Landlord-Tenant Law

Sources of Landlord-Tenant Law

The lease agreement, statute statutes, state common law

Statute of Frauds

Must be written and signed by the party to be charged

Lease Meaning

the landlord grants right of exclusive possession of the property to the tenant for a term with a reversion

Lease Contents

(1) Premises

(2) Amount of Rent

(3) Exclusive Use and Occupancy for a time

License

Limited right to use the real property of another

Types of Leases

Term of Years, Periodic, Tenancy at Will, and Tenancy at Sufferance

Term of Years

The lease terminates are a pre-selected date with no notice required to terminate

Periodic

Lease continues for successive periods of equal length, unless one party notifies the other of its intention to terminate

TRADITIONAL — notice to terminate equal to the period of the periodic tenancy capped at 6 months and must terminate on anniversary

MODERN — 30 to 60 days notice required

Tenancy at Will

The lease exists for no fixed period until one party informs the other of termination.

Terminates at death, waste, new lease, or attempted transfer

Mostly abolished, as state law requires 30 days notice, converting to a month-to-month tenancy

URLTA conveys to a month-to-month period tenancy unless tenancy is week-to-week, then it is week-to-week

Tenancy at Sufferance

When a tenant overstays lease, may be treated as trespasser or tenant at sufferance.

If latter, the old rental rates, tenant duties, and landlord obligations control.

Converts to a periodic tenancy. Some cap at old lease terms capped at a year, some set at rental payment period

Tenant Obligations

Not materially alter the preimses

Generally forbidden from subleases in residential leases

Cannot use for other purposes

Landlord Remedies

Eviction, Money Damages, Acceleration of Rent, Restoration of Premises

BUT duty to mitigate

Landlord’s Obligations

(1) Delivery Possession

(2) Quiet Enjoyment

(3) Minimum Level of Habitability

Obligation to Deliver

American Rule: Must deliver RIGHT to possess

English Rule: Must deliver ACTUAL possession

Quiet Enjoyment

default rule is that a landlord does not have the right to enter the tenant’s property

Constructive Eviction

(1) Substantial interference of a kind that would cause a reasonable person in the tenant’s position to be forced to leave the premise ASAP

(2) Tenant notified landlord and gave reasonable time to cure

(3) Tenant actually vacated

(4) Resulted from breach of express or implied covenant or warranty

Minimum Level of Habitability HISTORICAL

ONLY RESIDENTIAL

Caveat emptor, unless active concealment, affirmative misrepresentation, or fiduciary duty

Minimum Level of Habitability MODERN

ONLY RESIDENTIAL

Must disclosure defects that materially affect the value AND not readily knowable

Homes sold by Contractor

Implied warranty of craftsmanship

Discovering an Issue

No right to enter premises, must be negotiated for

Equitable Conversation

If there is casualty on the property before closing, Buyer must follow through and is liable for the initial contract price, as long as the Seller has clean hands

MASSACHUSETTS RULE: The Seller bears the risk of loss, so the Buyer can back out of the contract due to casualty

UNIFORM VENDOR AND PURCHASER RISK ACT: Risk lies with the party in possession of the property

NC APPROACH: Seller bears risk, Buyer may back out

When can Withhold Rent

ONLY with implied warranty of habitability

Remedies at Law

Benefit of the Bargain: Difference between contract price and the fair market price at the time of breach

Reliance: Money spent in reliance on the bargain

Expectation: Money expected to be gained and lost

Liquidated: Specified amounts specified in advance for breach of contract; enforced if difficult to ascertain at the time and reasonable

Equitable Remedies

NEED CLEAN HANDS

In real estate, presumed no remedy at law

Specific Performance, Reformation, and Rescission

REFORMATION requires mutual mistake or fraud

RESCISSION requires fraud or material misrepresentation even absent a writing

Privity of Estate

When two or more parties have possessory interest in the same real property

Real Covenant

respect the use of land is in a written contract but creates a real covenant which binds and benefits the original parties and the subsequent owners of the parcels impacts

Equitable Servitude

same as a real covenant but subject to equitable relief

Privity of Contract

Relationship between parties to a contract

Contains personal covenants

Personal Covenants

binding upon the original parties and assigns (if assignees expressly assumed the contract).

Privity of Contract Remedies

monetary damages unless the non-breaching party can prove no adequate remedy at law

Sublease

Assignment

ONLY SUBJECT TO NOVATION

Novation

the substitution of one party for another in the contract with the assent of the parties. This relieves the tenant of all liability

Attornment

The recognition of a relationship between the landlord and a subtenant. This creates privity of contract between landlord and subtenant but the tenant retains liability. This also requires consent of the parties.

Real Covenant Elements

Elements: (1) intent, (2) touch and concern, (3) horizontal privity, (4) vertical privity, (5) Notice (ONLY FOR BURDENS)

Real Covenant Horizontal Privity

Successive – “the covenant must be part of a transaction that also includes the transfer of an interest in land that is either benefited or burdened by the covenant”

Mutual -- both have legal interest in the land impacted

Landlord-Tenant

Real Covenants Remedies

Monetary Damages, but Property Right

Equitable Servitude Elements

(1) Intent

(2) Connection to land

(3) Notice (ONLY FOR BURDENS)

Equitable Servitudes Remedies

Equitable relief because it is a property right