the nature of covenants

8/19/2019 The Nature of Covenants

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THE NATURE OF COVENANTSEULALIE N. GREENAWAY (MS.)

Senior Tutor & Course Director


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What is a Covenant? A contractual obligation imose! or create!

b"#

$ee! Contract un!er seal

Common %a&

Statute


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Covenants imlie! at Common Law 'Landlord

()*uiet en+o"ment,)Not to !erogate -rom the terms o- the grant

.) /n limite! circumstances0 imlie! covenantre 1tness o- roert" -or urose let

2) /n limite! circumstances imlie! covenantto reair


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Covenants imlie! at Common Law 'Tenant

()

To a" rent,) To a" rates 3 ta4es

.)Not to commit &aste

2) To use the remises in a tenant5li6e manner

7)Not to !en" the %an!lor!8s title


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Covenants implied by Statute: 9roert" %egislation0 inclu!ing Registere!

%an! rovisions:

Rent Restriction %egislation ' Landlord() To 6ee the remises in a ;tenantable state o-

reair8,) *uiet en+o"ment

.) To a" all rates 3 ta4es2) To in!emni-" tenant -rom loss arising -rom actso- negligence or !e-ault b" lan!lor!


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Covenants implied by Statute – Tenant:

1.To keep the premises in good order

and condition, air wear and teare!cepted

".To pay rent

#.To keep the premises in a sanitary

condition and to rerain rom conductwhich is a nuisance

$.%ot to commit waste


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&'sual Covenants and Conditions( )

/t &ill be a >uestion o- -act -or the court to

!etermine the relevantalicablecovenants &here an issue arises on thecovenants that -all un!er this term)


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;'sual Covenants and Conditions* ) – cont(d

+n the part o the Landlord:• The covenant o uiet en-oyment

+n the part o the Tenant:• To pay rent• To pay rates ta!es payable by tenant• To keep and deliver up the premises in

repair


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;'sual Covenants and Conditions* ) –cont(d

+n the part o the Tenant:• To permit the landlord to enter, assess

and renew the state o repair

•

/rovision or re0entry or non0paymento rent


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%ote: Chester v uckingham Travel Ltd

Has not gaine! broa! accetance0 but#

@aNot to a!! to or alter the remises

@bNot to stoc6 u0 !ar6en or obstruct &in!o&s

or light belonging to the !emise! remises@cNot to ermit easements to be ac>uire!

against !emise! remises


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%ote: Chester v uckingham Travel Ltd.:

!Not to ermit the !emise! remises to beuse! -or uroses other than those seci1e!

e9rovision -or re5entr" -or breach o- covenantsother than the covenant to a" rent)


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Beneral rincile seems to be that theeculiar circumstances un!er consi!erationan! the realities o- the oeratingenvironment o- the !a" must !irect the!ecision as to

2usual covenants andconditions(.


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Covenants that touch concern theland:

Re-ers to covenants that e4ist bet&een theoriginal lan!lor! an! the original tenant

Carr" bene1ts an! bur!ens -or the arties

involve!

Can be asse! to successors in title


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3 covenant which runs with the landtouches and concerns the land

Test is whether the covenant a4ects

the landlord in his capacity aslandlord and a4ects the tenant in hiscapacity as a tenant


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5eneral rule is that all covenants thatrun with the land can be enorced byand are binding on the assignee oeither the landlord or the tenant


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1. To pay rent

". To repair the property

#. To insure the premises as a privatedwelling house only

$. %ot to assign the lease withoutconsent


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The -ollo&ing con!itions must be satis1e!&here the tenant assigns his lease

() The lease must satis-" the re>uire!

-ormalities,) The &hole term is legall" assigne!


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The -ollo&ing con!itions must be satis1e!&here the landlord assigns his reversion#

The lease must satis-" the re>uire!

-ormalities @note that Walsh v %ons!alerincile &ill al"


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The -ollo&ing con!itions must be satis1e!&here the landlord or tenant assignspart o the lan! onl"#

The covenant &ill be aortione! an! run&ith the relevant severe! art o- the lan!


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Covenants that touch concern the land:

/- no contractual relationshi e4ists bet&eenthe arties an! no !irect relationshi o-lan!lor! an! tenant0 e)g sub5lease#

@a covenant is not en-orceable an! bene1tmust be e4ressl" assignable at la& -orbene1t to be en-orce!


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Covenants that touch concern the land:

/- no contractual relationshi e4ists bet&eenthe arties an! no !irect relationshi o-

lan!lor! an! tenant0 e)g sub5lease#

@b E>uit" allo& the bur!en to run &ith thelan! i- it is a restrictive covenant0 e4cet&here bona 1!e urchaser o- the legal estate&ithout notice o- it0 &ill ta6e -ree o- bur!en


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/rivity o Contract:

6here two or more persons enter into acontract, privity o contract e4ists

7n general, only the parties to thatcontract incur obligations and receive thebene8ts

%ote, however Law o /roperty 3ct 91";<'= section ;>


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/rivity o ?states:

A tenant &ho roerl" assigns his interestto another tenant 0 there e4ists bet&een

the ne& tenant an! the original lan!lor!privity o estates

When a lan!lor! assigns his reversionary

interest to another0 there is privity oestates bet&een the ne& lan!lor! an!original tenant


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The %ature o Covenants

the nature of covenants

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