A recent Court of Session case has provided guidance on the interpretation of the fairly standard wording in commercial leases about landlords' rights to enter and inspect premises. The clause in most leases will read something like this:
The Tenant shall permit the Landlord and its agents or employees at all reasonable times, with or without workmen, on giving reasonable notice to the Tenant (except in emergency in which case the Landlord and its agents or employees shall have the right at any time) to enter upon the Premises generally to inspect and examine the same, to view the state of repair and condition of the Premises.
Very similar wording was used in the lease at issue in Possfund Custodian Trustee Ltd v Kwik-Fit Properties Ltd. In that case, the landlord wanted to take entry and to drill boreholes to test for subsoil contamination. The tenant argued that the landlord's right was to carry out no more than a non-intrusive inspection; to enter on but not remain on the premises. The judge held that there was a clear implication in the wording, for example reference to workmen, that the landlord is entitled to carry out work. He also thought it obvious that the purposes for which work might be carried out would include the opening up of suspect areas of walls or floors in order to ascertain the state or condition of the premises, all to allow the viewing of the state of repair and condition of premises. It would not be sensible to limit the power of inspection to the extent contended for by the tenant, especially in a long lease, during the period of which considerable changes to the condition of the premises might occur.
Disclaimer
The material contained in this article is of the nature of general comment only and does not give advice on any particular matter. Recipients should not act on the basis of the information in this e-update without taking appropriate professional advice upon their own particular circumstances.
