S13.2 Leases Definition

A lease (or tack) is a bi-lateral or mutual contract between a proprietor (who is then referred to as the lessor or landlord) of land, building, part of a building, fishings or the like, and a tenant (or lessee) to whom the temporary possession of the subjects and its fruits or profits, if any, is given for a stipulated annual rent (formerly tack-duty) paid monthly, quarterly or annually over a stipulated finite period.

The landlord is bound by the lease, unless the contrary is expressly stipulated, to warrant to the tenant undisturbed possession during the period of the Lease, and to protect him/her against all encroachments on his/her right. In return, the tenant is bound to conform to numerous obligations with regard to the use and upkeep of the property.

The relationship of the tenant to the landlord is similar in many ways to that of the vassal to the superior in the feudal system, the main difference separating the two sets of relationships being that of the finite period of the Lease. No feudal relationship is created between the lessor and lessee when a lease is granted.

As regards the term of the Lease, the law does not presume that it automatically expires at the specific termination date; instead, the presumption is that if neither the landlord nor the tenant has intimated a desire to terminate (by sending the other a notice to quit), both parties are deemed to wish the Lease to continue. The Lease is therefore automatically extended (for one year at a time for registerable leases) until formerly terminated by either party. This assumption is known as 'Tacit Relocation' (silent renewal).

It therefore follows that, in the absence of the appropriate evidence of termination, any recorded leasehold title is not automatically cancelled on the expiry of the original term.