statutory tenancy Second succession to assured tenancy

Death of original T is prior to 15th Jan 1989

Rent Act Applies

  • Surviving spouse residing with T at date of death (living with T as wife / husband = there is no minimum period.

  • Family member residing with protected tenant at death and for at least 6 months prior to death

  • Where death of FIRST successor [who is a spouse] is prior to 15.01.89 second succession to an assured tenancy is possible to be given to ANY family member [on the same basis as the first succession i.e. 6 months in residence etc].

Death of Original T dies on / after 15th Jan 1989 – Housing Act applies

Security of Tenure are being taken away.

  • First succession by surviving spouse residing with protected tenant at date of death. Susceptibly to second succession.

  • First succession by family member [resident at death and for previous 2 years]. Succeeds to an ASSURED tenancy only. No further succession is possible. Rights of security come to an end

  • Death of first successor [the spouse] is After 15.01.89 second succession to assured tenancy is possible by any family member BUT there are more restrictions. It can be succeeded by any family member who was resident at the death of the first successor and for the previous 2 years; they must be a family member of the protected...

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