LPC

Study Unit Specifications (Elective Subject)

Code: UJXTS9-10-M

Title: Commercial Property

Version: 2

Level: M-level

UWE credit rating: 10

ECTS credit rating: 5 Module Type: Non-MAR

Owning Faculty: Social Sciences and Humanities

Field: n/a Field Leader: n/a

Valid From: September 2008 Discontinued from:

Contributes towards: Postgraduate Diploma in Legal Practice

Pre-requisites: none

Co-requisites: none

Excluded combinations: none

1. Rationale:

As with all study units on the programme, the rationale is to prepare the student for the first day of work as a professional lawyer (i.e. as a new trainee solicitor in a firm of solicitors). Specifically in this case, the rationale is to prepare the student for work in a firm of solicitors dealing with planning and/or commercial property issues, whether in a conveyancing, litigation or company-commercial context.

2. Learning outcomes:

On completion of the study unit students are expected to be able (at a professional level) to:

2.1 understand and critically evaluate the content and operation of a standard commercial lease (in the context of the creation of a lease or sub-lease or the assignment of a lease or sub-lease);

2.2 appreciate the legal and commercial considerations to be dealt with during the negotiation and assignment of a standard commercial lease to meet a client’s specific objectives in identified client scenarios;

2.3 critically analyse the appropriateness of precedent provisions when drafting or assigning a commercial lease;

2.4 understand the structure of the security of tenure regime relating to commercial leases;

2.5 demonstrate an awareness of the taxation implications of a variety of commercial lease transactions;

2.6 understand and critically evaluate the legal and practical remedies available to a landlord on the insolvency or default of the tenant;

2.7 evidence an understanding of the planning system and its operation in relation to commercial leases (including:

      - the content of the General Permitted Development Order and the Use Classes Order; and

      - the content, operation and effect of planning agreements and other relevant documents); and

2.8 use research and enquiry techniques to access, interpret, critically evaluate and apply relevant knowledge.

3. Syllabus outline:

The study unit introduces the student to some of the main terms and procedures relating to a commercial lease. It also introduces the student to the main policies and procedures underpinning planning law and practice. The study unit also identifies and explains the role of solicitors advising clients in respect of various commercial property matters. In particular, students will consider:

3.1 The Commercial Lease

3.1.1 The structure and content of leases (including sub-leases) of commercial premises, including the following usual provisions: rent (including rent-free periods), rent review, term (including break clauses), user, planning control, repairs, alterations/improvements, service charge, insurance, alienation (including Landlord and Tenant (Covenants) Act 1995), statutory obligations, sureties, costs, VAT and forfeiture.

3.1.2 Dealings with the commercial lease: applications for licence to assign/sub-let/charge (including Landlord and Tenant Act 1988); drafting the licence (including authorised guarantee agreement) and assignment.

3.1.3 The taxation of commercial leases, with particular emphasis on (a) Stamp Duty Land Tax and (b) VAT (including the option to tax) on rent, costs and on a variety of common commercial leasehold transactions.

3.1.4 The security of tenure regime for commercial leases: when the Act applies; avoiding the Act; termination and renewal procedure; interim rent and statutory compensation.

3.1.5 Remedies on tenant default/insolvency: forfeiture; distress; disclaimer; liability of sureties, original tenants and intermediate assignees (including notices under s.17 Landlord and Tenant (Covenants) Act 1995 and applications for an overriding lease).

3.2 Planning

3.2.1 Outline of the planning system: the planning legislation and the administrative structure through which it operates.

3.2.2 Definition of “Development”: the General Permitted Development Order; the Use Classes Order; the sources and application of planning policies.

3.2.3 Planning Permissions and Conditions: the judicial concepts of the planning unit and ancillary uses; applications for planning permission; the statutory framework for and practical impact of conditions; the access to information provisions.

3.2.4 Planning Agreements: the statutory power to enter into planning agreements; Secretary of State's guidance; local planning authority practice.

3.2.5 Overview of Local Planning Authority's Enforcement Powers.

3.2.6 Appeals: against the refusal of planning permission; against the imposition of conditions; against the service of enforcement notices.

4. Teaching & learning methods:

    - use of case studies

    - individual and group work to identify relevant legal, practical, taxation and
    commercial issues arising from factual scenarios and transactions

    - simulated interview and preparation of attendance note

    - writing letter to client

    - preparation of report to client

    - writing letter to opposing solicitors

    - drafting, amending and interpreting relevant transactional documentation

    - critical use of precedent documentation

    - completion and critical analysis of statutory notices, including prescribed forms

    - critical analysis of contractual notice

    - consideration of relevant statutory procedures and related Civil Procedure Rules

5. Indicative sources:

- LPC Manual: Jordans' Commercial Property Manual

- Statutory Sources (* = statutes provided to students):

- Common Law Procedure Act 1852

- Law of Distress Amendment Act 1908

- Law of Property Act 1925

- Landlord and Tenant Act 1927

- Leasehold Property (Repairs) Act 1938

- Landlord and Tenant Act 1954, Part II*

- Supreme Court Act 1981

- County Courts Act 1984

- Landlord and Tenant Act 1988

- Town and Country Planning Act 1990

- Landlord and Tenant (Covenants) Act 1995*

- Human Rights Act 1998

- Local Government Acts 1972-2000

- Land Registration Act 2002

- Regulatory Sources:

      - Civil Procedure Rules

      - Permitted Development Order

      - Use Classes Order

      - Secretary of State’s Guidance

- Reference to relevant case law

- Other relevant materials:

- Drafting and Negotiating Commercial Leases, Murray Ross

- Drafting Business Leases, Kim Lewison

- A Practical Approach to Planning Law, Victor Moore

- Encyclopaedia of Forms and Precedents

- Encyclopaedia of Planning Law & Practice

6. Assessment Infrastructure:

One 3-hour unseen, open book examination (with an additional 30 minutes of reading time).

The examination constitutes 100% of the marks for the study unit. The pass mark is 50%.

Second and final attempts: Re-assessment is by the same method as detailed above. See Assessment Regulations for further details.

Specification confirmed by .............................................. Date ….... February 2004

(Associate Dean, Faculty of Law)

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