A lease of seven years or less need not be registered
A worked RES examination question on lease formation and form, from our Paper 1 bank — with the rule it turns on, and why each of the four options is right or wrong.
The question
Mr Chan is granting a lease of commercial premises for a term of nine years, including the period of an option to renew. His conveyancing clerk is unsure whether anything has to be done with the land register, given the length of the term.
Which statement is correct?
The answer, and why
Answer: C
The rule. A lease for a term exceeding seven years — counting any option to renew — must be registered under the Land Titles Act. A lease of seven years or less need not be registered, though a caveat may optionally be lodged.
Why C is correct. The term, including the option to renew, is nine years, which exceeds seven. The lease must therefore be registered under the Land Titles Act.
The other options.
- B confines registration to leases of the statutory maximum. Any lease over seven years is registrable.
- A limits registration to a sale. Long leases are registered too.
- D makes registration depend on a caveat. Registration is required by the length of the term itself.
Exam note. Over seven years — including the option to renew — means register. Seven or under means registration is not required.
More on Lease formation and form
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