Real Property: Landlord-Tenant Law Flashcards
Tenancy for Years
aka Estate for Years or Term of Years
Lease for a fixed period, which could be less or greater than one year. When you know the termination date from the start, you have a tenancy for years.
If the lease is for more than one year, it must be in writing to be enforceable
Periodic Tenancy: Definition
A lease which continues for successive intervals until landlord or tenant gives proper notice of termination.
Periodic Tenancy: How to Create
(1) Expressly (e.g., “L to T from month-to-month”); or
(2) By implication:
(a) Lease with no mention of duration, but provision made for payment of rent in set intervals;
(b) Oral term of years in violation of statute of frauds;
(c) The holdover: in a residential lease, if L elects to hold over a T who has wrongfully stayed on past the conclusion of the original lease
Periodic Tenancy: Termination
Terminate with notice, usually written
At common law, must give notice at least equal to the period itself – unless (a) otherwise agreed upon or (b) yearly or greater tenancy, in which case 6 months notice
Must end at conclusion of a natural least period
Tenancy at Will
Tenancy for no fixed duration
Unless parties expressly agree to tenancy at will, payment of rent will cause a court to treat it as an implied periodic tenancy.
May be terminated by either party at any time, but a reasonable demand to vacate is usually needed
Tenancy at Sufferance
It is when T has wrongfully held over past the expiration of the lease.
L is permitted to recover rent.
Lasts only until L either (a) evicts T or (b) elects to hold T to a new tenancy
Tenant’s Duties
(1) T’s liability to third parties
(2) T’s duty to repair
(3) T’s duty to pay rent
Tenant’s Duty: Liability to Third Parties
T is responsible for keeping the premises in good repair
T is liable for injuries sustained by third parties T invited, even where L promised to make repairs
Tenant’s Duty: Duty to Repair
(1) Standard: T must maintain the premises and make routine repairs, other than those due to ordinary wear and tear
(2) T must not commit waste (voluntary, permissive, or ameliorative)
(3) Law of Fixtures
Tenant’s Duty: Duty to Repair - Law of Fixtures
When a tenant moves a fixture, she commits voluntary waste (i.e. overt destruction). T must not move a fixture, no matter that she installed it. Fixtures pass with ownership of the land.
A fixture is a once movable chattel that, by virtue of its annexation to realty, objectively shows the intent to permanently improve the realty.
Examples: heating systems, custom storm windows, furnace, certain lighting installations
Tenant’s Duty: Duty to Repair - T expressly covenants in lease to maintain property in good condition
At common law, historically: T was a liable for any loss to the property, including due to force of nature
Today, majority view: T is off the hook when the premises are destroyed without T’s fault
Tenant’s Duty: Duty to Pay Rent - T breaches and is in possession
Landlord must not use self help (e.g. change the locks); where self-help is flatly outlawed, it is punishable criminally and civilly
L’s only options are to (a) evict through the courts (can sue for rent until T actually leaves) or (b) continue the relationship and sue for rent due
Tenant’s Duty: Duty to Pay Rent - T breaches and is out of possession
SIR
S - Surrender: T shows by words or actions she wants to give up the lease, and L can choose to accept (if unexpired term is more than one year, surrender must be in writing)
I - Ignore: Ignore abandonment and hold T responsible for unpaid rent as if T was there (only in minority of states)
R - Re-let: Re-let the premises on wrongdoer tenant’s behalf, and hold him liable for any deficiency (majority require this - mitigation)
Landlord’s Duties
(1) Duty to deliver possession
(2) Implied covenant of quiet enjoyment
(3) Implied warranty of habitability
(4) No retaliatory eviction
Landlord’s Duties: Duty to deliver possession
Majority (English) Rule: L must put T in actual and legal possession of premises; if at start of lease a prior holdover T is still in possession, L has breached and new T gets damages
Landlord’s Duties: Implied covenant of quiet enjoyment
Applies to residential and commercial leases
T has a right to quiet use and enjoyment of the premises without interference from L
Landlord’s Duties: Implied covenant of quiet enjoyment - Breach
Two types of breach:
(1) Actual wrongful eviction: L wrongfully evicts or excludes T from premises
(2) Constructive eviction: SING
S I - substantial interference: due to L’s actions or failures (could be permanent or chronic problem)
N - notice: T must notify L of the problem, and L must fail to fix it
G - goodbye/get out: T must vacate w/in a reasonable time after L fails to fix the problem
L generally not liable for acts of other tenants, except (a) L must not permit a nuisance on site, or (b) L must control common areas
Landlord’s Duties: Implied Warranty of Habitability
Applies only to residential leases
Non-waivable
Standard: premises must be fit for basic dwelling, i.e. bare living requirements must be met (standard may also be provided by housing code or case law)
Landlord’s Duties: Implied Warranty of Habitability - T’s entitlements when L breaches
MR3
M - Move out and end the lease (not required), or
R - Repair and deduct, T may make reasonable repairs and deduct that from future rent (allowable by statute in some jurisdictions), or
R - Reduce rent, or withhold all rent until court determines fair value (usually must put $ in escrow), or
R - Remain in possession, pay rent and affirmatively seek damages
Assignment v. Sublease
In the absence of some prohibition in the lease, T may freely transfer his interest in whole, i.e. assignment, or in part, i.e. sublease
L can prohibit assigning or subleasing without L’s prior written approval
Once L consents to one transfer by T, L waives the right (unless specifically reserved) to object to future transfers by that T
Assignment
T transfers his interest in the whole to a third party (T2)
L and T2 are in privity of estate, so liable to each other for covenants in original lease that run with the land
L and T2 are not in privity of contract, unless T2 assumed all promises in original lease
L and T1 are not in privity of estate but are in privity of contract. They are secondarily liable to each other.
Sublease
T transfers interest in part to third party (T2)
L and T2 are in neither privity of estate nor privity of contract. T2 is liable to T1, and vice versa.
Landlord’s Tort Liability
Common law of caveat lessee (tenant be ware) - in tort, L under no duty to make premises safe
Five exceptions: CLAPS
C - common areas: L must maintain common areas
L - latent defects rule: L must warn T of hidden defects L knows or should know about
A - assumption of repairs: L who makes repairs negligently is liable
P - public use rule: L who leases public space (e.g. museum), and should know, b/c nature of defect and length of lease, L will not repair, is liable for defects on premises
S - short term lease of furnished dwellings: L liable for any defect on site
Residential Fixtures
When determining whether T can remove fixtures, court will look at:
(1) Nature of the chattel, e.g. heirloom v. generic
(2) Intent of annexer (person who connected chattel)
(3) How much damage will be caused to real property if removed
Commercial Fixture
When determining whether T can remove fixtures, court will apply trade fixtures doctrine: commercial T may remove all trade fixtures prior to lease expiration