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Know Your Clause – Landlord’s Covenants

The Landlord’s Covenants is a section on your lease which focuses on the responsibilities and obligations of a Landlord under a Leasing arrangement. Under most of our forms of the lease the landlord must ensure:

  1. Quiet Enjoyment – There is implied in every lease a covenant on the part of the landlord that the Tenant shall be put into possession of the premises and he shall have quiet enjoyment of the premises. This means that the Tenant shall be entitled to enjoy the premises without any interruption or disturbance by the Landlord once the Tenant pays rents and observes and performs the several covenants on its part which are specified in the lease. It is also notable that the Tenant has the benefit of this covenant whether it is written into the lease or not as it is an implied term in every lease.
  2. Services – to provide the services for which it has agreed to under the lease.
  3. Confidentiality of Economic Data – This is a clause on the new form of lease which mandates the landlord to hold in the strictest confidence any economic data received from the Tenant Company in the negotiation, finalization and administration of the lease.

1. How do you prevent a breach in Quiet enjoyment?

With respect to quiet enjoyment, ensure that the Tenant is able to function without disturbance on the premises. If the Landlord is aware of any third party activity which may affect the tenant, then it is under an obligation to notify the Tenant of same and take the necessary steps to minimize as much as possible.

 

2. How do you prevent a breach in Services?

With respect to the performance of the services, the Landlord must ensure that whatever service it has undertaken to perform is done in accordance with the lease.

3. How do you prevent a breach in Confidentiality of Economic Data?

 

Confidentiality – the landlord must ensure that any economic data which it acquires must be kept, stored and disposed of in the most confidential manner to prevent a breach of this clause.

Note: If the Landlord is unable to perform these obligations and/or there is a breach of same, then the Tenant is entitled to sue for damages and/or forfeit the lease in more severe cases.

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