Landlord Tenant Relationship Flashcards
What are the four tenancies in leashold estates?
Term of years
Period Tenancy
Tenancy at Will
Tenancy at Sufferance
Explain a term of years lease
Lasts for some fixed period of time or computable by a formula
+ Common law: no limit on number of years
+ In some US states: fixed period limited
+ Automatically terminates when the term of years expires
+ Can also be terminated due to a condition/event
+ SoF applies b/c of one-year rule
True or false: Racially restrictive covenants are invalid
True
Originally used common law on alienation and the 14th Amendment to protect minorities. Now covered by the FHA.
What are the exceptions to FHA under §3603?
Roommate
Owner has three or less units/homes for sale/rent
Mrs Murphy boarding house (no more than four families under one roof, where owner lives on the property)
What are the protected categories under FHA?
Protected Categories: Race, Color, Religion, Sex, Familial Status (only covers parent-children relationships), and National Origin.
What are some of the unprotected categories under FHA?
Age, Sexual Orientation, Gender Identity, Marital Status, Immigration Status, Felony Status, Pets (unless a service animal, which is linked to handicap)
What is the difference between a sublease and an assignment?
Sublease: The transfer of part of a leasehold interest from a tenant to a third party, in which the tenant keeps a remainder interest in the leasehold estate, so that the property will go back to the tenant, before eventually reverting to the landlord. ANYTHING LESS THAN THE WHOLE THING.
Assignment: The transfer of an entire leasehold interest from a tenant to a third party. ALL THE TIME left on the lease = the whole thing.
What is privity of estate in leasehold estates and why does it matter?
Privity of Estate: A relationship that exists between two people who have a successive interest in the same property.
+ Possession – a tenant in possession is always in privity of estate.
+ Who is in privity of estate with whom? Depends on whether it is a sublease or assignment:
- -> Sublease = privity of estate between the original tenant and landlord.
- -> Assignment = privity of estate with assignee and landlord.
Must have some kind of privity between the party suing and the party to be sued for the suit to stand in court.
What is privity of contract in leasehold estates and why does it matter?
Privity of Contract: The relationship between two parties to a contract that allows each party to enforce the terms of the contract against each other.
A lease creates privity of contract:
If a tenant subleases or assigns at minimum part of the lease, and the subsequent tenant agrees in a separate contract to the original terms of the contract, the subsequent tenant has privity of contract with the landlord.
Privity of contract is maintained between the original tenant and the landlord unless there is novation and release (substitution of party and release of the original party).
Must have some kind of privity between the party suing and the party to be sued for the suit to stand in court.
True or false: In assignment, privity of estate between lessor and lessee is terminated but privity of contract remains and is unaffected
True. POC would only be terminated if express release.
True or false: In sublease, neither privity of estate or contract between lessor and lessee are affected
True.
What are the minority and majority rules with regards to assignments/subleases? What are the policy arguments around both?
Majority rule: Landlord can subject subleases and assignments to arbitrary restraints.
+ Colorado falls under majority
+ Policy: Judicial efficiency, economic efficiency (let people do business and keep the courts out of it)
Minority rule/Kendall: Objections need to be commercially reasonable:
+ Efficiency: Landlords need to mitigate their damages
+ Fairness: good faith and fair dealing, reasonable person standard
+ Efficiency: The modern world where we live requires more alienability. Look at scope, duration, and effect of sale of land alienation restraints have an effect.
What are some examples of unreasonable commercial objections in a sublease/assignment?
Examples of commercially unreasonable factors:
+ To charge more rent (you should have built rent increases in your initial contract)
+ Personal taste
+ Convenience
+ Sensibility
What are some examples of commercially reasonable objections in a sublease/assignment?
Examples of commercially reasonable objections:
+ Bad credit and financial responsibility
+ Character/proposed use of space, ex: Porn shop in a Christian mall
+ Nature of the occupancy: Competing tenants, This type of business doesn’t “fit” in the space, making sure the premises as-is are suitable for the proposed use
True or false: Quiet Enjoyment as an argument against landlords is typically used in commercial lease disputes
True. Covenant of quiet enjoyment: A landlord has the duty to repair and provide suitable premises.
List and explain the three different applications of the covenant of quiet enjoyment. Is this available to commercial tenants?
Actual eviction: If a tenant is actually evicted, they have no obligation to pay rent. Tenant is actually evicted when the premises if no longer suitable/habitable.
Constructive eviction, Requires a three-part test:
1) Condition of premises amounts to a breach of the covenant of quiet enjoyment.
2) Breach is substantial enough to justify the tenant leaving (objective, reasonable standard)
3) T must actually leave within a reasonable period of time:
Constructive eviction is available to commercial tenants
How do you tell if a residential landlord has violated the Implied Warranty of Habitability?
How to tell if it violates the black letter law:
+ Is it a substantial violation of a housing code?
+ Does it affect health and safety of tenant?
(This is an objective test)
True or false: Implied Warranty of Habitability is a better option for residential tenants in a dispute
True. A better option for residential tenants to seek damages
IWH is currently not applicable to commercial property:
Tenant will usually only win if they asserted specific needs and the landlord agreed to it, and the landlord did not uphold his part of the bargain.
What is the procedure to a IWH claim?
+ T has to give landlord notice of problems (in writing):
+ Landlord gets reasonable time to repair.
+ Landlord bears the costs for a reasonable alternative for the tenant. Ex: paying for a hotel. BUT the landlord gets to choose the alternative (landlord would get to pick the hotel).
+ Common law requires tenant to give notice of the municipal authority for a health violation.
What are a tenants remedies under IWH?
+ Tenant may stay and withhold rent: IWH acts as a shield for a non-payment suit.
+ Compensatory damages for discomfort and annoyance.
+ Punitive damages, if the violation is horrendous.
+ Offset any repairs taken by the tenant or contractors hired by tenant:
+ Have the amount the tenant paid for repairs/contractors deducted from rent.
+ Tenant can stay, pay rent, sue for damages, injunction, term of lease.
Explain the policy behind IWH and remedies available to tenants
+ Empowers tenants to exercise remedies with greater ease
+ Remedies expanded for T’s options outside the lease
+ Societal wealth maximization
Explain some of the policy concerns of IWH and remedies available
+ IWH is supposed to push up quality of low-income housing by forcing the private sector to maintain a certain level of suitability and habitability:
+ Evidence to suggest it has the opposite effect.
+ Unintended consequences of removing the cheapest housing by making sure housing is up to a certain standard:
+ Makes housing unavailable for people with low incomes
Larry leases an apartment to Tony for a term of 4 years at a monthly rent of $1,000. The lease provides that “Tony covenants to pay said rent in advance on the first of each month. Tony shall not sublease or assign without the prior express consent of Larry.” One year into the lease, with Larry’s permission, Tony transfers all his interest to Urs for the balance of the lease. Urs agrees in writing to assume all covenants in the original lease. Six months later, Urs orally assigns his entire interest to Vic, without Larry’s permission. Vic stops paying rent to Larry. Whom can Larry sue?
L - T = TOY for 4 years, privity of contract and privity of estate
L – T – U = assignment between Tony and Urs // “for the balance of the lease” // privity of estate and privity of contract
L – T – U – V = assignment between Urs and Vic // “his entire interest” // privity of estate (possession) and privity of contract
Larry can sue Tony, Urs, and Vic for the rent unpaid by Vic. Privity of contract remains between Larry and Tony even after Tony’s assignment to Urs because there was no novation. Privity of contract remains between Larry and Urs even after Urs’s attempted assignment to Vic because there was no novation. Privity of estate exists between Larry and Vic because Vic was in possession of the property. Privity of contract between Larry and Vic is questionable since not in writing, however Larry only need either privity of contract or estate to sue, and he has privity of estate. (99 words)
On October 1, L leases Whiteacre “to T for one year, beginning October 1 at an annual rate of $5,000.” T pays the rent. On the following September 30, T moves out without giving L any notice.
L has no rights against T because the “term of years” expired on September 30.
The tenancy created here is a term of years, which is a term of art for any lease with a specific duration (e.g, one year, one year and 2 days, 4 months or 4 weeks would all be examples of a term of years lease. The specified term year of one year expires on September 30 by its terms. T had no obligation to give notice of termination.