RP: Estates - Nonfreehold Flashcards by J G

Landlord/Tenant: Fixed Term Estate

End automatically

owned by tenants

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Landlord/Tenant: Periodic Estate

Owned by Tenant

Either party must give notice to terminate

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Landlord/Tenant:Estate at Will

Owned by Tenant

No definite term

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Landlord/Tenant: Rents

A present nonpossessory interest

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Landlord/Tenant: Reversion

A FI, giving L possession when the lease expires

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Landlord/Tenant: Estates and Interests

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

Owned by LL: Rents, Reversion

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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?

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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Termination of Periodic Estates

Notice must comply with these rules:

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

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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>

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

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L’s liability for Personal Injury

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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New Trend: Negligence (LL liability)

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

IF LL knows or has reason to know
Duty to MAINTAIN security features
Breach of statutory duty= negligence per se

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Implied Covenant of Quiet Enjoyment

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

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

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

L has breached covenant because L lacks TITLE

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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?

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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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.

This is a CONSTRUCTIVE EVICTION.

Constructive Eviction

Three Elements:

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

Implied Warranty of Habitability

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

Remedies for Implied Warranty of Habitability

Terminate the lease and move out
Abatement of the rent
3.Damges for breach of warranty
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.

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

Release
Surrender
Abandonment
Option to terminate

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

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

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

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

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?

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.

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

T has an OPTION to terminate (not automatic)

Holdover Tenants: Options

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.

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

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

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

This is an ASSIGNMENT>

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

This is a Sublease (Less than remaining term),

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

Only if the lease says so.

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

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

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

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)

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

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

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)

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

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.

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

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

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

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

When is the new tenant liable to pay for rent?

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

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?

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

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. 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