Chapter 24 - Notes on Leasehold Interests in Contemporary Canadian Business Law

Chapter Objectives

• Understand the legal nature of a tenancy and the rights and duties of the landlord and tenant.
• Explain the effect of a breach of a lease agreement.
• Understand shopping centre leases.

Key Terms

• Landlord (Lessor): Owner of land granting possession.
• Tenant (Lessee): Individual receiving possession for a fixed period.

Leasehold Interest

• Arises through a lease, an agreement for possession in exchange for rent.
• Tenancy: A relationship governed by a lease, can be verbal, written, or implied.
• Lease creates privity of estate between landlord and tenant unless interests are assigned.

Creation of Tenancy

• Creates two interests in land:
  • Leasehold: Tenant's right to exclusive possession.
  • Reversion: Landlord's right to regain possession at lease end.
• At lease expiration, leasehold & title merge.
• Anything attached to land is included in leasehold.