12 renting - landlord and tenant

A lease is a contract granting the use of certain real property by its owner (called the lessor or landlord) to another (called the lessee or tenant) for a specified period in return for the payment of rent. In their strictest meaning, the terms lessor and lessee refer only to the parties to a lease. In contrast, the terms landlord and tenant are broad terms that refer to the parties under a tenancy at will as well as the parties under a lease.

Leasehold Estates

The interest that is conveyed by a lease is called a leasehold estate and was treated as personal property at common law. The following are leasehold estates:

1. Tenancy for years
2. Periodic tenancy
3. Tenancy at will
4. Tenancy at sufferance


1 Tenancy for Years

A tenancy for years is an estate for a definite or fixed period of time no matter how long or how short. Such a tenancy can be for one month, six months, one year, five years, ninety-nine years, or any period of time so long as it is ascertained.

By statute in some states a tenancy for one hundred years or more creates a fee simple estate. This rule of law prompted the use of ninety-nine year leases. Some states require that a tenancy for years be in writing to be enforceable. Similarly, in some states, leases for long periods of time must be recorded to be effective as to third parties.

2 Periodic Tenancy

A periodic tenancy, which is also called a tenancy from year to year (or from month to month, or week to week) is a tenancy that continues for successive periods until one of the parties terminates it by giving notice to the other party The notice requirement differs from state to state but is often the period between rent days. This tenancy may be created by implication if the landlord accepts rent from a tenant whose lease has run out or who is wrongfully in possession of the premises. Some states, which do not recognize periodic tenancies. treat the latter situation as a tenancy at sufferance.


3 Tenancy at Will

A tenancy at will is an estate in real property for an indefinite period of time. No writing is required to create this tenancy, and it may be terminated at the will of either party by giving the proper statutory notice.

4 Tenancy at Sufferance

A tenant who wrongfully remains in possession of the premises after the tenancy has expired is called a holdover tenant or a tenant at sufferance. Such a tenant has no estate or title but holds possession wrongfully He or she is not entitled to notice to vacate. and is liable to pay rent for the period of occupancy

Leases and Licenses

A lease differs from a license in that a lease conveys an interest in land and transfers possession, whereas a license conveys no property right or interest to the land but merely allows the licensee to do certain acts that would otherwise be a trespass. Lodgers who occupy rooms and advertisers who place signs on buildings are examples of licensees (people who have permission to do certain acts).

A lease is an express contract between the parties in which real property is demised (leased) by the lessor to the lessee. The lease is usually executed in duplicate and signed by both parties (called an indenture), although a lease signed by the lessor only (a deed-poll) will be binding if accepted by the lessee. No particular form is necessary so long as the instrument identifies the parties, describes the demised premises, sets out the terms of the lease, provides for possession by the lessee, and contains consideration (see our contract notes for this word).

An assignment of a lease occurs when the lessee conveys the interest in the demised premises to another person for the balance of the term of the lease. It is called a sublease (or underlease) if the transfer is for a part of the term but not for the remainder of it.

Tenancy

Tenants have the right to quiet enjoyment of the demised premises, which means that they have the right to possession of the property and to be undisturbed in that possession. Thus, if the landlord locks out the tenant or interferes with the tenant's possession in any way, it is a breach of the tenant's right to quiet enjoyment. When real property is rented for residential purposes, an implied warranty exists by the landlord that the premises are fit for human habitation which is known as the implied warranty of habitability. In general, to be habitable, the property must meet the sanitary code of the local community. Legislation in some states allows the tenant to pay the rent to the court, instead of to the landlord, when the property is not fit for human habitation and violates the sanitary code. This action places the court in a position to prevent tenants from being evicted for complaining about the property they rent being uninhabitable. In some states, the tenant, after giving notice to the landlord, can correct a sanitary code defect at the tenant's own expense and withhold rent up to the cost of having the defect corrected.

An eviction is the act of depriving a person of the possession of real property either by reentry or by legal process. Unless a tenant leaves voluntarily, a landlord is not allowed to use self-help or force to evict a tenant. Instead, the landlord must give the tenant whatever notice is required by state law and use legal process (described later) to evict a tenant.

Retaliatory eviction is the eviction of a tenant for reporting sanitary code or building code violations to the authorities. This type of eviction is illegal in most states today. A constructive eviction occurs when the landlord does some act that deprives the tenant of the beneficial enjoyment of the premises. Examples are depriving the tenant of heat, light, power, or some other service that was called for under the lease. When a constructive or other illegal eviction occurs, the tenant has the right to leave the premises without being in breach of the lease. The tenant may also withhold rent for the length of the eviction.

Words

Compound words are made by joining two or more words already in usage to create a new word with a new meaning. Some compound words found in this unit are:

landlord: a lord (person with authority or power) over land.
leasehold: to hold by lease.
holdover: to hold over from a previous time period
sublease: a lease that is sub (less than) the full time period
underlease: a lease that is under (less than) the full time period

A Questions

Answer the following questions.

1. What is the difference between the terms "landlord and tenant" and the terms "lessor and lessee"?

2. A leasehold estate was what kind of property at common law?

3. List the four leasehold estates. How much notice must be given to evict such tenants?

4. For what length of time may a tenancy for years last?

5. What does a tenancy for one hundred years create in some states?

6. How may a periodic tenancy be created by implication ?

7. Describe a tenancy at will, including the method for its termination.

8. What is another name for a tenant at sufferance?

9. Compare a lease with a license.

10. Who usually signs a lease?

11. Differentiate between an assignment of a lease and a sublease.

12. Recent legislation in some states provides for what remedy to a tenant if the premises are not fit for human habitation?

13. What is the difference between a retaliatory eviction and a constructive eviction?

14. List five names given by different states for the eviction action.

15. Who is responsible for a negligently caused injury that takes place

a. In the common areas of an apartment building?

b. In an area of the building that is controlled by a tenant?

B Correction

Read the sentences below. Are they True or False? If they are false re-write them by amending the words in bold italics.

1. The terms lessor and lessee are broad terms that refer to the parties under a tenancy at will as well as the parties under a lease.

2. A tenancy for years can be for any period so long as it is ascertained.

3. A periodic tenancy continues for successive periods until one of the parties terminates it by giving notice to the other party.

4. A writing is necessary to create a tenancy at will.

5. A tenant at sufferance is not entitled to notice to vacate.

6. A lease differs from a license in that a license conveys an interest in land and transfers possession.

7. An assignment occurs when the lessee conveys part of the term of a lease but not the remainder of it to another person.

8. Quiet enjoyment means that a tenant has the right to possession of the property and to be undisturbed in that possession.

9. A retaliatory eviction occurs when the landlord deprives the tenant of heat, light, power or some other service called for under the lease.

10. When a person is injured on leased property, the one in control of that part of the premises where the injury occurs is generally responsible if the injury was caused by negligence.

C Matching

From the list of legal terms that follows select the one that matches each definition.

a. constructive eviction
b. deed-poll
c. demise
d. dispossessory warrant proceedings
e. ejectment
f. eviction
g. forcible entry and detainer
h. holdover tenant
i. indenture
j. landlord
k. lease
l. leasehold estate
m. lessee
n. lessor
o. license
p. licensee
q. periodic tenancy
r. quiet enjoyment
s. retaliatory eviction
t. sublease
u. summary ejectment
v. summary process
w. tenancy at will
x. tenancy for years
y. tenancy from year to year
z. tenant
aa. tenant at sufferance
bb. underlease
cc. unlawful detainer
dd. warranty of habitability

1. A contract granting the use of certain real property by its owner to another for a specified period in return for the payment of rent.

2. A person who owns real property and who rents it to another under a lease (select two answers).

3. A person who has temporary possession of and an interest in real property of another under a lease (select two answers).

4. The interest that is conveyed by a lease.

5. An estate in real property for a definite or fixed period of time no matter how long or how short.

6. An estate in real property that continues for successive periods until one of the parties terminates it by giving notice to the other party (select two answers).

7. A lease given by a lessee to a third person conveying the same interest for a shorter term than the period for which the lessee holds it (select two answers).

8. The right of a tenant to the possession of the rented property and to be undisturbed in that possession.

9. The legal action used by landlords to evict tenants (select six answers).

10. An estate in real property for an indefinite period of time.

11. A tenant who wrongfully remains in possession of the premises after a tenancy has expired (select two answers).

12. A person who has permission to do certain acts.

13. A grant or permission to do a particular thing.

14. To lease.

15. A deed or lease to which two or more persons are parties.

16. A deed or lease in which only the party making the instrument executes it.

17. Dispossession caused by the landlord doing some act that deprives the tenant of the beneficial enjoyment of the demised premises.

18. The act of depriving a person of the possession of real property either by reentry or by legal process.

19. The eviction of a tenant for reporting sanitary code or building code violations to the authorities.

20. An implied warranty by a landlord that the premises are fit for human habitation.