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Consultation Paper on the General Law of the Landlord and Tenant

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would simply reiterate here its earlier preliminary c<strong>on</strong>clusi<strong>on</strong> that newstatutory provisi<strong>on</strong>s to govern <strong>the</strong> positi<strong>on</strong> <strong>of</strong> successors in titleshould make explicit provisi<strong>on</strong> for apporti<strong>on</strong>ment <strong>of</strong> rights <strong>and</strong>obligati<strong>on</strong>s as between all <strong>the</strong> parties in such cases. 28C Rent Review8.10 One <strong>of</strong> <strong>the</strong> major developments in modern times withrespect to rent has been <strong>the</strong> advent, especially in commercial leases, 29<strong>of</strong> provisi<strong>on</strong>s for rent review. This is a complex subject which over<strong>the</strong> years has given rise to much litigati<strong>on</strong> c<strong>on</strong>cerning <strong>the</strong>interpretati<strong>on</strong> <strong>of</strong> <strong>the</strong> rent review provisi<strong>on</strong>s in particular leases. 30 Theissue which arises for c<strong>on</strong>siderati<strong>on</strong> is whe<strong>the</strong>r it would beappropriate to introduce statutory provisi<strong>on</strong>s to govern <strong>the</strong> matter.8.11 In c<strong>on</strong>sidering this issue <strong>the</strong> Commissi<strong>on</strong> has noted that Part3 <strong>of</strong> <strong>the</strong> Residential Tenancies Bill 2003 would introduce a statutoryscheme for rent reviews in <strong>the</strong> case <strong>of</strong> tenancies <strong>of</strong> dwellings. Thiswould prohibit <strong>the</strong> setting <strong>of</strong> <strong>the</strong> rent under such a tenancy above <strong>the</strong>“market rent” 31 or reviews more frequently than <strong>on</strong>ce every twelvem<strong>on</strong>ths. 32 Ei<strong>the</strong>r party to <strong>the</strong> tenancy would be able to require areview where <strong>the</strong> lease or tenancy agreement does not provide for2829303132Paragraphs 3.21 <strong>and</strong> 3.22 above.Note, however, that Part 3 <strong>of</strong> <strong>the</strong> Residential Tenancies Bill 2003 c<strong>on</strong>tainsprovisi<strong>on</strong>s for rent reviews in <strong>the</strong> case <strong>of</strong> tenancies <strong>of</strong> dwellings. Note also<strong>the</strong> statutory provisi<strong>on</strong> for rent review in <strong>the</strong> case <strong>of</strong> new tenancies grantedunder <strong>the</strong> <strong>L<strong>and</strong>lord</strong> <strong>and</strong> <strong>Tenant</strong> Act, where <strong>the</strong> terms have been fixed by<strong>the</strong> court: see secti<strong>on</strong> 24 <strong>of</strong> <strong>the</strong> <strong>L<strong>and</strong>lord</strong> <strong>and</strong> <strong>Tenant</strong> (Amendment) Act1980 (as substituted by secti<strong>on</strong> 15 <strong>of</strong> <strong>the</strong> <strong>L<strong>and</strong>lord</strong> <strong>and</strong> <strong>Tenant</strong>(Amendment) Act 1984): Wylie op cit paragraph 30.57-60. TheCommissi<strong>on</strong> has already pointed out that this provisi<strong>on</strong> is not entirelysatisfactory: see <str<strong>on</strong>g>C<strong>on</strong>sultati<strong>on</strong></str<strong>on</strong>g> <str<strong>on</strong>g>Paper</str<strong>on</strong>g> <strong>on</strong> Business Tenancies (LRC CP 21-2003) paragraph 4.32 (reiterating what was said in an earlier report: Report<strong>on</strong> L<strong>and</strong> <strong>Law</strong> <strong>and</strong> C<strong>on</strong>veyancing <strong>Law</strong>: (5) Fur<strong>the</strong>r <strong>General</strong> Proposals(LRC 44-1992) paragraphs 20-21).See Wylie op cit Chapter 11.Defined in secti<strong>on</strong> 24 al<strong>on</strong>g <strong>the</strong> lines <strong>of</strong> <strong>the</strong> “gross rent” which is <strong>the</strong> basisup<strong>on</strong> which a court fixes <strong>the</strong> rent <strong>of</strong> a new tenancy under secti<strong>on</strong> 23 <strong>of</strong> <strong>the</strong><strong>L<strong>and</strong>lord</strong> <strong>and</strong> <strong>Tenant</strong> (Amendment) Act 1980.Secti<strong>on</strong>s 19 <strong>and</strong> 20. A review could be made more frequently if <strong>the</strong>re is asubstantial change in <strong>the</strong> nature <strong>of</strong> <strong>the</strong> accommodati<strong>on</strong> in <strong>the</strong> interim:secti<strong>on</strong> 20(3).116

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