MBE Rules · Real Property
Destruction of Premises
Destruction of leased premises
The rule
At common law the tenant remained liable for rent after destruction of the building; modern statutes and leases allow the tenant to terminate when the premises are destroyed without tenant fault.
In plain English
Under common law, if a rented property was destroyed, the tenant was still responsible for paying rent, regardless of the circumstances. However, many modern laws and lease agreements allow tenants to terminate their lease if the property is destroyed and they are not at fault.
Worked example
A tenant rents an apartment, but a fire caused by a lightning strike destroys the building. Since the tenant did not cause the fire, they can terminate the lease and are not liable for further rent. The outcome is that the tenant successfully ends their rental obligations.
Memory hook
If the premises go up in flames, you may not have to pay the rent if it's not your fault!
The trap
Exams may present scenarios where the cause of destruction is ambiguous, leading students to mistakenly believe the tenant is liable for rent. Be careful to identify fault and the applicable statutes or lease terms.
How examiners test it
Questions often focus on the circumstances surrounding the destruction and whether the tenant had any fault, testing your understanding of both common law and modern statutes.
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