*Landlord and Tenant Flashcards
Two potential models of the law for leases:
- License
* 2. Estate for years in land
• 1. License
o If you own property, you have right to exclude; but also have right to let people onto property until you tell them to leave (hotel/inn model)
o Essentially a matter of contract
o Licenses are revocable
Inconsistent with how we generally view a lease (can’t just be arbitrarily evicted)
• 2. Estate for years in land
o Primarily used for temporary transfer of agricultural land
o Became fairly unrealistic, especially with increase in commercial leasing
o Gives too much power to tenant as present owner
Would also impose on current tenant a duty to remove overstaying tenant
• Limitations can be imposed by landlord on tenant’s right to exclude
Lease for Intended Use
• Anderson Drive-in Theatre v. Kirkpatrick – IN (1953)
o F: P rents property from D for 25 years to build/operate movie theatre; land was not suitable for building the theatre (would sink)
o H: For D; Caveat emptor (exception exists for fraud and misrepresentation of latent defects that landlord knew of)
Here, P had reasonable opportunity to inspect before renting
If concerned, could have added “but if” clause to the lease (condition subsequent that would give tenant right to terminate)
o Traditional rule here – doesn’t differentiate between residential and commercial
• Alternative rule to Anderson – when LL knows purpose for which land is being rented, and knows that land is not suitable for that use, landlord is liable (implied covenant)
• Modern application – implied warranty of habitability into residential leases (different for commercial leases)
Duty to Put Tenant Into Possession
• Adrian v. Rabinowitz – NJ (1935)
o F: Took 22 days for LL D to remove previous tenant from premises; P tenant had already paid rent
o H: LL must bear the loss for the 22 days rent and P’s lost profits from not being able to operate store (LL can subsequently collect from overstaying tenant)
Ct. announces duty to put tenant into possession falls on the LL
Traditional rule is that duty falls on tenant
English rule: LL has duty b/c better positioned to remove the holdover tenant
o Note – this could be solved through K too (put covenant that LL ousts previous tenant)
implied warranty of habitability
(Unwaivable): IWH LL must keep premises fit for habitation (repair/maintenance)—according to housing codes—and cannot evict tenant in retaliation for failure to pay rent or reporting violations