RP: Estates - Nonfreehold

Question 1

Landlord/Tenant: Fixed Term Estate

Answer 1

End automatically

owned by tenants

Question 2

Landlord/Tenant: Periodic Estate

Answer 2

Owned by Tenant

Either party must give notice to terminate

Question 3

Landlord/Tenant:Estate at Will

Answer 3

Owned by Tenant

No definite term

Question 4

Landlord/Tenant: Rents

Answer 4

A present nonpossessory interest

Question 5

Landlord/Tenant: Reversion

Answer 5

A FI, giving L possession when the lease expires

Question 6

Landlord/Tenant: Estates and Interests

Answer 6

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

Owned by LL: Rents, Reversion

Question 7

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?

Answer 7

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).

Question 8

Termination of Periodic Estates

Answer 8

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)

Question 9

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>

Answer 9

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

Question 10

L’s liability for Personal Injury

Answer 10

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

Question 11

New Trend: Negligence (LL liability)

Answer 11

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

Question 12

Implied Covenant of Quiet Enjoyment

Answer 12

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.

Question 13

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

Answer 13

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

Question 14

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

Answer 14

L has breached covenant because L lacks TITLE

Question 15

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?

Answer 15

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.

Question 16

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.

Answer 16

This is a CONSTRUCTIVE EVICTION.

Question 17

Constructive Eviction

Answer 17

Three Elements:

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

Question 18

Implied Warranty of Habitability

Answer 18

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

Question 19

Remedies for Implied Warranty of Habitability

Answer 19

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.

Question 20

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

Answer 20

1. Release
2. Surrender
3. Abandonment
4. Option to terminate

Question 21

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

Answer 21

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

Question 22

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

Answer 22

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

Question 23

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?

Answer 23

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.

Question 24

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

Answer 24

T has an OPTION to terminate (not automatic)

Question 25

Holdover Tenants: Options

Answer 25

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.

Question 26

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

Answer 26

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

Question 27

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

Answer 27

This is an ASSIGNMENT>

Question 28

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

Answer 28

This is a Sublease (Less than remaining term),

Question 29

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

Answer 29

Only if the lease says so.

Question 30

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

Answer 30

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

Question 31

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

Answer 31

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)

Question 32

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.

Answer 32

A. T2 has poor credit rating | B. T2's business is incompatible with businesses run by L's other tenants.

Question 33

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

Answer 33

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)

Question 34

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

Answer 34

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.

Question 35

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

Answer 35

T1 Is ALWAYS liable unless expressly released | T2 is liable for rent, and for all other covenants that touch and concern the land.

Question 36

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

Answer 36

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

Question 37

When is the new tenant liable to pay for rent?

Answer 37

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

Question 38

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?

Answer 38

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

Question 39

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?

Answer 39

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