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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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covenants <strong>and</strong> c<strong>on</strong>diti<strong>on</strong>s in leases can be severed or apporti<strong>on</strong>ed. 71What is not so clear is <strong>the</strong> extent to which <strong>the</strong> tenant is bound by anysuch severance or apporti<strong>on</strong>ment. Clearly <strong>the</strong> tenant is bound if he orshe joins in <strong>the</strong> arrangement <strong>and</strong> agrees to accept two or morel<strong>and</strong>lords, <strong>the</strong>reafter paying apporti<strong>on</strong>ed parts <strong>of</strong> <strong>the</strong> rent to differentl<strong>and</strong>lords <strong>and</strong> accepting apporti<strong>on</strong>ment <strong>of</strong> o<strong>the</strong>r obligati<strong>on</strong>s. Suchjoining in is rare <strong>and</strong>, where it does not occur, <strong>the</strong>re has been muchdebate as to how far <strong>the</strong> tenant can disregard <strong>the</strong> severance <strong>of</strong> <strong>the</strong>l<strong>and</strong>lord’s interest <strong>and</strong> insist up<strong>on</strong> dealing <strong>on</strong>ly with <strong>the</strong> originall<strong>and</strong>lord <strong>on</strong> <strong>the</strong> basis that that pers<strong>on</strong> remains <strong>the</strong> <strong>on</strong>ly l<strong>and</strong>lord. 72There is very little authority <strong>on</strong> <strong>the</strong> point 73 <strong>and</strong> clearly <strong>the</strong> positi<strong>on</strong>should be made clear. The Commissi<strong>on</strong> provisi<strong>on</strong>ally recommendsthat <strong>the</strong> new statutory provisi<strong>on</strong>s to govern <strong>the</strong> positi<strong>on</strong> <strong>of</strong> successorsin title should deal comprehensively with part assignments <strong>and</strong> shouldmake explicit provisi<strong>on</strong> for severance or apporti<strong>on</strong>ment <strong>of</strong> rights <strong>and</strong>obligati<strong>on</strong>s as between all parties interested in <strong>the</strong> demised premises.3.21 There remains <strong>the</strong> questi<strong>on</strong> <strong>of</strong> <strong>the</strong> positi<strong>on</strong> where <strong>the</strong> tenantassigns part <strong>on</strong>ly <strong>of</strong> <strong>the</strong> demised premises. In practice <strong>the</strong> positi<strong>on</strong> <strong>of</strong><strong>the</strong> parties in this situati<strong>on</strong> is usually clearer, in that <strong>the</strong> c<strong>on</strong>sent <strong>of</strong> <strong>the</strong>l<strong>and</strong>lord to such an assignment will usually be required by <strong>the</strong> terms<strong>of</strong> <strong>the</strong> tenant’s lease. The l<strong>and</strong>lord in that sense “joins in” <strong>and</strong> so <strong>the</strong>issue <strong>of</strong> what apporti<strong>on</strong>ment <strong>of</strong> <strong>the</strong> rents <strong>and</strong> obligati<strong>on</strong>s takes placewill be resolved by express agreement. 74 Where <strong>the</strong>re is no suchagreement, <strong>the</strong> positi<strong>on</strong> is again not entirely clear <strong>and</strong> <strong>the</strong>re is again a71727374Eg <strong>the</strong> Statute <strong>of</strong> Reversi<strong>on</strong>s (Irel<strong>and</strong>) 1634; <strong>Law</strong> <strong>of</strong> Property AmendmentAct 1859 (secti<strong>on</strong> 3); C<strong>on</strong>veyancing Act 1881 (secti<strong>on</strong> 12). Note also <strong>the</strong>views <strong>of</strong> <strong>the</strong> House <strong>of</strong> Lords that secti<strong>on</strong>s 12 <strong>and</strong> 13 <strong>of</strong> Deasy’s Act mayhave had <strong>the</strong> same effect: see Liddy v Kennedy (1871) LR 5 HL 134; seealso Lyle v Smith [1909] 2 IR 58, 68-69 (per Lord O’Brien LCJ).See Wylie op cit paragraph 21.34.Again some <strong>of</strong> <strong>the</strong> law lords in Liddy v Kennedy (footnote 71 above)thought that secti<strong>on</strong>s 12 <strong>and</strong> 13 <strong>of</strong> Deasy’s Act “put <strong>the</strong> questi<strong>on</strong> up<strong>on</strong> anentirely different footing” (per Lord Chelmsford at 149); see also LordHa<strong>the</strong>rley at 143.Often <strong>the</strong> l<strong>and</strong>lord will be reluctant to agree to such a part assignment,because <strong>of</strong> <strong>the</strong> “fragmentati<strong>on</strong>” <strong>of</strong> <strong>the</strong> property which results (increasing<strong>the</strong> management burden <strong>of</strong> collecting rents, service charge payments, etc).And, where it is agreed, <strong>the</strong> l<strong>and</strong>lord may insist <strong>on</strong> <strong>on</strong>e <strong>of</strong> <strong>the</strong> tenantsretaining resp<strong>on</strong>sibility for paying <strong>the</strong> whole rent <strong>and</strong> service charge (<strong>and</strong>for recouping apporti<strong>on</strong>ed parts from <strong>the</strong> o<strong>the</strong>r tenant or tenants).67

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