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Lecture

2A. Leases - Assignment

4 Pages
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Department
Law
Course Code
JSB171
Professor
All

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L EASES —Assignment Covenant Touches & Concerns the Land If so closely connected with the leasehold estate that they form part of that estate. Elements— P&A Swift Investments 1. Benefit to owner of the reversion | if separated from the reversion cease to be of benefit to the covenantee. 2. Affects the nature, quality, use or value of the reversioner 3. Is not expressed to be personal Examples • Touch & Concern the land  o To pay rent: Ashmore v Eaton (L1 cannot sue T for arrears in rent if sold to L2) o Covenant to repair: Granada Theatres Ltd v Freehold Investments (Leystone) Ltd (lease of theatre—T1 in breach of covenant to repair—assigns to T2—T2 allows to continue  T2 liable)  BUT may be personal if a large no of properties (district): Deewah v Goodman (covenant to look after a whole district of houses  cannot be enforced against T2) o Not to build on adjoining land Ricketts v Enfield o To insure against fire: Vernon v Smith (only be of benefit to L while they are the owner of the reversion—once sold, if property burnt down without insurance, does not affect them) o Not to assign the land without consent: Goldstein v Saunders (only affects L as owner of the reversion—for the value of their property is concerned) o Quiet enjoyment: Spencer’s Case o To repair: Williams v Earle o To use as a private dwelling only: Wilkinson v Rogers o To renew the lease: Mercantile Credits v Shell o To supply water to premises: Jourdain v Wilson o To reserve a car park: Hurlfite v Coles  That T could park extra cars in L’s adjacent land  (still obliged to let them use the land next door after lease if agreement for value → personal) • Do not Touch & Concern the land  o Option to purchase: Woodall v Clifton o Covenant to repair if a large no of properties (district): Deewah v Goodman (covenant to look after a whole district of houses  cannot be enforced against T2) o Pay rates of another piece of land: Gower v Postmaster-general o To allow advertising on property other that leased premises: Re No 1 albemarle Street o Payment of a set amount if lease not renewed: Re Hunter’s lease o Security deposit refundable if no breach of C that T&C Land: Hua Chiao v Chiaphua 1 (1) Leases—Assignment Andrew Trotter LWB244 Property B Assignment of Lease [L—T1 → T2] Formalities required for a legal assignment— • Long lease → o in writing and signed by lessee (ss11(1)(a) & s10(1) PLA) o Correct form: ss60-62 LTA o Registered: s181 LTA • Short lease → o In writing—registration not required: s12(2) PLA Effect of Legal Assignment L → privity of contract → T1 | L → privity of estate → T2 All powers, privileges & liabilities transfer to T2 for covenants touching & concerning the land: s62 LTA; Jodaway v Langton (lease of property in retirement village—T1 pays deposit, may be returned to retiree or estate depending on length of tenancy—reduces each year ← personal covenant  T2 could not claim deposit from L) • Covenant to repair is a continuing obligation: Granada Theatres Covenants touch & concern the land— • Breach by T2 → o T2 liable o T1—  Express provision “covenant on behalf of T and successors” → liable  Silent → Liable: s53(2) (presumed to contract on behalf of successors in title)  Excluded → not liable: s53(2) (unless a contrary intention appears) o T2 must indemnify T1: Murphy v Harris (registered assignment—T1 still liable to L, has to sue T2 to recover—but if L has turned to sue T1, T2 probably has no money anyw
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