Tenancy
A tenancy is an interest in land under
which the owner gives a tenant, usually in consideration of rent, the right to
exclusive possession of the land for a limited period. The landlord retains
legal ownership of the property while the tenant has exclusive possession of
the property.
Lease
The lease is the document or agreement
creating the tenancy. A lease is a contract and it creates an interest in land.
License
A licence given by the licensor only gives
authority or permission to the licensee to be on the land. In contrast to a
lease, a licence does not give the licensee an interest in the land, and the
rights given by a licence are:
1.
Personal to the licensee
2.
Limited in use
3.
Not transferable or assignable
to a third person, and
4.
Lack the proprietary element in
the property as in a lease
Tenants have benefits like statutory
protection against eviction, relief against forfeiture, proprietary interests
as against third parties and assignability.
Types of Leases and tenancies
Fixed term tenancy or lease
This is usually written, and its duration
for a fixed term must be certain or tied to definite events so that its
duration is certain. A fixed term tenancy or lease can usually be terminated
earlier by notice or by the happening of a specific event such as breach of the
agreement, rents arrears or hardship.
Periodic tenancy
A periodic tenancy is usually verbal and
continues from one period to the next when the tenant holds over with the
landlord’s agreement.
Written residential leases usually provide
for a periodic tenancy at the end of the fixed term tenancy if neither party
terminates the lease. If the parties continue with a periodic tenancy, it is
easier for them to change the conditions of the agreement and to end the
tenancy, as either the tenant or the owner/landlord/agent can end the tenancy
at any time if they give the agreed notice.
Tenancy at will or informal lease
There is a common law at will if no one
person is in possession as a tenant with the owner’s consent, such as a tenant
continuing in possession after the expiry of a lease for a fixed term.
Legislation in some jurisdictions provides those informal leases are deemed to
be tenancies coming to an end at the will of either party on one month’s
notice.
Tenancy at sufferance
This tenancy arises by implication of law
where the tenant, who has originally entered the land lawfully, remains in
possession and pays rent after the lease ended without statutory authority and
without the assent or dissent of the landlord.
