Leasehold Interest Flashcards
What is a leasehold interest?
This relationship is generally governed by a contract (the lease), which contains the covenants of the parties. Generally, each party must perform his promises pursuant to the lease whether or not the other party performs his promise.
What are the for types of possessory estates created by a leasehold?
1) Tenancy for years
2)Periodic tenancy
3) Tenancy at will
4) Tenancy at sufferance
What is a tenancy for years?
A tenancy for years is an interest that last for a fixed and ascertainable amount of time. If the term is longer than one year, then the agreement must be in writing because of the statute of frauds. A tenancy for years automatically terminates when the term expires.
What is a periodic tenancy?
A periodic tenancy is an interest that continues for a set period of time UNTIL it is terminated by proper notice from either party.
Proper notice requires that the terminating party give notice before the start of what will be the last term. The notice is effective on the last day of the term.
The parties must intend to create a periodic tenancy. Intent can be express or implied
What is tenancy at will?
A tenancy at will continues until it is terminated by either party. It may be terminated at any time for any reason, and may be terminated without notice. If either party dies, the tenancy at will is terminated.
Parties must intend to create a tenancy at will. Can be express or implied (if landlord can cancel at will, tenant has same right implied)
However:
If agreement only gives the tenant the right to cancel at will, the landlord is NOT given the right to cancel at will.
What is a tenancy at sufferance?
A tenancy at sufferance is created when the tenant refuses to vacate the premises after his lease has terminated. This situation creates a temporary tenancy, where the terms of the prior lease control until:
The landlord evicts tenant
The landlord releases the property to the tenant or
The tenant voluntarily vacates
