Leasehold Estates Flashcards

1
Q

Leasehold Estates - Definition

A

An estate in which the tenant has a present possessory property interest and the landlord has a future interest (reversion)

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2
Q

Leasehold Estates - 4 Types

A

1) Tenancy for Years
2) Periodic Tenancy
3) Tenancy at Will
4) Tenancy at Sufferance

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3
Q

Tenancy For Years

A

Lasts for a fixed period of time

Requires a definitive beginning and end date

If duration is longer than one year, lease must be in writing (required under SoF)

Terminates automatically at the end of the fixed period (No notice is required)

Also referred to as “estate for years,” “term for years,” or “fixed term tenancy”

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4
Q

Periodic Tenancy - Definition

A

A leasehold that is continuous for successive intervals (e.g. weeks or months) until either party gives notice of termination

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5
Q

Periodic Tenancy - Creation (Express Agreement)

A

Conveyed to tenant for agree interval

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6
Q

Periodic Tenancy - Creation (Implication)

A

A lease that does not specifiy duration, but provides for rent to be paid at set intervals

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7
Q

Periodic Tenancy - Creation (Operation of Law - 2 Situations)

A

1) Invalid Lease
2) Holdover Tenant

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8
Q

Periodic Tenancy - Creation (Operation of Law - Invalid Lease)

A

If tenant takes possession despite an invalid lease (e.g. lease violates SoF), periodic tenancy arises upon landlord’s acceptance of payment

  • Period of the tenancy is determined by the period the payment covers
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9
Q

Periodic Tenancy - Creation (Operation of Law - Holdover Tenant)

A

If landlord accepts rent from a holdover tenant, a periodic tenancy arises for the period the payment covers

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10
Q

Periodic Tenancy - Termination (2 Things)

A

Tenant must give proper notice, which requires:

1) Sufficient Time: Tenant must give notice one full period in advance; year-to-year tenancies require 6 month notice

2) Effective Date: Effective date of termination must be at the end of the period of the tenancy

Note: parties can agree to modify these requirements

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11
Q

Tenancy at Will - Definition

A

A tenancy with no fixed duration, terminable by either party at any time without notice

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12
Q

Tenancy at Will - Creation

A

Express Agreement

Without an express agreement, courts will treat the lease as an implied periodic tenancy

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13
Q

Tenancy at Will - Termination (2 Types)

A

1) By Will
2) By Operation of Law

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14
Q

Tenancy at Will - Termination By Will

A

Either party can terminate the lease at any time without notice, but a reasonable demand to vacate the premises is usually required

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15
Q

Tenancy at Will - Termination By Operation of Law (5 Methods of Occurrence)

A

Occurs upon any of the following:

1) Death of either party
2) Waste by the Tenant
3) Assignment by the Tenant
4) Transfer of Title by the Landlord
5) Lease by the Landlord to a 3rd party

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16
Q

Tenancy at Sufferance - Definition

A

A default tenancy that arises when a tenant continues to possess property after the lease expires (i.e. a holdover tenant)

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17
Q

Tenancy at Sufferance - Creation

A

Tenant holds possession beyond lease expiration

  • The expired lease’s terms and continues automatically carry over to the tenancy at sufferance
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18
Q

Tenancy at Sufferance - Landlord Options (2)

A

1) sue to evict or
2) Impose new period tenancy

a) Raised Rent: Landlord can demand higher rent for both the holdover period and any new periodic tenancy if he gave notice of the increase before the lease expired

b) Commercial Leases: If expired lease was for one year or longer, the new periodic tenancy can be year-to-year

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19
Q

Tenancy at Sufferance - Exception

A

Imposing new periodic tenancy must be reasonable. New periodic tenancy is unreasonable if:

1) Tenant only remains in possession for a few hours

2) Tenant is not at fault for delay in vacating (e.g. illness)

3) Seasonal leases (e.g. ski cabin, breach house)

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20
Q

Tenant’s Duties at Common Law - Duty to Repair

A

Can be largely modified by lease terms:

  • Tenant must maintain premises and make ordinary repairs
  • Tenant must not commit waste
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21
Q

Tenant’s Duties at Common Law - Destruction of Premises W/out Fault of L or T

A

Common Law: T held liable for any loss

Modern Law: Tenant can terminate lease

22
Q

Tenant’s Duties at Common Law - Duty to Pay Rent

A

T at sufferance arises upon breach

23
Q

Tenant’s Duties at Common Law - Duty to Not Use Property for Illegal Purposes

A

If T uses premises for an illegal purpose, L may terminate lease or obtain damages and injunctive relief

  • occasional, minor illegal activities do not constitute a breach
24
Q

Tenant’s Duties at Common Law - Liability to 3rd Parties (in Tort)

A

Tenant may be liable for injuries to 3rd persons from the dangerous conditions within the T’s control

25
Q

Fixtures - Definition

A

Once-movable chattel that is annexed (i.e. affixed) to real property such that it becomes part of the reality

  • Often arises with leasehold, but applies to all real property
  • Fixtures pass with ownership of the land
26
Q

Fixtures - Exception

A

A LT representative may remove annexed chattel within a reasonable time after life tenant’s death

27
Q

Fixtures - Determining Whether Chattel has Become a Fixture

A

Intent Controls: Annexor’s intent is usually determinative

Fixture almost always arises where annexors affix their own chattel to their own property

Chattel integrated into a structure (e.g. heating pipes, bricks built into a wall) almost always becomes a fixture

28
Q

Fixtures - Landlord-Tenant

A

Agreement between landlord and tenant is controlling, if it exists

29
Q

Fixtures - L-T (Tenant Installation) (2 Things)

A

Tenant may remove chattel she installed if:

1) Removal occurs before the lease expires; and

2) Removal does not cause substantial harm to the property

If Tenant impermissibly removes fixtures, she commits voluntary waste

30
Q

Landlord Remedies for Tenant Breach - Definition

A

If tenant breaches his leasehold duties, L’s options depend on whether tenant retains possession

31
Q

Landlord Remedies for Tenant Breach - Tenant Retains Possession

A

Landlord may:

1) File for notice of eviction, or
2) Continue the lease and sue for rent due

32
Q

Landlord Remedies for Tenant Breach - Tenant Abandons Premises (3)

A

Landlord may:

1) Surrender: Treat the abandonment as tenant’s surrender and accept it, releasing the tenant from the lease

2) Ignore (minority rule): Hold tenant liable for unpaid rent, or

3) Re-let (majority): Lease premises to new tenants and hold the breaching tenant liable for any losses

33
Q

Landlord Remedies for Tenant Breach - No Self-Help

A

L may not engage in self-help upon T’s breach (e.g. forcibly removing T or changing locks)

34
Q

Landlord Remedies for Tenant Breach - Security Deposit

A

Required at beginning of most leases to secure landlord against damages and/or abandonment

  • L must return deposit to T once lease terminates
  • L may subtract damages she has suffered
35
Q

Landlord Remedies for Tenant Breach - Retaliatory Eviction

A

L is prohibited from retalitory eviction if a T lawfully reports housing code or other violations

36
Q

L’s Duties & Warranties - 3 Implied Duties and a Liability

A

1) Duty to Deliver Possession on First Day of Lease

2) Implied Covenant of Quiet Enjoyment

3) Implied Warranty of Habitability

4) Tort Liability

37
Q

L’s Duties & Warranties - Duty to deliver Possession on 1st day of lease (Majority [English] Rule)

A

Actual possession

  • L must deliver physical possession to T

Remedy = Money Damages

38
Q

L’s Duties & Warranties - Duty to Deliver Possession on 1st Day of Lease (Minority [American] Rule)

A

Legal possession (i.e. right to possess)

  • New tenant is responsible for evicting a holdover tenant

Remedy = Money Damages

39
Q

Implied Covenant of Quiet Enjoyment - Definition

A

A T has an implied right to quiet use and enjoyment of the premises, without interference from the L

  • Breach may occur by actual or constructive eviction
  • Breach may occur by L’s wrongful conduct causing loss of use and enjoyment by T
40
Q

Implied Covenant of Quiet Enjoyment - Actual Eviction

A

L wrongfully evicts or excludes T from property

41
Q

Implied Covenant of Quiet Enjoyment - Constructive Eviction (Definition)

A

L’s actions or inactions render the property uninhabitable or unusable

42
Q

Implied Covenant of Quiet Enjoyment - Constructive Eviction (Elements - 4)

A

1) Breach of Duty: L breached a duty to the T

2) Substantial Interference: Major and/or chronic problems (e.g. leaky roof) are caused by L’s wrongful conduct

3) Notice: T must inform the L and give him a reasonable opportunity to repair; L must fail to act meaningfully; and

4) Vacate: T must vacate within a reasonable period after the L fails to repair

43
Q

Implied Warranty of Habitability - Definition

A

Residential property must be fit for basic human dwelling

44
Q

Implied Warranty of Habitability - Characteristics

A

Residential ONLY - not applicable to commercial leases

Absolute Duty: cannot be modified by lease terms

Local code or case law specifies the standard for a breach

45
Q

Implied Warranty of Habitability - Tenant’s Remedies (4)

A

After giving notice to L, T can:

1) Move: vacate premises and terminate the lease

2) Repair: make reasonable repairs and deduct costs from future rent

3) Reduce or Withhold Rent: Reduce rent or stop payment until a court determines the fair rental value given the breach (T must place withheld rent in escrow)

4) Remain: Remain in possession and seek money damages

46
Q

Landlord Tort Liability to Tenant - Definition

A

A L may be liable to T for injuries occurring on leased property

47
Q

Landlord Tort Liability to Tenant - L is Liable for Injuries Involving . . . (5)

A

1) Common Areas: Duty of Reasonable care
- L must exercise reasonable care in maintaining and repairing common areas

2) Latent Defects: Duty to Disclose
- L has a duty to disclose hidden defects he should reasonably know of

3) Assumption of Repairs: Negligence Standard
- L is liable for harm caused by negligent repairs he chooses to undertake

4) Public Use: L is liable for known defects if he knows the property is for public use and T is unlikely to repair
- e.g. concert hall, convention center

5) Seasonal or Short Term Lease of a Furnished Dwelling
- L is liable for defects that cause harm to tenant

48
Q

Assignment

A

Entire leasehold (both in duration and physical area) transfers from T to assignee

  • Assignee is in privity of estate w/ L- the 2 are bound by all covenants that run w/ the land
  • Assignor remains in privity of K with L
  • Assignee owes rent directly to L, but assignor remains liable for unpaid rent unless L expressly releases T (ovations)
49
Q

Sublease

A

Partial Leasehold Transfers from Sublessor to Sublessee

  • Sublessor is in privity of estate and contract with L (i.e. relationship between T and L is unchanged) - Sublessee pays rent to sublessor as her tenant
  • Sublessee is not liable to L for rent and is not bound by any lease covenants unless expressly assumed
50
Q

Assignment/Sublease Provisions

A

Construed against L

  • Lease provision restricting assignment or sublease are enforceable, but generally construed against landlords
  • Once L gives T permission to assign or sublet, such provisions are thereafter waived