Explain what are the Standard Covenants

Question

Explain what are the Standard Covenants in Commercial Leases?

Answer 1

The Standard Covenants in Commercial Leases are:-

1. Rent: Tenant covenants to pay rent.

2. Quiet enjoyment: Tenant obtains an assurance against the consequences of landlord's title being defective and an assurance that landlord will not interfere with tenant's enjoyment.

3. Assignment and subletting: Either tenant or landlord can assign their contractual rights to a third party.

4. Restriction on use of premises: Landlord will often require an express covenant that restricts use of premises to particular trades.

5. Fitness for occupancy: Courts have found that the course of dealings between parties may create an implied covenant that premises will be fit for tenant’s purpose if disclosed to landlord.

6. Repairs:  Landlord is not liable to make repairs unless there is an express covenant. Tenant is not liable to make repairs, but s/he must not cause excessive wear or commit waste.

7. Insurance: In absence of an express provision, neither landlord nor tenant must insure premises.

8. Fixtures: It is wise to include an express agreement about which fixtures (personal property attached to land or building) remain tenant’s property.