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Rent review – time of essence |
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The general rule is that time will not be of the essence on a rent review
(ie a failure to meet the time limits will not be fatal to the review
process). But, that is merely a rebuttable presumption; if there are clear
indications to the contrary, then time can be of the essence. But, those
implications need to be clear and compelling, with the courts generally
being reluctant to make such an inference.
In a recent case, there was a seven-year rent review on an upward-only
basis. Failing agreement between L and T, the review was to be
determined by an independent surveyor on the written request of L; if no
agreement was reached between L and T, and no request made for the
appointment of the surveyor by the time of the review date, then the rent
remained fixed for the next seven years. What happened was that L did
not seek to agree a new rent with T, and nor did L apply for the
appointment of a surveyor before the review date. Not surprisingly, T
argued that time was of the essence and that L was therefore unable to
proceed with the rent review. The court agreed, taking the view that the
wording was clear and explicit. Accordingly, this was one of those
relatively rare cases where time was impliedly of the essence. Secretary
of State v Standard Securities [2007] noted in [2007] Property Week 24
August. © Practical Lawyer
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October 2007 |
