Property: Leasehold Estates:

The Term of Years (or Tenancy of Years):

A term of years is for a fixed, determined period of time.

If the period is greater than one year, the lease must be in writing (because of The Statute of Frauds).

Notice is not necessary to terminate a term of years.

The death of L or T has no effect on the duration of a term of years

Language to Create a Term of Years:

"To T for one day."

"To T for two months."

"To T for five years."

"To T for 3,000 years."

"To T from Jan. 1, 2016 to Dec. 31, 2018."

The Periodic Tenancy:

The periodic tenancy continues for successive or continuous intervals, until either L or T gives proper notice of termination.

If the interval is greater than a year, then the lease must be in writing (Statute of Frauds).

To terminate a periodic tenancy, notice must be given by L or T.

-Under common law, if the period is a year or more, half a year's notice is required to terminate.

-For periods less than a year, notice of termination must be given equal to the length of the period, but not to exceed six months.

-Notice must specify the last day of the period as the date for termination and not some prior date.

If notice is not given, the period is automatically extended for another period.

The death of L or T has no effect on the duration of a periodic tenancy

Language to Create a Periodic Tenancy:

Can be created expressly.

-"To T from month to month."

-"To T from year to year."

Can also arise by implication in three ways:

-(1) Provision made for payment of rent at regular intervals.

-(2) An oral term of years that violates the Statute of Frauds creates a periodic tenancy, measured by the way rent is tendered.

-(3) Landlords can elect to treat holdover tenants as implied periodic tenants.

The Tenancy at Will:

The tenancy at will has no fixed period or duration.

It lasts as long as either L or T desire.

Unless parties expressly agree to tenancy at will, the payment of regular rent will cause a court to treat the tenancy as an implied periodic tenancy.

Under common law, notice from L or T was not necessary to terminate.

-By statute, most states now require that reasonable notice be given by L or T to terminate a tenancy at will

If L or T dies, the tenancy ends

Language to Create a Tenancy at Will:

Language to Create:

"To T so long as L or T desires."

The Tenancy at Sufferance (for Holdovers):

Tenancies at Sufferance are usually short-lived.

They last until the landlord either evicts the tenant or elects to hold the tenant to a new leasehold (typically an implied periodic tenancy).

Hannan v. Dusch:

Issue:

-The single question of law . . . presented in this case is whether a landlord, who without any express covenant as to delivery of possession leases property to a tenant, is required under the law to oust trespassers and wrongdoers so as to have it open for entry by the tenant at the beginning of the term

English Rule:

-Requires landlords to place tenants in legal as well as physical possession (Majority Rule).

American Rule:

-Requires landlord to place tenant in legal possession. No requirement to deliver physical possession (Minority Rule)

Court uses the American Rule

Privity:

A voluntary transactional relationship between two or more people or entities.

Can be based on contract (privity of contract).

-If the parties are in privity of contract, the tenant is liable for the promises contained in the lease agreement

Can be based on land (privity of estate).

-If the parties are in privity of estate, the tenant is liable for rent, and also for damages resulting from breaches of certain kinds of promises that are said to "touch and concern" the rented premises

Ernst v. Conditt:

Ernst and his wife lease to Rogers.

Rogers begins improvements in connection with a go-cart track and then "subleases" to Conditt (with Ernst's permission) for the balance of the extended term.

Conditt defaults in the rent payments but stays in possession until the end of the lease term.

Ernst sues Conditt for all rent due and costs of removing the improvements

Was this an assignment or a sublease?

-If this is an assignment, can Ernst (L) recover directly and primarily from Conditt (T2)? YES.

-If this is a sublease, can Ernst (L) recover directly and primarily from Conditt (T2)? NO.

Court holds this is an assignment as T1 has a reversion showing a transfer of entire leasehold interest

Assignment vs. Sublease

When T1 transfers his entire leasehold interest to T2, he has accomplished an assignment.

-Privity of Estate between L and T2

-Privity of K between L and T1

When T1 transfers less than his entire leasehold interest to T2, he has accomplished a sublease.

-Privity of Estate and K between L and T1

-Nothing between L and T2