VII. Leaseholds

Question 1

Types of Leaseholds

Answer 1

Term of Years, Periodic tenancy, Tenancy at will, Tenancy at sufferance

Question 2

Term of Years

Answer 2

Lasts for a fixed period of time, the beginning and ending dates for which can be calculated.
Language required: indicating a fixed year- “To T for 10 years”
No notice required to terminate a term of years lease.

Question 3

Periodic Tenancy

Answer 3

Lasts for a fixed period that repeats with until notice of termination is given by the landlord or tenant
Language: suggesting a repeating fixed period- “To T for month to month” or “to T for year to year”

Question 4

Notice to Terminate Periodic Tenancy

Answer 4

Common Law: Notice required is equal to the length of the period, but no longer than 6 months. Tenancy must terminate at the end of the period.

Statutory: 30 days notice required. Most states do not require the tenancy to terminate at the end of the period.

Question 5

Tenancy at Will

Answer 5

Tenancy that exists for an unspecified duration, but can be terminated at any time by either the landlord or tenant.
Tenancy terminates at the death of either party. Attempt to assign terminates the tenancy. Can arise by express agreement of by operation of law.

Question 6

Tenancy at Will- Language

Answer 6

If the language of the lease indicates that it is terminable by only one, some courts will imply that it is terminable by both parties.
If the language of the lease indicates that it is terminable only at the will of the tenant, tenant may have a life estate determinable

Question 7

Tenancy at Will- Notice to Terminate

Answer 7

At CL, no notice required to terminate

Statutory: Requires 3-7 days notice in many jurisdictions

Question 8

Tenancy at Sufferance

Answer 8

Occurs when a tenant holds over after the termination of a TY, PT, or TW. Landlord has choice of whether to evict or agree to creation of new tenancy.
If eviction: tenant must move out
If LL accepts rent: acceptance may create new tenancy. (express or implied agreement)

Question 9

Terms of New Tenancy

Answer 9

Usually subject to same terms as old lease. Some states allow LL’s to charge double rent for holdovers. Some states say that T is liable for “reasonable value” of use and occupation of premises

Question 10

Duty of LL - Delivery of Physical Possession

Answer 10

English rule: Implied duty to deliver physical and legal possession

American rule: No implied duty to deliver physical possession; landlord need only deliver the legal right to possession

Question 11

Burden of Eviction

Answer 11

English: LL bears burden of eviction

American: Tenant bears burden

Question 12

Assignment

Answer 12

Entire lease term is transferred, no reversionary interest remains in the transferring tenant

Question 13

Sublease

Answer 13

Partial lease term ins transferred, reversionary interest is created in the transferring tenant

Question 14

Interpreting a New Lease: Traditional Rule

Answer 14

Look solely at the instrument to determine whether an assignment or sublease has been created

Question 15

Interpreting New Lease: Modern Rule

Answer 15

Determine the intent of the parties in light of surrounding circumstances

Question 16

Privity of K

Answer 16

Allows parties to the K to sue on it (the lease)

Question 17

Privity of Estate

Answer 17

A mutual or successive relationship to the same right in property. (ex: TC/JT or LL/T). Parties in privity of estate may sue based on that relationship.

Question 18

Third-Party Beneficiary K

Answer 18

A person who is not a party to the K, but who parties intent to receive the benefit of the K may sue on the K, even though no privity

Question 19

LL’s Right to Withhold Consent to Assignments and Subleases

Answer 19

Traditional: LL can arbitrarily withhold consent
Modern: LL cannot arbitrarily withhold consent, LL must have commercially reasonable objections.