Introduction to Landlord and Tenant Law (19:I): Difference between revisions

Most  leases  require  the  landlord’ s consent  before  an  assignment  or  sublet  is  made.  Such clauses usually  specify  that  the  landlord’ s consent  will  not  be unreasonably  withheld.  If  the landlord  does  withhold  his  or  her  consent  unreasonably,  the  tenant  may  proceed  without consent, with litigation as the likely outcome. Tenants should decide if they want to deal with that  or  if  they want  to commence litigation  on  their  own  right  to  obtain  an  order  that  they can proceed. A landlord’ s wish to charge higher rent or to prevent the tenant from receiving a premium by subletting are not reasonable grounds for withholding consent. The  onus  is  on  the  tenant  to  show  that  the landlord’ s refusal is unreasonable. There  are  no fixed rules  governing  reasonable  or unreasonable withholding of consent.  The landlord  can charge  a fee for  the  tenant  to  sublet  or  assign  the  rental  property,  and  that  does  not  negate the landlord’ s consent. The lease itself and all the circumstances must be considered. 3.Pre-Incorporation Contracts A  company  is  not  bound  by  contracts  it  enters  into  before  incorporation.  Where  a  person enters into  a contract in  the  name  of  a  company  before that company’ s incorporation,  that person may be liable for breach of warranty. To avoid difficulty, the lease should be entered into personally with the right to assign the lease to the company once incorporated. 4.Partnerships A  partner  enters  into  contracts  on  behalf  of  all  partners  for  any  transaction  that  is  in  the ordinary course  of  business. Thus,  a  lease entered into in  the firm’ s name  is  binding  on  the firm and its partners. B.The A greement 1.Distinction between Lease and License A license is a purely contractual relationship. It gives the licensee no interest in the licensor’ s real  property.  Restaurants  that  operate  in  department  stores  are  usually  run  as  a  licensee liquor arrangement, for example. The  courts  distinguish  leases  from  licenses  by  examining  whether  the  parties  intended  to grant  exclusive  possession  to  the  occupants,  or  merely  permission  to  occupy  subject  to  the rights of the owner. It is important for a prospective tenant to read the contract to determine what  type  of  relationship  they  are entering  into.  Words in  the  agreement  such  as “lease”, “landlord” or “tenant” are, in the absence of a contrary statement, conclusive evidence of an intention  to  create  a  lease.  Exclusive  possession  of  the  tenant  does  not  require  absolute exclusion of the landlord. If the contract refers to a “joint venture,” then it is probably NOT a lease; a joint venture creates liabilities in the tenant and does not grant exclusive possession or an interest in the land. 2.Distinction between Lease and Agreement to Lease A lease is an immediate conveyance of land (though possession may be postponed) while an agreement for lease requires the parties to execute a lease at a later date. However, where the tenant is in possession, an agreement to lease may be construed as a lease. 3.Requirements for a Valid Agreement