1. What is the difference between an Option to Renew and a Break Clause?
   
An option to renew confers on the tenant a right to continue
to rent the property after the expiry of the current term, i.e. to renew
the existing tenancy. With an option to renew, the tenant obtains a security
of tenure and the landlord is somewhat secured with continual rental income. As an option
to renew represents a legal interest in land and affects the principles
of notice and priority, the relevant tenancy document should be registered
even if the tenancy period does not exceed 3 years.
A break clause, in contrast, confers rights to a party to prematurely terminate
a tenancy after a certain period has elapsed or upon the occurrence of
certain incidents. That is to say, a party is allowed to break the agreement
before the expiry of the original term.
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