Deck 22: Landlord and Tenant

Question 1

A owns a single-storey commercial building in downtown Toronto,which he has leased to B for use as an office.A few months after the lease was entered into,A sold the building to C together with A's lease.C bought A's building because he wanted to convert it into a luxury restaurant.Just after C become the owner of the building,C started to enter B's offices on a daily basis without notice and,further,began a small construction project in front of the building,which not only obstructed access to the building,but also made so much noise that it constantly disturbed B,B's staff,and B's clients.In this situation

A)C has breached the covenant for quiet enjoyment and B can sue A and C for damages and seek an injunction against C.
B)C has breached the covenant for quiet enjoyment and B can sue only A for damages.
C)C has breached the covenant for quiet enjoyment and B can sue only C for damages.
D)C has breached the covenant for quiet enjoyment and B can only sue A and C for damages if he so chooses.
E)C has not breached the covenant for quiet enjoyment because,as owner of the building,C has the right to do the construction and enter B's premises at any time.

Answer 1

A

Question 2

An interest in land for a definite period of time is called a

A)leasehold interest.
B)period.
C)lease.
D)periodic tenancy.
E)term.

Answer 2

E

Question 3

The landlord's covenant of quiet enjoyment means that

A)the landlord will not do anything to interfere with the tenant's possession and use of the premises.
B)the tenant will not bring other persons onto the premises.
C)the landlord will not make excessive noise that could interfere with the right of the tenant to peace and quiet.
D)the tenant will not make excessive noise that could disturb others,including the landlord and other tenants.
E)the tenant will not disturb other tenants.

Answer 3

A

Question 4

The right of the landlord to seize the assets of the tenant to sell them to realize rental arrears is called

A)forfeiture.
B)distress.
C)surrender.
D)re-entry.
E)termination.

Question 5

Objects that are attached to the land or a building but are distinguished from the land itself are called

A)chattels.
B)accessories.
C)additions to land.
D)fixtures.
E)fixings.

Question 6

Jack is on vacation and enters into an agreement with the owner of a home.He will reside in one of the rooms in the home and will share the kitchen with the other tenants.He will vacate the premises at the end of his vacation,in one month.If at the end of the month Jack does not vacate the premises and the landlord does not agree to Jack staying on,Jack becomes

A)a periodic tenant.
B)a tenancy at sufferance.
C)a tenant at will.
D)a term certain tenant.
E)an overholding tenant.

Question 7

Jack enters into a verbal agreement with the owner of a home.He will reside in one of the rooms in the home and will share the kitchen with the owner.He does not sign a formal lease,and he is advised that he can leave the premises at any time without notice.Likewise the landlord may ask him to leave the premises at any time without notice.Jack's tenancy is

A)term certain tenancy.
B)leasehold tenancy.
C)a tenancy at will.
D)a periodic tenancy.
E)a tenancy at sufferance.

Question 8

Which of the following is NOT a question one would ask when determining whether an object is a fixture?

A)What was the value of the object?
B)How much damage,if any,will be caused to the building by its removal?
C)Has the object been fastened to the building with the intention that it become a part of the building?
D)What use is to be made of the object?
E)How securely and permanently is the object attached?

Question 9

Where there has been a breach of the lease contract,a landlord,in addition to suing for damages,has a duty

A)to mitigate damages.
B)to re-enter the premises to seize the property of the tenant.
C)to return the property of the tenant to the tenant.
D)to report the breach to the rental tribunal.
E)to check to determine whether there has been any damage to the property.

Question 10

A enters into a lease with B whereby A will lease office space in B's building commencing March 1.But since B has to renovate the office for A and it will not be ready by March 1,as a gesture of goodwill,B permits A to use another office in the building until A's office is ready and charges A a small sum during this time.In this case,the use by A of the office pending completion of his own office creates

A)a licence.
B)an easement.
C)a tenancy at sufferance.
D)a tenancy at will.
E)a periodic tenancy.

Question 11

A rents his property to B for a term of five years.At the end of the term,A has not been able to rent the property out and simply permits B to continue to stay on the property without paying rent.In this case,B is

A)a tenant at will.
B)a tenant at sufferance.
C)a licensee.
D)a periodic tenant.
E)a trespasser.

Question 12

A and B are friends,and for years now,on B's invitation,A has used B's vacant land in northern Ontario to hunt wild game.In this case,A is a

A)subtenant.
B)trespasser.
C)licensee.
D)tenant at will.
E)tenant.

Question 13

Mary's tenancy is due to end on June 2,2003.On that date,Mary does not leave the premises and pays the landlord rent for another month.The term certain tenancy is converted into a

A)term certain tenancy.
B)tenancy at will.
C)periodic tenancy.
D)tenancy at sufferance.
E)month to month tenancy.

Question 14

A orally agrees with B to lease an office in B's building for four years.A moves in and renovates the office and also pays monthly rent to B pursuant to their agreement.B now decides to arbitrarily tell A to leave because there is no lease.If A wants to make B specifically perform the lease,a court will most likely find that

A)the lease is unenforceable under the Statute of Frauds,but A's acts will give him a quantum meruit claim for the renovations.
B)the lease is unenforceable under the Statute of Frauds,but A's acts constitute part performance and the lease should be upheld.
C)the lease is unenforceable under the Statute of Frauds,and A's acts do not amount to part performance so effectively there is no lease.
D)the lease is unenforceable under the Statute of Frauds,but A's acts will give him a claim for unjust enrichment for the renovations.
E)all of the above

Question 15

Waste,in connection with leased premises,refers to

A)garbage bought onto the premises by third parties.
B)damage caused by the voluntary or involuntary acts of the tenant that has the effect of reducing the value of the property.
C)garbage of the tenant.
D)human waste.
E)garbage of the landlord.

Question 16

To end a periodic tenancy,the landlord or tenant must serve a

A)notice of termination.
B)notice of injunction.
C)notice of commencement of proceedings.
D)notice to quit.
E)notice of withdrawal.

Question 17

Edward enters into a lease with Charles to rent commercial property and use it as a convenience store.The lease is for a term of five years.After a couple of months,Edward's business is not doing very well,so Edward decides to assign the lease to John,who makes his rent payments directly to Charles.In this case

A)the assignment to John makes only Edward liable to Charles for a breach of the lease.
B)the assignment to John makes both Edward and John liable to Charles for a breach of the lease.
C)the assignment to John makes only John liable to Charles for a breach of the lease.
D)the assignment to John discharges the lease between Edward and Charles.
E)none of the above

Question 18

A and B enter into a lease for B's property.Under the lease,which has no specific term,A makes his payments monthly.In this case,at the end of each month

A)the lease becomes a license.
B)the lease becomes a tenancy at sufferance.
C)the lease becomes a tenancy at will.
D)the lease comes to an end.
E)the lease is automatically renewed for another month.

Question 19

A and B enter into a lease for property owned by B for a term of four years commencing April 1,2009,and ending March 31,2013.In this case,the lease creates

A)a periodic tenancy.
B)a tenancy at will.
C)a license.
D)a tenancy for a fixed or certain term.
E)a tenancy at sufferance.

Question 20

Which of the following is NOT a typical covenant of the tenant in a lease?

A)fitness for occupancy
B)restriction on assignment and subletting
C)restriction on pets
D)responsibility for insurance
E)payment of rent

Question 21

Waste,in connection with leased premises,refers to garbage bought onto the premises by third parties.

Question 22

Jack enters into a verbal agreement with the owner of a home.He will reside in one of the rooms in the home and will share the kitchen with the owner.He does not sign a formal lease,and he is advised that he can leave the premises at any time upon the provision of a month's notice.Likewise the landlord may ask him to leave the premises upon the provision of a month's notice.Jack's tenancy is tenancy at will.

Question 23

Jack enters into a lease with Mary for a term of one year.Before she leased the property,Mary granted a mortgage over the property to the Royal Bank of Canada.Mary does not advise the Royal Bank of Canada of the lease.A month later Mary defaults under the mortgage.Which of the following is TRUE?

A)The Royal Bank of Canada's title is subject to lease.
B)The Royal Bank of Canada is bound by the lease and cannot obtain possession.
C)The Royal Bank of Canada can evict Jack and sell the property.
D)Jack can continue to observe the terms of the lease.
E)The Royal Bank of Canada cannot evict Jack and get a new tenant.

Question 24

The law generally provides greater legislative protection for residential tenants.Certain basic features include all of the following EXCEPT

A)landlords are required to maintain the premises in a reasonable state of repair.
B)landlords have a duty to mitigate any loss caused by a tenant's breach.
C)landlords have the right to seize assets of a residential tenant to realize arrears of rent.
D)landlords may not arbitrarily or unreasonably withhold consent to an assignment or sublet.
E)restrictions are imposed on the amount of rents and rent increases.

Question 25

Which of the following is NOT true?

A)The landlord has a statutory duty to insure the premises for the benefit of the tenant.
B)A landlord may obtain an injunction to stop a tenant from acting in such a way that would be in breach of the lease.
C)In the event of a bankruptcy,a landlord has priority over other creditors to the amount of three months' rent.
D)The landlord's covenant under a lease includes quiet enjoyment of the premises.
E)Distress is the right of the landlord to seize assets of the tenant found on the premises and sell them to realize unpaid rent.

Question 26

The only covenant binding on a landlord is the covenant to pay rent.

Question 27

A financial arrangement that enables a business to purchase a house and sell it to a financial institution that in turn gives a long-term lease of the property back to the business is called

A)a saleback.
B)a leaseback.
C)a mortgageback.
D)a loanback.
E)a purchaseback.

Question 28

Selena rents an apartment from her landlord Stuart on a month to month basis.She also operates a small restaurant a short walk away which she also rents from Stuart.Neither lease imposes any obligation on the landlord to make repairs.One cold night in December the hot water heater in her apartment stopped working.She contacted her landlord and he immediately arranged for repairs to be completed at his expense.The following morning when Selena arrived at the restaurant she noticed that a pipe had frozen and there was significant damage to the kitchen.She contacted Stuart again but he refused to do anything to repair or pay for the damages.A landlord in these circumstances

A)is not liable to make repairs to the restaurant.
B)has an obligation to make repairs to the restaurant.
C)is legally responsible for the damage because he has an economic incentive to maintain the restaurant.
D)has the same obligations to repair the restaurant as he does the apartment.
E)must apply to a court of law for directions.

Question 29

A tenant cannot obtain an easement over the property of another.

Question 30

The right of the landlord to distrain is also sometimes referred to as

A)forfeiture.
B)distress.
C)right of re-entry.
D)joint tenancy.
E)leaseback.

Question 31

A financial arrangement enabling a business to buy a building and sell it to a financial institution that,in turn,gives a long-term lease of the property back to the business is known as

A)a lease.
B)a leaseback.
C)privity of estate.
D)long term lease.
E)leasehold.

Question 32

Maab owns a small pet shop.He carries on business in commercial premises he leases from his landlord Susan.Due to a down turn in the local economy,Maab fails to pay his rent for three months.Susan takes the appropriate steps to reenter the premises and evict Maab for failure to pay rent.Maab was unable to remove all of his assets from the premises before the reentry.He has a large aquarium with thousands of dollars of exotic fish that Susan has now threatened to sell and apply the proceeds to the outstanding rent arrears.Is she legally entitled to do so?

A)yes,because Maab failed to remove all of his assets prior to the reentry and eviction
B)yes,because the landlord has a general right to seize assets of the tenant found on the premises and sell them to recover arrears of rent
C)no,because a commercial landlord is never entitled to sell assets owned by a tenant
D)no,because the landlord is not permitted to exercise the right of eviction and subsequently exercise a right of distress
E)yes,because Maab is a commercial tenant

Question 33

A tenancy that lasts from month to month is not a lease that will bind purchasers of the property.

Question 34

Jack is on vacation and enters into an agreement with the owner of a home.He will reside in one of the rooms in the home and will share the kitchen with the other tenants.He will vacate the premises at the end of his vacation,in one month.Jack's tenancy is a term certain tenancy.

Question 35

Bill operates a small skate sharpening business in the local mall.The lease is for five years with an option to renew for a further five years.After taking possession,Bill brings into the premises a skate sharpening machine which is fastened to the floor with four bolts.He carries on business for five years and decides to relocate.Bill does not exercise the option to renew.He removes the skate sharpening machine the day before the lease expires and repairs the four holes in the floor so as to prevent any damage.His landlord learns that the skate sharpening machine has been removed and threatens to sue Bill alleging that he removed a fixture which belonged to the landlord.The landlord tells Bill that he has rented the premises to a new tenant and "sold" the skate sharpening machine to the new tenant.In this case

A)The skate sharpening machine cannot be removed because it affects the right of an innocent third party-the new tenant.
B)Any fixtures installed by the tenant during the course of the tenancy cannot be removed.
C)The skate sharpening machine is a tenant's fixture and it may be removed before the end of the tenancy.
D)The skate sharpening machine can be removed because it was not at any time considered at law to have become a fixture.
E)The skate sharpening machine should be put into storage pending a court order.

Question 36

In an assignment of lease and a sublease,the assignee and the subtenant are responsible to the landlord.

Question 37

Where a tenant enters into a lease for a unit in a commercial plaza under which no one else in the plaza can carry on the same business,the lease contains a restrictive covenant.

Question 38

Jack enters into a verbal agreement with the owner of a home.He will reside in one of the rooms in the home and will share the kitchen with the owner.He does not sign a formal lease,and he is advised that he can leave the premises at any time without notice.Likewise the landlord may ask him to leave the premises at any time without notice.Jack's tenancy is tenancy at will.

Question 39

The abandonment by the tenant of the premises during the term of the lease is called

A)forfeiture.
B)surrender.
C)right or re-entry.
D)distress.
E)termination.

Question 40

A lease can be brought to an end if both the landlord and the tenant sign a surrender of lease agreement.

Question 41

What is the difference between an assignment of a lease and a sublease?

Question 42

A landlord is permitted to exercise the right of eviction and simultaneously or subsequently exercise a right of distress only where the landlord has given proper notice at law.

Question 43

Jack rents an apartment and fixes a television stand to the wall.The stand enables the television to be placed close to the wall as opposed to on a table or on the ground.Is the television stand considered to be a fixture? Explain.

Question 44

Jack enters into a lease with Mary,his landlord.The terms of the lease are very generous to Jack.Six months later,Mary sells the home and transfers all her interest to the new owner.Explain how the new owner can receive both the rights and duties of the former landlord when Jack was not a party to the sale of the home and did not consent to it.

Question 45

Who is an overholding tenant?

Question 46

If a tenant abandons residential premises,in some provinces the landlord must attempt to find a new tenant in order to mitigate damages.

Question 47

Mary's tenancy is due to end on June 2,2013.On that date Mary does not leave the premises and pays the landlord rent for another month.The term certain tenancy is converted into a tenancy at sufferance.

Question 48

What is a tenancy at will?

Question 49

Explain why today legislation has been enacted to provide greater protection to residential tenancies and not to commercial tenancies.

Question 50

Today,in commercial leases,it is common for the landlord to make the tenant responsible for virtually everything with respect to the property,including repairs,structural repairs,and payment of all taxes and utilities.Such leases are often referred to as "net net" leases,because the landlord has little or no responsibility and still is paid rent.Why do you think that "net net" leases are frowned upon when it comes to residential leases?

Question 51

In the absence of an express provision in the lease,what property is a tenant entitled to remove at the end of the tenancy?

Question 52

Provincial human rights legislation protects tenants and prospective tenants against discrimination based on such things as race,colour,and gender.

Question 53

What are two main considerations that a business person would have in considering whether to buy and lease commercial property instead of residential property as an investment?

Question 54

Mary's tenancy is due to end on June 2,2013.On that date Mary does not leave the premises.The term certain tenancy is converted into a tenancy at will.

Question 55

Jack rents an apartment and hangs a picture of his girlfriend on the wall.Is the picture considered to be a fixture? Explain.

Question 56

What are some of the major changes in the law regarding residential tenancies?

Question 57

A normal assignment of lease by a tenant leaves the tenant liable to the landlord in the event of a breach or default by the assignee.Explain a practical solution to such a situation to relieve the tenant of liability and list one qualification to it.

Question 58

Privity of estate with a new landlord brings to an end privity of contract with the former landlord.

Question 59

In the context of residential tenancies,landlords are not allowed to select tenants based on income information and credit checks.

Question 60

In commercial tenancies,there is often an issue with respect to ownership of goods,trade fixtures,and leasehold improvements.From the tenant's perspective,the best way to eliminate or reduce any dispute with respect to these issues is to ensure that they are addressed and spelled out in the lease.

Question 61

Briefly describe the arguments for and against residential rent control.

Question 62

Briefly describe the remedy of distress and,in light of legislative concerns about the well-being of families,why it has been abolished in the context of residential tenancies.

Question 63

In commercial tenancies,there is often a conflict between the interests of landlords and tenants and their respective creditors.What risks do creditors of landlords and tenants face when considering seizure of goods located in the leased premises and sale of the financed assets?