Property - Leaseholds, Landlord/Tenant

Leasehold=

rented property

AKA non-freehold

Fair Housing Act - CANNOT DO

refuse to sell on basis of race, color, gender, national origin etc and/or publish ads with that

Fair Housing Act - CAN do

discriminate for a room within a larger unit (privacy)

discriminate by occupation

Lease

basis of ongoing contractual relationship with conditions that conveys property rights

• full control

• right to exclude (includes owner)

• defined area of land

License

Temporary permission that is revocable at any time. Rights and obligations are in contract, with a limited purpose and right of use.

• no right to exclude that includes owner

• no covenant of quiet use and enjoyment or warranty of habitability

Lease transference

Unless provision in lease, tenants can freely transfer interest without prior landlord approval via

1. sublease

2. assignment

Privity of Contract

only parties to the contract can sue to enforce it

• can be created by lease terms

Privity of Estate

Mutual or successive relation to the same right in property when the parties’ estates = one estate

Sublease

Covers less than the full time in the lease

• privity: none between lessor and sublessee

  • stays between landlord and OG tenant

• reasonableness condition for LL to deny (Julian v. Christopher)

Assignments

Covers less than the full time in the lease

• privity of estate: between LL and assignee only

  • assignee liable only while continuing to have possession

• privity of contract: none between LL and assignee unless assignee assumed all personal promises in OG lease

  • still exists between LL and OG tenants

landlord rights

• select tenants

• holdover tenants - evict (NO self help) or new lease

• tenant leaves early

  • implicit offer of surrender (>1 year, in writing)

  • ignore and make pay (minority approach)

  • mitigate damages by re-letting (majority)

landlord duties

1. provide possession

2. covenant of quiet use and enjoyment

3. warranty/covenant of habitability

LL duty to provide possession

US: legal possession only

Europe and growing US majority: actual possession

Covenant of Quiet Use and Enjoyment

• residential and commercial

• test - substantial interference due to LL’s actions or failures

• standard - average person

• remedies, after telling LL and LL failing to fix

  • constructive eviction, leave w/in reasonable time

  • Blackett v. Olanoff

covenant of habitability

ONLY residential

• fit for dwelling - most basic living requirements

• tenant remedies

  1. leave (constructive eviction)

  2. repair and deduct

  3. sue for rent

• Hilder v. Peter

Law of Fixtures

Removing a fixture is voluntary waste, even if tenant installed it. UNLESS removal creates no substantial harm to premises

Tenant responsibility

keep property in good repair, no waste.

If lease silent, tenant responsible for routine repairs and not wear and tear.

retaliatory eviction

If tenant lawfully reports landlord, LL can’t raise rent, end lease, evict, or harass.

Tenancy of Years

• end date known to all at start

• certain time, in years

• notice not needed to end

• subject to sublease or assignee unless express agreement otherwise

Periodic Tenancy

• successive fixed periods until someone opts out

• termination - end of last full period, need notice (usually 1 period)

• subject to sublet/assignee unless express agreement otherwise

Tenancy at will

• indefinite length, by mutual agreement

• ends after notice period (usually 30 days)

• subject to sublease or agreement unless express agreement otherwise

Tenancy at sufferance

• indefinite - holdover tenant

  1. old leasehold expired

  2. lessee keeps possession without entering new leasehold

• ends with eviction or new lease

• notice via state eviction laws

• not subject to sublease/assignment

Julian v. Christopher

If lease requires LL consent to sublease, can’t unreasonably withold unless lease says LL has absolute discretion to do so.

• people leased tavern and apartment

• LL said just wanted to make sure subletter wouldn’t destroy

  • then said sure for extra $150

A.H. Manufacturing Co v. Walz

LL can make holdover tenant continuing tenant or trespasser.

• LL and jewelry co couldn’t agree on renewal

• store stayed extra month, tried to pay and LL wouldn’t accept so left

• a year later, LL wanted to recover other 11 months rent under renewal lease (liable because because holdover tenant)

Titelbaum v. Direct Realty

LL doesn’t have to oust trespasser for new tenant to get required possession.

• T leased store but prior tenants wouldn’t leave for months.

• Wanted damages

Blackett v. Olanoff

When LL fails to take action, can be responsible for violating tenant’s quiet enjoyment.

• LL sued tenants for nonpayment of rent, who claimed constructive eviction

• LL leased nearby super loud cocktail bail

• tenants asked for quiet and nothing changed

Berg v Wiley

No self help. When lessor didn’t seek judicial assistance, changing locks unlawful way to re-enter.

• W leased to B to operate restaurant and said to make no changes and run lawfully

• Reserved right to re-enter

• B remodeled and violated health code

• serious of disputes, changed locks, wrongful eviction

• GOES AGAINST common law rule allowing lessor to re-take via self help

Hilder v Peter

All rentals have implied warrant/covenant of habitability that can’t be waived. Tenant can leave, request reimbursement, sue for rent.

• Broken glass, ceiling fell on infant

• LL promised to fix but never did

Sommer v. Kridel

LL has duty to make reasonable effort to mitigate damage by trying to re-let.

• Guy signed 2 -year lease, paid security deposit and a month of rent but wrote letter saying he couldn’t move in because engagement broken off

• LL didn’t rent to other people who tried to rent, sued tenant instead for 2 years rent

Soules v. US Housing and Urban Development Dept

Under Fair Housing Act, not discrimination to refuse to rent to a protected class if there’s a valid reason.

• single woman with 12 year old wanted to rent apt but LL thought kid would be noisy

• LL rented to other woman with kid under 18

  • non-discriminatory reason (noise, combative)

Periodic Tenancy by Implication

• lease omits duration but provides for rent payment at set intervals

• oral agreement in term of years, so implied by way rent is tendered

• LL decides to holdover tenant, so implied by way rent is tendered