The Book of Household Management

by Mrs. Beeton

2695. PURCHASING A HOUSE.—Few men will venture to purchase a freehold, or even a leasehold property, by private contract, without making themselves acquainted with the locality, and employing a solicitor to examine the titles,; but many do walk into an auction-room, and bid for a property upon the representations of the auctioneer. The conditions, whatever they are, will bind him; for by one of the legal fictions of which we have still so many, the auctioneer, who is in reality the agent for the vendor, becomes also the agent for the buyer, and by putting down the names of bidders and the biddings, he binds him to whom the lot is knocked down to the sale and the conditions,—the falling of the auctioneer's hammer is the acceptance of the offer, which completes the agreement to purchase. In any such transaction you can only look at the written or printed particulars; any verbal statement of the auctioneer, made at the time of the sale, cannot contradict them, and they are implemented by the agreement, which the auctioneer calls on the purchaser to sign after the sale. You should sign no such contract without having a duplicate of it signed by the auctioneer, and delivered to you. It is, perhaps, unnecessary to add, that no trustee or assignee can purchase property for himself included in the trust, even at auction; nor is it safe to pay the purchase money to an agent of the vendor, unless he give a written authority to the agent to receive it, besides handing over the requisite deeds and receipts.

2696. The laws of purchase and sale of property are so complicated that Lord St. Leonards devotes five chapters of his book on Property Law to the subject. The only circumstances strong enough to vitiate a purchase, which has been reduced to a written contract, is proof of fraudulent representation as to an encumbrance of which the buyer was ignorant, or a defect in title; but every circumstance which the purchaser might have learned by careful investigation, the law presumes that he did know. Thus, in buying a leasehold estate or house, all the covenants of the original lease are presumed to be known. "It is not unusual," says Lord St. Leonards, "to stipulate, in conditions of sale of leasehold property, that the production of a receipt for the last year's rent shall be accepted as proof that all the lessor's covenants were performed up to that period. Never bid for one clogged with such a condition. There are some acts against which no relief can be obtained; for example, the tenant's right to insure, or his insuring in an office or in names not authorized in the lease. And you should not rely upon the mere fact of the insurance being correct at the time of sale: there may have been a prior breach of covenant, and the landlord may not have waived his right of entry for the forfeiture." And where any doubt of this kind exists, the landlord should be appealed to.

2697. Interest on a purchase is due from the day fixed upon for completing: where it cannot be completed, the loss rests with the party with whom the delay rests; but it appears, when the delay rests with the seller, and the money is lying idle, notice of that is to be given to the seller to make him liable to the loss of interest. In law, the property belongs to the purchaser from the date of the contract; he is entitled to any benefit, and must bear any loss; the seller may suffer the insurance to drop without giving notice; and should a fire take place, the loss falls on the buyer. In agreeing to buy a house, therefore, provide at the same time for its insurance. Common fixtures pass with the house, where nothing is said about them.

2698. There are some well-recognized laws, of what may be called good-neighbourhood, which affect all properties. If you purchase a field or house, the seller retaining another field between yours and the highway, he must of necessity grant you a right of way. Where the owner of more than one house sells one of them, the purchaser is entitled to benefit by all drains leading from his house into other drains, and will be subject to all necessary drains for the adjoining houses, although there is no express reservation as to drains.

Thus, if his happens to be a leading drain, other necessary drains may be opened into it. In purchasing land for building on, you should expressly reserve a right to make an opening into any sewer or watercourse on the vendor's land for drainage purposes.

2699. CONSTRUCTIONS.—Among the cautions which purchasers of houses, land, or leaseholds, should keep in view, is a not inconsiderable array of constructive notices, which are equally binding with actual ones. Notice to your attorney or agent is notice to you; and when the same attorney is employed by both parties, and he is aware of an encumbrance of which you are ignorant, you are bound by it; even where the vendor is guilty of a fraud to which your agent is privy, you are responsible, and cannot be released from the consequences.

2700. THE RELATIONS OF LANDLORD AND TENANT are most important to both parties, and each should clearly understand his position. The proprietor of a house, or house and land, agrees to let it either to a tenant-at-will, a yearly tenancy, or under lease. A tenancy-at-will may be created by parol or by agreement; and as the tenant may be turned out when his landlord pleases, so he may leave when he himself thinks proper; but this kind of tenancy is extremely inconvenient to both parties. Where an annual rent is attached to the tenancy, in construction of law, a lease or agreement without limitation to any certain period is a lease from year to year, and both landlord and tenant are entitled to notice before the tenancy can be determined by the other. This notice must be given at least six months before the expiration of the current year of the tenancy, and it can only terminate at the end of any whole year from the time at which it began; so that the tenant entering into possession at Midsummer, the notice must be given to or by him, so as to terminate at the same term. When once he is in possession, he has a right to remain for a whole year; and if no notice be given at the end of the first half-year of his tenancy, he will have to remain two years, and so on for any number of years.

2701. TENANCY BY SUFFERANCE.—This is a tenancy, not very uncommon, arising out of the unwillingness of either party to take the initiative in a more decided course at the expiry of a lease or agreement. The tenant remains in possession, and continues to pay rent as before, and becomes, from sufferance, a tenant from year to year, which can only be terminated by one party or the other giving the necessary six months' notice to quit at the term corresponding with the commencement of the original tenancy. This tenancy at sufferance applies also to an under-tenant, who remains in possession and pays rent to the reversioner or head landlord. A six months' notice will be insufficient for this tenancy. A notice was given (in Right v. Darby, I.T.R. 159) to quit a house held by plaintiff as tenant from year to year, on the 17th June, 1840, requiring him "to quit the premises on the 11th October following, or such other day as his said tenancy might expire." The tenancy had commenced on the 11th October in a former year, but it was held that this was not a good notice for the year ending October 11, 1841. A tenant from year to year gave his landlord notice to quit, ending the tenancy at a time within the half-year; the landlord acquiesced at first, but afterwards refused to accept the notice. The tenant quitted the premises; the landlord entered, and even made some repairs, but it was afterwards held that the tenancy was not determined. A notice to quit must be such as the tenant may safely act on at the time of receiving it; therefore it can only be given by an agent properly authorized at the time, and cannot be made good by the landlord adopting it afterwards. An unqualified notice, given at the proper time, should conclude with "On failure whereof, I shall require you to pay me double the former rent for so long as you retain possession."

2702. LEASES.—A lease is an instrument in writing, by which one person grants to another the occupation and use of lands or tenements for a term of years for a consideration, the lessor granting the lease, and the lessee accepting it with all its conditions. A lessor may grant the lease for any term less than his own interest. A tenant for life in an estate can only grant a lease for his own life. A tenant for life, having power to grant a lease, should grant it only in the terms of the power, otherwise the lease is void, and his estate may be made to pay heavy penalties under the covenant, usually the only one onerous on the lessor, for quiet enjoyment. The proprietor of a freehold—that is, of the possession in perpetuity of lands or tenements—may grant a lease for 999 years, for 99 years, or for 3 years. In the latter case, the lease may be either verbal or in writing, no particular form and no stamps being necessary, except the usual stamp on agreements; so long as the intention of the parties is clearly expressed, and the covenants definite, and well understood by each party, the agreement is complete, and the law satisfied. In the case of settled estates, the court of Chancery is empowered to authorize leases under the 19 & 20 Vict. c. 120, and 21 & 22 Vict. c. 77, as follows:—

21 years for agriculture or occupation. 40 years for water-power. 99 years for building-leases. 60 years for repairing-leases.