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Property Law > Leasehold Estates > Flashcards

Leasehold Estates Flashcards

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1
Q

What is a leasehold estate?

A

an estate in land, under which T has a PRESENT POSSESSORY interest in the leased premises and LL has a future interest (reversion)

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2
Q

What are the different types of leasehold estates?

A

Tenancy for Years, Periodic Tenancy, Tenancy at Will, Tenancy at Sufferance

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3
Q

What is a tenancy for years?

A

tenancy that lasts for some fixed period of time (to T for 10 years); writing is required under SOF if lease is for more than 1 year

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4
Q

How is a tenancy for years terminated?

A

ends automatically at termination date (without either party giving notice); LL reserves right of entry (and terminate) if T breaches lease covenants; LL may term if T fails to pay rent; T may surrender if LL accepts (surrender must be in writing if unexpired term exceeds year)

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5
Q

What is a periodic tenancy?

A

tenancy for some fixed period of time that continues for succeeding periods until either party gives notice of termination

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6
Q

What is an example of periodic tenancy

A

month to month; rent payable on first day of each month

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7
Q

How is a periodic tenancy created?

A
  1. express agreement (for month to month; 2. implication (rent payable monthly); or 3. operation of law (T remains in possession after lease expires and L treats as per. ten)
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8
Q

How is a periodic tenancy terminated?

A

automatically renewed until proper notice of termination is given (usually, one full period in advance; for year, just 6 mo.)

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9
Q

What is a tenancy at will?

A

tenancy of no stated duration that lasts as long as both parties desire

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10
Q

How is a tenancy at will created?

A

express agreement that gives power of term. at any time to parties; without this agreement, ct will treat as periodic ten. (for the pleasure, as many years as T desires)

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11
Q

How is a tenancy at will terminated?

A

notice and reasonable time to quite are required (in most states) or operation of law (death, waste)

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12
Q

What is a tenancy at sufferance?

A

tenant wrongfully holds over after termination of tenancy (T’s lease expires, T continues to occupy premises)

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13
Q

How is tenancy at sufferance terminated?

A

when LL evicts T or elects to hold T over for another term (no notice of termination is required)

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14
Q

What is the hold-over doctrine?

A

When a T remains in possession after right of possession ends

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15
Q

What can a LL do under the hold-over doctrine?

A
  1. evict T; 2. bind T to new periodic tenancy (res. vs. comm). If LL notifies T before lease expires of increased rent, T acquiesces to new terms when holds over - even if they objected)
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16
Q

What are the exceptions to hold-over doctrine?

A
  1. T only remains in possession for a few hours and leaves few articles of property; 2. delay is not T’s fault (illness); or (3) seasonal lease – in these cases, LL cannot bind T to new tenancy
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17
Q

What is a lease?

A

K that governs LL-T relationship

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18
Q

What are a T’s duties under lease?

A
  1. duty to repair 2. duty not to sue premises for illegal purpose; 3. duty to pay rent
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19
Q

What does T’s duty to repair include?

A

T cannot damage (commit waste) the leased premises.

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20
Q

What are the three types of waste a T cannot commit?

A
  1. voluntary (affirmative) - T intentionally or neg. damages premises or exploits minerals; 2. permissive - T fails to take reasonable steps to protect prop. (liable for ordinary repairs, excluding wear and tear), T needs t to report other repairs to LL; 3. ameliorative - T alters property and increases value
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21
Q

What if the leased premises are destroyed without fault of T or LL?

A

neither party has a duty to restore (unless K says otherwise) but T has a duty to cont. paying rent (generally has option to term. lease)

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22
Q

If a residential T covenants to repair, is the LL still obligated to make repairs?

A

yes, generally under nonwaivable implied warrant of habit. (except for damages caused by T). But this is not the case in non-residential leases (cov. to repair is enf.)

23
Q

Can the LL terminate lease if T engages in occasional unlawful conduct?

A

No

24
Q

Can LL retain security deposit beyond damages actually suffered?

A

No - but can retain it if a ‘bonus” after T is evicted

25
Q

What happens when T conveys (surrenders) leasehold interest back to LL?

A

duty to pay rent ends

26
Q

What remedies does a LL have when T fails to pay rent (and stays)?

A

Can sue for rent or evict (unlawful detainer - authority)

27
Q

What remedies does LL have if T abandons?

A
  1. surrender (treat abandonment as T’s surrender and accept, releasing T from lease; 2. ignore (minority) and hold T liable for rent; 3. re-let (majority) lease premises to new T and hold breaching T liable for any losses
28
Q

Can LL engage in self-help?

A

No (cannot forcibly remove T, change locks, remove property, etc.)

29
Q

What are the LL duties?

A
  1. deliver actual possession to T (LL in breach if not evicted a hold-over T); 2. must not interfere w/ T’s quiet enjoyment; 3. must uphold warranty of habitability (nonwaivable); 4. cannot evict in retaliation; 5. cannot discriminate
30
Q

What is the implied covenant of quiet enjoyment?

A

implied in every lease - cannot interfere w/ T’s quiet enjoyment and possession of premises

31
Q

What constitutes a breach of implied cov. of quiet enjoyment?

A
  1. actual eviction; 2. partial eviction; or constructive eviction
32
Q

How do you show actual eviction (and thus breach of QE)?

A

LL or holdover T excludes T from the ENTIRE premises. This terminates T’s obligation to pay rent.

33
Q

How do you show partial eviction (and thus breach of QE)?

A

T is physically excluded from PART of the premises. PE by LL relieves T of obligation to pay rent for entire premises (even if T continues to possess the rest of the premises. PE by third person w/ paramount title results in apportionment of rent (T is liable for only that which she possesses)

34
Q

How do you show constructive eviction (and thus breach of QE)?

A

LL’s breach of duty must render the premises unsuitable for occupancy. T must prove: 1. LL breached a duty; 2. the breach subs. and mat. deprived T of use and enjoyment (flooding, absence of heat, etc); 3. T gave LL notice and reasonable time to repair; and 4. after reasonable time, T vacated

35
Q

What can a T do if constructively evicted?

A

terminate the lease and sue for damages

36
Q

Can a T who remains on premises claim CE?

A

No

37
Q

Can a LL waive the implied warranty of habitability?

A

No - duties tied to local housing codes

38
Q

If LL breaches impl. warr. of habit, what can T do?

A
  1. terminate lease; 2. make repairs and offset cost against future rent; 3. abate rent to amount equal to FMV in light of defects; or 4. remain in possession, pay full rent, and sue for damages
39
Q

Does the implied warr. of habit. apply to commerical tenants?

A

No

40
Q

Can a T freely transfer leasehold interest in whole or part?

A

Yes, unless there is an express restriction

41
Q

What is a complete transfer of remaining term?

A

assignment

42
Q

What if the T retain part of the remaining term?

A

transfer is a sublease

43
Q

What kind of privity does an assignee and LL share?

A

privity of estate, not contract (original T and LL remain in privity of K)

44
Q

What kind of privity does a sublessee and LL share?

A

neither privity of estate or K (original T remains in privity of estate and K with LL)

45
Q

Is an assignee liable to LL for all covenants that run with the land?

A

yes - and original T remains liable too (including liable for rent and all covenants in lease)

46
Q

Is a sublessee liable personally liable on any covenants in lease / can they enforce cov. against LL?

A

No and no. Original T remains liable for rent and all cov. in lease, and can enf. against LL.

47
Q

What happens if an entire leasehold is taken by eminent domain?

A

T’s liability for rent is extinguished - if temporary or partial, T is not discharged from obligation (but entitled to compensation for taking - share of the award)

48
Q

At CL LL had no duty to make premises safe; today there are six exceptions:

A
  1. concealed dangerous condition (latent defect); 2. common areas; 3. public use; 4. furnished short-term residence; 5. negligent repair by LL; 6. LL K’s to repair
49
Q

What does the “concealed dangerous condition” exception entail?

A

if LL knows or should know of dang. cond. and T could not discover by reasonable inspection, LL must DISCLOSE (not repair) - will be liable if does not disclose if there are resulting injuries. If T accepts after disclosure, she assumes risk and LL is no longer liable.

50
Q

What does the “public use” exception entail?

A

LL is liable for injuries to members of public if 1. knew or should have known of dang. conditions; 2. reason to believe T may admit public before repair and 3. fails to repair condition

51
Q

What does the “furnished short-term residence” exception entail?

A

LL under stricter duty - liable for inj. resulting from any defect whether or not he knew of it

52
Q

What does the “neg. repair by LL” exception entail?

A

LL who actually attempts to make repair is liable if injury results b/c repairs are done negligently or give deceptive appearance of safety

53
Q

What is the modern trend regarding LL’s duty of reasonable care?

A

will be held liable for inj. resulting from ordinary neg. if he had notice of a defect and oppty to repair it

Property Law (9 decks)

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