Chapter 15 Flashcards
Landlord & Tenant
Leasehold Estate
Reference from chapter 2
3 questions on test from this segment
Renting (less than ownership)
Freehold Estate
Leasehold Estate
Tenant gets theh right of use & possesion
LessOR
Landlord
LessEE
Tenant
Another word for a llease agreement
Demise
Privity of Estate
Two people that have some initerste in the property (aka landlord/tenant)
Privity of Contract
Has to be written in the lease
Testable
In NC there are 3 seperate laws that apply
Residential rental agreement act
Residential Rental Agreement Act
Not covered: hotels, motels, vacation rentals
“Landlord” is considered:
* owner
* rerntal management company
* rental agent
* anyone having actual or apparent authority
NC Tenant Security Deposit Avt
Residential Rental Agreement Act
Landlord basic responsibility:
Keep the property in “fit” condition or also
Smoke & Carbon Monoxide Detectors
Mandatory
* Carbon Monoxide IF: attached to garage, fossil fuel appliance
* Landlord MUST install 10-year lithium batteries or hard wire it
* Tenant replaces the batteries
Water, Sewage, Electricity
Landlord may charge for utilities
Landlord may NOT disconnect services for noon-payment
Most notify renter of water contamination
TP
Imminently Dangerous Conditions
Unsafe wiring
unsafe flooring or steps
unsafe ceilings
*landlord must rememdy withiin a reasonable period of time
Landlord Rights to Access the Property
Unless written in lease landlord cannot access property unless immediate emergency
Protected Tenants
Tenants that can get out teh lease agreement under special circumstances. “Protected Tenants”.
Victims of Domestic Violence or Abuse
* with 30 day notice can get out of lease
* lease continues for other renters
Military Personnel
* military may terminate lease within 30 day notice
Tenant’s Basic Respomsibilotries
- Keep unit clean and safe
- Dispose of garbage
- Keep plumbing fixtures clean
- Not destroy alarms
- Replace batteries in alarms
- Comply with building and housing codes
- Respomsible for damages that are: negligent and intentional
TP
Eviction (two categories)
Constructive Eviction: if landlord breaches their duties you can evict yourself
Actual Eviction: breach of lease for non-payment or compliance. Often referred to as **SUMMARY EJECTMENT **
NC Eviction Process
- Held in small claims court
- If a landlord is going to evict someone they must holder personal property for: 7 days (if valued $500 >; 5 days if valued < $500
Transfer of Rental Property
- When a property is sold the new owners must honor th elease agreement
- When a property is foreclosed and the new owner is going to live in the property they must give renters 90 day notice to move out
appurtenant: runs with teh land!!
Tenant Security Deposit Act
Note to self: there is a Q&A brochure on the NC residential site
- Applies to all owners & landlords (except single room rentals)
- All deposits go into a trust account
- Must notify tenant within 30 days where the money is beiing hel
- Maximum amount of deposit (can be weekly (2 weeks worth), monthly (1 1/2 months), yearly no more than 2 months)
TP
Peritted Use of Security Deposit
- Non-payment of utilities
- Damage to property
- Unfulfilled lease term
- Unpaid bills that create a lien
- Costs of re-renting
- Cost of removal and storage pf personal property
- Costs associated with eveiction
TP
Landlord CANNOT Deduct From Security Deposit
- Normal wear and tear
- Carpet cleaning
- Repaingting
- Small nail holes and other non-intentional damage
Accounting for Security Deposits
- Deposit into account within 3 business days
- Let renter know where the money is being depiositied
- Return an itemized list of what was deducted and why (withiin 30 days). If they CANNOT, provide prelliminary and then a
- Final accounting (within 60 days)
Lease is appurtment: RUNS WITH THE LAND
Transfering a Rental Property
- Security deposits most transfer with the property upon sale
- Prorated rent should be transefered as of date of sale
TP
Pet Deposits
- Landlords may allow or prohibit pets
- Can charge a refundable or noon-refundable deposit
- Landlords CANNOT charge a “pet deposit” for a service animal
Service & Assistive Animals
NOT considered pets
NC Vacation Rental Act
Shorter than 90 days
Any person of entity who owns or manages the property
What is a vacation rental property
Owener has residnsure elsewhere Uses property for leisure
Under 90 days
Exemptions: hotels, mptels, etc.
Under the Vactaion Rental Agreement Act
DREAMOILS: leases longer than 3 years have to be in writing and. recorded
Vacation rentals less than 90 days must also be in writing
Written Agreemtn is Non-Enforceable Unless
Tenant Signs agreement
Or
After receipt of the agreement the tenant:
Paid monies
Took possession
TP
Expedited Eviction Process for Vacation Rentals
- 4 hour noticed required!
- Cases must be heard 12-48 hours
If renting a vacation rental (VRBO, Airbnb)
- Money must be held in a trust account (Bank with offices in NC)
- 50% of payment is given until renter takes occupany
Handling of Vacation Rental Funds
- Disclose to tenant where funds are held
- Must refund if cannot deliver occupancy
- Tenant Security Deposit Act applies EXCEPT:
- the time for returning deposit is 45 days vs. 30 days (typical rental/lease)
Sale of a Vacation Rental Property
- Always a “material fact”
- New buyer MUST honor all reservations/agreements upto 180 days post closing
- Copies of lease agreements must ne provided to the new owner within 10 days of closing
Travel Agent Referral Fees
only other person who can earn a commission/referral fee vwithour a licence is atravel agent
Travel agents CAN earn a commission/referral fee WITHOUR having a realestate license
Non-Freehold Estates
Less than freehold
Less than owenrship
Types of Non-Freehold Estates
Talking about how the lease ends
- Estate for Years
- Periodic Tenancy
- ESTATE AT WILL
- ESTATE AT SUFFERANCE
Only need to know about first two types for test
Estate for Years
vacation properties
- A DEFINITE period of time
- A DEFINITE start rental date and end rental date
- Automatically terminates at the end of tenancy (no notice required)
No notice required
“Years” menas date NOT Years!
TP
Periodic Tenanacy (Estate from Period to period)
Had an agreement for an initital period of time (aka 12 month lease).
Differnec - termonation of the lease REQUIRES notice.
* Example: if you sign a lease for 12 months, need to inform landlord you are moving out
Notice Period:
Week to week = 2 dyas
Month to month = 7 days
1 year = 1 month
Notice is required
Tenancy at Will
Allow someone on property
(girll scout selling cookies)
Estate at Sufferance
Staying against landlords will
TP
Types of Leases
Gross Lease (residential)
Net Lease (commercial)
Percentage Lease (retail)
Gross Lease (residential)
Landlord pays taxes, insurance, etc.
Net Lease (commercial)
Tenant pays a flat fee AND a portion of maintenace, property Taxes, Insurance
Retail Lease (aka: Percentage Lease)
Lease agreement is based on a fixed amount plus a percentage of gross income or sales
Graduated Lease
Starts out low and increases over time
Index Lease
Tied to consumer price index (high rise)
Ground Lease
dont need to know for test
- Renting or leasing the dirt
- Typicall long (99 years)
- Any improvements made become the property of the lessor
Oil and MIneral Lease
review Oil and MIneral rights for test
- Required to be in writing in NC per the Statue of Frauds
- Must be recorded
- Disclosed in the transfer of propery (MOG)
A Vaid Lease Agreement Must Have
mutual agreemnt
consideration
legal capacity
legal objective
Form of a contract
Subleasing
- Tenants leasing their property out to another person
- Need approval from porperty owner/manager
- Original tenant is liable
- Usually prohibited in residential agreements
- This is used a lot in commercial properties
Sublease
Sublease Sandwich
LessOR
SubleaseEE
LessEE
Lease Purchase vs. Lease Option
Lease Purchase: signed contract with executed purchase contract
Lease Option: buyer is not obligated to buy
TP
Covenant of Quiet Enjoyment
Note to self: know this for the test
Termination of Leases
know for test: condemnation of propert
- Full performamce
- End of lease terms
- Mutual cancellation
- Condemnation of property (immenent domain) terminates a lease
- Fail to pay
- Fail to maintain
Death DOES NOT terminate the obligations of a lease
Affidavit of Possession
Applicatio
REview Connor Act
Only leases for longerr than 3 years must be in writing to be enforceable in NC
EXCEPTION: Vacation Rental Act
Only leases for longer than 3 years must be recorded (Connor Act)
Connor Act
Know this:
