Report on Irritancy in Leases of Land

ISBN-10: 0108881067
ISBN-13: 9780108881060
Category: Land tenure
Pages: 91
Language: English
Published: 2003
Author: Scottish Law Commission

Description

The law of irritancy relates to a landlord's entitlement to terminate a lease for land prematurely, usually due to a breach of lease obligations by a tenant, but also if the tenant suffers a change in financial status, such as insolvency, liquidation or receivership. If this happens, the tenant loses the rights under the contract and usually has no grounds for compensation. The report seeks to assess whether the current law strikes the right balance between providing adequate protection to tenants and retaining an effective remedy for breach of contract. The Commission finds that irritancy is a useful remedy which should be retained as it makes Scots property law attractive to investors. However, it recommends that the current law as regulated by the Law Reform (Miscellaneous Provisions) (Scotland) Act 1985 be replaced by a new comprehensive scheme of statutory regulation, covering all leases of land. The right to terminate a lease would require the service of a termination notice on the tenant, rather than taking effect automatically on the occurrence of a breach or other triggering event. The proposals deal with remediable breaches, insolvency events and other cases. The Commission proposes the abolition of any existing rights of relief from the effects of irritancy, with all tenancy protections against termination contained in the statutory scheme.

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