(6) Property: Landlord/Tenant Flashcards

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1
Q

Types of Tenancy

A
  1. Tenancy for Years
  2. Periodic Tenancy
  3. Tenancy at Will
  4. Tenancy at Sufferance/Holderover Tenant
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2
Q

Definition / Term / Termination

Tenancy for Years

A

Definition: A tenancy for years is an estate measured by a fixed and ascertainable amount of time (there is a specified beginning and end date).

Term: Fixed period of time, if subject to SOF if longer than a year.

Termination: The lease automatically terminated after the fixed period. A tenant may only terminate prior to the end of the lease through constructive eviction or tenant surrenders the lease and the landlord accepts.

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3
Q

Definition / Creation / Termination

Periodic Tenancy

A

Definition: Lasts for an initial period and then automatically continues for additional equal periods until it is terminated by the landlord or tenant.

Creation: A period tenancy may be created by (a) expressly by agreement; (b) by implication if rent is paid at specific periods; or (c) by law either through a holdover tenant or when a lease agreement is invalid.

Termination: May only be terminated (1) at the end of a natural lease period AND (2) requires written notice at least a full period in advance. (Exception – year to year tenancy’s only require 6 month notice).

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4
Q

Definition / Creation / Termination:

Tenancy at Will

A

Definition: A tenancy at will continues until either party terminates it.

Creation: Is usually created by an express agreement.

Termination: Termination of a tenancy at will requires giving (1) notice of termination; AND (2) a reasonable time to quit the premises. (In a minority of states notice to tenant is not required).

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5
Q

Definition / Termination

Tenancy at Sufferance/Holdover Tenant

A

Definition: A tenancy at sufferance is when a tenant remains on the premises without the landlords permission.

Termination: A tenancy at sufferance is terminated if the tenant vacates the premises or the landlord evicts the tenant. In either case the tenant must pay the reasonable value of their use of the premises which is typically a daily rate determined by the rent.

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6
Q

Types of Disputes

A
  1. Termination of Tenancy for Breach of Covenant
  2. Condition of Leased Premises (Landlord/Tenant Duties)
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7
Q

Common Law & Modern Trend

Termination of Tenancy for Breach of Covenant

Types of Disputes

A

a. Common Law: Covenants between a landlord and tenant were independent of each other therefore a breach of a covenant gave rise to damages but not the right to terminate the lease.

b. Modern Trend: Covenants were considered dependent and a party may seek damages and terminate the lease upon breach of a covenant.

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8
Q

Types:

Landlord Duties

Types of Disputes

A
  1. Duty to Deliver Possession
  2. Implied Warranty of Habitability
  3. Duty to Repair + Warn
  4. Implied Covenant of Quiet Enjoyment
  5. Constructive Eviction
  6. Duty to Mitigate Damages
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9
Q

Majority / Minority Rule

Duty to Deliver Possession

Types of Disputes - Landlord Duties

A

Majority Rule: The landlord is required to delivery legal and actual possession of the premises at the start of the lease term.

Minority Rule: The landlord is required to provide legal possession of the premises and the tenant has no claim against the landlord if there is a holdover tenant in the premises but may bring a claim against the holdover tenant.

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10
Q

Rule:

Implied Warranty of Habitability

Types of Disputes - Landlord Duties

A

A warranty of habitability is implied in every residential lease. It requires the landlord to provide a place to live that is habitable. A property is deemed habitable if it is reasonable suitable for human needs (ex. Adequate heat, running water, electricity, structurally sound).

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11
Q

Tenants remedies upon a Breach of Implied Warranty of Habitability

Types of Disputes - Landlord Duties

A

Upon a breach of the warranty of habitability the tenant may (a) move out and terminate the lease; (b) withhold or reduce the rent; (c) repair the issue and deduct the cost from the rent; OR (d) remain on the premises and sue for damages. Before doing (b) or (c) the tenant must notify the landlord and give a reasonable time for them to correct it.

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12
Q

Residential/Commercial/Duty to Warn

Duty to Repair + Warn

Types of Disputes - Landlord Duties

A

Residential Lease Rule: A tenant has a duty to keep the premises in good order and make ordinary repairs but a landlord is required to make repairs and keep the property in habitable condition
* Commercial Lease Rule: A landlord does not have a duty to repair.

Duty to warn: A Landlord has a duty to repair common areas and has a duty to warn the tenant of any latent defects that create a risk of serious harm that the landlord knows or should know of.

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13
Q

Implied Covenant of Quiet Enjoyment

Types of Disputes - Landlord Duties

A

Every lease (both commercial and residential) include an implied covenant of quiet enjoyment which prevent a landlord from interfering with the tenants quiet enjoyment and possession of the property.

Landlord must control the common areas and take action against a tenant nuisance like behavior

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14
Q

Constructive Eviction

Types of Disputes - Landlord Duties

A

constructive eviction occurs when (1) the landlord breached a duty to the tenant; (2) the landlord’s breach caused a loss of the substantial use and enjoyment of the premises; (3) the tenant gave the landlord notice of the condition; (4) the landlord failed to remedy the condition within a reasonable time after notice was given; AND (5) the tenant vacated the premises.

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15
Q

Remedies available to Tenant after a Constructive Eviction

Types of Disputes - Landlord Duties

A

After being constructively evicted the tenant may terminate the lease and seek damages. Additionally a tenant can avoid rent owed during the time they were constructively evicted.

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16
Q

Common Law/Modern Trend:

Duty to Mitigate Damages

Types of Disputes - Landlord Duties

A

Common Law Rule: A landlord had no duty to mitigate damages.

Modern Trend Rule: A landlord has a duty to take reasonable steps to mitigate their losses.

17
Q

Types:

Tenant Duties

Types of Disputes

A
  1. Duty to Avoid Waste
  2. Duty to Pay Rent
18
Q

Rule & Types of Waste

Duty to Avoid Waste

Types of Disputes - Tenant Duties

A

All with a present possessory interest (i.e., life tenants, tenants under a lease) must not damage or commit waste to the property. 3 types of waste exist (1) affirmative waste; (2) permissive waste; (3) ameliorative waste.

19
Q

Affirmative/Voluntary Waste

Types of Disputes - Tenant Duties

A

A tenant is prohibited from committing voluntary waste.
*The holder of the future interest may bring a suit for damages or for injunctive relief.

20
Q

Permissive Waste

Types of Disputes - Tenant Duties

A

Permissive waste occurs when the tenant permits the premises to deteriorate from neglect or failure to make the required repairs. Normal wear and tear is allowed.

21
Q

Definition/Common Law/Modern Trend:

Ameliorative Waste

Types of Disputes - Tenant Duties

A

Definition: Ameliorative waste occurs when there is a change in the use of the property that increases its value.

Common Law: A tenant was unable to engage in acts that changed the property value without the consent of all future interest holders.

Modern Trend: Tenants may make physically changes to the leased property if it increases the value and is necessary for the tenant to reasonably use the property, unless otherwise agreed by landlord and tenant.

22
Q

Duty to Pay Rent

Types of Disputes - Tenant Duties

A

A tenant has a duty to pay rent during the lease term. If a tenant remains on the property and doesn’t pay rent a landlord may (a) initiate eviction proceedings; OR (b) allow the tenant to remain on the property and sue for damages. If the tenant abandons the property and doesn’t pay rent the landlord will be required to mitigate its damages.

23
Q

Defenses for Non-Payment of Rent

Types of Disputes - Tenant Duties

A

A tenant is not required to pay rent if:

1) Landlord Failure to Deliver Possession
2) Tenant has been Evicted
3) Tenant Surrenders Premises to LL
4) Destruction
5) Warranty of Habitability
6) Contract Defenses
a. Impossibility
b. Impracticability
c. Frustration of Purpose
d. Violation of quiet use and enjoyment

24
Q

Tenant Surrenders Premises to Landlord

Types of Disputes - Tenant Duties - Defense to Duty to Pay Rent

A

The landlord must accept the surrender and retake possession of the premises for this to be a defense.

25
Q

Majority vs Minority Rule:

Failure to Deliver Possession

Types of Disputes - Tenant Duties - Defense to Duty to Pay Rent

A

Majority Rule: Landlord has an obligation to deliver possession of the property to the tenant
Minority Rule (American Rule): The landlord has no obligation to delivery possession of the premises, the tenant must come and take it.

26
Q

Common Law vs Modern Trend:

Destruction

Types of Disputes - Tenant Duties - Defense to Duty to Pay Rent

A

Common Law - Generally didnt excuse non-payment of rent because the tenant was still in possession of the land.

Modern Trend: Destruction is a defense to payment of rent unless the tenant intentionally or negligently caused the destruction.

27
Q

Retalitory Eviction

Types of Disputes - Re-Entry

A

If the tenant reports landlord for housing code violations landlord is barred from penalizing the tenant. (ex. Raising the rent, harassing the tenant, terminating the lease, etc.)

28
Q

Does a tenant have an ability to transfer to rights?

Liability after Transfer of Rights

A

A lease may be freely assigned or sublet unless a provision in the lease affirmatively prohibits it.

29
Q

Definition / Rule:

Assignment (Tenant)

Liability after Transfer of Rights

A

Definition: An assignment is a complete transfer of the tenants remaining lease term. Any transfer for less than the entire duration of the lease is a sublease.

Rule: Assignee tenants are in privity with the landlord and are liable to them for rent and any covenants that run with the land. The assignor is also in privity with the landlord unless there is a novation.

30
Q

Definition / Rule:

Sublease (Tenant)

Liability after Transfer of Rights

A

Definition: A sublease is when a tenant only transfers some of their remaining interest to a sublease.

Rule: A sublessee is not liable to the landlord for rent or other covenants that run with the land because there is no privity they are liable to the tenant.

31
Q

Rule:

Assignment (Landlord)

Liability after Transfer of Rights

A

A landlord may assign its interest in the property. However the assignor landlord will remain liable to tenant for all covenant in the lease, and the assignee landlord will be obligated to perform any burdens imposed.

32
Q

Fixtures - Common Law

A

Under common law a fixture is (1) personal property; (2) that is attached to land or a building; AND (3) regarded as an irremovable part of the real property. A fixture is treated as real property and passes with the ownership of the land unless otherwise agreed.

33
Q

Fixtures - Modern Trend

A

An item is a fixture is a reasonable person would conclude that the item was intended by the installer to be a permanent attachment to the real property. Courts will consider the following factors: (1) the nature of the item; (2) the manner in which it is attached; (3) the damage that would result if the item were removed; AND (4) the extent to which the item is adapted to the property (i.e., an installed custom window).
*The more the item is incorporated into the premises the more the court will find it to be a fixture.

34
Q

Trade Fixture Exception

A

An item that is attached to the property for use in the tenant’s trade or business is not a fixture unless its removal would cause substantial damage to the property. An item that is not a fixture may become one if it’s not removed before the end of the lease term.

35
Q

Termination of Lease - Surrender

A

Surrender is an agreement between the landlord and tenant to end a lease early. If the landlord accepts the surrender the tenant’s duty to pay rent ends. If the landlord doesn’t accept the tenant is deemed to have abandoned the lease and is liable for damages.
*Landlords acceptance must be clear.

36
Q

Does an attempt to surrender a lease constitute a surrender?

Termination of Lease - Surrender

A

NO, an attempt ot surrender does not constitute a surrender.