Transfers of Leaseholds and Landlord's Tort Liability Flashcards
What is an assignee?
An Assignee stands in the shoes of the original tenant in a direct relationship with the landlord; that is, the assignee and the landlord are in privity of estate and each is liable to the other on all covenants in the lease that run with the land.
Covenants that Run with the Land
A covenant runs with the land if the original parties to the lease so intend and if the covenant “touches and concerns” the land (that is, benefits the landlord and burdens the tenant (or vice versa) with respect to their interests in the property)
What is a sublessee?
Tenant of the original lessee and usually pays rent to the original lessee, who then pays to the landlord.
When does a sublease arise?
When T1, the original tenant, transfers less than her entire interest to T2. The result of a sublease is that the landlord and sublessee are in neither privity of estate nor privity of K.
If there is a sublease, does the relationship between L and T1 remain fully intact?
Yes.
Assignments by Landlords
A landlord may assign the rents and reversion interest they own. This is usually done by deed when the landlord conveys a building to a new owner. Tenants’ consent is NOT required.
Common Law of Caveat Lessee
The common law norm is: Let the tenant beware. In tort, a landlord was under no duty to make the premises safe.
The five exceptions to caveat lessee: CLAPS
Common areas
Latent Defects
Assumption of repairs
Public use rule
Short-term lease of furnished dwelling
Landlord Tort Liability - Latent Defects Rule
A landlord must warn a tenant of hidden defects of which the landlord has knowledge or reason to know.
If the tenant accepts the premises after disclosure, the tenant assumes the risk; the landlord is no longer liable in tort.
Assumption of Repairs Landlord Tort
While in tort a landlord is under no duty to make repairs, once repairs are undertaken, the landlord must compete them with reasonable care.
Short-Term Lease of Furnished Dwelling
A landlord who rents a fully furnished premises for a short period is under a stricter duty. Such landlords are responsible for any defective condition under proximately injures a tenant. Even if the L didn’t know about the defect.
Modern Trend - General Duty of Reasonable Care
Many now hold that L owes a general duty of reasonable care towards residential tenants, and will be held liable for injuries in tort resulting from ordinary negligence if the landlord had notice of a defect and an opportunity to repair it.
What is a fixture?
A fixture is a chattel that has been so affixed to land that it has ceased being personal property and has become part of the realty. A fixture passes with the ownership of the land and must stay put.
How can you tell a chattel is a fixture?
(1) when items are incorporated into the realty so that they lose their identity.
(2) a chattel affixed to realty is a fixture when its removal would cause considerable damage to the premises.
What is a common ownership case?
one in which the person who brings the chattel to the land owns both the chattel and the land, as when X installs a furnace in his home.
