Real Property Foundations 2 - Landlord-Tenant Leaseholding Patterns

Real property is very relevant to personal life.
Leaseholds are estates in land.
If you've ever rented an apartment and signed a lease, you have held an estate in land.
A leasehold gives a tenant the right to present possession of a property, while the landlord has a right to possession in the future.

These estate types can be thought of as having varying levels of commitment and different requirements to leave.

A serious commitment for a fixed, determined period of time.
The time frame can vary (e.g., a week, a year, fifty years).
Key characteristic: the exact duration and end date are known from the start.
Example: A lease from March 1st of this year to March 1st of next year.
Creation:
- Usually created in writing.
- If the term is greater than one year, it must be in writing.
Termination:
- No notice is needed to terminate because the end date is known upfront.

A more casual commitment that continues for successive intervals until properly terminated.
Can be month to month, year to year, or week to week.
The total duration is not known from the beginning.
Creation:
- Expressly: stated in the lease (e.g., "month to month").
- By Implication/Operation of Law: When arrangements are incomplete, the law fills in the gaps.
  - Example 1: A lease starts on September 1st, with no stated end date, and rent is paid monthly, there is an implies month to month periodic tenancy.
  - Example 2: An oral agreement to rent an apartment for three years at $7.50$ a month is not in writing. Sending a check turns the interest into an implied month to month periodic tenancy.
Termination:
- Requires proper notice, usually in writing.
- Generally, the notice period is equal to the length of the interval (e.g., one month's notice for a month to month tenancy).
- Year to year tenancy requires six months' notice at common law, but the modern rule only requires one month's notice.

For those with commitment issues, with no fixed period of duration.
Either the landlord or the tenant can terminate at any time.
Creation:
- Usually requires an express agreement stating the lease can be terminated at any time.
- Example: "To tenant for as long as landlord or tenant desires."
- If there's no express statement and rent is paid at regular intervals, it may become an implied periodic tenancy.
Termination:
- Possible at any time.
- Most states require notice and a reasonable time to vacate.

A post commitment tenancy that occurs when a tenant wrongfully holds over (stays past the expiration of their lease).
Technically, the tenancy has ended, and the tenant no longer has an interest.
Exists until the landlord either evicts the tenant or holds them to a new tenancy.
No notice is required.

Occurs when a tenant transfers their interest in whole (for the entire remaining term of the lease).
The new tenant takes the place of the original tenant.
Privity of Estate: The new tenant is in privity of estate with the landlord, meaning the new tenant can be held liable for all promises that run with the land, such as promise to pay rent or to repair.
Privity of Contract: The original tenant is still in privity of contract with the landlord, meaning the original tenant can be held liable for all the promises in the lease, like the promise to pay rent.
Example: Aisha assigns her lease to Miguel. The landlord can hold Miguel liable because they are in privity of estate, but the landlord can also hold Aisha liable because they are in privity of contract. If Miguel does not pay his share of the rent then the landlord can pursue either Miguel or Aisha.

Occurs when a tenant transfers their interest in part (for a portion of the remaining term of the lease).
The new tenant is only temporarily taking the place of the original tenant.
The new tenant is not in privity of estate or privity of contract with the landlord.
The new tenant's only relationship is with the person they're subletting from.
Example: Ayesha sublets her lease to Miguel. The landlord can't go after Miguel for the rent. Only Aisha is liable to the landlord. Ayesha can pursue Miguel herself for the rent, but the landlord's recourse is against Aisha.