CHAPTER 7: Leasing Real Property

Question 1

What does the FHA 42.USC § 3601 do?

Answer 1

Outlaws discrimination because of
(1) race
(2) color
(3) religion
(4) sex
(5) familial status
(6) national origin

Question 2

How are FHA violations handled?

Answer 2

(1) Plaintiff established prima facie violation
(2) Burden shifts to defendant to show a legit nondiscriminatory reason for conduct
(3) If defendant meets that burden, plaintiff must show reason is pretext

Question 3

Exemptions from the FHA

Answer 3

(1) Rooms in dwellings occupied by no more than 4 families if the owner occupies one of the living quarters
(2) Any single family house if owner does not own more than 3 houses and does not use a broker or agent

Question 4

Civil Rights Act 42 USC § 1982

Answer 4

All citizens shall have the right to inherit, purchase, lease, sell, hold, and convey real and personal property

Question 5

Term of years tenancy

Answer 5

A fixed duration that is agreed upon in advance - possessory right ends automatically when term ends

Question 6

Periodic Tenancy

Answer 6

Automatically renewed for successive periods. Month’s notice needed for month-to-month. 6 month notice needed for year-to-year

Question 7

Tenancy at will

Answer 7

Continues only so long as boht the landlord and the tenant desire, Most states require notice equal to time between payments to end.

Question 8

Tenancy at Sufferance

Answer 8

Person who rightfully took possession continues in possession after the right ends. Landlord may treat as trespasser and evict or renew for another term.

Question 9

How does Statute of frauds work for leases?

Answer 9

The lease of property for more than one year cannot be enforced unless it is in writing. Must contain key lease terms.

Question 10

What are Standard forms for tenancy?

Answer 10

Most tenants sign preprinted forms, all that is normally negotiated is amount of rent and duration of tenancy

Question 11

What is Rent control

Answer 11

Establishes a base rent for each unit and allows the landlord to have automatic increases each year.

Question 12

What is the “English Rule?”

Answer 12

If the lessee cannot take possession because of a holdover tenant, the landlord is in breach of their obligation

Question 13

What is the “American Rule?”

Answer 13

If the lessee cannot take possession because of a holdover tenant it is the new lessess’s responsibility to sue for eviction

Question 14

Define Constructive Eviction

Answer 14

Wrongful conduct (act or omission) by the landlord that substantially interferes with the tenant’s beneficial use and enjoyment of leased premises - allows avoiding future rent -TENANT MUST NOTIFY and give reasonable time to fix or right is waived

Question 15

When is an “act” wrongful for constructive eviction?

Answer 15

1. Block access to premises
2. Create a nuisance
3. Harass tenant’s customers
4. Repeatedly trespass

Question 16

When is an “omission” wrongful for constructive eviction?

Answer 16

1. Fails to perform an obligation in the lease
2. Fails to perform promised repairs
3. Fails to maintain and control the common area
4. Breaches statutory duty
5. Allows nuisance-like behavior

Question 17

What is the warranty of habitability?

Answer 17

Some Jx: Building codes
Others: “clean, safe, and fit for human habitation”

Question 18

What are remedies for a breach of the warranty of habitability?

Answer 18

1. Withold rent (put in escrow)
2. Repair and deduct the cost from rent
3. Sue for damages
4. Terminate the lease

Question 19

Transferring Leases

How to identify an assignment?

Answer 19

Assignor assigns the entire interest in the leased premises to the assignee. (privity of contract remains but privity of estate is assigned).

Question 20

Transferring Leases

How to identify sublease?

Answer 20

Assignor transfers anything less than the entire interest in the lease (even 1 minute will suffice). Creates 2 landlord-tenant relationships.

Question 21

Terminating the lease

What are the elements of abandonment?

Answer 21

1. Tenant vacates
2. W/o justification
3. W/o present intention of returning
4. Defaults on payment of the rent

Question 22

Terminating the lease

What are the landlord’s options if abandonment occurs?

Answer 22

1. Sue for rent
2. Terminate the lease
3. Mitigate damages and sue for rent

Question 23

Terminating the lease

Cal. Civ. Code § 1950.5 - what may a security deposit be used for?

Answer 23

May be used for
1. Compensation for rent
2. Repairs for damages caused by tenant
3. The cleaning of the premises
4. Remedy future defaults

Question 24

Terminating the lease

Cal. Civ. Code § 1950.5 - what other rules for security deposits?

Answer 24

1. Landlord must provide itemized statement no later than 21 days after tenant has vacated
2. May not demand in excess of 2 months’ rent
3. Burden of proof of reasonableness for amount claimed is on landlord

Question 25

Terminating the lease

What is the rule for retaliatory eviction?

Answer 25

The tenant must either show that “but-for” the protected activity or that their protected activity was a “material and substantial factor”