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LANDLORD & TENANT

Trinidad & Tobago Hospitality & Tourism Institute


Hospitality Law & Insurance: BC 229
Lecturer: Ms. V. Maharaj
Leasehold
A leasehold estate gives a right to possession, use and
enjoyment of land for a definite period of time.

The nature of this tenure, signified by the words ‘landlord’ and


‘tenant’, is that the tenant pays ‘rent service’ (now known
simply as ‘rent’) to the landlord in return for the right to
occupy the land, and the landlord retains a right to levy
distress against the tenant’s goods in the event of non-
payment of rent and, more importantly, in some
circumstances, a right to forfeit the lease if the tenant is in
breach of his obligations.
Essential Characteristics of Leases
There are three requirements for a right to occupy land to be capable of taking
effect as a lease:-

iv. The right to exclusive possession must be given: this means that the
tenant must be given the right to exclude all other persons from the
land, including the landlord.

vi. The duration of the lease must be certain: The general rule is that a
lease must have a certain beginning and a certain ending.

viii. Payment of Rent.


Formalities For Creation of Leases
Trinidad and Tobago; Landlord and Tenant Ordinance,
Ch. 27, No. 16, S.3

Leases for more than three years must be made by deed


and registered, leases for three years or less may be
made by deed or in writing; periodic tenancies at will
may be oral.
Effect of Non-Compliance With Formalities

A lease which does not comply with the necessary


statutory formalities is void at law, but it has
long been the rule that if the intended tenant
then pays rent which is accepted, he becomes a
yearly or other periodic tenant depending on the
period with reference to which rent if paid.
Types of Tenancies
Lease for Fixed Period
A lease may be granted for any fixed period, provided that there is a
certain beginning and a certain ending. A lease for a fixed term
terminates automatically when the period expires; there is no need
for any notice to quit by the landlord or the tenant.

The landlord cannot terminate the lease before the end of the period
unless the tenant has been in breach of a condition in the lease, or
the lease contains a forfeiture clause and the tenant has committed a
breach of covenant which entitled the landlord to forfeit the lease.
The tenant cannot terminate the lease before it has run its course; he
may only ask the landlord to accept a surrender of the lease, which
the landlord may choose to accept or reject.
Types of Tenancies
Periodic Tenancy
Weekly, monthly, quarterly and yearly tenancies are the commonest
examples of periodic tenancies. Such tenancies continue
indefinitely until terminated by proper notice to quit by the landlord
or the tenant.
Subject to agreement to the contrary, the length of notice required to
terminate a periodic tenancy depends on the form that the tenancy
takes, viz., a weekly tenancy can be terminated by a weeks’ notice;
a monthly tenancy by one month’s notice; and a quarterly tenancy
by three month’s notice. An exception to this rule is the yearly
tenancy, which is terminable by a half year’s notice.
A periodic tenancy may be created expressly or by implication.
Types of Tenancies
Tenancy at Will
A tenancy at will exists when a person occupies the land of another on
the understanding that he may go when he likes and that the owner
may terminate his interest at any time the owner wishes to do so.
A tenancy at will can only exist as a result of an agreement between
the parties and an intention on the part of the landlord to create such
a tenancy. This may be created either expressly or by implication
This is terminated by the death of either party or where either party
does an act which is incompatible with the continuance of the
tenancy, e.g. where wither party gives notice of termination to the
other.
Leasehold Covenants

The liabilities of lessor and lessee are normally to be


found in the express covenants (i.e. obligations)
contained in the deed of lease, or in the covenants
implied by statute or common law.
Landlord’s Implied Obligations
Covenant for Quiet Enjoyment
At common law, there is implied in every lease a
covenant in the part of the landlord that the tenant
shall be put into possession of the demised premises
during the continuance if the lease.
The tenant is entitled to recover damages from the
landlord if the landlord or any other person claiming
through him substantially disturbs or physically
interferes with the tenant’s enjoyment of the land.
Ram v Ramkissoon [1968] 13 WIR 332
Facts
The appellant was a statutory tenant of two rooms in a central portion of a
building where he carried on business as a jeweller. The building was old
and in a bad state of repair, and its two end portions had been unoccupied
for several years. The respondent landlord, who owned the whole
building, wished to obtain vacant possession of the central portion also.
While ejectment proceedings were pending, the respondent removed the
galvanized iron sheets from the roof of both end portions of the building.
The appellant complained that, as a direct consequence of the removal of the
roof, rainwater seeped through the rooms he occupied, causing annoyance,
discomfort and physical damage to his property. He claimed damages for
breach of the landlord’s implied covenant for quiet enjoyment.
Ram v Ramkissoon [1968] 13 WIR 332
Held
The damage suffered by the appellant was sufficiently substantial to
constitute a breach of the covenant for quiet enjoyment.
Reasoning
A covenant for quiet enjoyment must be implied from the respondent's
contract of letting. To constitute an actionable breach, the interference
with the tenant’s enjoyment of the tenancy must be substantial.
The course of conduct by the landlord seriously interfered with the tenant’s
proper freedom in action in exercising his right of possession, tended to
deprive him of the full benefit of it, and was an invasion of his rights as
tenant to remain in possession undisturbed, and so would in itself
constitute a breach of covenant.
Landlord’s Implied Obligations
Covenant Not to Derogate From the Grant

There is an implied covenant that the landlord will not derogate


from his grant. The landlord must not frustrate the use of the
land for the purposes for which it was let.

To constitute a breach of covenant the Landlords must do some


act which renders the demised premises ‘ substantially less fit
for the purposes for which they were let’.

Many acts which constitute a breach of this covenant may also


constitute a breach of the covenant for quiet enjoyment
Landlord’s Implied Obligations
Covenant as to Fitness for Habitation

At common law there is no implied covenant by a landlord that the premises let are or will be fit for
human habitation nor is there any implied covenant that the landlord will do any repairs whatever.
However there are the following exceptions:

v. Furnished Lettings: Where residential premises are let furnished, there is an implied condition that
they are fir for habitation at the commencement of the tenancy. But the landlord has no obligation
to keep the premises habitable, so, if they subsequently become unfit, the landlord is not liable.

vii. High Rise Apartments: A landlord of residential apartments in a high rise building is under an
implied duty to keep in a reasonable state of repair the lifts, staircases and other common
facilities, such as lighting and garbage chutes, for the benefit of all the tenants in the building.

ix. Statutory Provisions: Letting of Houses (Implied Terms) Act, Ch. 27, No.3, S.3 provides that “in
any contract for letting any house for human habitation there shall, notwithstanding any
stipulation to the contrary, be an implied condition that the house is, at the commencement of the
tenancy, and an undertaking that the house will be kept by the landlord during the tenancy, in
repair and in all respects reasonably fir for human habitation.”
Hamblin v Samuel [1966]
Facts

The owner of a house decided to convert the basement


area into two self contained apartments. Officials of
the Rent Assessment Board visited the premises and
found that the ventilation of the apartments was
inadequate, that the one bedroom window in each
apartment could not be opened at all, and that the one
sitting room in each has generally to be kept closed
because of the prevailing dust.
Hamblin v Samuel [1966]
Held
The Court upheld the findings of the Board that the conditions to which the apartments were
subject as almost, if not wholly, subhuman. The meaning of ‘fit for human habitation’, in its
natural meaning may be said to be ‘fit for human beings to live in’.
In determining for any of the purposes of the Act whether a house is unfit for human habitation,
regard shall be had to its condition in respect of the following matters:-
(g) repair;
(h) Stability;
(i) Freedom from damp;
(j) Natural lighting;
(k) Ventilation;
(l) Water supply; drainage and sanitary conveniences;
(m) Facilities for storage, preparation and cooking of food and for the disposal of waster water,
and the house shall be deemed to be unfit for human habitation if and only if it is so far defective
in one or more of the of the said matters that it is not reasonably suitable for occupation in
that condition.
Landlord’s Implied Obligations
Covenant to Repair

Repairing covenants, other than covenants as fitness for


habitation, are normally expressly inserted in leases.

Where a landlord has covenanted or is subject to a statutory


obligation to repair and, having been notified by the tenant of
the need for certain repairs, fails to carry them out, the
tenancy is entitled to arrange to have the repair work done
and deduct to cost from future payments of rent.
Tenant’s Implied Obligation
Obligation Not to Commit Waste

A tenant for a fixed term is liable both for voluntary


waste (positive acts of injury to the property, such as
altering, or destroying it) and permissive waste
(allowing the property to become dilapidated, through
omission to repair) and therefore, in the absence of an
express stipulation to the contrary, he must keep the
premises in proper repair.
Express Covenants
To a large extent, the rights and liabilities of landlord and
tenant are regulated by express covenants inserted in
the lease or tenancy agreement.

The most significant and commonly encountered


covenants concern payment of rent, obligation to repair
and obligation noit to assign, underlet or part with the
possession of the premises without the landlord’s
consent.
Express Covenants
Covenant to Pay Rent

The rent payable under a lease is more properly called ‘rent service’. ;though,
today rent almost invariably consists of money payments, there is nothing
to prevent rent taking the form for delivery of chattels or produce, or the
performance of personal services.

The amount to be paid as rent must be sufficiently certain. Once a lease has
been granted the court will do what it can to interpret provisions as to rent
in such a way as to achieve sufficient certainty. A lease may contain a
‘rent review clause’, enabling rent to be raised at regular intervals to
reflect the fair market value of the demised premises.
Express Covenants
Covenant to Repair

The obligation to repair the demised premises may rest on the landlord, or on
the tenant, the matter is entirely one for negotiation between the parties,
and the extent of the obligation depends on the wording of the covenant.

At common law, the standard of repair is that which, after making due
allowance for the locality, character and age of the premises at the date of
the lease, a reasonably minded owner would keep them.

An important principle is that the character of the premises and the locality at
the beginning of the tenancy which must be considered. With regard to the
age of the property, the covenantor is under an obligation to keep it in a
reasonably good condition for a building of that age.
Express Covenants
Covenant to Repair: Fair Wear & Tear

Tenants frequently covenant to keep the premises in repair, ‘fair wear and tea
excepted’. The effect of the phrase is to absolve the tenant from liability for:

(e) Damage due to the ordinary operation of natural causes such as wind and rain;
and
(f) Disrepair resulting from the reasonable use of the premises.

However, although the tenant is not liable for the original damage or deterioration
constituting wear and tear, he is liable for any consequential damage resulting
from his failure to rectify the original damage, where it should be obvious to a
reasonable person than, if not rectified, further and lasting damage would ensue.
Express Covenants
Covenant Not to Assign, Sublet or Part With Possession of the
Demised Premises

In order to ensure that the premises do not fsll into the hands of an
irresponsible person, it is usual for a lease to contain an express
covenant either that the tenant will not assign or sublet the premises
(an absolute covenant) or, more commonly, that the tenant will not
assign or sublet without the consent of the landlord (a qualified
covenant). The qualified covenant may be subject to an express
proviso that the landlord will not unreasonably refuse his consent to
an assignment or subletting.
Express Covenants
Option to Purchase the Reversion

An option to purchase the reversion will often take the form of


a covenant in the lease to the effect that, if the lessee within
a specified period gives to the Lessor notice in writing of a
specified length of his desire to purchase the freehold
reversion of the premises, the Lessor will, on payment of a
specified purchase price and all arrears of rent, convey the
freehold of the demised premises to the lessee.
Express Covenants
Option to Renew a Lease
A lease may contain a term granting the lessee an option to renew the
lease for a further period. It is an interest in the land, is capable of
assignment, and is binding on a purchaser of the freehold with
notice or, where the land is registered, is binding on purchasers if
protected by an entry on the register or certificate of title.

A lessee who seeks to exercise the option must abide by any terms or
conditions as to its exercise expressed in the lease. If the option is
made conditional on the lessee having complied with all the terms
of the lease, any breach of covenant existing at the relevant date
will disentitle the lessee from exercising the option.

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