Leasehold Estates Flashcards
Leasehold Estates - Definition
An estate in which the tenant has a present possessory property interest and the landlord has a future interest (reversion)
Leasehold Estates - 4 Types
1) Tenancy for Years
2) Periodic Tenancy
3) Tenancy at Will
4) Tenancy at Sufferance
Tenancy For Years
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”
Periodic Tenancy - Definition
A leasehold that is continuous for successive intervals (e.g. weeks or months) until either party gives notice of termination
Periodic Tenancy - Creation (Express Agreement)
Conveyed to tenant for agree interval
Periodic Tenancy - Creation (Implication)
A lease that does not specifiy duration, but provides for rent to be paid at set intervals
Periodic Tenancy - Creation (Operation of Law - 2 Situations)
1) Invalid Lease
2) Holdover Tenant
Periodic Tenancy - Creation (Operation of Law - Invalid Lease)
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
Periodic Tenancy - Creation (Operation of Law - Holdover Tenant)
If landlord accepts rent from a holdover tenant, a periodic tenancy arises for the period the payment covers
Periodic Tenancy - Termination (2 Things)
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
Tenancy at Will - Definition
A tenancy with no fixed duration, terminable by either party at any time without notice
Tenancy at Will - Creation
Express Agreement
Without an express agreement, courts will treat the lease as an implied periodic tenancy
Tenancy at Will - Termination (2 Types)
1) By Will
2) By Operation of Law
Tenancy at Will - Termination By Will
Either party can terminate the lease at any time without notice, but a reasonable demand to vacate the premises is usually required
Tenancy at Will - Termination By Operation of Law (5 Methods of Occurrence)
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
Tenancy at Sufferance - Definition
A default tenancy that arises when a tenant continues to possess property after the lease expires (i.e. a holdover tenant)
Tenancy at Sufferance - Creation
Tenant holds possession beyond lease expiration
- The expired lease’s terms and continues automatically carry over to the tenancy at sufferance
Tenancy at Sufferance - Landlord Options (2)
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
Tenancy at Sufferance - Exception
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)
Tenant’s Duties at Common Law - Duty to Repair
Can be largely modified by lease terms:
- Tenant must maintain premises and make ordinary repairs
- Tenant must not commit waste