MBE Real Property - Landlord Tenant
A leasehold estate is a non-freehold interest in land created by a lease, giving the tenant the right to possess property for a set time.
What is a leasehold (landlord/tenant) estate and what are the 4 types?
Estate created & governed by a lease signed between the parties.
Types:
Tenancy for years;
Periodic tenancy;
Tenancy at will; and
Tenancy at sufferance
Key Terms
What is a leasehold (landlord/tenant) estate and what are the 4 types?
Estate created & governed by a lease signed between the parties.
Types:
Tenancy for years;
Periodic tenancy;
Tenancy at...
Define
tenancy for years
Tenancy with a fixed starting and ending date.
Also called a “term for years,” “fixed term tenancy,” or “estate for years”
When is a tenancy for years required to be in writing?
If the lease is longer than one year, must be in writing to satisfy the SOF
When does a tenancy for years terminate?
Automatically at the end of the fixed period or end date
Define
periodic tenancy
Automatically renews at the end of the period with no set end date (e.g. month-to-month lease)
How is a periodic tenancy created?
Express agreement;
Implication; or
No explicit end date in agreement
Operation of law
Holdover tenant
Invalid lease
Related Flashcard Decks
Study Tips
- Press F to enter focus mode for distraction-free studying
- Review cards regularly to improve retention
- Try to recall the answer before flipping the card
- Share this deck with friends to study together
| Term | Definition |
|---|---|
What is a leasehold (landlord/tenant) estate and what are the 4 types? | Estate created & governed by a lease signed between the parties. Types: Tenancy for years; Periodic tenancy; Tenancy at will; and Tenancy at sufferance |
Define tenancy for years | Tenancy with a fixed starting and ending date. Also called a “term for years,” “fixed term tenancy,” or “estate for years” |
When is a tenancy for years required to be in writing? | If the lease is longer than one year, must be in writing to satisfy the SOF |
When does a tenancy for years terminate? | Automatically at the end of the fixed period or end date |
Define periodic tenancy | Automatically renews at the end of the period with no set end date (e.g. month-to-month lease) |
How is a periodic tenancy created? | Express agreement; Implication; or No explicit end date in agreement Operation of law Holdover tenant Invalid lease |
Define holdover tenant | Someone who overstays their lease without the landlord’s consent. Also called a tenant-at-sufferance. |
What actions can the landlord take if they have a holdover tenant? | Refuse to accept payment from holdover tenant (tenant becomes tenant-in-sufferance and landlord can evict); or Bind the tenant to a periodic tenancy by either: Accepting rent; or Giving notice to holdover tenant |
What is the effect if the landlord accepts rent from holdover tenant? | Periodic tenancy is created for that payment period |
Can the landlord raise the rent for a holdover tenant in a periodic tenancy? | Yes, as long as the landlord gave notice to the tenant before the original lease expired. |
Does leaving personal possessions behind or overstaying the lease for a few hours make someone a holdover tenant? | No, landlord cannot impose periodic tenancy |
For a holdover tenant with a commercial lease, what is the maximum new lease period that the landlord can impose? | One year |
How do you terminate a periodic tenancy? | Give notice by words or conduct a full period in advance (e.g. if month-to-month, must give one month’s notice). If period is one year, then six months notice is required. Termination is effective on the last day of the period. |
What is tenancy at will and how is it created? | Tenancy with no specific term that can be terminated at any time by either party. Created by express agreement (if no express agreement, court will imply a period tenancy) |
How do you terminate a tenancy at will? | At any time, either by: Advance notice by either party (typically required but not always); or By operation of law upon: Death of either party Waste by tenant Assignment by tenant Transfer of title by landlord Transfer of lease to a third party by landlord |
What are the 4 basic duties of a tenant? | Pay rent; Not commit waste (affirmative/voluntary, ameliorative, or permissive); May also include duty to repair in some jurisdictions/depending on agreement Not use the premises for an illegal purpose; and Protect third party invitees from foreseeable dangers on the premises |
When can the tenant commit ameliorative waste (make improvements to the property)? | If it is reasonably necessary for the tenant’s continued reasonable use of the premises. Typically need to give landlord advance notice. |
Does the tenant have a duty to repair (not commit permissive waste)? | Yes, to the extent reasonably necessary to maintain the premises (unless otherwise specified in the lease) ⚠️ No duty for normal wear and tear |
What is the effect if a nonresidental lease requires the tenant to “repair and maintain”? | Tenant will be liable for damages unless it was the landlord’s fault or it was significant and not the tenant’s fault (e.g. catastrophic damage due to an earthquake) |
Are residental leases that require the tenant to make repairs valid? | No, landlord still has ultimate duty to repair even if lease says otherwise ⚠️ Exception: no duty to repair damages caused by tenant |
Define fixtures | Structures or materials that are permanently affixed to the property and were intended pass with the land. ⭐️ To determine whether something is a fixture, ask yourself: “did the party intend for this to be a fixture?” and “how much property damage would occur if fixture was removed?” The more intent and damage, the more likely it is a fixture |
Can a fixture be removed? | Only if: Removal will not permanently alter the premises (i.e. property can be restored to pre-fixture condition); and It is completed in a reasonable amount of time |
If removal of fixture will substantially/permanently alter the premises, what is required? | Landlord approval. If no approval → tenant has committed affirmative waste |
Is the tenant ever required to remove fixtures? | No, as long as the fixtures don’t breach the lease |
What actions can a landlord take if the tenant has materially breached their lease and remains on the property? | Continue lease & sue for damages on late rent; or Evict tenant |
Is late rent payment a material breach of the lease? | Yes |
What actions can a landlord take if the tenant has materially breached their lease and has abandoned the property? | Treat as surrender and retake the premises; Ignore & hold tenant responsible for unpaid rent (minority); or Re-lease premises (majority) |
If the tenant abandons the property, is the landlord required to mitigate damages? | Majority: Yes, should make good faith effort to rent to other tenants and can seek damages from tenant for losses. Minority: No, landlord can seek damages for all unpaid rent |
Can a landlord sue for future rent due? | No, only for past rent |
Define self-help eviction | When the landlord seeks to evict a tenant by bypassing the normal eviction process (e.g. changing locks, etc) Generally not allowed. |
What are the landlord's duties to the tenant? | Give possession; Implied warranty of habitability; and Covenant of quiet enjoyment |
What are a landlord's tort liabilities? | Landlords have a duty of reasonable care → can be liable for injuries: In common areas & non-common areas if defect is hidden; From existing defects that landlord knew of and failed to notify tenant about; From negligent repairs made by landlord; and From failure to make repairs required by housing code |
What is the landlord's duty to give possession? | Majority: Landlord must deliver legal + actual, physical possession Minority: Landlord need only deliver legal possession (right of possession) |
Define covenant of quiet enjoyment | Covenants that tenant has right to quiet use and enjoyment of the premises, without interference from landlord |
How can a landlord breach the covenant of quiet enjoyment? | Actual eviction; or Constructive eviction |
Define actual eviction | Physically excluding tenant from all or part of the premises |
Define constructive eviction | Landlord's actions are incompatible with the tenant's quiet use and enjoyment |
Elements needed to establish constructive eviction | Substantial interference caused by a landlord's act or omission, i.e. chronic and severe problems (e.g. broken pipes, leaky roof); Notice: landlord fails to correct problem within reasonable time after being given notice; and Vacate: tenant vacates property within a reasonable period of time after landlord fails to repair |
Whose responsibility is it to prevent nuisance? | Landlord |
Define implied warranty of habitability | Warrants that residential premises meet the basic standard of living Examples: Heat in winter Running water Plumbing |
Does the implied warranty of habitability apply to commercial leases? | No, only residential |
Who specifies the minimum habitability standard? | Local housing code or case law |
If the landlord breaches the implied warranty of habitability, what actions can the tenant take? | Move out & terminate the lease; Repair & deduct; Withhold rent (can either reduce or withhold entirely until court determines fair rental value; must be placed into escrow account); or Remain & sue for damages |
Can the warranty of habitability be waived or modified in the lease? | No, can never be waived or modified in the lease |
Define doctrine of retaliatory eviction | Landlord cannot retaliate against a tenant who reports housing code violations (e.g. cannot evict, refuse to renew a periodic tenancy, or raise tenant's rent) |
What is an assignment and to whom is the assignee liable? | Transfer of the entire lease to new tenant (assignee) Assignee is in privity with landlord and liable for all rent owed to the landlord |
What is a sublease and to whom is the subleasee liable? | Transfer of only part of the lease term to the subleasee Subleasee is in not privity with the landlord and thus is liable to the subleasor only. |
Is the subleasee (subtenant) bound by covenants? | No, unless expressly stated |
Can a tenant freely assign or sublease the property? | Yes, unless otherwise specified in the lease |
If the lease prohibits assignment or subletting without the landlord's permission, but doesn't specifiy the standard for approval, when can the landlord withhold permission? | Only when commercially reasonable |
If the lease prohibits subletting/assignment, but the landlord knows of it and fails to object, what is the effect? | Prohibition is considered waived |
If the property is condemned, does the tenant need to continue making rent payments? | If partial (tenant still has partial use of the property) or temporary: Yes, but tenant is entitled to compensation for dispossession from condemnation If full condemnation: No |