The Nature of Covenants

THE NATURE OF COVENANTS
EULALIE N. GREENAWAY (MS.)

Senior Tutor & Course Director
What is a Covenant?
A contractual obligation imposed or created
by:
Deed
Contract under seal
Common Law
Statute
Covenants implied at Common Law

Landlord
1. Quiet
enjoyment
2. Not to derogate from the terms of the grant
3. In limited circumstances, implied covenant
re fitness of property for purpose let
4. In limited circumstances implied covenant
to repair
Covenants implied at Common Law

Tenant
1. To
pay rent
2. To pay rates & taxes
3. Not to commit waste
4. To use the premises in a tenant-like manner
5. Not to deny the Landlords title
Covenants implied by Statute:

Property Legislation, including Registered
Land provisions;
Rent Restriction Legislation Landlord

1. To keep the premises in a tenantable state of
repair
2. Quiet enjoyment
3. To pay all rates & taxes
4. To indemnify tenant from loss arising from acts
of negligence or default by landlord
Covenants implied by Statute Tenant:

1.To
keep the premises in good order

and condition, fair wear and tear
excepted
2.To pay rent
3.To keep the premises in a sanitary
condition and to refrain from conduct
which is a nuisance
4.Not to commit waste
Covenants implied by statute Tenant:

contd
5
6
7
To refrain from using the amenities in a

wasteful manner
To permit the landlord to inspect the
premises
Not to sublet without the permission of the
landlord
Usual Covenants and Conditions ?

It will be a
determine
covenants
covenants
question of fact for the court to

the relevant/applicable
where an issue arises on the
that fall under this term.
Usual Covenants and Conditions ? contd

On the part of the Landlord:
The covenant of quiet enjoyment
On the part of the Tenant:
To pay rent
To pay rates & taxes payable by tenant
To keep and deliver up the premises in
repair

contd
On the part of the Tenant:
To permit the landlord to enter, assess
and renew the state of repair
Provision for re-entry for non-payment

of rent

contd
Note: Chester v Buckingham Travel Ltd
Has not gained broad acceptance, but:
(a)Not to add to or alter the premises
(b)Not to stock up, darken or obstruct windows
or light belonging to the demised premises
(c)Not to permit easements to be acquired
against demised premises

contd
Note: Chester v Buckingham Travel Ltd.:
d) Not
to permit the demised premises to be

used for purposes other than those specified
e) Provision
for re-entry for breach of covenants

other than the covenant to pay rent.

contd
General principle seems to be that the

peculiar circumstances under consideration
and the realities of the operating
environment of the day must direct the
decision as to usual covenants and
conditions.
Covenants that touch & concern the

land:
Refers to covenants that exist between the

original landlord and the original tenant
Carry benefits and burdens for the parties

involved
Can be passed to successors in title

land:
A covenant which runs with the land

touches and concerns the land
Test is whether the covenant affects

the landlord in his capacity as
landlord and affects the tenant in his
capacity as a tenant

land:
General rule is that all covenants that

run with the land can be enforced by
and are binding on the assignee of
either the landlord or the tenant

land:
1.
2.
3.
4.
To pay rent
To repair the property
To insure the premises as a private
dwelling house only
Not to assign the lease without
consent

land:
The following conditions must be satisfied
where the tenant assigns his lease
1.
2.
The lease must satisfy the required

formalities
The whole term is legally assigned

land:
where the landlord assigns his reversion:
The lease must satisfy the required
formalities (note that Walsh v Lonsdale
principle will apply)

land:
where the landlord or tenant assigns
part of the land only:
The covenant will be apportioned and run
with the relevant severed part of the land
Covenants that touch & concern the land:

If no contractual relationship exists between
the parties and no direct relationship of
landlord and tenant, e.g sub-lease:
(a) covenant is not enforceable and benefit
must be expressly assignable at law for
benefit to be enforced
Covenants that touch & concern the land:

If no contractual relationship exists between
the parties and no direct relationship of
landlord and tenant, e.g sub-lease:
(b) Equity allow the burden to run with the
land if it is a restrictive covenant, except
where bona fide purchaser of the legal estate
without notice of it, will take free of burden
Privity of Contract:
Where two or more persons enter into a

contract, privity of contract exists
In general, only the parties to that

contract incur obligations and receive the
benefits
Note, however Law of Property Act (1925)

UK section 56
Privity of Estates:
A tenant who properly assigns his interest

to another tenant - there exists between
the new tenant and the original landlord
privity of estates
When a landlord assigns his reversionary

interest to another, there is privity of
estates between the new landlord and
original tenant
The Nature of Covenants

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THE NATURE OF COVENANTS

EULALIE N. GREENAWAY (MS.)

Covenants implied at Common Law

Covenants implied at Common Law

Covenants implied by Statute:

Rent Restriction Legislation Landlord

Covenants implied by Statute Tenant:

keep the premises in good order

Covenants implied by statute Tenant:

To refrain from using the amenities in a

Usual Covenants and Conditions ?

question of fact for the court to

Usual Covenants and Conditions ? contd

Usual Covenants and Conditions ?

Provision for re-entry for non-payment

Usual Covenants and Conditions ?

Usual Covenants and Conditions ?

to permit the demised premises to be

for re-entry for breach of covenants

Usual Covenants and Conditions ?

General principle seems to be that the

Covenants that touch & concern the

Refers to covenants that exist between the

Carry benefits and burdens for the parties

Can be passed to successors in title

Covenants that touch & concern the

A covenant which runs with the land

Test is whether the covenant affects

Covenants that touch & concern the

General rule is that all covenants that

Covenants that touch & concern the

Covenants that touch & concern the

The lease must satisfy the required

Covenants that touch & concern the

Covenants that touch & concern the

Covenants that touch & concern the land:

Covenants that touch & concern the land:

Where two or more persons enter into a

In general, only the parties to that

Note, however Law of Property Act (1925)

A tenant who properly assigns his interest

When a landlord assigns his reversionary

The Nature of Covenants

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