The K-Zone: equitable lease

An equitable lease is created when one person contracts with another to assign or create a lease, in circumstances where the lease should be created by deed or registered, and the leasee takes possession before these formalities are completed. For most purposes the leasee will be treated in litigation as if the formalities had been observed. However, if the leasee wished to assign the lease to another (see: AssignmentlandAndProperty), the presence of covenants (see: Covenant) does not bind the assignee in the same was as for a formal legal lease.

LandAndPropertyLaw