Does this constitute exclusive possession when dealing with Commercial Property Law?

Does this constitute exclusive possession when dealing with Commercial Property Law?

Postby freedom97 » Mon Apr 11, 2011 7:45 pm

I wasn't sure which category to put this in, but this is concerning the law in England and Wales. If a property is divided into two similar units, Unit A and Unit B with each being let to separate tenants, are the tenants said to have exclusive possession or is it just exclusive occupation?

If I could get answers on this, i would be very grateful, I am extremely stuck on this point.

Many thanks!
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Does this constitute exclusive possession when dealing with Commercial Property Law?

Postby veto » Mon Apr 11, 2011 7:47 pm

A tenant is someone who owns a lease. Any other form of occupation (other than as freehold owner) would be as a licensee only.

Your question mentions a "tenant" who is "let" (ie leased) a unit. By definition, to be a tenant / to have a lease you must have exclusive possession. So if someone is described as a tenant or having a lease, they must have exclusive possession.

I have not really come across the term exclusive occupation, but I can't see how it would mean anything different to exclusive possession anyway.

The situation of a single building divided into multiple units is very common - possibly the most common commercial letting scenario. The question of a shared front door is a bit of a red herring. A "front door" onto the street could easily lead into a shared foyer from which 2 separate units are accessed. A "front door" inside a building could still lead into a shared area from which 2 separate units are accessed. Provided the "tenant" has exclusive possession of his area (and pays a market rent or has paid a premium) there will be a lease.
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