UNIT 12

LEASEHOLD INTERESTS

A leasehold interest is a property interest where a lessee (tenant) holds rights to use and occupy land or property for a specified period under a lease agreement with the lessor (landlord). This arrangement is governed by the terms stipulated in the lease agreement and relevant statutory provisions. See the case of Savannah Bank v. Ajilo (1989) 1 NWLR (Pt. 97) 305 which highlights the importance of obtaining the Governor’s consent in leasehold transactions and section 22 of the Land Use Act 1978 which requires the Governor’s consent for the transfer of a leasehold interest. See also the case of Onyekaonwu v. Ezeonu II (1990) 1 NWLR (Pt. 134) 649 which discusses issues related to the renewal of lease agreements and section 18 of the Tenancy Law of Lagos State 2011 which specifies the required notice periods for terminating different types of tenancies.

TYPES OF LEASES

1. Fixed-term lease: this is a lease for a specific period, e.g., one year, five years.
2. Periodic lease: this is a lease that continues for successive periods, e.g., monthly, yearly, until terminated by either party.
3. Tenancy at will: this is a lease that can be terminated at any time by either party without prior notice.
4. Tenancy at sufferance: this occurs when a tenant remains in possession of the property after the lease has expired, without the landlord’s consent.

RIGHTS OF THE LESSEE

1. Right to quiet enjoyment: this is where the tenant has the right to use the property without interference from the landlord.
2. Right to possession: this is where the tenant has the right to exclusive possession of the property during the lease term.

DUTIES OF THE LESSEE

1. Payment of rent: this is where the tenant is obligated to pay rent as agreed in the lease.
2. Care for the property: this is where the tenant must take reasonable care of the property and not cause damage.
3. Compliance with terms: this is where the tenant must adhere to the terms and conditions stipulated in the lease agreement.

RIGHTS AND DUTIES OF THE LESSOR

1. Right to rent: this is where the landlord is entitled to receive rent as agreed in the lease.
2. Right to recover possession: this is where the landlord can recover possession of the property at the end of the lease term or if the tenant breaches the lease terms.

DUTIES OF THE LESSOR

1. Duty to provide possession: this is where the landlord must provide the tenant with possession of the property at the beginning of the lease term.
2. Duty to maintain the property: this is where the landlord must ensure the property is in a habitable condition and carry out necessary repairs.

TERMINATION OF LEASES

Leases can be terminated in various ways, including:

1. Expiration: this is where the lease ends automatically at the end of the term.
2. Notice: this is where either party may terminate a periodic lease by giving the required notice.
3. Surrender: this is where both parties agree to terminate the lease before its expiration.
4. Forfeiture: this is where the landlord terminates the lease due to a breach of terms by the tenant.
5. Merger: this is where the leasehold interest merges with the freehold interest when the tenant acquires the freehold.

LANDLORDS AND TENANTS

The relationship between landlords and tenants is contractual, governed by lease agreements and relevant statutory provisions. The landlord provides the property for use, while the tenant agrees to use the property and pay rent. See the case of African Petroleum Ltd v. Owodunni (1991) 8 NWLR (Pt. 210) 391 which addresses issues related to the breach of lease terms and section 7 of the Rent Control and Recovery of Residential Premises Law of Lagos State which provides for the determination of standard rent. See also the case of Udo v. Cross River State Newspaper Corp (2001) 14 NWLR (Pt. 732) 116 which discusses the tenant's right to quiet enjoyment and section 2 of the Recovery of Premises Act, CAP 544, LFN 1990 which outlines the procedures for recovering possession of premises.

RIGHTS OF LANDLORDS

1. Right to receive rent: this is where the landlord is entitled to rent as stipulated in the lease.
2. Right to enter for inspection and repairs: this is where the landlord may enter the property for inspections and to carry out necessary repairs, usually with prior notice.

OBLIGATIONS OF LANDLORDS

1. Maintenance and repairs: this is where the landlord must keep the property in a habitable condition.
2. Respect for tenant’s rights: this is where the landlord must respect the tenant’s right to quiet enjoyment and possession of the property.

RIGHTS OF TENANTS

1. Right to quiet enjoyment: this is where the tenant can use the property without undue interference from the landlord.
2. Right to privacy: this is where the tenant is entitled to privacy in the rented property.

OBLIGATIONS OF TENANTS

1. Payment of rent: this is where the tenant must pay rent as agreed.
2. Proper use of property: this is where the tenant must use the property responsibly and avoid causing damage.
3. Compliance with lease terms: this is where the tenant must adhere to the terms and conditions of the lease agreement.

DISPUTE RESOLUTION

Disputes between landlords and tenants can be resolved through negotiation, mediation, arbitration, or litigation. Relevant bodies and courts include:

1. Rent tribunals: these tribunals handle disputes related to rent and lease agreements.
2. Magistrate courts: these courts have jurisdiction over tenancy matters, especially in Lagos State.

CONCLUSION

These notes should provide a comprehensive understanding of leasehold interests, landlords, and tenants, including relevant Nigerian legal contexts.