TURKS & CAICOS Law and Practice Contributed by: Oliver Chapman and Chris Smith, Griffiths & Partners Attorneys
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 have a common seal, it is signed by an author - ised person. Leases are recorded on the register of title if they are for: • a specific period of two years or more; • for the life of the lessor or lessee; or • if a lease is for a term of less than two years but contains an option whereby a further term is granted, which would result in a total term exceeding two years. Leases that are for a period of less than two years or that are not compulsorily registrable, but which are capable of being registered, can be registered if they are in a prescribed form, and stamp duty must still be paid even when the lease is not being registered. If the lease is a sublease, every lease superior to that sublease should be in the prescribed form and registered in priority to the sublease.
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