THE EFFECT OF THE TERM “ONE YEAR CERTAIN” IN A TENANCY AGREEMENT
What is a Tenancy Agreement?
A tenancy agreement is a legally binding contract between a landlord and a tenant which sets out the rights, obligations, and terms upon which a property is rented. It governs matters such as duration, rent, notice, recovery of possession, and the responsibilities of both parties.
Under Nigerian law particularly the Lagos State Tenancy Law 2011 (and similar tenancy laws in other states) there are different types of tenancies, namely:
- Tenancy at Will
This is a tenancy without a fixed term and may be terminated at any time by either the landlord or the tenant. Although there may be no formal written contract, the law still recognizes certain rights and obligations between the parties.
- Periodic Tenancy
A periodic tenancy runs from period to period, monthly, weekly, quarterly, or yearly, depending on how rent is calculated and paid. It continues automatically until either party gives proper notice to terminate it.
- Fixed-Term Tenancy
This is a tenancy granted for a specific and definite duration, such as one year. When the
agreement states one year certain, it means the tenancy is guaranteed to last for one full year and will terminate at the end of that fixed period unless renewed.
- Statutory Tenancy
A statutory tenant is a tenant who remains in possession of the property after the expiration of the contractual tenancy and is protected by law until proper legal steps are taken to recover possession.
EFFECT OF ONE YEAR CERTAIN IN A TENANCY AGREEMENT
The phrase one year certain has important legal implications:
- Automatic Termination
A tenancy for “one year certain” automatically comes to an end upon the expiration of the one-year term. No notice to quit is required from either party if the tenancy simply runs its full course.
- Notice to Quit
Since the tenancy is for a fixed term, the tenant is not entitled to a six-month notice to quit (which typically applies to yearly periodic tenancies). The fixed term itself serves as sufficient notice of termination.
- Recovery of Possession
Upon expiration of the fixed term, if the tenant remains in possession, the landlord is required to serve. A 7-day Notice of Owner’s Intention to Apply to Court to Recover Possession.
However, if the tenancy has completely expired by efluxion of time, the landlord does not need to serve a notice to quit before issuing the 7-day notice.
- Holding Over
If the tenant remains in the premises after the expiration of the one-year term and the landlord accepts rent, a new periodic tenancy may be created.
If rent is not accepted and the tenant remains, the tenant may be regarded as: A statutory tenant, or
A tenant at will depending on the circumstances Conclusion
The term “one year certain” creates a fixed-term tenancy that automatically expires at the end of the agreed period. It limits the tenant’s entitlement to long statutory notices and simplifies the landlord’s right to recover possession, provided proper legal procedure is followed.
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