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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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cause <strong>the</strong> insurance policy to become void or voidable, orwhich results in an increase in premiums;(vii) Building’s insurance to be in joint names <strong>of</strong> <strong>the</strong> parties,or to be expressed for <strong>the</strong> benefit <strong>of</strong> both, so as to avoid <strong>the</strong>tenant being faced with a subrogati<strong>on</strong> claim by <strong>the</strong>l<strong>and</strong>lord’s insurer, unless <strong>the</strong> insurer agrees to waivesubrogati<strong>on</strong> rights.Chapter 12 Determinati<strong>on</strong> <strong>of</strong> Tenancies18.77 The Commissi<strong>on</strong> recommends that <strong>the</strong>re should be astatutory presumpti<strong>on</strong> that where a greater <strong>and</strong> lesser estate in l<strong>and</strong>vest in <strong>the</strong> same pers<strong>on</strong> or body, without any intermediate estate orinterest being outst<strong>and</strong>ing, a merger takes place, unless <strong>the</strong> instrumentbringing about <strong>the</strong> vesting c<strong>on</strong>tains an express provisi<strong>on</strong> to <strong>the</strong>c<strong>on</strong>trary; such a merger should not prejudice any rights, includingstatutory rights, previously attaching to <strong>the</strong> lesser (leasehold) estate.[Paragraph 12.03]18.78 The Commissi<strong>on</strong> recommends that secti<strong>on</strong> 9 <strong>of</strong> <strong>the</strong> RealProperty Act 1845, which provides that where a head-tenant acquiresa head-l<strong>and</strong>lord’s interest, <strong>the</strong> head-l<strong>and</strong>lord’s reversi<strong>on</strong>ary interestshould be deemed <strong>the</strong>reafter to be <strong>the</strong> reversi<strong>on</strong> <strong>on</strong> <strong>the</strong> sub-tenancies,should extend to all tenancies. [Paragraph 12.04]18.79 The Commissi<strong>on</strong> reiterates its recommendati<strong>on</strong> in paragraph12 <strong>of</strong> its Report <strong>on</strong> L<strong>and</strong> <strong>Law</strong> <strong>and</strong> C<strong>on</strong>veyancing <strong>Law</strong>: (1) <strong>General</strong>Proposals (LRC 30-1989) for legislati<strong>on</strong> c<strong>on</strong>firming that partialmerger may occur in appropriate cases. [Paragraph 12.05]18.80 The Commissi<strong>on</strong> recommends that <strong>the</strong> positi<strong>on</strong> followingdisclaimer <strong>of</strong> <strong>the</strong> tenancy <strong>on</strong> insolvency <strong>of</strong> <strong>the</strong> tenant should beclarified <strong>and</strong> that <strong>the</strong>re should be no distincti<strong>on</strong> between an individual<strong>and</strong> company tenant. In both cases, unless <strong>the</strong>re are third partyinterests to be protected, <strong>the</strong> tenancy should be regarded as terminated<strong>and</strong> <strong>the</strong> l<strong>and</strong>lord should be left to make claims in <strong>the</strong> insolvency.[Paragraph 12.08]18.81 The Commissi<strong>on</strong> has reached <strong>the</strong> preliminary c<strong>on</strong>clusi<strong>on</strong>that <strong>the</strong> doctrine <strong>of</strong> denial <strong>of</strong> title should no l<strong>on</strong>ger apply as betweenl<strong>and</strong>lords <strong>and</strong> tenants. [Paragraph 12.09]203

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