Business Law - Chapter 9: Renting or Owning a Home

tenant's duties and obligations

abide by the terms of the lease, avoid waste, return fixtures

tort liability

both the tenant and landlord may be liable when someone is injured on rented or leased property. (private areas - tenants liable / public areas - landlord liable)

Eminent domain

right of the government to take private land for a public purpose.

license

temporary, revocable right to the limited use of another's land.

5 principal forms of co-ownership

tenancy in common, joint tenancy, community property, tenancy by the entirety, and tenancy in partnership

periodic tenancy

tenancy that continues for successive, fixed periods of time

lessee

tenant in a lease

covenants

terms of a lease that set forth the rights and duties of the landlord and tenant. Tenants' basic rights are possession and continued occupancy, free from intrusion or annoyance. Landlords' basic rights are rent and possession of the property in good condition at the term's end.

real property

the ground and everything permanently attached to it (building, fences, trees, soil, minerals, airspace, etc.)

estate

the interest or right that a person has in real property

leasehold estate or tenancy

the interest owned by a tenant in the real estate they lease - evidenced by a lease.

tenancy for years

the right to occupy property for a definite or fixed period of time (1 week, 6 mos., 1-5 yrs., 99 yrs., etc.)

sublease

transfer of part of the term of a lease, but not the remainder of it, to a third party. Leases can prevent tenants from assigning/subletting the property.

bargain and sale deed

transfers title to property without giving warranties and requires valid consideration so it can't be used to make a gift of real property.

quitclaim deed

transfers whatever interest the grantor has in the property, but it doesn't warrant that the grantor has any interest. It merely releases the grantor's rights to the property.

mortgage

type of loan in which the borrower pledges the property to the lender in the form of a lien.

constructive eviction

when a landlord breaches a duty under a lease. The lease is terminated, tenant can leave and stop paying rent.

eviction

when a landlord deprives a tenant of the possession of the premises

adverse possession

when an owner of real property loses ownership when someone who does not own the property occupies (publicly - not in secret) it for a period set by state law (often 20 years).

deed

written instrument that transfers title of ownership of property

lease

contract between a tenant and a landlord (transfers only possession of property).

how one comes to own property

deed, inheritance, or law

freehold estate

estate in which the holder owns the land for life or forever (transferable by sale, gift, or will.

special warranty deed

express warranties that no defect arose in the title during the time that the grantor owned the property. No guarantees as to defects arising before the grantor owned the property.

general warranty deed

express warranties that title to the property is good (i.e. personal promises of the grantor that if title ifs faulty, grantor will cover losses suffered by the grantee). Provides the most protection.

tenancy at will

interest in real property that continues for an indefinite period of time (ends when the landlord or tenant gives notice).

easement

irrevocable right to the limited use of another's land.

lessor

landlord in a lease

lien

legal claim against another person's property as security for a debt or loan to ensure it will be repaid. Released when the debt is repaid.

perfected lien

lienholder files an official statement with a government office or actually possesses the property.

zoning laws

limit the way property may be used in specified areas (single-family, multifamily, business, industry, or farming). May also regulate how tall or how large a building may be.

tenancy at sufferance

occurs when a tenant does not leave the premises when tenancy expires. (holdover tenants are wrongdoers because they no longer have legal rights in the property). They are not entitled to notice to vacate and must pay rent for the illegal occupancy.

security deposit

one month's rent as assurance to cover any losses for the owner

life estate

one of the two types of freehold estates in which the owner owns the real property for the length of the owner's life or for the life of another.

fee simple estate

one of the two types of freehold estates where there is an exclusive right to use or dispose of the property freely.

tenant

one who rents real property such as an apartment or house

grantee

person given ownership

grantor

person transferring ownership

community property

property acquired by the efforts of either spouse during marriage. Gift or inheritance does not become part of community property. Recognized by only 9 states.

tenancy by the entirety

property held by a husband and wife who have an equal right to the property where each spouse owns the entire property and neither can transfer without the other's consent. Ownership passes to the other spouse upon death.

option to renew

provision allowing tenants and landlords to extend the lease

landlord's duties and obligations

refrain from discrimination, maintain the premises, transfer peaceful possession (quiet enjoyment - right to enjoy the property without interference).

joint tenancy

co-ownership with each owner's share going to the surviving co-owners upon death. Owner may deed away his/her interest without permission of the other owners.

tenancy in common

co-ownership with each owner's share is going to his/her heirs upon death. Owner may deed away his/her interest without permission of the other owners.

landlord

owner of real property who rents it to someone else

tenancy in partnership

ownership of real property by partners where partners have the right to use the property only for partnership purposes. Heirs inherit an interest in the partnership when a partner dies but not the specific real property.