TURKS & CAICOS Law and Practice Contributed by: Oliver Chapman and Chris Smith, Griffiths and Partners
Land Ordinance does imply certain covenants on the landlord and tenant, unless modified in the lease. 6.15 Effect of the Tenant’s Insolvency The terms of the lease usually allow a landlord to terminate the lease if the tenant becomes insol - vent. At the time of writing, specific insolvency legislation is in the course of being implemented. 6.16 Forms of Security to Protect Against a Failure of the Tenant to Meet Its Obligations It is common for a landlord to take a security deposit at the outset of a lease and the landlord may require guarantees from directors, share - holders or related companies. Security deposits are freely negotiable but would likely include at least one rental payment. Secu - rity deposits are not regulated and so the terms of the lease would govern. 6.17 Right to Occupy After Termination or Expiry of a Lease Unless expressly provided for in the lease, ten - ants do not have security of occupation or a right to renew at the end of the term. However, where a tenant continues to occupy the premises with the consent of the landlord after the termina - tion of the lease, the tenant will be deemed to be a tenant holding the premises on a periodic tenancy on the same conditions as those of the expired lease, in so far as those conditions are appropriate to a periodic tenancy. 6.18 Right to Assign a Leasehold Interest There is an implied term in the Registered Land Ordinance CAP 9.01 that tenants are only per - mitted to assign their leasehold interest with the written consent of the landlord which should not
be unreasonably withheld. However, it is up to the landlord and the tenant to agree the posi - tion; eg, some leases may include an absolute prohibition on assignment. To the extent assignment is permitted, the land - lord may be able to impose certain conditions; eg, the assignee giving a direct covenant to the landlord to comply with the tenant covenants in the lease or obtaining a suitable guarantee. The landlord may be able to withhold consent in certain circumstances; eg, if there is a material breach of the lease or, in the landlord’s reason - able opinion, the assignee will not be able to comply with the tenant covenants in the lease. 6.19 Right to Terminate a Lease Typically, a lease would provide the option for the landlord to terminate the lease in the event of a material breach by the tenant (subject to any negotiated cure periods) or the insolvency of the tenant. The landlord or tenant would ordi - narily be given the right to terminate the lease if the leased premises are substantially destroyed or damaged and not repaired within a speci - fied period. Tenant break options are generally uncommon, but could be negotiated. 6.20 Registration Requirements Leases are presented for registration in the prescribed form or any form approved by the registrar. They are accompanied by a statement of truth for the value of the purchase price or other consideration and an acknowledgement of receipt of consideration. Leases are only deemed to have been properly executed if signed by a natural person (for an individual) or, in the case of a corporation, if the common seal is affixed on the lease in the presence of an officer/member of the corporation or, if the corporation does not
1025 CHAMBERS.COM
Powered by FlippingBook