CHAPTER 7: Leasing Real Property Flashcards
What does the FHA 42.USC § 3601 do?
Outlaws discrimination because of
(1) race
(2) color
(3) religion
(4) sex
(5) familial status
(6) national origin
How are FHA violations handled?
(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
Exemptions from the FHA
(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
Civil Rights Act 42 USC § 1982
All citizens shall have the right to inherit, purchase, lease, sell, hold, and convey real and personal property
Term of years tenancy
A fixed duration that is agreed upon in advance - possessory right ends automatically when term ends
Periodic Tenancy
Automatically renewed for successive periods. Month’s notice needed for month-to-month. 6 month notice needed for year-to-year
Tenancy at will
Continues only so long as boht the landlord and the tenant desire, Most states require notice equal to time between payments to end.
Tenancy at Sufferance
Person who rightfully took possession continues in possession after the right ends. Landlord may treat as trespasser and evict or renew for another term.
How does Statute of frauds work for leases?
The lease of property for more than one year cannot be enforced unless it is in writing. Must contain key lease terms.
What are Standard forms for tenancy?
Most tenants sign preprinted forms, all that is normally negotiated is amount of rent and duration of tenancy
What is Rent control
Establishes a base rent for each unit and allows the landlord to have automatic increases each year.
What is the “English Rule?”
If the lessee cannot take possession because of a holdover tenant, the landlord is in breach of their obligation
What is the “American Rule?”
If the lessee cannot take possession because of a holdover tenant it is the new lessess’s responsibility to sue for eviction
Define Constructive Eviction
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
When is an “act” wrongful for constructive eviction?
- Block access to premises
- Create a nuisance
- Harass tenant’s customers
- Repeatedly trespass
When is an “omission” wrongful for constructive eviction?
- Fails to perform an obligation in the lease
- Fails to perform promised repairs
- Fails to maintain and control the common area
- Breaches statutory duty
- Allows nuisance-like behavior
What is the warranty of habitability?
Some Jx: Building codes
Others: “clean, safe, and fit for human habitation”
What are remedies for a breach of the warranty of habitability?
- Withold rent (put in escrow)
- Repair and deduct the cost from rent
- Sue for damages
- Terminate the lease
Transferring Leases
How to identify an assignment?
Assignor assigns the entire interest in the leased premises to the assignee. (privity of contract remains but privity of estate is assigned).
Transferring Leases
How to identify sublease?
Assignor transfers anything less than the entire interest in the lease (even 1 minute will suffice). Creates 2 landlord-tenant relationships.
Terminating the lease
What are the elements of abandonment?
- Tenant vacates
- W/o justification
- W/o present intention of returning
- Defaults on payment of the rent
Terminating the lease
What are the landlord’s options if abandonment occurs?
- Sue for rent
- Terminate the lease
- Mitigate damages and sue for rent
Terminating the lease
Cal. Civ. Code § 1950.5 - what may a security deposit be used for?
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
Terminating the lease
Cal. Civ. Code § 1950.5 - what other rules for security deposits?
- Landlord must provide itemized statement no later than 21 days after tenant has vacated
- May not demand in excess of 2 months’ rent
- Burden of proof of reasonableness for amount claimed is on landlord
Terminating the lease
What is the rule for retaliatory eviction?
The tenant must either show that “but-for” the protected activity or that their protected activity was a “material and substantial factor”
