Real Estate 2024

ST KITTS & NEVIS Law and Practice Contributed by: Dahlia Joseph Rowe and Daisy Joseph Andall, Joseph Rowe, Attorneys-at-Law

Fixed-Term Lease A fixed-term lease will automatically terminate at the end of the fixed term stipulated in the lease. There is no requirement to renew the lease or allow a lessee to stay in the premises past the fixed date set out in the lease. This form of lease offers more protection for the lessor, as a lessee may be required to pay for the entire term out - lined in the lease if he or she leaves the premises early. The only option a lessee has to opt out of a fixed-term lease prior to the expiry of the term is if there is a break clause in the lease allowing the lessee to do so, if the landlord forfeits the lease, or if the lease prescribes for early termina - tion upon the occurrence of a specific event; for example, an act of God that causes substantial damage to the property. Ordinary Lease An ordinary lease allows the lessee to negotiate to extend the lease, as well as to give notice to vacate the premises early without any addition - al consequences, once the rent up to the time of vacating the premises is paid and all other requirements of the lease were complied with. This form of lease generally offers more protec - tion to the lessee. 6.3 Regulation of Rents or Lease Terms The Rent Restriction Act made provisions for the governor-general to appoint three fit and proper persons, one of whom shall be a government officer, to be rent commissioners for the state, for the purposes of carrying into effect certain provisions of the Act. The rent commission - ers would then prescribe the standard rent to be applied to any category of lease or building. However, to date, there has been no appoint - ment of rent commissioners. Consequently, in practice, the rent of any premises is set by agreement between the parties.

Regulations Governing Length of Leases The various pieces of legislation governing leas - es do not specify the length of time that a person can lease the property that they own; however, when a mortgagee of land in possession, as against all prior encumbrances, and as against the mortgagor, leases the mortgaged property, then the lease is governed by Section 37 of the Conveyancing and Law of Property Act, which sets out the number of years a mortgagee can lease the property depending on the type of property being leased. The Act specifies that an agricultural or occu - pational lease cannot be rented by a mortgagee for a term exceeding 21 years, a mining lease cannot be rented for a term exceeding 35 years and a building lease cannot be rented for a term exceeding 99 years. Further, a lease made by a mortgagee must be made to take effect no later than 12 months after the date of the lease. Regulation of Lease Terms With respect to the terms of a lease, whereas the statute does not prescribe the form of words to be used when outlining the terms of a lease, the parties to a lease are guided by the statute when setting out its terms. Other than as set out above, rent and lease terms are freely negotiable. COVID-19 Regulations Directly Affecting Lease Terms Although government authorities encouraged landlords to be lenient with tenants in the wake of the coronavirus pandemic, no legislation has been enacted that has directly affected lease terms. However, the National Housing Corpora - tion (NHC) in St Kitts and various banks in the

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