Landlord and Tenant (Amendment) Act, 1984

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Number 4 of 1984

LANDLORD AND TENANT (AMENDMENT) ACT, 1984

ARRANGEMENT OF SECTIONS

Reversionary Leases

Sporting Leases

Purchase of Fee Simple

New Tenancies

Number 4 of 1984

LANDLORD AND TENANT (AMENDMENT) ACT, 1984

AN ACT TO MAKE PROVISION FOR THE PERIODICAL REVIEW OF RENTS PAYABLE UNDER REVERSIONARY LEASES AND SPORTING LEASES AND FOR THE DETERMINATION OF THE PURCHASE PRICE OF THE FEE SIMPLE AND OTHER INTERESTS IN LAND IN CERTAIN CASES AND FOR THESE AND OTHER PURPOSES TO AMEND THE LAW OF LANDLORD AND TENANT AND TO PROVIDE FOR OTHER MATTERS CONNECTED WITH THE MATTERS AFORESAID. [14th March, 1984]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:

Commencement.

1.—This Act shall come into operation one week after the day of its passing.

Interpretation.

2.—(1) In this Act, except where the context otherwise requires—

“Act of 1967” means the Landlord and Tenant (Ground Rents) Act, 1967 ;

“Act of 1971” means the Landlord and Tenant (Amendment) Act, 1971 ;

“Act (No. 2) of 1978” means the Landlord and Tenant (Ground Rents) (No. 2) Act, 1978 ;

“Act of 1980” means the Landlord and Tenant (Amendment) Act, 1980 ;

“the Court” means the Circuit Court.

(2) A reference in this Act to a section is to a section of this Act unless it is indicated that reference to some other enactment is intended.

(3) A reference in this Act to a subsection or paragraph is to the subsection or paragraph of the provision in which the reference occurs, unless it is indicated that reference to some other provision is intended.

(4) A reference in this Act to any other enactment shall, except so far as the context otherwise requires, be construed as a reference to that enactment as amended or applied by or under any other enactment including this Act.

Reversionary Leases

Review of rent.

3.—(1) Where, after the commencement of this Act, the terms of a reversionary lease are settled by the Court under Part III of the Act of 1980 the lessor or the lessee shall be entitled to have the rent reviewed in accordance with this section.

(2) The person seeking the review shall serve on the other party notice of his intention to have the rent reviewed.

(3) The notice may be served—

(a) where the rent has not previously been reviewed—not earlier than one month before the fifth anniversary of the date on which the terms of the lease were settled,

(b) where the rent has previously been reviewed—not earlier than the fifth anniversary of the date of service of the notice for the preceding review.

(4) In default of agreement on the rent, the person seeking the review shall be entitled to apply to the Court to have the rent reviewed not earlier than one month after service of the notice.

(5) In default of agreement, the rent fixed upon the review shall become payable on whichever of the following dates is the later—

(a) the first gale day after service of the notice under subsection (2),

(b) (i) where the rent has not previously been reviewed, the first gale day following the fifth anniversary of the date on which the terms of the lease were settled,

(ii) where the rent has previously been reviewed, the first gale day following the fifth anniversary of the date of service of the notice for the preceding review.

(6) On a review of the rent by the Court the rent shall be fixed in accordance with the relevant provisions of sections 34, 35 and 36 of the Act of 1980 by reference to the date of service of the notice on which the application to the Court is based.

Temporary extension of right to reversionary lease.

4.—(1) Where—

(a) after the 13th day of November, 1980, and before the commencement of this Act a person was entitled to obtain a reversionary lease of land under Part III of the Act of 1980, and

(b) at that commencement he is no longer so entitled by virtue of section 31 of the Act of 1980 but is in possession of the land without having obtained a new tenancy and without having acquired the interest in the land of the immediate lessor,

that person shall during the twelve months after that commencement have the same right to obtain a reversionary lease as he would have had if his lease had not expired, and section 40 of that Act shall apply accordingly.

(2) A reversionary lease granted by virtue of subsection (1) shall commence on the expiration of the lease to which it is reversionary or on such other date as may be agreed upon between the parties.

Sporting Leases

Review of rent.

5.—(1) Where, after the commencement of this Act, the rent under a sporting lease is fixed by the Court under the Act of 1971 the lessor or the lessee shall be entitled to have the rent reviewed in accordance with this section.

(2) The person seeking the review shall serve on the other party notice of his intention to have the rent reviewed.

(3) The notice may be served—

(a) where the rent has not previously been reviewed—not earlier than one month before the fifth anniversary of the date on which the rent under the lease was fixed,

(b) where the rent has previously been reviewed—not earlier than the fifth anniversary of the date of service of the notice for the preceding review.

(4) In default of agreement on the rent, the person seeking the review shall be entitled to apply to the Court to have the rent reviewed not earlier than one month after service of the notice.

(5) In default of agreement, the rent fixed upon the review shall become payable on whichever of the following dates is the later—

(a) the first gale day after service of the notice under subsection (2),

(b) (i) where the rent has not previously been reviewed, the first gale day following the fifth anniversary of the date on which the rent under the lease was fixed,

(ii) where the rent has previously been reviewed, the first gale day following the fifth anniversary of the date of service of the notice for the preceding review.

(6) On a review of the rent by the Court the rent shall be fixed in accordance with the relevant provisions of section 6 of the Act of 1971 by reference to the date of service of the notice on which the application to the Court is based.

(7) Section 5 (3) (a) of the Act of 1971 is hereby repealed.

Effect of covenant restricting user of land to sporting purposes.

6.—For the avoidance of doubt, it is hereby declared that, in a lease to a sports club, a condition providing for a right to terminate the lease where the property is not used for or in connection with sporting purposes, whether inserted in pursuance of section 5 (3) (b) of the Act of 1971 or by agreement between the parties, is not a covenant to which section 29 of the Act of 1967 or section 67 of the Act of 1980 applies.

Purchase of Fee Simple

Determination of purchase price by arbitration.

7.—(1) In this section, “the relevant date” in relation to any land means the date of service of the notice under section 4 of the Act of 1967 or of the application under Part III of Act (No. 2) of 1978, as the case may be.

(2) This section applies to the determination of the purchase price of the fee simple or any other interest by arbitration under the Act of 1967 including an arbitration conducted by the Registrar of Titles in pursuance of section 21 of Act (No. 2) of 1978.

(3) Subject to the provisions of this section, the purchase price shall be the sum which, in the opinion of the arbitrator, a willing purchaser would give and a willing vendor would accept for the fee simple or other interest at the relevant date having had regard to—

(a) the rent payable for the land by the person acquiring the fee simple,

(b) where, at the relevant date, the land is held under a lease which provides for an increased rent payable within fifteen years after that date, the amount of that increase and the time when it becomes payable,

(c) the current interest yields on securities of the Government issued for subscription in the State,

(d) if the land is used for the purposes of business, or exceeds one acre in area and is not used for the purposes of business, the area and nature of the land, its location and user and the state of repair of any buildings or structures thereon,

(e) the price paid for the fee simple or any other interest in the land on a sale taking place on or after the 22nd day of May, 1964,

(f) any mortgage or other charge on the interest in the land of any person from whom, mediately or immediately, the person acquiring the fee simple holds the land,

(g) the costs and expenses which, in the opinion of the arbitrator, would be reasonably incurred by the persons from whom, mediately or immediately, the person acquiring the fee simple holds the land, in investing the purchase money payable in respect of the acquisition of the fee simple,

(h) the costs and expenses which, in the opinion of the arbitrator, have been incurred by a person acquiring the fee simple who holds the land under a lease by reason of the failure of the lessor to maintain any amenities which he is required to maintain under a covenant in the lease,

(i) the current price of the immediate lessor's interest in land held under leases or yearly tenancies similar to the lease or yearly tenancy, as the case may be, under which the land is held by the person acquiring the fee simple, and

(j) such other matters as are, in the opinion of the arbitrator, relevant to the determination of the purchase price.

(4) (a) Where, at the relevant date, the land is held under a lease that has expired or is held at a rent which, whether under the terms of the lease or by operation of a statute, is subject to a review which is due but has not been made, the purchase price of the fee simple shall, subject to the other provisions of this section, be a sum equal to one-eighth of the amount which, at that date, a willing purchaser would give and a willing vendor would accept for the land in fee simple free of all estates, interests and incumbrances, but having regard to any covenant which continues in force by virtue of section 28 of Act (No. 2) of 1978, and assuming that the lessee has complied with any other covenants or conditions in his lease that could affect the price.

(b) A deduction shall be made from that amount equal to the value of the goodwill, if any, in the premises of the person acquiring the fee simple.

(c) A deduction shall also be made from that amount equal to any addition to the value of the premises resulting from such works as would qualify for the special allowance mentioned in section 35 of the Act of 1980.

(d) In determining the amount referred to in paragraph (a) any addition to value deriving from contemplation of substantial rebuilding or a scheme of development (such as are mentioned in section 33 (1) (b) (i) and (ii) of the Act of 1980) shall be disregarded.

(5) If the land—

(a) is not used for the purposes of business,

(b) is held by the person acquiring the fee simple under a contract of yearly tenancy, or under a yearly tenancy arising by operation of law or by inference on the expiration of a lease or under a lease which will not expire within fifteen years after the relevant date, and

(c) does not exceed one acre in area,

then, subject to subsections (6) and (7), the purchase price shall not exceed the amount which, if invested on the date of the award in the security of the Government which was issued last before that date for subscription in the State and is redeemable not less than fifteen years after the date of issue, would produce annually in gross interest an amount equal to the amount of the rent payable under the lease or yearly tenancy, as the case may be, during the year immediately preceding the relevant date.

(6) Where the cost of extinguishing a rent or charge out of or on land the fee simple in which is being acquired under Act (No. 2) of 1978 or the Act of 1967 is fixed by statute, allowance shall be made for such cost in determining the purchase price of the fee simple under this section.

(7) Subsection (5) shall not apply to a case where, whether under the lease or by virtue of the operation of a statute, an increased rent is or may become payable, or the rent is subject to review, within fifteen years after the relevant date.

(8) If the land—

(a) is not used for the purposes of business,

(b) is held by the person acquiring the fee simple under a lease, and—

(i) the lease will expire within fifteen years after the relevant date, or

(ii) the rent is subject to review within that period, under the lease or by virtue of any statute, and

(c) does not exceed one acre in area,

the purchase price shall not exceed the amount which would be determined under subsection (5) if the land were land to which the subsection applied, together with, in respect of each year by which the unexpired term (reckoned from that date) of the lease falls short of fifteen years, one fifteenth of the difference between that price and the price that would be determined under subsection (4) if the lease had expired.

(9) Subject to subsection (8), where, at the relevant date, the land is held under a lease that will expire within fifteen years after that date or where the rent is subject to review within that time, under the lease or by virtue of any statute, then—

(a) the length of time to run from that date to the expiration of the lease or to the earliest date from which the rent as so reviewed may become payable, as the case may be, and

(b) the provisions as to price that would apply if, as the case may be, the lease had already expired or the review of rent were already due,

shall be among the matters to which, pursuant to subsection (3), the arbitrator shall have regard in determining the purchase price.

(10) The arbitrator shall, if so requested by a party to the arbitration, specify the matters (if any) to which he has had regard under subsection (3) (j).

(11) Section 17 of Act (No. 2) of 1978 is hereby repealed.

Restrictions on right to acquire fee simple.

8.—A right to acquire the fee simple under Part II of Act (No. 2) of 1978 existing at the commencement of this Act shall, notwithstanding anything in section 16 (2) (a) of that Act, not be excluded by reason only of any provision in a reversionary lease granted after that commencement for a review of the rent reserved by the lease.

Buildings erected by yearly tenant.

9.—Section 15 (1) of Act (No. 2) of 1978 (which confers the right to acquire the fee simple on yearly tenants in specified circumstances) is hereby amended by the substitution, for paragraph (d), of the following paragraph:

“(d) that, either—

(i) the yearly rent is less than the rateable valuation of the property at the date of service of that notice of intention or application, or

(ii) it is proved that the permanent buildings were erected by the tenant or a predecessor in title.”.

Failure to provide information regarding title to land.

10.—Section 7 of the Act of 1967 is hereby amended by the addition of the following subsection:

“(4) Where a person on whom a notice is served under this section refuses or fails to provide the information as required by this section, the person who served the notice may apply to the Court which may make such order as justice may require to compel the person on whom the notice was served to provide the information.”.

Nomination of county registrar to arbitrate.

11.—If, during any period, the office of county registrar for a particular area is vacant or the county registrar for a particular area is unable owing to illness or for any other reason to transact the business of his office, the Minister may nominate any county registrar to hear and determine by arbitration under section 17 of the Act of 1967 a particular dispute, question or difficulty to which that section applies arising in that area or any dispute, question or difficulty to which that section applies so arising and the matter may be heard and determined accordingly.

Right of lessee to continue in possession.

12.—(1) A person to whom Part II of Act (No. 2) of 1978 applies by virtue of section 73 of the Act of 1980 and whose interest in the land has expired shall continue to be entitled to hold the land until either he is declared not to be entitled to acquire the fee simple or a grant to him of the fee simple is duly made and, during such period, he shall hold the land on the terms (so far as applicable) on which he previously held it, subject to all proper recoupments or adjustments.

(2) Where an application is made in relation to the acquisition of the fee simple and the interest of the applicant in the land expires before the application is heard and determined, the applicant shall be entitled to remain in possession of the land until the application is finally heard and determined on the terms (so far as applicable) on which he previously held it, subject to all proper recoupments or adjustments.

Temporary extension of right to acquire fee simple.

13.—(1) Where an application under section 31 of the Act of 1980 was made after the 13th day of November, 1980, and before the commencement of this Act and at that commencement the application has not been determined, the following provisions shall apply during the period of twelve months following that commencement:

(a) the applicant may by notice served on his immediate lessor withdraw that application and shall in that event be liable for the reasonable costs and expenses actually and necessarily incurred on foot of that application by the immediate lessor and any superior lessors;

(b) where a notice under paragraph (a) is served the applicant shall, notwithstanding that his interest in the land has expired, have the same right to acquire the fee simple as he would have had if that interest had not expired.

(2) Section 12 shall apply in relation to any case in which a notice is served under section 4 of the Act of 1967 or an application is made under section 20 or 21 of Act (No. 2) of 1978 by virtue of subsection (1) (b).

(3) Where—

(a) after the 13th day of November, 1980, and before the commencement of this Act, a person was entitled to acquire the fee simple of land by virtue of Part II of Act (No. 2) of 1978, and

(b) at that commencement, he is no longer so entitled but is in possession of the land without having obtained a new tenancy and without having acquired the interest in the land of the immediate lessor,

that person shall during the twelve months after that commencement have the same right to acquire the fee simple as he would have had if his interest had not expired, and section 12 shall apply accordingly.

New Tenancies

Restriction on application of Act of 1980 to State.

14.—Section 4 of the Act of 1980 is hereby amended by the deletion of subsections (3) and (4) and the substitution of the following:

“(3) Where a State authority acquires the interest of the lessor or immediate lessor of any premises after the commencement of this Act and neither that nor any other State authority had any previous interest in the premises as lessor or immediate lessor, section 13 shall apply as if the expressions ‘at any time’ and ‘at that time’ in subsection (1) thereof were references to the relevant date and Part II shall have effect accordingly, save that a tenant of the State authority whose tenancy of the premises is renewed under that Part as applied by this section shall not be entitled to a further renewal of his tenancy.”.

Review of rent.

15.—(1) Where the terms of a new tenancy are fixed by the Court under Part II of the Act of 1980 the landlord or the tenant shall be entitled to have the rent reviewed in accordance with this section.

(2) The person seeking the review shall serve on the other party notice of his intention to have the rent reviewed.

(3) The notice may be served—

(a) where the rent has not previously been reviewed—not earlier than one month before the fifth anniversary of the date on which the terms of the tenancy were fixed,

(b) where the rent has previously been reviewed—not earlier than the fifth anniversary of the date of service of the notice for the preceding review.

(4) In default of agreement on the rent, the person seeking the review shall be entitled to apply to the Court to have the rent reviewed not earlier than one month after service of the notice.

(5) In default of agreement, the rent fixed upon the review shall become payable on whichever of the following dates is the later—

(a) the first gale day after service of the notice under subsection (2),

(b) (i) where the rent has not previously been reviewed, the first gale day following the fifth anniversary of the date on which the terms of the tenancy were fixed,

(ii) where the rent has previously been reviewed, the first gale day following the fifth anniversary of the date of service of the notice for the preceding review.

(6) On a review of the rent by the Court the rent shall be fixed in accordance with the relevant provisions of section 23 of the Act of 1980 by reference to the date of service of the notice on which the application to the Court is based.

(7) Section 24 of the Act of 1980 is hereby repealed.

Short title, construction and collective citation.

16.—(1) This Act may be cited as the Landlord and Tenant (Amendment) Act, 1984.

(2) The Landlord and Tenant Acts, 1967 to 1983, and this Act shall be construed together as one Act and may be cited together as the Landlord and Tenant Acts, 1967 to 1984.