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A - Property 2 > Week 3 - LL Tenant - Assignment and Sublease > Flashcards

Week 3 - LL Tenant - Assignment and Sublease Flashcards

1
Q

Tenant is ___.

A

T

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2
Q

Landlord is _ or __.

A

L or LL

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3
Q

Tenant 1 (assignee or sublessee) is __.

A

T1

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4
Q

Three forms of leases dealing with the tenants right to convey the lease interest:
1. ?
2.
3.

A
  1. Freely assignable: NO express provision limiting assignment.
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5
Q

Three forms of leases dealing with the tenants right to convey the lease interest:
1.
2.
3. ?

A
  1. Requirement for consent, but, that consent may not be unreasonably withheld.
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5
Q

Sublease & Assignment Concept:
Where T is conveying ______ or _____ of their interest to T1.

A

all or part

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6
Q

Three forms of leases dealing with the tenants right to convey the lease interest:
1.
2. ?
3.

A
  1. Requirement for consent by L.
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7
Q

_____________ & __________ Concept:
Where T is conveying all or part o their interest to T1.

A

Sublease & Assignment

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8
Q

L leases a house to T for a two-year term. T transfers the property to T1 after 6 months for one-year term. L has privity of estate with T1.
A. True
B. False

A

B. False

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9
Q

In an ___________ the T transfers away all of their rights in the property. Meaning they are not moving back in.

A

Assignment

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10
Q

_________ will sometimes say T transfers the balance of the term to T1.

A

Assignment

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11
Q

L leases a house to T for a two-year term. T transfers the property to T1 after 6 months for one-year term. L has privity of estate with T1.
A. True
B. False

Q1:
Q2:

A

Q1: Is it an assignment or a subleases?

Here, it was a 2-year term and T was there for 6 months and T gave 1 year to T1. 1 and a half years is less than 2 years and T is coming back and this is a sublease.

Q2: Whether or not the LL has privity of estate with the sublessee. Does the LL have Privity of Estate with T1?

LL does not. LL has Privity of estate in an assignment context with the new person in possession but not in a sublease.

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12
Q

Distinction between Assignment & Sublease:
Majority Rule:

An _____________ conveys the whole term, leaving no interest or reversionary interest in the grantor or assignor.

In a ________, a tenant grants an interest less than his own, or reserves to himself a reversionary interest in the term.

A

assignment
sublease

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13
Q

An assignment conveys the __________ _________, leaving no ________ or ___________ _________ in the grantor or assignor.

A

whole term
interest
reversionary interest

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14
Q

An assignment conveys the whole term, leaving no interest or reversionary interest in the ________ or __________.

A

grantor or assignor

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15
Q

In a sublease, a tenant grants an _________ _______ _____ ______ ______, or reserves to himself a ___________ __________ in the term.

A

interest less than his own

reversionary interest

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16
Q

In a sublease, a tenant grants a interest less than his own, or ________ to himself a reversionary interest in the ________.

A

reserves
term

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17
Q

__________ the T has conveyed away the whole term leaving no interest or reversionary interest.

A

assignment

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18
Q

T is not coming back in an ______________, they have completely moved out.

A

assignment

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19
Q

_________ less than all of their rights. They are reserving a reversionary interest in themselves.

A

sublease

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20
Q

How many type of privity are there?

A

2

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21
Q

What are the two types of privity?

A

Privity of Contract

Privity of Estate

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22
Q

Privity of Contract between L and T based upon the ____________ ___________.

A

lease agreement

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23
Q

____________ _____ _________ between L and T based upon the lease agreement.

A

Privity of Contract

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24
Q

Privity of Estate, based upon the _________ or __________ relationship to the same rights of property.

A

mutual or succesive

25
Q

_________ _____ _________, based upon the mutual or successive relationship to the same rights of property.

A

privity of estate

26
Q

If thinking about assignment context the LL is in Privity of Estate with whomever is in __________ of the ___________.

A

possession of the premises

27
Q

If thinking about __________ context, the LL is in Privity of Estate with whomever is in possession of the premises.

A

assignment

28
Q

If LL rents to T and T assigns to T1, LL remains in privity of contract with T but LL is not in POE with because T1 is the guy physically in possession. Only works this way in an ___________ context.

A

assignment

29
Q

TEST: you care because the call of the question is always going to be. What party can the LL sue and under what theories?

A

YES!!!!!

30
Q

Existence of Privity _________ Assignment and Sublease.

L and T are in Privity of Contract based upon the lease agreement.

L and T are in privity of estate based upon the relationship of the parties in relation to the particular property.

A

BEFORE

31
Q

Existence of Privity BEFORE Assignment and Sublease.
L and T are in privity of contract based upon the __________ ______________.

A

lease agreement

32
Q

Existence of Privity BEFORE Assignment and Sublease.

L and T are in privity of estate based upon the ____________ of the parties in relation to the __________ ___________.

A

relationship

particular property

33
Q

If the T assigns to T1 does that change the relationship between the LL and the T in terms of POC? It doesn’t change. The only thing that can change the POC between the LL and T is ___________.

A

Novation

34
Q

Existence of Privity AFTER Assignment

If T ASSIGNS to T1:

L and T are in _______ ____ _______ (based upon the lease agreement). This always remains unless L and T expressly agree otherwise (___________)

L and T1 are in _______ _____ _________; ________ ______ ________ is eliminated between L and T.

A

privity of contract

novation

privity of estate

privity of estate

35
Q

For our purposes the only way that privity of contract ends between T and LL is if there is a _______.

A

Novation

36
Q

__________ is really specific, it is going to say “I the LL specifically release you the T from any and all liability related to this lease.”

A

Novation

37
Q

Novation is really specific, it is going to say, “_______________________________”

A

I the LL specifically release you the T from any and all liability related to this lease.

38
Q

Covenants that run with the land include those covenants which _________ and ________ the land.

A

Touch and Concern

39
Q

Covenants that run with the land include those covenants which touch and concern the land, including:
1. ?
2.
3.
4.

A
  1. Covenant to pay money relating to the property, e.g., rent and taxes
40
Q

Covenants that run with the land include those covenants which touch and concern the land, including:
1.
2. ?
3.
4.

A
  1. Covenants which affect the physical aspects of the property
41
Q

Covenants that run with the land include those covenants which touch and concern the land, including:
1.
2.
3. ?
4.

A
  1. Covenants which affect the duration of the lease
42
Q

Covenants that run with the land include those covenants which touch and concern the land, including:
1.
2.
3.
4. ?

A
  1. Covenants involving services and utilities, such as heat, water, electricity.
43
Q

Covenant that would not touch and concern the land is the covenant in Shelley v. Kramer regarding the _______ _______ of the person living there, has nothing to do with covenants that touch and concern.

A

racial background

44
Q

_____________ ___________ ___________ do not touch and concern the land.

A

Racially Restrictive Covenants

45
Q

Rights upon SUBLEASE to T1:

Creates Landlord/ Tenant relationship between ___ and ___.

No direct relationship between __ and ___.

A

T and T1

L and T1

46
Q

In a ____________ where LL rents to T and T ________ to T1, there is a L/T relationship between T and T1 but there is no direct relationship between LL and T1.

A

Sublease

sublease

47
Q

In a sublease, there is a breach and T1 stops paying rent, who can the LL sue and under what theories?

A

The LL cannot sue T1 under POC because the LL doesn’t have a contract with T1.

LL cannot sue T1 under POE because the original tenant is coming back. The sublease is less than the balance of the lease.

LL can’t sue T1 in this set of sublease facts.

The LL can sue T under POC and POE.

48
Q

In an assignment context the LL can sue the T under POC because we don’t have a ________. Or we can sue T1 under _________ because the LL is always in ____ with whichever class of tenant is in physical possession.

A

novation

Privity of Estate

POE

49
Q

Assignment
Who can L sue in the event T1 breaches?

T under _______, and/or
T1 under _____(for breach of covenant running with the land).

A

privity of contract

privity of estate

50
Q

L leases a home to T for a five-year term. After one year, T transfers the balance of his interest in the property to T1. L can still sue T under Privity of Contract.
A. True
B. False

A

A. True

True because LL did not give T a novation.

51
Q

L and T start with POC and POE.
Then T assigns to T1
Now
L and T1 are in pOE.
But L and T remain in POC (unless there’s a novation).

What happens when T1 assigns to T2?

A

LL is still in pOC with T because there is no novation.

LL is in POE with T2. This added variable shows that the LL is not in POE with multiple classes of tenants at once, just the one who is in possession.

If this was a sublease the LL would be in POC and POE with T. In a sublease thee LL is never in pOE with any of the new people.

52
Q

In a sublease the LL is never in POE with ___________________.

A

any of the new people

53
Q

The third party beneficiary rule applies in both a sublease and assignment context.
A. True
B. False

A

A. True

54
Q

___________ is never achieved unless the LL specifically grants the _________ to the tenant.

A

novation
novation

55
Q

In order for there to be a ________ _______ _______ rule situation, the person at issue must expressly agree to assume the obligations in the lease.

A

3rd Party Beneficiary

56
Q

Question: Is there ANY contractual relationship between L and T1 as a result of the express assumption by T1 made to T?

A

Answer: Yes, if the state recognizes the doctrine of “3rd party beneficiary,” L and T1 will be deemed to be in privity of contract with regard to all obligations assumed.

57
Q

Assignment and Sublease
T is always still liable to L under the contract (lease) unless they enter into a _________ (where the L waives any right to sue original tenant).

A

novation

58
Q

2(a) L conveys to T (3yrs at $1000/mo), 1 year later T subleases, transfers, and assigns to T1 for a period of 1 year from that date. Thereafter, neither T nor T1 pays rent to L. What rights does L have against T and T1?

A

1st Question : Sublease or assignment ?
Sublease becuase 1 year left on the lease.
Can LL sue T ? Yes under POC becuase we dont have a novation.
Becuase we have determined that this is a sublease, LL has POE with T. Not a situation where L can sue T1.
No facts that tell us that T1 expressly assumed and no facts that tell us this is a 3rd party. LL can only sue T under POE and POC.

59
Q

2(b) L conveys to T (3yrs at $1000/mo), lease says T covenants to pay the rent in advance on the 1st of each month, and that there is to be no sublease or assignment without L’s permission. Six months later, with L’s permission, T transfers to T1 for the balance of the term. T1 pays directly to L for several months and then defaults. L sues T. What result & why?

A

Assignment. LL can do that under theory of POC becuase there is no novation. Could LL have sued T1 is LL wanted to ? yes becuase it is an assignment and have POE. LL has POE becuase it is an assignment.

60
Q

2© L leases to T (3yrs at $1000/mo), lease says T covenants to pay the rent in advance on the 1st of each month, and covenants to keep the premises in good repair. Six months later T conveys to T1 (assigns full interest and T1 agrees to assume all covenants in the lease). Three months later T1 conveys to T2 (assigns full interest). Three months later T2 conveys to T3 (assigns full interest). T3 defaults and fails to keep in good repair. Who can L sue ?

A

Can the LL sue the T? Yes under POC. Because there is no novation.

If you are writing your answer to this, you are explaining fully not just which person can be sued under which theory and why they can be sued on that theory =.

LL/Tenant will be assessed on MC but also have a PE coming up which could involve LL/T and midterm that involves LL/T.

T1 received property in an assignment but no longer in possession but expressly assumed the covenants in the lase can LL sue T1? Maybe if 3rd party beneficiary rule state. Didn’t tell us so they might be able to sue T1 under POC because T1 expressly assumed the covenants in the lease. If we are in a 3rd party beneficiary rule state.

T2 – did not expressly assume and is no longer in possession can LL sue T2? No.

T3 – received through assignment. T3 is in possession LL can sue T3 under POE.

Add a T4 or T5 that is all that could make it worse.

Mix LL Tenant with Easement and Covenants.

A - Property 2 (33 decks)

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