Leasing Real property

What right does a tenant of real property have

The right to possess, called a leasehold

What right does the landlord have?

A future right to possess called a reversion

What type of law governs modern landlord- tenant relationships

A hybrid of property and contract law, with some consumer-protection principles

What is a lease

A contract that governs the landlord-tenant relationship and defines rights and duties

What is a leasehold?

The right to live on a property for a set time without owning it, created by a lease agreement

What is the difference between a lease and a license

License- permission to enter property and can be revoked

Lease- Grants right to possess property for a period and cannot be revoked at will

Four types of leaseholds?

(1) Term of Years (2) Periodic Tenancy (3) Tenancy at Will (4) Tenancy at Sufferance

What is a term of years lease?

Fixed duration with a definite start and end date; no noticed required to terminate

Does death of landlord or tenant end a term of years lease?

No. The estate of the deceased continues to collect or pay rent

Example of Term of years?

Lease from Jan 1 to July 1 automatically ends jul 1, no notice needed

What is a periodic tenancy?

A lease that automatically renews for successive periods until proper notice is given

How much notice is required for Periodic tenancy

Typically one month for month-to-month, six months for year-to year

What if notice is given late in periodic tenancy

The lease renews for another full period, then ends after that period.

Example of late notice effect in Periodic tenancy

Tenant gives notice Jan 15 for month to month, lease ends Feb 28, not Jan 31

What is Tenancy at will

Lease with no fixed term, ending whenever either party desires, notice required by law

When is tenancy at will created?

When parties enter into a lease agreement without specifying either a termination date or a period length

What is a tenancy at sufferance?

When a tenant stays after the lease ends without permission

What rights does a holdover tenant have?

Limited rights- not a trespasser, but subject to eviction or new tenancy terms

What happens if the landlord accepts rent in sufferance

The tenancy may renew (possibly with new terms)

Why does the law treat Residential tenants differently than Commercial Tenants

-Protection of shelter for families

- Imbalance of power between landlord and tenant

- Greater sophistication and education of commercial tenants

What can a landlord do when a tenant holds over?

1. Evict the tenant, or

2. Bind the tenant to a new periodic tenancy

Holdover doctrine- How is the new tenancy defined

It follows the terms of previous lease, including covenants and promises

How does the holdover doctrine apply to commercial tenants

If the original term was one year or more, they may be held to a new year-to-year tenancy

How does the holdover doctrine apply to residential tenants

Usually converted to a month to month tenancy

What if the landlord announces higher rent before the lease ends

Tenant's continued occupancy counts as agreement to new terms

What is the statute of frauds rule for leases

Leases over 1 year must be in writing and leases 1 year or less may be oral

Purpose of the statute of frauds

To ensure clarity, provide written proof of property interests, and prevent fraud

Common negotiable terms in leases

Rent amount, lease duration, physical space

Landlords main legal duties

Repair the property and Maintain habitability

How are security deposits regulated

By state law