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Consultation Paper on the General Law of the Landlord and Tenant

Consultation Paper on the General Law of the Landlord and Tenant

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provisi<strong>on</strong>s governing l<strong>and</strong>lords in <strong>the</strong> draft Defective Premises Billappended to its earlier Report (LRC 3-1982) should be adopted, butextended to cover “legal” unfitness as well as “physical” unfitness.D Insurance6.20 There are no current statutory provisi<strong>on</strong>s governinginsurance <strong>of</strong> <strong>the</strong> demised premises <strong>and</strong> this is usually dealt with byexpress provisi<strong>on</strong>s in <strong>the</strong> lease, at least in <strong>the</strong> case <strong>of</strong> commercialpremises. 71 However, secti<strong>on</strong> 12(1)(c) <strong>of</strong> <strong>the</strong> Residential TenanciesBill would impose <strong>on</strong> l<strong>and</strong>lords <strong>of</strong> dwellings an obligati<strong>on</strong> to 72 –“effect <strong>and</strong> maintain a policy <strong>of</strong> insurance in respect <strong>of</strong> <strong>the</strong>structure <strong>of</strong> <strong>the</strong> dwelling, that is to say a policy –(i) that insures <strong>the</strong> l<strong>and</strong>lord against damage, loss <strong>and</strong>destructi<strong>on</strong> <strong>of</strong> <strong>the</strong> dwelling, <strong>and</strong>(ii) that indemnifies, to an amount <strong>of</strong> at least €250,000, <strong>the</strong>l<strong>and</strong>lord against any liability <strong>on</strong> his or her part arising out <strong>of</strong><strong>the</strong> ownership, possessi<strong>on</strong> <strong>and</strong> use <strong>of</strong> <strong>the</strong> dwelling.”6.21 The Commissi<strong>on</strong> does not c<strong>on</strong>sider that <strong>the</strong>re is any need toextend such a provisi<strong>on</strong> to o<strong>the</strong>r types <strong>of</strong> tenancy, at least not in <strong>the</strong>form <strong>of</strong> an overriding obligati<strong>on</strong>. The insurance arrangementsappropriate for commercial premises are likely to vary greatlyaccording to <strong>the</strong> nature <strong>of</strong> <strong>the</strong> premises, particularly according towhe<strong>the</strong>r <strong>the</strong>y are single-let or multi-let. 73 What may be appropriate isto have a “default” statutory provisi<strong>on</strong> designed to operate where noexpress provisi<strong>on</strong> is made in <strong>the</strong> lease or <strong>the</strong> express provisi<strong>on</strong> is notexhaustive <strong>of</strong> insurance requirements <strong>and</strong> a gap may exist. Thissubject is taken up again in <strong>the</strong> c<strong>on</strong>text <strong>of</strong> tenants’ obligati<strong>on</strong>s. 7471727374See <strong>the</strong> precedents in Divisi<strong>on</strong> L <strong>of</strong> Laffoy’s Irish C<strong>on</strong>veyancingPrecedents (Looseleaf Butterworths).Which again could not be c<strong>on</strong>tracted out <strong>of</strong>: see secti<strong>on</strong> 18.Where it may be appropriate for <strong>the</strong> l<strong>and</strong>lord to have a “block” policycovering <strong>the</strong> entire multi-let premises <strong>and</strong> to recoup <strong>the</strong> cost via <strong>the</strong> servicecharges levied <strong>on</strong> individual tenants <strong>of</strong> units.See Chapter 11 below.106

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