Real Property Law Notes

Chapter 2

In a fixed term a tenant can’t break a contract (lease).

Options are to either:

They can assign it - If the original tenant assigns the lease over to a new tenant, the
original tenant is no longer responsible even in the event of default.

Or

Sublet It – The original tenant will be responsible in the event of default.

Bother require the landlords consent.

Exam Q: How are they similar to each other?

Exam Answer: This is how they are both similar (1 mark)

Exam Q: Meaning of Continuous Use is;

Commercial lease: “Continuous use” means in a mall setting, the store must remain
open during mall hours and also have sufficient staff during opening hours and
sufficient merchandise for sale too.
(1-2 marks)

Difference between:
Guarantor – Only responsible for non-payments
Indemnifier – Responsible for non-payments and also bankruptcy.

Interest payable on the last months rental deposit: depending on the volume of the
size of the last months rent, the tenant has to request the interest to the landlord to
be payable, it’s a legal right of the tenant to receive interest on last months deposit.

License vs. Lease - License is short term and can be moved or discontinued at any
time by the landlord, this is commonly seen at malls – those small kiosks for
promoting credit cards, charity like world vision etc. where as a lease is an
agreement for a particular space usually well understood thinking of a store in the
mall.

Commercial Lease default: wait for 15 days, 16th day they can change the lock. They
need to do two appraisals within 60 days, Landlord can only keep money owed by
the tenant and any access money must be returned to the tenant in full.
(Exam Q)
Only time a landlord can ask the tenant to vacant the premises for non-payment of
rent in both residential and commercial leases.
(2 Marks)

In a Commercial Lease - Landlord can increase the lease anytime without consent.
Restrictive uses:

Exam Question: What clause describes this use?

Landlord can have a say in what the tenant can do and not do. For example: The
tenant may sell coffee but not donuts etc.

Two types of Commercial lease termination options:

1. In a month-to-month tenancy: one month notice to vacant - 30 day notice is OK.

(In Commercial)

or

2. In lease – termination during a fixed term – end of term tenant must vacate or pay
double the rent (Commercial)

Easement: is a form of or is a right of way. It comes with land (Deed, title)

The purpose dissolves like there is no more lake no more easement
Providing the right of way – Dominment the one enjoying it
Second way of creation: made by prescription of minimum of 20 years or more
walking over or crossing the property, easement is created by prescription.
(2 marks)

Exam Q Sample:

Smith is crossing over the lake to access his own property is called an easement.

Easement will still stay valid if a new road is made but takes longer.

Exam question and answer:

Question contains: “East Side, West Side” – Answer: easement terminates

Question contains “Backyeard and front yard” – Answer: Easement exists.

Non-ownership interest: Profit pendure: written permission to use land and take
profit like a farmer using the land making money. Its like a lease, but the tenant us
using the land but using the land and taking a profit out of it.
Encroachment: no exam questions, know the meaning as per book.

Encumbrances: Lien, non-payments

Mineral rights: are owned by the crown we can not own them.