The will contain similar provisions.
Section 40 – requires that the lease be in the format of Form H of the first schedule.
All leases exceeding 12 months must be registered but all in all leases for commercial premises must be registered. Leases for less than one year are valued without registration.
There must be a concise description of the area being leased. The architect’s floor plan sets out the area.
In registration of leases, the architect’s floor plan is presented for registration.
Commercial leases must be for durations exceeding 5 years 1 month not to be deemed as controlled tenancies. In most commercial leases there are normally escalation clauses, relating to escalation of rents within a certain period. the details of the rents to be paid in the escalation clauses must be clearly stated. It is in the interest of the landlord to ensure that the exact higher rents to be paid are included in the lease.
It is important that the documents be executed by the parties. In case of the limited liability company it is important to have a guarantee page where the directors guarantee the payment of rents. The guarantee clause is signed by the directors or one director and secretary and attested by an advocate.
Section 105-112 of the ITPA – deals with obligations of various parties as far as drafting of leases is concerned.
There are certain important matters in relations to provisions of Cap 301 or the Landlords & Tenants
This Acts was enacted for purpose of protection of the tenants. The Act applies to control rents for certain premises. Controlled tenancies include
1. where the lease has not been reduced into writing; before a tenant moves in they better sign the lease.
2. The lease must not be for less than a period of 5 years 1 month, this is to avoid the tenancy from becoming a control tenancy.
Controlled tenancies – the lease is reduced into writing but give the right of the landlord to terminate within the five years one month. The lease should not have a termination clause. Landlord’s Shops Hotels and Catering Establishments Act.
It is important no tenancy to which the landlord is a government can be a controlled tenancy. When acting for landlord ensure you do not create controlled tendencies.
Section 4 (2) – right to dispute any notice purporting to terminate the tenancy. If the tenant is a controlled tenant they can seek for reassessment of rent. A tenant can oppose a notice of termination or alteration.
Section 12 – powers of the tribunal – determining rents payable, fixing service charge make orders relating to payment of rent arrears. Orders relating to repairs
Provisions of Cap 301 – section 105 -111 of ITPA
The Rent Restriction Act Cap 296 – applies to certain premises, mainly residential premises with rents below 2,500. The landlord does not have the right to levy distress on the tenant goods.
The Distress for Rent Act Cap 292 – right to levy distress upon a tenant’s good and to sell them. The landlord can instruct an auctioneer to sell a tenant’s good within 7 days of proclamation if the tenant does not pay rent.
Auctioneers Act and Auctioneers Rules
Section 15 Distress for Rent Act – proper procedure
Section 16 of Distress for Rent Act – government property not subject for distress, goods and chattels in possession of the law are not subject for distress, goods delivered to a person being managed in a way of his trade like a radio repairman, goods of customers cannot be taken away. Wearing apparels, beddings are not to be distrained. Animals are exempted. Goods that do not belong to the tenant cannot be taken away.