Tenant’s Caveats & the Sale or Mortgaging of Freehold Property
January 28, 2011 Leave a comment
A lease (as opposed to a licence) undoubtedly creates an interest in land in favour of the tenant. A lease for more than three years may be registered on the title to the land and a lease for any period entitles the tenant to lodge a caveat. Registration of the lease will require production of the certificate of title and, in the normal course of events, an order to register from the registered proprietor. This implies a degree of co-operation between landlord and tenant and is usually only achieved in the context of negotiations when the lease begins, as anytime thereafter the landlord is not obliged to co-operate and is unlikely to do so. A caveat does not require production of the title nor formal consent of the landlord and for this reason is a ‘simpler’ way of recording the tenant’s interest. That it is not often utilized flows from the statutory recognition of tenants in possession as paramount interests. Read more of this post
