Real property

how they apply to the law of leases. 4. In 2001, Maria leased (by deed) a house to George for 21 years. The lease includes the following covenants: a) The tenant undertakes to ensure that the house is not used for illegal purposes. b) Rent is payable quarterly and in advance to Maria's agent Sean. c) The tenant should not use the house for any purpose other than as a private dwelling. The lease also includes a forfeiture clause which can be invoked if the tenant breaks any of the covenants. In January 2012, George lawfully assigned the lease to Andrew who, two months after the assignment, opened a grocery shop on the property. Andrew did not normally arrive at the shop until 9.30 a.m. In February 2013, Thomas, one of Andrew's shop assistants, taking advantage of this fact, started an early morning 'side-line' business selling cocaine. One month later, Andrew found out about the illegal trade. He immediately dismissed Thomas and reported his activities to the police. Last week, Thomas was convicted of drug-trafficking. Maria has just read about the conviction in the local newspaper. On the same day, Sean calls and informs her that Andrew is in arrears of rent for two quarters. Sean also has checked the paperwork and discovered that in 201 1 the rent was not paid for one quarter. Maria goes onto the property to talk to Andrew and discovers that not only is the property used for business purposes, but it also requires substantial repairs. Advise the parties as to their respective rights and responsibilities