LL-T Law - Leaseholds

Question 1

The relationship between a landlord and a tenant can create four types of possessory estates; what are they? 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 promises.

Answer 1

tenancy for years,

periodic tenancy,

tenancy at will,

and

tenancy at sufferance.

Question 2

How are possessory estates governed?

Answer 2

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 promises.

Question 3

What is a tenancy for years?

Answer 3

A tenancy for years is an interest that lasts for a fixed and ascertainable amount of time (e.g., Landlord leases Greenacre to Tenant for 6 months). If the term is longer than one year, then the agreement must be in writing because of the statute of frauds.

Question 4

Does a tenancy for years automatically termainate after the period?

Answer 4

Yes, a tenancy for years automatically terminates when the term expires.

Question 5

What is a periodic tenancy?

Answer 5

A periodic tenancy is a repetitive and ongoing interest that continues for a set period of time UNTIL it is terminated by proper notice from either party (e.g., month-to-month lease, year-to-year lease, etc.).

Question 6

How do you terminate a periodic tenancy?

Answer 6

Proper notice requires the terminating party to give notice before the start of what will be the last term. The notice is effective on the last day of the term (e.g., Landlord leases Greenacre to Tenant on a month-to-month basis. If Tenant gives proper notice of termination on June 11, the termination will be effective on July 31).

Question 7

How do you create a periodic tenancy?

Answer 7

The parties must intend to create a periodic tenancy. Intent can be:

1. Express (e.g., a specific term in the signed lease agreement);

OR

2. Implied (e.g., ongoing payment of rent).

Question 8

What is a tenancy at will?

Answer 8

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.

Question 9

How can one create a tenancy at will?

Answer 9

The parties must intend to create a tenancy at will. Intent can be:

1. Express (e.g., a specific term in the signed lease agreement gives either party or both parties the “right to terminate at will”);
   If the agreement gives only the landlord the right to terminate at will, the tenant also gets the right to terminate implicitly.
   If the agreement gives only the tenant the right to terminate at will, the landlord is NOT given the right to terminate at will.

OR

2. Implied (e.g., ongoing payment of rent at will).

Question 10

How is a tenancy at will terminated?

Answer 10

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.

Question 11

What is a tenancy at sufferance?

Answer 11

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:

1. The landlord evicts the tenant;
2. The landlord re-leases the property to the tenant;

OR

3.The tenant voluntarily vacates.