Property Unit 3

What are the 2 doctrines of landlord responsibilities?

1. Quiet enjoyment

2. Habitability

What is the doctrine of quiet enjoyment?

= Right to inhabit or use certain property without disturbance from LL (including activity by others that is within LL’s control)

What is the doctrine of habitability?

= In the rental of any residential dwelling unit an implied warranty exists in the lease, whether oral or written, the Landlord will deliver over and maintain, throughout the period of the tenancy, premises that are safe, clean and fit for human habitation

What are a tenant’s remedies for breach of quiet enjoyment?

1. Tenant can stay and sue for damages, but still liable for rent

2. Tenant may vacate based on a theory of constructive eviction

   • Must show breach is substantial enough to justify leaving

   • No rent liability for balance of the lease

   • Cannot claim until after tenant leaves

3. Illegal lease doctrine

   • = Lease itself is Illegal at the time it was signed due to unsafe or unsanitary conditions due to inability to actually use the property

   • Tenant can stay and is not liable for rent

What are the 2 rules for suing over breach of habitability?

1. Standard for breach

   • Specific approach - Is there a substantial enough defect?

   • General approach - Does the claimed defect have a substantial impact on the tenant’s safety or health?

2. Notice

   • Always required before tenant can pursue claim of habitability, because landlord MUST have an opportunity to fix the issue first!

• Tenant may maintain possession AND withhold rent

What are a tenant’s 6 remedies for breach of habitability?

1. Termination of the tenancy

2. Rent withholding

3. Rent abatement

4. Damages

5. Injunction or specific performance

6. Repair and deduct

What is the Statute of Frauds and its exceptions?

= Transfers of real estate for more than one year must be in writing

Exceptions:

1. Part performance

   • Taking possession and paying the purchase price OR

   • Making substantial improvements

2. Estoppel

   • Reasonable reliance

   • Unconscionable injury would result if one party were induced to substantially change their position in reliance on contract

What is Marketable Title?

= Property must be reasonably free from doubt as to its validity, market value, and from encumbrances

• Implied condition of the purchase and sale agreement

What are factors that render title unmarketable?

1. Defects in title

   • Ex. Missing deeds in the chain of title, Loss of some or all of property through AP or eminent domain

2. Encumbrances

   • Legal restriction or liability

   • Ex. Leases, mortgages, deeds of trust, easements

3. Encroachments

4. Ordinance violations

What is the executory period?

= Period of time between signing and closing of property deed

What are buyer remedies if the seller breaches?

1. Damages

   • Restitution: Return of the deposit

   • Expectation damages (Ex. Market price of home - Contract price)

2. Specific performance

What are seller remedies if the buyer breaches?

1. Damages

2. Specific performance

3. Keep the deposit

What is the merger doctrine?

= Upon closing of real estate transaction, when the deed is executed and delivered, the sales contract merges into the deed

• From this moment forward, the buyer can only sue on the promises included in the deed

• Can no longer sue for marketable title or duty to disclose!

What are 3 different varieties of deeds?

1. General warranty deed

2. Special warranty deed

3. Quitclaim deed

What is a general warranty deed and what are applicable covenants?

= Seller promises warranty for all defects from themselves and their predecessors