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Question 1

What is involved in surrender as a type of termination of leasehold?

Answer 1

You can terminate early by either:
- an agreement to modify or cancel, or
– by operation of law through abandonment and the landlord accepts it back for his own account

Question 2

Is abandonment alone enough for a surrender by operation of law?

Answer 2

No the landlord must accept the property back to complete the termination. Abandonment gives the landlord three choices:

• to complete surrender by reentering for his own account
• to do nothing and keep the leasehold with the tenant’s duty to pay rent
• to re-enter and relet and charge the tenant the difference between the agreed rent and the new rent

Question 3

What is a merger, and how does it create a termination of a leasehold?

Answer 3

This occurs when a leasehold and an estate come together in the same person. The leasehold is then extinguished and merges into the estate. The extinction terminates the rights and duties of the parties as landlord and tenant.

Question 4

How does the expiration of the landlord’s estate terminate a leasehold?

Answer 4

Anything that ends the estate before termination of the lease causes the leasehold to fall in.

Question 5

When does the death of a party terminate a leasehold?

Answer 5

The death of the landlord or the tenant doesn’t terminate a leasehold for years because the landlord’s underlying estate passes to his heirs subject to the leasehold and the leasehold passes as personalty to the tenant’s estate.

For common law tenancy at will, either party can terminate anytime at their leisure or at the death of the party

Question 6

Can the destruction of a building terminate a leasehold?

Answer 6

If it is not the fault of either party, it doesn’t affect the length of the term. Most jurisdictions say that a tenant can terminate immediately

Question 7

How can frustration of purpose terminate a leasehold?

Answer 7

If the lease limits the tenant to certain uses of the premises that end up being prohibited by law, the tenant is excused from performing

Question 8

Can a serious breach of the lease justify eviction?

Answer 8

Yes

Question 9

What are the major duties of a tenant?

Answer 9

– to pay rent

– to not commit waste

Question 10

If there is no agreement on the amount of rent, what is the tenant’s duty?

Answer 10

To pay the reasonable value of the occupancy

Question 11

If there are two or more tenants on a premises, what are they liable for in regard to rent?

Answer 11

They are jointly liable for rent

Question 12

What is a percentage rent clause?

Answer 12

Commercial retail stores often have rent as a percentage of their gross sales. This means that rent is a fixed amount plus a percentage override on the sales

Question 13

What is a rent adjusting formula?

Answer 13

If the leasehold may run longer than the parties are willing to predict economic conditions for, a formula is used based on independent appraisal at stated intervals

Question 14

What is a rent modification agreement?

Answer 14

Parties can expressly modify their covenants and agree to increase or decrease rent with fresh consideration

Question 15

What is consideration for something like a rent modification agreement?

Answer 15

A tenant’s new promise to occupy the premises, make repairs, surrender part, or the landlord’s alleviation of the tenant’s financial duties, if the landlord allows new use, etc.

Question 16

What is a rent acceleration clause?

Answer 16

Breach by anticipatory repudiation. The landlord can advance the due date of future rent payments if the tenant defaults.

Question 17

What is involved in government regulation of rent?

Answer 17

If there’s a designated emergency, the federal/state/local government can legislatively control maximum rent. This often happens in housing shortages or economic disasters. It is invalid if it denies due process and the landlords cannot make profitable use of their land

Question 18

What is a retaliatory eviction?

Answer 18

This prevents rent increases for a certain amount of time after the tenant took action against the landlord unless a bona fide reason exists

Question 19

Does a tenant have a duty to occupy and use the land?

Answer 19

No, the tenant has no duty to take possession or to make a particular use of the land unless the premises is deteriorating from vacancy.

Question 20

What are some examples of things that would be considered to be waste on land?

Answer 20

Cut standing timber, raze buildings, seriously damage parts of the buildings, improper farming that causes erosion, etc.

Question 21

What are some examples of things that a tenant has a duty to take reasonable steps for to prevent waste?

Answer 21

Make repairs, keep buildings sealed from the elements, etc.

Question 22

If the destruction of the premises is not the fault of the tenant, can he terminate the leasehold?

Answer 22

Yes

Question 23

A tenant has what exclusive right during the term of his leasehold?

Answer 23

An exclusive right of possession, this means he can exclude third parties and the landlord unless the landlord has approval to enter for an inspection, to show to new tenants, to do repairs, or to collect rent. The tenant can use the premises for whatever purpose it is suited for

Question 24

A tenant’s estate may include by implication rights in what areas?

Answer 24

Surrounding areas of the landlord such as walkways, driveways, halls, stairs, utilities, etc. This is implied if it is reasonably necessary to use the rented premises.

Question 25

What does a tenant own in relation to crops on the land?

Answer 25

He owns all crops that reach maturity during the term of the lease, even if they were already growing when the term began

Question 26

What does a tenant hold and what does a landlord hold in a leasehold?

Answer 26

The tenant is a holder of a present possessory estate followed by a reversion in the Landlord

Question 27

What are the landlord’s remedies for the tenant’s breach?

Answer 27

– Can sue for rent due
– can evict
– if the tenant unjustly abandons the land the landlord can accept the tenant’s surrender or re-rent the property and hold the tenant liable for deficiencies

Question 28

What is the common-law doctrine of distraint?

Answer 28

The landlord can enter the demised premises to seize goods, including third party’s goods, and collect unpaid rent. This becomes a holding lien, so the landlord cannot sell the items, but he can hold them hostage until the tenant pays rent. This has mostly been abolished

Question 29

What is a landlord’s statutory lien?

Answer 29

Liens can attach to items that the tenant owns, but not to third person’s goods or anything the tenant is buying on conditional sale, or items that have been sold to BFPs