Landlord's Hypothec

The landlord’s hypothec is a right in security granted to a landlord over corporeal moveable property brought into the leased premises. It arises by operation of law and secures rent due under the lease. Although the hypothec has a long history in Scots law, its nature and effects have never been entirely settled. This lack of clarity was increased with the Bankruptcy and Diligence etc (Scotland) Act 2007. The Act abolished the hypothec’s unique enforcement procedure of sequestration for rent, removed the hypothec’s effect over goods owned by someone other than the tenant, and restricted the hypothec to a security for rent due and unpaid. The hypothec itself, however, remained.
This is the first in-depth study of the landlord’s hypothec in Scots law and aims to add to the recent scholarship on rights in security published in this Studies in Scots Law series. A particular focus is on the hypothec as a real right in the tenant’s corporeal moveable property brought into the leased premises.
The book is divided into three parts. Part A discusses the history of the hypothec from its introduction into Scots law to the reforms of the Bankruptcy and Diligence etc (Scotland) Act 2007. Part B addresses the lifecycle of the hypothec: its creation, subject-matter, and extinction. Part C examines the hypothec’s enforcement, both before and after the tenant’s insolvency. This final part contains a thorough analysis of the effects of the hypothec in liquidation, receivership, administration, company voluntary arrangements, and bankruptcy.