RICS APC Commercial Property Management 2

Question 1

Under Section 18(1) of the Landlord and Tenant Act 1927, what statutory cap applies to a landlord's terminal dilapidations claim?

Accepted Answer

The claim cannot exceed the diminution in value of the landlord's reversion caused by the disrepair

Answer

Section 18(1) of the Landlord and Tenant Act 1927 limits a dilapidations claim to the reduction in the value of the landlord's reversionary interest caused by the disrepair, preventing recovery exceeding actual financial loss.

Question 2

What is a 'break clause' in a commercial lease?

Accepted Answer

A clause allowing one or both parties to terminate the lease before the contractual expiry date

Answer

A break clause gives one or both parties a contractual right to end the lease early at a specified date or dates, typically subject to conditions such as vacant possession and compliance with lease covenants.

Question 3

What is the purpose of a 'schedule of condition' attached to a commercial lease?

Accepted Answer

To record the property's condition at lease commencement, limiting the tenant's repairing obligation to no better than that recorded state

Answer

A schedule of condition (typically supported by photographs) records the property's state at the start of the lease, restricting the tenant's repair liability to maintaining the property in no better condition than evidenced.

Question 4

Under the Landlord and Tenant Act 1988, what obligations are placed on a landlord when a tenant requests consent to assign a commercial lease?

Accepted Answer

The landlord must not unreasonably withhold or delay consent and must give a written decision within a reasonable time

Answer

The Landlord and Tenant Act 1988 requires landlords to respond to assignment applications within a reasonable time, not unreasonably withhold or delay consent, and provide written reasons when refusing.

Question 5

What does 'alienation' mean in the context of a commercial lease?

Accepted Answer

The tenant's rights to deal with the lease interest by assignment, subletting, or charging

Answer

Alienation encompasses all forms of dealing by a tenant with their leasehold interest, including assignment to a third party, subletting, and charging the lease as security, typically subject to landlord consent.

RICS APC Practice Test

RICS APC Practice Test

RICS APC Commercial Property Management 2