Real Estate Law Test 2

Tenant/Landlord

Tenancy for years

A lease agreement with a fixed start and end date.

• Statute of frauds: if agreement is for more than 1 year it must be in writing

Periodic tenancy

• A lease agreement with a beginning date but no end date

• Terminates when either party gives prior notice of termination

Tenancy at will

• Lease agreement with no time period

• Can be terminated by either party with no prior notice

Tenancy at sufferance

When tenant remain in the property after the agreement expires

Security Deposit

Collecting money from tenant upfront to protect the landlord from property damage or to cover the loss if tenant leaves

Housing Statutes

Limits the amount that you can charge for a lease agreement

Habitability

A implied duty that the landlord must maintain the property as reasonably safe and fit to live in

Prepaid deposit

Require tenants to pay first and last months rent before taking possession of the property

Cleaning deposit

Refundable money that the tenant gives the landlord in case the tenant leaves the property dirty

Sublease/Subletting

• Tenant transfers a portion of their possession to a third party

• Tenant becomes the “landlord” to the subtenant

Rules and Regulations

• Landlord can set rules and regulations for the tenant to follow

• Must be disclosed and applied to all tenants

Assignments

• Tenant transfers their entire lease agreement to a third party

• Both assignor and assignee are liable if there is a breach

• If there is an assumption, then the assignor is not liable

Right of access

Expressed term where the landlord is allowed to enter the premise for certain purposes (ex: maintenance)

Tenants self help

Term must be expressed: Tenant who believes landlord is not maintaining property fixes the issue and deducts that money spent from the rent

Constructive eviction

Tenant vacates the property and does not have to pay rent after vacating

Unconscionability

A court may refuse to enforce a lease term if it is extremely unfair

Procedural Unconscionability

Unfair bargaining processS

Substantive unconscionability

unfair or oppressive contract term

Warranty of Habitability

• The premise must be habitable to live in

• There can be a rent abatement

• There can be constructive eviction

No retaliation

• Landlords cant retaliate for tenants exercising their fair rights

• Prevents landlord from unjust eviction

Common Areas

• Land lord must maintain common areas

• Landlord can be liable to a 3rd party for injury

Mitigate damages

• landlord has duty to re-rent the property if the tenant left before rent was paid

• Protects tenant from having to pay full rent in the even they vacate

• must be expressed

What are the statutes and regulations

1. Americans with Disabilities Act (ADA)

2. Fair Housing Act (FHA)

What are the 3 tenant legal duties

1. to pay rent

2. to not commit waste

3. Duty of other lease requirements

Gross Lease

Commercial lease where tenant pays a fixed rent, and landlord pays for property expenses

(Triple) Net Lease

Tenant pays fixed rent, including property expenses. Tenants share cost for common area maintenance

Percentage Rent Lease

Tenant pays base rent plus a percentage of their sales generated

Escalation Clause

• Price of rent may increase year by year

• Applies to gross and net leases

Outside Date

• Final date in which a contractual event(ex: construction), must be finished

• If failed, tenant may be able to terminate the lease

Trade fixtures

Property attached to real estate but used by tenant business operation. TENANT KEEPS THE PROPERTY

Fixtures

Property installed in real estate, but its the LANDLORDS PROPERTY

Force Majeur

Allows parties to be excused from their duties because of an external event that causes the party hardship