Landlord/Tenant - Four Leasehold/Nonfreehold Estates Flashcards
What is a leasehold? What are the four types?
A leasehold is an estate in land in which the tenant has a present possessory interest and the landlord has a future possessory interest (i.e. reversion).
4 types =
- tenancy for years
- periodic tenancy
- tenancy at will
- tenancy at sufferance
What is a tenancy for years? How must it be created?
A tenancy for years is a tenancy with a fixed, determined period of time (e.g. one year). It ends automatically at the termination date.
Landlord reserves right of entry if tenant breaches the lease’s covenant/doesn’t pay rent. Tenant may surrender lease.
If for over a year, SoF applies and lease and/or surrender must be in signed writing.
What is a periodic tenancy? How is it created? How is it terminated?
A periodic tenancy is one that continues for successive intervals automatically until terminated. (e.g. month to month lease).
It automatically renews until proper notice + termination by either party. Notice req’d is usually equal to the interval length.
It is created either expressly or implicitly. Implicitly by either:
- lease with no mention of duration but rent payments set at intervals
- oral term of years in violation of SoF becomes periodic tenancy
- when landlord elects to hold over tenant who wrongfully stayed past lease
What is a tenancy at will? How is it created/terminated?
A tenancy at will is one for no fixed period of time - i.e. can be terminated by either party at any time.
It must be created by express language (“to T for as long as L or T desire”). If lease gives only landlord right to terminate at will, then tenant will have implicit right to do the same, but if tenant has explicit right do not imply same right for landlord.
Can bet terminated whenever but generally reasonable notice is required.
What is a tenancy at sufferance? How is it created/terminated?
A tenancy at sufferance occurs when a tenant has stayed past the end date of their lease. We create tenancy in sufferance so landlord can recover rent.
When this happens landlord can either (a) evict or (b) bind tenant to new periodic tenancy.
What are exceptions to landlord being able to bind tenant to new agreement after creation of a tenancy in sufferance?
landlord will not be able to bind them to new tenancy agreement, when:
- tenant remains in possession only a few hours late
- tenant leaves few items of personal property behind
- delay is not tenants fault (e.g. severe illness)
How do you determine the terms of a new tenancy after tenancy at sufferance has been created?
After tenancy in sufferance, landlord may elect to bind the tenant to a new periodic tenancy.
For commercial tenants, its generally based on way old rent was computed (e.g. monthly rent = month-month lease). But if original term was less than one year will just be month-month.
For residential tenants, will generally be a month-month tenancy regardless. Can increase rent if notified before lease expiration.
What is a lease? what is a covenant? what is the effect of a covenant being breached?
A lease is a contract that governs the landlord-tenant relationship. A covenant is a promise within the lease.
Generally, covenants are independent so breach of a covenant just allows other party damages wrt that specific part, but doesn’t void K. BUT, landlord can terminate lease for failure to pay rent AND tenant can terminate in case of breach of covenant of quiet enjoyment of land + implied warranty of habitability.
Can option to purchase be part of lease? What consideration is req’d? How long is it open for?
Yes, consideration for the lease will support the option. Unless says otherwise, option lasts as long as lease.
