Leasehold Flashcards
What is a lease?
Grant of exclusive possession to a tenant for either a determined period or indefinite period. Tenant returns the property to its owner. Tenants gain possessory interests or “right to possess real property: use rights and excluding others right, including the landlord”.
What are the landlord’s rights?
1) Right to decide to enter into the lease
2) Economic benefit: Right to receive rent money
3) Right to sell the property
4) Right to resume ownership after tenant leaves
5) Remedies for landlord: Eviction proceedings
6) Right to protect the value of the property
What are the tenants rights?
1) Use (right to quiet enjoyment)
2) Right to exclude others (including Landlord)
Does the lease have to be in writing?
Can be oral but because statute of frauds requires certain contracts to be in writing. Residential sale has to be in writing. Contracts that are longer than 1 year to perform must be in writing.
What are Licensee rights?
Only a lease can be exclusive to the use of the renter unlike a license. Paying rent does not make a licensee into a leasee. Rights are determined by contract and are not related to the covenant of quiet.
What are some examples of Licensee?
1) guest in home (sleeping on couch)
2) Airbnb guests
3) Hotel guests
4) Student in a dorm
5) Contractor
What is some tenant remedies?
Modern remedy for breach of covenant of quiet enjoyment match that of implied warranties:
1) Move out and cancel lease - Tenant can not pay rent, may be able to get expectation damages when mitigating to move elsewhere and rent elsewhere have increased
2) withhold rent - stop paying rent and wait for landlord to sue you and then you raise implied warranty defense
3) repair/deduct - a lot os states allow tenants to use repair and deduct method, take money our of rent to fix themselves
4) stay & sue for damages - can use as cause of action to sue for damages or seek injunction.
Leasehold
Tenant gets exclusive possession of landlord property. If lease is longer than a year then it must be in writing. Sometimes modified to 3 years.
List common tenant breaches
1) Not paying rent (either moved out or still living there)
2) causing damage to property
3) not following a clause in contract
Eviction can only be ordered by?
THE COURT
What is implied warranty of Habitability?
Requirement to provide sanitary, safe, and inhabitable living arrangements. examples: black mold, no heat in cold region during winter, burst pipe.
What is covenant of quiet enjoyment
