Pg 28 Flashcards
What are non-assignment or non-sublease clauses?
Clauses that restrict the tenant’s power to assign or sublease. These are valid and enforceable, but strictly construed. The restraints are permitted if they serve good purposes
In order for a non-assignment or non-sublease clause to be effective, what is necessary?
It must say which one it prohibits, and if you want it to prohibit both, it must specifically mention both
If a clause in a contract for a leasehold specifically says it prohibits assignments, does that mean by implication that subleases are also prohibited?
No, restraints on alienation or strictly construed, so if it only says it prohibits assignments, then that is all that is prohibited
What is the English rule in relation to assignments and subleases?
If there is a prohibition in the lease against assignments or subleases, and the landlord gives consent for this to happen once, and doesn’t restrict future assignments, the clause is deemed to be waived for the rest of the lease unless expressly stated otherwise.
How do you determine if a landlord that is withholding consent for an assignment or sublease is doing so reasonably?
Look at the financial responsibility of the transferee, their suitability for property, the legality of the proposed use, the need for alteration of the premises, the nature of the occupancy, and past revenue from the person
If a lease prohibits subleases and assignments, and says nothing about getting the landlord’s consent, what happens if a tenant wants to sublease or assign?
He can try, but the landlord can refuse for any reason
If there is no restriction in a lease on subleasing or assignments, is the tenant allowed to do that?
Yes, and he doesn’t need the landlord’s permission because the law favours free alienability of estates in land
If it is necessary to get the landlord’s consent for a sublease or an assignment, how does that work?
The landlord needs a reasonable basis for saying no and must do so in good faith unless the specific language says that he can withhold consent for any or no reason.
What are some reasonable reasons for a Landlord to withhold consent to a transfer?
The person didn’t give enough financial information in a timely manner, financial disclosures showed irregularities, etc.
If a transfer of property is made without the landlord’s consent, is it valid?
Yes, it is valid because you cannot and ring the bell, but the landlord has an action for damages
If a landlord gives permission for an assignment or sublease, or accepts rent from an assignee, what does that do to a non-assignment or non-sublease clause?
It waives it forever unless the landlord had a time limit on permission
In order to avoid a negligence suit, what are a Landlord’s tort liabilities regarding negligence?
The landlord must act as a reasonable person under all circumstances
What was the traditional rule with regard to the landlord’s tort liability?
No liability to the tenant or others for personal injuries on or about the leased premises. This employs caveat emptor and the idea that the tenant has the sole right of possession, so he is responsible for what happens on the land.
Basically the landlord is not liable for conditions that came into existence after the tenant took possession or for dangerous existing ones when he took possession unless the landlord could’ve discovered them with reasonable care and corrected them. No liability for patent or obvious defects that existed at the time of the lease, or latent ones if he told the tenant about them
What are the major exceptions to the traditional rule about Landlord’s tort liability?
– Latent defects – Short term lease of a furnished dwelling – common areas under the landlords control – negligent repairs – failure to repair – Exculpatory clause is – safety statutes – public use exceptions
What is involved in the exception to the traditional rule about a landlord’s tort liability regarding latent defects?
Landlord is only liable if defects existed at the time the lease began and they were not discoverable by the tenant. Landlord must disclose defects or ones he reasonably should have known about that the tenant didn’t.