Flint Bishop

Landlords be aware of mobile phone mast agreements implications

Pictured above: Nirmla Rabani

 

According to leading Black Country law firm George Green LLP, landlords still readily enter into agreements with mobile phone operators to retain phone masts on their land and buildings without properly considering the implications of entering into such agreements. 

Nirmla Rabani, an Associate within the Real Estate at George Green said "Foremost is the fact that landlords often do not appreciate that once an agreement has been entered into, the operator has legal rights to remain on the site even if the agreement provides otherwise. The phone operator can only be forced to move in certain very rigid circumstances which are governed by law."

Ms Rabani continued "Under the Telecommunications Act, phone operators have statutory powers to retain a phone mast on the site.  Even if the agreement regulating the right to place the mast has come to an end, the landlord may only be able to force the phone operator to remove the mast by obtaining a court order if the regulator has invoked its statutory rights."

Ms Rabani further warned "This can be a costly and cumbersome process. The temptation to enter into such agreements is particularly strong where the landlord is offered premium rents to enter into what can appear to be a relatively straight-forward document".  

According to Ms Rabani the phone operators more often than not produce their own standard agreement document and landlords sign such agreements.

Ms Rabani points out "An agreement to retain and use a phone mast should be treated no differently to any other letting insofar as obtaining proper legal advice is concerned. Landlord's can only be advised of the implications of entering into such agreements if they obtain proper legal advice".  

Landlords should also be alert to their tenants entering into such agreements with or without their consent. Doing so could have implications on the tenant's ability to give up vacant possession when the lease comes to an end. Although the responsibility to give vacant possession is the tenant, it could have long term implications on the landlord in terms of the value and marketability of the land or buildings.  

Also, according to Ms Rabani, recent years have seen a trend towards the termination of existing phone mast agreements often instigated by the phone operator who will leave their mast and equipment on the site. "The last couple of years has seen a rise in the number of phone operators who have volunteered to terminate their agreement to meet their own commercial needs in return for the payment of a sum of money to the landlord. Unwary landlords accept this and also the ongoing responsibility in relation to the phone operator's mast and equipment which they will leave on the landlord's site". 

Landlords should be extremely cautious about the liabilities associated with the retention of the phone mast and any other equipment and Ms Rabani explains "Landlords should only enter into such agreements after obtaining proper legal advice in relation to the landlord's ongoing obligations relating to the mast and any other equipment. The Telecommunications Act governs the ongoing responsibilities in relation to the masts and equipment and the landlord could inherit these obligations unless the landlord is extremely careful". 

 

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Article published by Midlands Business News on 18 March, 2011

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