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The parcels clause and description of the premises in leasehold conveyancing

The parcels clause and description of the premises in leasehold conveyancingCertainty

The lease should contain in precise words as what is transferred and what is not. This is particularly important in the case of lease of offices and flats that are a part of a larger block. It should be clearly mentioned about what is being let and what is not.

It is also necessary to define the boundaries of the place that is let; i.e. where one unit ends and the other begins. For instance, in the case of a lease of an office premise, a wall is likely to separate one office from the other. The lease should define where in that wall is the boundary between the two offices. Similarly, if the floor and ceiling are to divide a premise, then where shall be the boundary between the floor and the ceiling? Repairing obligations are co-extensive with the ownership, i.e. if the tenant owns the wall, it is his duty to repair it.

Sometimes, it is not possible or practical to claim that one particular tenant owns the entire wall; the boundary shall have to be within the wall. The exact place where this exists shall depend on the construction of the wall.

Top floor and ground floor units

Care should be taken when leasing top floor and ground floor or basements. Does the top floor leasing include the roof and the air space above that, thereby enabling him to extent upwards? This could also include an obligation to maintain the roof and undertake timely repairs. In the case of ground level unit, the challenge is in determining downward extension.

Garage/car parking

If car parking is allotted to a tenant, it should be clearly mentioned in the lease. This is because leasing of flats (or units such as these) includes a garage. When a specific car parking or garage is allocated, it should be included in the property that is let. But if the lease merely gives the tenant, a right to park somewhere in the car park, it is an easement. The client should be informed of the precise rights regarding this, as this is often a cause of major friction between parties.

Photo courtesy: Kārlis Dambrāns

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