Chapter 49 - Landlord-Tenant Law

*--- Express periodic tenancy

"To Fields on a month to month basis beginning July 1, 2016"

*triple net lease

-in addition to rent ~property taxes, insurance ~common for commercial leases "net lease" is a term used for an arrangement in which the tenant or lessee is responsible for paying, in addition to base rent, some or all of the expenses related to real-estate ownership. These expenses, often called the "three nets", are property taxes, insurance, and maintenance

*Tenant's Right to Transfer

1. Assignments 2. Subleases

*Tenant's Duties to Landlord

1. Duty to Pay Rent 2. Lawful Purpose 3. Not to Commit Waste 4. Duty Not to Disturb other Tenants

Landlord Duties to Tenant

1. Exclusive Possession 2. Limited Right of Entry 3. Implied Covenant of Quiet Enjoyment 4. Duty to Maintain the Leased Premises 5. Implied Warranty of Habitability

*-- Periodic tenancy - Creation

1. Express 2. Implied

Civil Rights Issues

1. Federal Fair Housing Act 2. Americans with Disabilities Act

-- Exceptions to FFHA

1. Person owns building with 4 or fewer units and you reside in one 2. Lease a single family home and owner does not own more than three single family homes

-- Places of Accommodations

1. Shopping centers 2. Restaurants 3. Medical offices 4. Banks

*Types of Tenancy

1. Tenancy for years 2. Periodic tenancy 3. Tenancy at will 4. Tenancy at sufferance ( hold-over tenant)

- If landlord refuses to cure a defect after reasonable time, tenant who has been constructively evicted may

1. sue for damages and possession of the premises 2. treat the lease as terminated, vacate the premises, and cease paying rent

*-- Assignee - Rights and Duties

3rd party: - Acquires all rights and duties that the assignor possessed - Landlord can enforce duties (ie: rent) against assignee Assignor

*5. Implied Warranty of Habitability

A leased premises must be safe, fit, and suitable for basic human habitation >Bare living requirements must be met (include electricity, water heat, front door lock, etc) -Leased premises must be fit, safe, and suitable for ordinary residential use. -If breached, tenant may: ~Withhold amount from rent reflecting loss of value. ~Repair defect and deduct expenses from rent. ~Cancel lease if breach constitutes constructive eviction. ~Sue for damages.

Lease

A rental agreement between a landlord and tenant - either oral or written - some SOF's require tenancy for over a year to be written - must contain the essential terms of parties' agreement - often a form contract prepared by landlord

*3. Tenancy at Will

A tenancy for no fixed period of duration with no express provision for rent

*2. Periodic Tenancy

A tenancy with no definite end date - Tenancy continually renews itself for like periods of time until terminated by one party -Continues from payment interval to payment interval.

*-- Subtenant - Rights and Duties

Becomes a tenant to the original lessee - No rights against landlord - Subtenant's rights can be enforced through original tenant who then enforces rights against landlord

*-- Tenancy at sufferance - Termination

Either by eviction or creation of a new tenancy term -Terminates upon death of tenant.

*4. Tenancy at Sufferance

Holdover tenancy When a tenant does not leave after his/her right to occupy the property is over - Tenant becomes a trespasser because the tenant has no right or permission to remain on the property - Provides the lessor's the ability to collect rent where there is no lease agreement

- Constructive eviction

If a landlord causes the leased premises to become unfit for the tenant's intended use and the tenant leaves the premises

- Wrongful eviction

If landlord evicts a tenant by physically preventing him from possessing or using the leased premises

*Landlord's Rights to Transfer

Landlord may sell, gift, devise, or otherwise transfer interest in leased property - Purchaser takes title subject to the existing lease

4. Duty to Maintain the Leased Premises

Landlord must keep leased premises in repair - No duty to make minor repairs (paint, patch, scratched walls, etc)

*-- Tenancy for years - Termination

Lease automatically terminated at specified end date - No notice required -Does not terminate upon death of either party.

*1. Tenancy for Years

Leasehold interest lasting for a fixed, determined period of time specified in the lease

Landlord - Tenant

Lessor - Lessee Owner of real estate interest Party which has the right to exclusive use and possession during the period of tenancy

*-- Tenancy at will - Creation

May be created expressly or implied

*-- Tenancy at will - Termination

May be terminated at any time by either party - Death by either party terminates tenancy at will

*-- Periodic tenancy - Termination

Notice of termination required - Written notice of termination given at a time at least equal to length of tenancy period -May be terminated by either party with adequate notice. -Does not terminate upon death of either party.

*-- Tenancy for years - Writing requirement

Only required if fixed period is over a year

*-- Assignor - Rights and Duties

Original party: - Remains liable to landlord if assignee defaults in terms of lease (ie: rent, covenants, etc) - Exception: Where landlord agrees to release assignor from all liability (Novation: a new contract)

2. Americans with Disabilities Act

Prohibits discrimination against individuals with disabilities by any person who owns, leases, or operates a place of public accommodation (PPA) - No requirement to prove an intent to discriminate

1. Federal Fair Housing Act

Prohibits refusing to rent or sell to a person based on their race, color, national origin, sex, religion, disability or family status

2. Limited Right of Entry

Reasonable notice of intent to enter must be given in writing - Notice waived if tenant and landlord agree for purpose of making repairs or supplying services - Notice waived in cases of emergency

-- Requirements for ADA

Removal of barriers and paths of entry for those with a disability (automatic doors, ramps, widths in aisles)

*-- Tenant - Rights and Duties

Rights and duties are governed by the agreement between tenant and subtenant do still have liab? yes, unless landlord releases in writing

*-- Landlord - Rights and Duties

Rights only against tenant

- Building codes

Statutes impose specific standards on property owners to maintain and repair leased premises

*2. Sublease

Tenant transfers only a portion of their leasehold estate - Tenant may freely sublease his leasehold interest, unless lease states otherwise - Most lease agreements provide for sublease restrictions -No legal relationship is formed between landlord and sublessee. most time will say need prior written notice from landlord to assign

*3. Implied Covenant of Quiet Enjoyment

Tenant will not be evicted or disturbed in his possession by the landlord or anyone acting with landlord's consent -Implied in all leases. -Landlord who interferes with tenant's quiet and peaceful possession, use, and enjoyment of property is liable for wrongful eviction. -Landlord who allows premises to become unfit is liable for constructive eviction. ~E.g., by failing to provide electricity, failing to make repairs.

1. Exclusive Possession

Tenants have exclusive possession of a leased premises until: - Term of lease expires, or, - tenant defaults in obligations under lease

*Tenancy

The period of a tenant's occupancy or possession

*Eminent Domain

Under 5th Amendment, government may take private property for public use, provided just compensation is paid to the private property holder.

-- Exception of ADA

Undue burden - depending on cost of remediation, and wherewithal of entity not in compliance latitude may be given

-- Implied Warranty of Habitability - Remedy

Vary by state: Generally: a. Reduce rent to a reasonable rental value with violation of implied warranty of habitability b. Repair the defect and deduct costs of repairs from rent (up to one month rent may be applied to repair) c. Withhold rent d. Terminate lease California: violation voids lease (tenant does not have to pay rent)

*1. Assignments

When a tenant transfers their entire unexpired leasehold interest to a third party - Tenant may freely assign his/her leasehold interest, unless lease states otherwise

*--- Implied periodic tenancy

a. Lease with no mention of duration, but payment of rent at set intervals b. An oral term of years in violation of statute of frauds (if it is for more than a year but it isn't in writing) c. Holdover in a residential/commercial leases where rent is accepted after end date

*advise clients

legal council to review leases

*Kelo case

permitted taking of private property for purposes of economic development. Satisfied "public use" standard. Controversial decision. CO still to eliminate "blight"

*condemnation

taking in cases: -usually both sides will get an appraiser and the judge will split the difference