Unit 6 Flashcards
Leasehold Estate
A tenants right to possess real estate for the term of the lease. Considered personal property.
Estate for years
Definite period- specific start and end date. When the end date comes the lease expires automatically. Cannot terminate lease unless the contract has been breached. Not ended by the owners death or sale of the property unless stated in the lease.
Periodic Estate (Tenancy)
Indefinite term- month to month, week to week, year to year; automatically renewing; no specific termination date. Must be terminated to end. Rent is payable at definite intervals. Often used in residential leases.
Holdover Tenancy
No new lease agreement has been made but the tenant is still living in the property. Acceptance of rent is usually considered conclusive proof of the landlords acceptance to the periodic tenancy. Can do this for a term equal to the term of the original lease (one year or less).
Pennsylvania Landlord/ Tenant Act
Specifies the time required for termination notice in a variety of circumstances. Notice must be given one period in advance.
Estate (tenancy) at Will
indefinite term; possession with landlords consent. An estate at will automatically terminates by death of either the landlord or the tenant. It may be created by express agreement or by operation of law. Tenant has all the rights and obligations of lessor or lessee relationship including payment of rent at regular intervals. Rarely used in a written agreement and is viewed skeptically by the courts.
Estate (Tenancy) at Sufferance
A tenants previously lawful possession continued without landlord’s consent, after the rights expire. 3 options
- The landlord can accept rent offered by the tenant, thereby creating a new tenancy under conditions of the original lease, a holdover tenancy.
- Object to the tenant holding over or informing the tenant of such treatment thus creating a month to month or periodic tenancy. The landlord receives rent and both parties have to provide notice within a certain period of the termination agreement.
- The landlord can treat the tenant as a trespasser and proceed with eviction and damages action. Must comply with the notice to quit requirements in the lease and the state laws regarding the landlord tenant relationship.
Lease
contract between an owner of real estate (lessor) and a tenant (lessee). It transfers the lessors rights to exclusive possession and use of the property to the tenant for a specified period of time. The lease establishes the length of the contract and the amount the lessee is to pay for the property. Other rights and obligations are stated. In PA if more than 3 years it should be in writing.
Requirements for a valid lease
- Capacity to contract
- Legal objectives
- Offer and acceptance
- Consideration
Street address is fine for residential. If a ground lease legal description should be used
Security Deposit
Held by the landlord during the lease term. In PA it belongs to the tenant, not the same as rent.
1st year- security deposit cannot exceed a sum equivalent to two months rent
2nd year- amount drops a sum equivalent to one months rent
2nd- 5th year the landlord can increase the amount if the rent increases. After 5 years they cannot increase the security deposit.
Must put deposits over $100 in an approved federally regulated or state regulated banking or saving institute in an interest bearing account. Tenant should know where it is.
Must return the deposit within 30 days of the termination of tenancy. If past 30 days they forfeit all rights to the security deposit and the tenant can sue for double. Itemized list of damages if money is withheld.
Purchase Option
Grant Lessee the option to purchase the leased premises. Predetermined price within a certain period.
Right of first refusal clause- Allowing the tenant the opportunity to buy the property before the owner accepts an offer from someone else. Owner can give credit toward the property
Assignment
transfers all leasehold interests. New tenant is obligated for all promises of the original tenant.
Sublease
transfers less than all leasehold estates. Original tenant is responsible for rent being paid by the new tenanted for damages done to the rental during the lease term. The new tenant is only responsible to the original tenant to pay the rent due.
Suit for Possession/ Actual Eviction
- Court issued
- Your officer forcibly removes the tenant and possessions
- landlord can re enter and regain possession
- In PA the landlord must serve notice at an appropriate interval before filling the suit. 15 days- 3 months
- After notice the landlord files a compliant
- Landlord cannot lock a tenant out or cutoff services such as electricity
Constructive Conviction
When the property is unusable because of the conscious neglect of the landlord. EX) broken furnace during winter months. Terminates the lease agreement.
