California Real Estate Principles Chapter 12: Landlord & Tenant

eviction

1. The legal process of removing a tenant from the premises as a result of a breach of a lease. 2. The distrubance of a tenant's enjoyment of any material part of a leased premises by an act of the landlord, or by a claim of superior title by a third party. (See actual eviction, constructive eviction, lease, retaliatory eviction)

P rents a one-bedroom apartment in Walnut Grove for $450 per month. P's rent probably will increase in three months, when the lease term ends. What kind of leasehold estate does P have? The lease on Q's apartment ended last month. The landlord has not offered to renew the lease, and Q has not made another rent payment. What kind of leasehold estate does Q have? When must a lease agreement be in writing? R rented an office in which to conduct a bookmaking operation from a good friend S, who liked the convenience of placing bets in the building. R was arrested before the lease term expired and will not be returning for some time. Can S collect the remaining rent payments? T is considering a move to a new one-bedroom unfurnished apartment. The monthly rent is $1,650, and the landlord expects a security deposit of $5,000. That amount seems excessive to T. Is T right? T will rent the apartment of a friend who is going abroad for nine months, then return possession to the friend. What will T have? While T was at work, the landlord went into T's apartment without T's knowledge to turn off the gas line, which was leaking somewhere in the building. Should T object?

1.estate for years 2. estate at sufferance 3. A lease agreement must be written when the lease term will end more than one year from the date of the agreement. 4. No. The lease contract did not have a lawful object. 5. Yes. The landlord can demand a security deposit of no more than two months' rent for an unfurnished apartment-in this case, $3,300. 6. T will have a sublease. 7. No. The landlord has the right to enter the premises in an emergency.

rent

A fixed, periodic payment made by a tenant of a property to the owner for possession and use, usually by prior agreement of the parties.

gross lease

A lease of property where a landlord pays all property charges regularly incurred through ownership, such as repairs, taxes, insurance and operating expenses. Most residential leases are gross leases. (See lease)

net lease

A lease requiring the tenant to pay not only rent but also costs incurred in maintaining the property, including taxes, insurance, utilities and repairs. (See lease)

lease option

A lease under which the tenant has the right to purchase the property either during the lease term or at its end. (See lease)

percentage lease

A lease, commonly used for commercial property, whose rental is based on the tenant's gross sales at the premises. It usually stipulates a base monthly rental plus a percentage of any gross sales above a certain amount. (See lease)

Sandwich Lease

A leasing arrangement in which an entity leases property from one party and leases that same property to another party. In this arrangement, the entity is both a lessee and a lessor, so it both pays and collects rent on the same property.

unlawful detainer

A legal action that provides a method of evicting a tenant who is in default under the terms of the lease; a summary proceeding to recover possession of property.

notice to pay or quit

A notice to pay or quit is a request from a landlord to his tenant, to quit the premises leased, and to give possession of the same to him, the landlord, at a time therein mentioned. (See landlord, tenant)

holdover tenancy

A tenancy whereby a lessee retains possession of leased property after the lease has expired and the landlord, by continuing to accept rent, agrees to the tenant's continued occupancy as defined by state law.

abandonment

Abandonment is a tenant's voluntary relinquishment of a premises without the landlord's express or implied consent and with no intention to perform future lease obligations.

constructive eviction

Actions of a landlord that so materially disturb or impair a tenant's enjoyment of the leased premises that the tenant is effectively forced to move out and terminate the lease without liability for any further rent. (See eviction, actual eviction, lease)

Fair Housing Amendments Act of 1988

Amends the Fair Housing Act of 1968 to include handicapped persons and families with children.

lease

An agreement transferring the right to exclusive possession and use of real estate for a definite period of time. To create a valid lease, the landlord (lessor) must grant the right of possession to the tenant (lessee) but retain the right to retake possession after the lease term expires.

escalator clause

An escalator clause in a lease provides for an increase in payments based on an increase in an index such as the consumer price index (CPI) or the wholesale price index (WPI).

estate at will

An estate (or tenancy) in which a person holds or occupies real estate with the permission of the owner, for a term of unspecified or uncertain duration; i.e., there is no fixed term to the tenancy.

Estate from period to period (periodic tenancy)

An interest in leased property that continues from period to period—week to week, month to month or year to year.

EXERCISE 12-2: Who usually bears responsibility for each of the following in a residential apartment building? Termite infestation Hole in plaster wall made by guest of tenant Injury suffered by guest who trips over tenant's coffee table Insufficient lighting in common hallway Broken main entry door to building Window broken by present tenant Window broken by previous tenant Trash pickup from outside receptacles Removing trash from premises Injuries to trespasser who falls through floorboard weakened by tenant's bathtub overflow that was never reported to the landlord

Answer: landlord tenant tenant landlord landlord tenant landlord landlord tenant tenant

resident apartment manager

Apartment manager who resides in one of the units; required of every California apartment building having at least 16 units.

California Rights Housing Act of 2006

California's Civil Rights Housing Act of 2006 provides that, as of January 1, 2007, all of the protected classifications of FEHA are extended automatically to all other nondiscrimination laws; this includes the Unruh Civil Rights Act.

California law defines an untenantable dwelling as one that substantially lacks any of the following:

Dead bolt lock on each swinging entry door Security or locking device on every window designed to open Adequate weatherproofing, including unbroken windows and doors Plumbing or gas lines that conformed to local building codes when installed and have been maintained in good working order Hot and cold running water, with fixtures and sewage disposal system approved under applicable law Heating facilities that conformed to applicable law when installed and have been maintained in good working order Electrical lighting, with equipment and wiring that conform to local building codes and are maintained in good working order Building and grounds clean, sanitary, and free of debris, rubbish, rodents, and vermin at the time the lease term begins, with areas under the control of the landlord to be so maintained during the lease term Adequate trash receptacles provided in clean condition and good repair and so maintained by the landlord when under the landlord's control Floors, stairways, and railings maintained in good repair

Unruh Civil Rights Act

Forbids discrimination as to sex, race, color, religion, ancestry or national origin in accommodations and business establishments. Under this law there can be no arbitrary eviction, rent increase or withholding of services by any landlord, including the owner of a non-owner-occupied single-family dwelling that is sold or leased for income or gain.

covenant to repair

In most lease agreements the landlord expressly covenants (promises) to make necessary repairs to the premises. If there is no express promise to repair, a court may find an implied covenant to repair, depending on the nature of the work required.

An apartment tenant suffered serious injuries after falling in a slippery bathtub. The landlord had received complaints about bathtubs but did nothing to rectify the problem. Is the landlord liable for the tenant's injuries?

In this case, yes, because the landlord should have treated the bathtub to make it safer for residents.

security deposit

Money deposited by or for the tenant with the landlord, to be held by the landlord for the purpose of remedying tenant defaults. (See landlord, tenant)

Tenant Protection Act of 2019

Prohibits the termination of a residential tenancy if there is no just cause for the termination when the tenant has continuously and lawfully occupied the property for 12 months.

Fair Credit Reporting Act (FCRA)

The Fair Credit Reporting Act gave consumers the rights of access to, and correction of, credit reports. (See credit report, FACTA) (Fair Credit Reporting Act)

convenient of quiet enjoyment

The covenant implied by law by which a landlord guarantees that a tenant may take possession of leased premises and that the landlord will not interfere in the tenant's possession or use of the property.

right of entry

The legal right to take possession of real estate in a peaceable manner.

leasehold

The right to hold or use property for a fixed period of time at a given price, without transfer of ownership, on the basis of a lease contract. A leasehold is a fixed asset.

Estate at Sufferance

The tenancy of a lessee who lawfully comes into possession of a landlord's real estate but who continues to occupy the premises improperly after his or her lease rights have expired. (See tenant)

Warranty of Habitability

fit for human habitation

C, a computer technician wants to lease a storefront for a new business, Classy Computers. In addition to selling computers, C will also be conducting classes in computer and internet use. C approaches the owner of a vacant unit in a small strip shopping center in a high-traffic area near a community college. The owner is impressed by C's business plan and agrees to lease the space. The owner is interested in helping C become established and also in benefiting from the expected growth of C's business. What kind of lease would best accomplish the aims of both parties?

percentage lease would be useful in this situation. It would allow for a base rent affordable for a new business and also provide for rent increases as the business grows.

EXERCISE 12-3: What is the minimum notice or other time requirement for each of the following? Notice by the tenant to terminate a month-to-month tenancy Tenant's denial of abandonment of premises Notice to pay or quit Enforcement of writ of possession Storage of tenant's personal belongings after eviction Notice to pay or quit under MRL Notice to terminate under MRL

30 days 15 days after personal service or 18 days after mailed notice of landlord's belief of abandonment 3 days 5 days 15 days after personal notice, or 18 days after mailed notice 3 days 60 days

property management

A branch of the real estate business involving the marketing, operation, maintenance, and other day-to-day requirements of rental properties by an individual or a firm acting as agent of the owner. (See property manager)

estate for years

An interest in property for a certain, exact period of time, and leased for a specified consideration.

A prospective home purchaser has only $9,000, not enough for an adequate down payment on the kind of house desired. An owner who wants to sell a single-family residence agrees to give a one-year lease with option to purchase on the property if the purchaser makes a monthly payment of $2,000 in consideration for the lease and option. This is somewhat more than the average rental in the area of $1,400 for a comparable home, but $600 of every payment will be credited to the renter in the event the renter chooses to buy the property at the end of the lease term at an agreed purchase price of $170,000.

At the end of the lease term the renter will have a credit of $7,200, which, added to savings of $9,000 (plus interest), will provide enough for the down payment the renter wants to make. If the property appreciates in value over the term of the lease, the renter also will benefit from the already agreed-on purchase price. The owner, who has seen other property in the area take many months to sell and needs to move to take a new job, is happy to have the house rented for the time being at a higher-than-market payment. The owner also is reasonably confident the renter will buy the house at the end of the lease term.

Fair Employment and Housing Act (FEHA)

California's Fair Employment and Housing Act (FEHA) prohibits housing discrimination based on marital status as well as race, color, religion, sex, national origin or ancestry. The Department of Fair Employment and Housing enforces the law, which is based on the former Rumford Fair Housing Act.

FOR EXAMPLE: A trespasser entered the premises of an automobile paint stripping company through a hole in a fence. The trespasser noticed a vat of a smelly liquid next to a business building. The vat was partially covered with a piece of plywood. The trespasser climbed onto the plywood to look through one of the building's windows. The plywood broke, and the trespasser fell into the vat, which contained highly corrosive acid used in stripping paint from cars. The landlord did not know of the hole in the fence, which was not there when the property was originally leased. The landlord was aware of the purpose for which the property had been leased, however. Is the landlord liable for the severe burns suffered by the trespasser?

No, the landlord is not liable for the trespasser's injuries. The property was used for its expected ordinary business purpose, and the landlord was unaware of the hole in the fence. The tenant may be liable to the trespasser if the tenant knew, or should have known, about the hole in the fence.

A tenant was evicted from an apartment at the Jolly Arms. The tenant never responded to any of the notices that were sent. When the property manager took possession of the apartment, a sheriff's deputy was present to inventory the clothing and furnishings the tenant had left behind. The items then were stored in a locked basement area inaccessible to tenants. The landlord also changed the locks to the apartment. One week later, the tenant showed up and demanded the key to her apartment. She said she had been called out of the country on a very important assignment and had simply been too busy to send word back to the property manager. Does the tenant have the right to reclaim the apartment?

No. It was the tenant's responsibility to make sure that her absence was understood and not misinterpreted as an abandonment of the apartment. By failing to contact the property manager, the tenant forfeited her right to the apartment. She can reclaim the belongings she left in the apartment, but she must pay any reasonable storage fees. She also will receive any part of her security deposit to which she is entitled.

Some years ago, a lessor tried to evict a tenant because the tenant was living with an unrelated adult. The lessor was unsuccessful because the intended action violated what was then the Rumford Act. The lessor recently decided to require that each member of an unrelated couple living together in one of the apartments meet rental financial requirements, even though married couples can aggregate their income to meet the financial requirements. Can the lessor do that?

No. The Fair Employment and Housing Act bans discrimination based on marital status.

Fair and Accurate Credit Transactions Act of 2003

The Fair and Accurate Credit Transaction Act of 2003 (FACTA) added new sections to the federal Fair Credit Reporting Act (FCRA, 15 U.S.C. 1681 et seq.), intended primarily to help consumers fight the growing crime of identity theft. Accuracy, privacy, limits on information sharing, and new consumer rights to disclosure are included in FACTA. (See Fair Credit Reporting Act)

landlord

The lessor or the owner of leased premises. The landlord retains a reversionary interest in the property, so that when the lease ends the property will revert to the landlord. (See lease, lessor, lessee)

A lessor brings an action to evict a lessee from a rental property because the lessee has numerous tattoos, receives public assistance, and is a student.

The lessor will not be successful because all of those "reasons" are arbitrary and fail to establish good cause for an eviction.

lessee (tenant)

The person to whom property is rented or leased; called a tenant in most residential leases.

lessor (landlord)

The person who rents or leases property to another. In residential leasing, he or she is often referred to as a landlord.

The Pins and Needles Shop pays a base monthly rent of $1,000 plus 4% of gross income over $20,000 per month and 2% of gross income over $40,000 per month. If proceeds for February are $32,000, what is the required rent payment for that month?

The required payment is $1,480, which is the base rent of $1,000 plus 4% of $12,000 ($32,000 - $20,000).

Lease Assignment

The transfer of the right, title and interest in the property of one person (the assignor) to another (the assignee). There are assignments of, among other things, mortgages, sales contracts, contracts for deeds, leases and options. (See assignor, assignee)

The Jolly Arms apartment complex has a tennis court for the exclusive use of residents. The tennis court is not mentioned in the lease that the apartment management firm uses, however. Part of the tennis court is destroyed in a small mud slide, and the tennis court is fenced off and not repaired. The tenants bring suit against the owner of the complex and the management firm, claiming breach of the covenant to repair. Will they be successful?

Unless repairs to the tennis court are specifically mentioned in the lease, a tennis court may not be considered an element of habitability that automatically will impose an implied covenant to repair.

Brown leases a residence from Baker on a three-month written lease. Upon expiration of the written lease, Brown retains possession of the property without the consent of Baker. Brown now holds a(n) (a)estate at sufferance. (b)estate for years. (c)estate at will. (d)periodic tenancy subject to eviction.

Your answer: (A) is correct. An estate at sufferance is defined as one in which a lessee rightfully comes into possession of the land and retains possession after the expiration of the lease.

A city ordinance contains a provision that states when a unit becomes vacant there is no restriction on the rent set for a new tenant. This is called (a)vacancy decontrol. (b)rent deregulation. (c)no-cap rent. (d)rent insurance.

Your answer: (A) is correct. If an ordinance contains a vacancy decontrol provision, when a unit become vacant there is no restriction on the rent set for a new tenant.

If the tenant fails to comply after notice to pay or quit has been given, the landlord can sue for rent owned and also request an order of eviction from the court by a legal proceeding called (a)unlawful detainer. (b)notice to quit. (c)eviction request. (d)malicious action.

Your answer: (A) is correct. The landlord can request an order of eviction from the court by a legal proceeding called unlawful detainer. If the court decides in favor of the landlord and if the notice to the tenant stated the landlord's intention to declare a forfeiture of the lease, the lease will be forfeited.

Under a lease, the leasehold interest lies in the (a)lessor. (b)lessee. (c)landlord. (d)beneficiary.

Your answer: (B) is correct. A leasehold interest is the right to exclusive possession and use of real property for a fixed period of time held by the lessee (tenant).

When the tenant voluntarily leaves the premises without the landlord's express or implied consent and with no intention to pay future rent, it is called (a)breach. (b)abandonment. (c)surrender.

Your answer: (B) is correct. Abandonment is the tenant's voluntary relinquishment of the premises without the landlord's express or implied consent and with no intention to perform future lease obligations. The landlord's express or implied consent would make the relinquishment a surrender rather than an abandonment.

When a lessee transfers all of his/her interest in the property, it is called a(n) (a)assumption. (b)assignment. (c)sale. (d)transfer.

Your answer: (B) is correct. An assignment of a lease is the transfer of all title, right and interest that a lessee possesses in a certain property.

In addition to following all applicable housing and/or building codes, the landlord must assure that the property is habitable. Even if there is no express provision in a lease agreement, there is a legally implied (a)one day walk-out clause for tenants. (b)warranty of habitability. (c)covenant of constructive eviction. (d)condition of responsibility.

Your answer: (B) is correct. As a minimum the landlord must follow all applicable housing or building standards. Even if there is no express provision in a lease agreement, there is a legally implied warranty of habitability.

An advertisement is placed in a newspaper. According to the guidelines established by the Fair Employment and Housing Act, which of the following phrases would be considered discriminatory? (a)"Good neighborhood" (b)"Legally married only" (c)"Female roommate wanted" (d)"Chapel on site"

Your answer: (B) is correct. California's Fair Employment and Housing Act prohibits housing discrimination based on marital status as well as race, color, religion, sex, sexual orientation, marital status, national origin, ancestry, familial status (age), disability, medical condition, or source of income.

A lease contains a clause in which the parties agree to an adjustment of rent based upon some stated criteria. This lease clause is called a(n) (a)increase clause. (b)escalator clause. (c)index clause. (d)variable rate clause.

Your answer: (B) is correct. Escalator Clause: An escalator clause in a lease may provide for an increase in payments based on an increase in an index such as the consumer price index (CPI) or the wholesale price index (WPI). This type of lease is called a graduated lease.

If a mobile home tenant has not paid rent, utility bills, or other fees for at least five days from their due date, (a)the tenant may be physically removed by the sheriff. (b)a written notice to pay or quit must be made, allowing three days for payment. (c)the premises may be condemned by the mobile home owner. (d)a penalty of twice the amount of the rent may be imposed

Your answer: (B) is correct. If a tenant has not paid rent, utility bills, or other fees for at least five days from their due date, termination proceedings may begin. A written notice to pay or quit must be made, allowing three days for payment to be made. Written notice of termination must be given 60 days before the termination date.

In California, an on-site resident property manager is required for building with (a)10 or more dwelling units. (b)16 or more dwelling units. (c)25 or more dwelling units. (d)50 or more dwelling units.

Your answer: (B) is correct. In California, every building with 16 or more dwelling units must have a resident apartment manager.

Which of the following protects a tenant's rights with regard to the use of credit reports? (a)The Equal Credit Opportunity Act (ECOA) (b)The Federal Fair Credit Reporting Act (FCRA) (c)The Federal Tenant Rights Act (FTRA) (d)The Credit Bureau Regulatory Act (CBRA)

Your answer: (B) is correct. The Federal Fair Credit Reporting Act (FCRA) addresses the use of credit reports, as well as the information on tenants provided to credit bureaus by the landlord.

If no lease term (period of time) is specified in the lease agreement, what is considered the lease term? (a)Always one month in this case. (b)The length of time for which rent is paid. (c)One year ending on the last day of the current fiscal year. (d)There is no lease term and it runs perpetually.

Your answer: (B) is correct. The date on which the lease is to commence and the length of the lease term always should be mentioned. If no lease term is specified for a dwelling, the length of time for which rent is paid is considered the lease term. A weekly rent payment implies a weekly term. If there is no specified time for with the rent applies, a month-to-month tenancy is presumed.

Once the writ of possession is served on the occupant(s) of the property, how long does the occupant have before being removed by the sheriff or marshal? (a)1 day (b)3 days (c)5 days (d)10 days

Your answer: (C) is correct. Five days after the service, the sheriff or marshal may remove any occupant still on the premises.

If a tenant is aware of a property defect that arises after taking possession and fails to notify the landlord, the landlord (a)is still liable for any subsequent injury according to the law. (b)is still liable for any subsequent injury but without monetary damages. (c)will not be liable for any subsequent injury. (d)will be covered under his/her liability insurance.

Your answer: (C) is correct. If the tenant is aware of a property defect that arises after taking possession and fails to notify the landlord, the landlord will not be liable for any subsequent injury.

Which of the following determines the maximum amount of security deposit that may be collected by the landlord on residential property? (a)First or second floor (b)One or two story (c)Furnished or unfurnished (d)Carpet or no carpet

Your answer: (C) is correct. The maximum amount of a security deposit is: two months' rent for an unfurnished residential property or three months' rent for a furnished residential property.

A landlord is not allowed to penalize a tenant who complains about the condition of the premises or who uses rent money for repairs. Retaliatory action by a landlord could include (a)retaliatory eviction. (b)increasing rent. (c)decreasing services. (d)All of the above

Your answer: (D) is correct. A landlord is not allowed to penalize a tenant who complains to an appropriate agency about the condition of the premises or who uses rent money for repairs. Actions considered "penalties" include retaliatory eviction, increasing rent, or decreasing services.

The tenant also must care for the leased property and use it appropriately. Among the tenant (a)keeping the premises clean. (b)using the premises only for their intended purpose. (c)refraining from defacing, impairing, or removing any part of the structure. (d)All of the above

Your answer: (D) is correct. In addition to paying rent, the tenant must care for the leased property and use it appropriately. All of the choices above are among the tenant's duties as specified by law.

A landlord wishes to evict a tenant and serves an eviction notice. Under what circumstances could a tenant remain in the property? (a)The tenant has not had hot water for months (b)Unlawful entry by the landlord (c)The lessor failed to repair a weak staircase (d)All of the above

Your answer: (D) is correct. These are all examples of constructive eviction. When the landlord (lessor) engages in constructive eviction, the tenant may move without giving the 30-day notice or may correct the situation by paying for the repair and deducting the bill from the rent. The lessor may not evict a tenant if the problem is the lessor's fault.