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Contract Issues Notes

LPC Law Notes > Commercial Property Notes

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Elective: Commercial Property

Commercial Property Contract Issues Pre-contract issues: obtaining possession from residential occupiers: o Part of the land is occupied by private sector / short term tenancies o These tenancies have statutory protection -security of tenure [Landlord and Tenant Act 1954]
Tenancies created PRIOR to 15th January 1989 o Protection by Rent Act 1977 o A protected tenancy: one that is protected by the RA 1977 [contractual]
o 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. o 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

2. 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 Basic form of tenancy
? Must be bought to an end in accordance with the 1

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