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Real Property > RP: Estates - Nonfreehold > Flashcards

RP: Estates - Nonfreehold Flashcards

1
Q

Landlord/Tenant: Fixed Term Estate

A

End automatically

owned by tenants

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2
Q

Landlord/Tenant: Periodic Estate

A

Owned by Tenant

Either party must give notice to terminate

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3
Q

Landlord/Tenant:Estate at Will

A

Owned by Tenant

No definite term

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4
Q

Landlord/Tenant: Rents

A

A present nonpossessory interest

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5
Q

Landlord/Tenant: Reversion

A

A FI, giving L possession when the lease expires

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6
Q

Landlord/Tenant: Estates and Interests

A

Owned by Tenant: fixed term, periodic, estate at will.

Owned by LL: Rents, Reversion

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7
Q

L agrees to let T live in L’s spare bedroom at a rent of 100 per month. They say nothing about the nature or term of the lease. What type of estate does T have?

A

T has periodic estate (month to month).

  • use this only if parties haven’t specified term–look to the frequency of rent (eg. month, year).
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8
Q

Termination of Periodic Estates

A

Notice must comply with these rules:

  1. Notice must be given one FULL PERIOD in advance of termination date (except for year to year-which is 6 months).
  2. Notice MUST cause a termination at the end of a regular lease period. (e.g. month)
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9
Q

Assume T has a periodic month to month lease, and that the lease month coincides with the calendar month. On June 15, T gives L notice that T wishes to terminate the lease. What is the earliest date such notice can take effect>

A

On July 31. The last day of the full month.

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10
Q

L’s liability for Personal Injury

A 
G/R is caveat emptor (No LL liability).
Six Exceptions:
1. Latent Defect
2. Common area defect
3. Short-term funished tenancy.
4. Public Use
5. Covenant to Repair
6. Negligent Attempt to Repair
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11
Q

New Trend: Negligence (LL liability)

A

Not yet majority–but L is liable for injuries resulting from negligence whether the 6 situations a voce exist of not.

  1. IF LL knows or has reason to know
  2. Duty to MAINTAIN security features
  3. Breach of statutory duty= negligence per se
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12
Q

Implied Covenant of Quiet Enjoyment

A

Even if no injury to person or property is involved, L can be liable for breach of the implied covenant of quiet enjoyment. Every lease of every type is deemed to contain this covenant.

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13
Q

T leases one-half of a duplex from L (who lives in other half). L plays stereo loudly at 3 am each night. Breach?

A

Covenant is breached because L has DIRECTLY INTERFERED with T’s possession.

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14
Q

T leases space for a store, and then discovers L is not the actual owner of the building. True owner evicts T

A

L has breached covenant because L lacks TITLE

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15
Q

T leases from L a house with a detached garage. Later, L changes the lock on the garage so T cannot have access to it. Breach?

A

L has breached the covenant by denying T access (this is called PARTIAL ACTUAL EVICTION, and T has no duty to pay rent until access to entire premise is restored.

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16
Q

T leases office space in the basement of a commercial building. Each time a hard rain occurs, the office is filled with several inches of water.

A

This is a CONSTRUCTIVE EVICTION.

17
Q

Constructive Eviction

A

Three Elements:

  1. Conditions are VERY BAD
  2. They must result from an ACT or OMISSION of ACT
  3. The tenant must MOVE OUT
18
Q

Implied Warranty of Habitability

A

Applies only to RESIDENTIAL property. It is breached by a material violation of the local housing code.

19
Q

Remedies for Implied Warranty of Habitability

A
  1. Terminate the lease and move out
  2. Abatement of the rent
    3.Damges for breach of warranty
  3. Repair and Deduct from next month’s rent.
    But T generally cannot get specific performance.
    Before claiming any remedy T must give L NOTICE of defect and reasonable TIME to cure.
20
Q

Termination of Leases: what might cause them to end prematurely?

A
  1. Release
  2. Surrender
  3. Abandonment
  4. Option to terminate
21
Q

Termination of Leases: T purchases L’s interests (rents and reversion)

A

Release. The rents and reversion merge with T’s leasehold giving T a fee simple absolute.

22
Q

Termination of Leases: L accepts T’s offer to convert the leasehold to L.

A

Surrender. The leasehold merges with L’s rents and reversion interests, give L a FS absolute.

23
Q

Termination of Leases: L refuses to accept such an offer of conveyance, and T vacates the premises, ceasing to pay rent. What termination and liability?

A

Abandonment. T’s liabilty –Difference between K rent and FMV (mitigation of damages). L can recover this sum immediately as anticipatory breach, but must discount T’s liability to PV.
If L tries to relet–can get from T (up to full rent) amount for reletting expenses and full rent while seeking new T.

24
Q

Termination of Leases: T leases space for a store in a shopping center. The center is destroyed by fire. May T terminate the lease?

A

T has an OPTION to terminate (not automatic)

25
Q

Holdover Tenants: Options

A
  1. Treat T’s rights as expired and bring an action in court (unlawful detainer)
  2. Treat T has a periodic tenant, with a period based on term of old lease.
    * but no periodic tenancy will result if holdover was brief and beyond T’s control.
26
Q

Self-Help Eviction: Assume T’s lease term has expired but T has not moved out. L changes locks and puts T’s possessions on the sidewalk. What result

A

Majority view-L is liable for trespass, conversion of personal property, etc. HUGE liability and considered a no-no.

27
Q

Assignment and Subleases: L leases for one year to T1. Three months later, T1 transfers his entire remaining term to T2.

A

This is an ASSIGNMENT>

28
Q

Assignment and Subleases: T1 transfers only a six-month term to T2

A

This is a Sublease (Less than remaining term),

29
Q

Assignment and Subleases: Is L’s consent needed for T to enter into an assignment or a sublease?

A

Only if the lease says so.

30
Q

Is the L required to be reasonable in withholding consent under such a clause?

A

NO. LL can be arbitrary. Doesn’t have to be reasonable at all.

31
Q

If T makes a transfer without L’s consent. What result?

A

The transfer is effective but it’s also a breach of lease. Allows L to claim damages(if provable) and also to terminate the lease (and hence, sublease or assignment)

32
Q

Assume L must be reasonable, either because of state law (the minority review) or because the lease says L won’t withhold consent unreasonably. Which of these is a valid reason for L to withhold consent?
A. T2 has poor credit rating
B. T2’s business is incompatible with businesses run by L’s other tenants.
C. L demands a rent increase, which T2 refuses to pay.

A

A. T2 has poor credit rating

B. T2’s business is incompatible with businesses run by L’s other tenants.

33
Q

Covenants made by the original tenant will be binding on T2 if:

A

The covenant touches and concerns the land, and the full tenant’s estate is transferred to T2 (e.g. it’s an assignment–there is vertical privity of estate)

34
Q

Suppose T1 makes a sublease to T2. Then there is default in rental payments. Who is personally liable to L for the rent?

A

T1 is ALWAYS liable unless expressly released.
T2 is generally NOT liable if the transfer is a sublease, since T2 DOES NOT have the full estate with which the covenant to pay rent runs.
**But T2 is liable on a contractual basis–if T2 expressly assumed the lease covenant to pay rent.

35
Q

T1 makes an assignment to T2 instead of sublease, who is personally liable?

A

T1 Is ALWAYS liable unless expressly released

T2 is liable for rent, and for all other covenants that touch and concern the land.

36
Q

T1 makes an assignment to T2 instead of sublease, and then T2 makes a second assignment to T3. What result?

A

T2’s liability for any further rent is ended unless T2 has assumed the covenant to the pay the rent.

37
Q

When is the new tenant liable to pay for rent?

A

New tenant has the full tenant’s setae and covenant T&C’s the land; or the new tenant assumed the covenant in question.

38
Q

Assignment by LL: L1 leases a building to T. During the lease term, L1 sells the building (actually, L1’s rents and reversion interests) to L2.
1. Must T pay rent to L2?

A

YES–because the benefit of the rent covenant runs with L’s estate (must attorn to new LL).

39
Q
  1. Who is personally liable to T for performance of the following covenants made by L1 in the original lease?
    a. A covenant to maintain the property and pay the taxes?
    b. A covenant to return the security deposit?
A

a. L1 and L2 (because the covenants T&C the land, so they burden runs to L2).
b. Only L1 (because the covenant does not T&C the land–burden does not run to L2).
* unless L1 turned the deposits over to L2

Real Property (5 decks)

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