Leasehold Estates

Question 1

4 types of leasehold estates

Answer 1

1 - term of years
2 - periodic tenancy
3 - tenancy at will
4 - tenancy at sufferance

Question 2

Definition of term of years

Answer 2

leasehold for any single, fixed period of time

Question 3

Definition of periodic tenancy

Answer 3

leasehold for a recurring period of time

Question 4

Definition of tenancy at will

Answer 4

a leasehold for no fixed time or period

Question 5

Definition of tenancy at sufferance

Answer 5

when tenants remain in possession after their right to do so has expired

Question 6

Characteristics of term of years

Answer 6

Fixed duration - no limit on duration

Ends automatically - no notice is required

If no beginning date is provided, starts on the date of delivery

Question 7

Characteristics of periodic tenancy

Answer 7

indefinite duration

succeeding periods (month to month; year to year)

does not end automatically - need to give notice!

Question 8

Characteristics of tenancy at will

Answer 8

indefinite duration

ends at the will of either party

Question 9

Characteristics of tenancy at sufferance

Answer 9

Holdover tenant

Keeps tenant from becoming a trespassing holdover

LL has two options:
• Treat T as a trespasser and evict. T is responsible for eviction + damages.
• Treat T as a tenant at sufferance – as a tenant for a new term

Question 10

Minimum Property Based Lease Requirements

Answer 10

Writing - depends on local SOF but typically needs signature of person to be charged

Leasing language (words of grant)

Signature of LL

Question 11

Minimum Contract Based Lease Requirements

Answer 11

Writing - depends on local SOF but typically needs signature of person to be charged

Contract Terms

Consideration

Signature of both LL and T

Question 12

Definition of assignment

Answer 12

arises when the lessee transfers his entire interest under the lease

Question 13

Definition of sublet

Answer 13

when a lessee transfers anything less than his entire interest

Question 14

Assignment - privity of contract / privity of estate between LL, T, and Assignee

Answer 14

• LL -> T – only has privity of contract
• LL -> Assignee – only has privity of estate
• T -> Assignee – only has privity of contract

Question 15

Sublet - privity of contract / privity of estate between LL, T, and sublessee

Answer 15

• LL -> T – privity of contract and privity of estate
• LL -> sublessee – no legal relationship
• T -> sublessee – privity of contract and privity of estate

Question 16

Does the type of transfer matter (assignment or sublease) if LL wants to sue T’s sublessee?

Answer 16

Yes

Assignment - success (privity of estate)

Sublease - failure (NO privity)

Question 17

In a commercial lease, can LL withhold his consent to assignment by the tenant?

Answer 17

Yes - only if the LL has a commercially reasonable objection to the assignment

Question 18

If lease is silent, can a tenant alienate their interest?

Answer 18

Common law - YES

If lease restricts alienation, read narrowly

If lease provides for LL consent, court may imply a reasonableness requirement

Question 19

If a lease explicitly says a tenant cannot alienate property, is this okay?

Answer 19

• If parties explicitly agree to a restriction it will generally be enforced
• Exceptions for unconscionability, overreaching, unequal bargaining power