Property law Essay Example | Topics and Well Written Essays - 2500 words - 3

Property law - Essay Example ie Plc and Target there would be both privity of contract1 and privity of estate2 between Leslie Plc and Target as they were the original lessor and lessee. By the action of Target assigning the lease to Ace the relationship between Leslie and Ace would only be on the basis of privity of estate as there is no contractual relationship between them. Similarly by Leslie selling the property to Rake there would be no privity of contract between Rake and Target or Rake and Ace3, only a privity of estate4. The further subletting of the lease by Ace to Simon creates neither privity of estate of privity of contract as there was no agreement with Rake to sublet the property. If Rake had agreed to the sublet then a privity of estate would have been created and Rake could enforce the repair covenant against Simon5. The differences that apply under privity of contract and privity of estate will affect the ability of Rake to enforce the covenant. Under a privity of contract all covenants bind6 whereas under privity of estate7 only the covenants which are regarded as typically part of the landlord and tenant relationship will be bound8. Privity of estate only affects the benefit and burden on the assignee and the landlord in respect of covenants that touch and concern the land9. Having established the relationship of the parties it is necessary to look as to whether the burden and benefit of the covenants can pass with the assignments. Looking first at the position of pre 1996 leases the general rule was that the original tenant could not pass the burden to the assignee. If the lease began prior to 1996 then the assignment of the tenancy would not absolve Target from the liability10 in accordance with the contract11. This would mean that Target would be bound by the covenants throughout the duration of the lease even though his interest has been assigned12. Covenants in leases are deemed to be made on behalf of the covenantor and his successors in title unless a contrary