Leasehold Estates Flashcards
a lease
is both a contract and a grant of land
lease as a contract
the owner of the land, the landlord, grants to another, the tenancy, an exclusive right to use and possess the land for a definite or ascertainable period
lease as a grant
the possessor term granted by the landlord is an estate in land called a leasehold estate. the landlord retina a reversion in the property
a leasehold estate has 2 principal characteristics
1 it continues for a definite or ascertainable term and
2 carries with it the tenants obligation to pay rent to the landlord
the usual requirements
for a contract apply
in most jurisdictions,
leases for a term longer than a specified period - generally either one or three years - must be in writing
a few states require that all leases be in writing
definite term
automatically expires at the end of the term
no notice to terminate is required
periodic tenancy
a lease of indefinite duration that continues for successive periods unless terminated by notice
a periodic tenancy may arise by implication, when no term is stated in the lease. this creates a tenancy at will
either party may terminate a periodic tenancy
at the expiration of any one period but only on adequate notice to the other party.
absent a specific agreement as to notice in the lease, the common law requires six months notice in tenancies from year to year - shortened, however, by statute in most jurisdictions to periods ranging 30 to 90 days. in periodic tenancies of less than 1year, notice of one full period in advance is required at common law
tenancy at will
a lease containing a provision that either party may terminate at any time or a lease that does not specify a duration
no prior notice is required to terminate
tenancy at sufferance
arises when a tenant fails to vacate the premises at the expiration of the lease. a tenancy at sufferance exists until the landlord either dispossesses the tenant or holds her for another term
transfer of interest
both the tenants possessory interest and the landlords reversionary interest in the property may be freely transferred in the absence of contractual or statutory prohibition with one exception - tenancy at will
transfers by the landlord
the landlord may either transfer her reversionary right or her rights under the lease, including the right to receive rent. the party to whom the reversionary interest is transferred takes the property subject to the tenants leasehold interest, if the transferee has notice of the lease
transfers by tenant
a tenant may dispose of his interest either by 1 assignment or 2 sublease. most standard leases expressly require the landlords consent to an assignment or subletting of the premises
a tenant who transfers all interest in a leasehold
has made an assignment. although he assignee is bound to pay rent, the original tenant is not relieved of her contractual obligation and will have to pay if the assignee fails to pay the rent. thus, both the original tenant and the assignee are liable to the landlord
in a sublease, the tenant
transfers less than all of her rights in the lease and thereby retains a reversion in the leasehold. the sublessee has no obligation to the landlord but only to the original tenant
tenants obligation
the leasehold estate carries only an implied obligation on the part of the tenant to pay reasonable rent, but the lease contract almost always contains an express promise or covenant by the tenant to pay a specified amount rent at specified times
most leases provide that if the tenant breaches any of the covenants in the lease
the landlord may declare the lease at an end and regain possession of the premises. under common law, the tenants failure to pay rent when due gives the landlord only the right to recover a judgement for the amount of the rent but does not give him the right to oust the tenant from the premises. in most jurisdictions, however, the common law rule has been changed by statute to allow the landlord to dispossess the tenant for nonpayment of rent, even if the lease provides no such right
unless the lease makes specific provisions to the contrary,
the tenant is under no duty to make repairs to the leased premises. nevertheless, the tenant is obliged by law, so i needs not be stated in the lease, not to cause substantial injury to the premises
destruction of the premises
if the tenant leases land and a building that is subsequently destroyed by fire or some other chance event, the tenant is still obliged to pay rent under the common law. most states, however, have statutorily modified this rule to exclude tenants who occupy only a portion of a building and who have no interest in the building as a whole, such as apartment tenants. most leases contain clauses covering the accidental destruction of the premises
eviction
when the tenant breaches one of the covenants in her lease, such as the covenant to pay rent, the landlord may remove her from the premises according to specific lease provision or under a statute authorizing him to do so. this removal of the tenant is an eviction. when the tenant is evicted, the lease is terminated
abandonment
the tenants wrongful surrender of possession of the property. in that event, the landlord reentering or reletting the property terminates the tenants obligation to pay rent. the landlord who desires to hold the tenant to his obligation to pay rent must either leave the premises vacant or have a survival clause in the lease that covers this situation
landlords obligations
quiet enjoyment
fitness for use
quiet enjoyment
the tenants right to physical possession, use, and enjoyment of the premises free of the landlords interference. the landlord breaches this covenant whenever he wrongfully evicts the tenant. eviction need not be actual. under the doctrine of constructive eviction, a failure by th landlord in any of her obligations under the lease that causes a substantial and lasting injury to the tenants beneficial enjoyment of the premises is regarded as being, in effect, an eviction of the tenant. under such circumstances, the courts permit the tenant to abandon the premises and terminate the lease
fitness for use
under common law, the landlord is under no obligation to maintain the premises in livable condition or to make them fit for any purpose. most courts, however, now impose an implied warranty of habitability that requires leased premises to be habitable. these courts have also held that the covenant to pay rent is conditioned on the landlords performance of this warranty. some states have statutes requiring landlords to keep residential premises fit for occupation, zoning ordinance, health and safety regulations and building and housing codes may also impose certain duties on a landlord
