Class 4 HYPOTHETICALS.

Question 1

Holdover tenancies how do you address them as a LL?

Answer 1

1) eviction
2) New lease for same period of time.

Can have stipulation cost is double if you holdover.

Question 2

Tenancy at will how do you end? How long notice?

Answer 2

1) When one parties terminates it
2) At the death of either party.

Typically 30 days do not have to wait until the end of the period like periodic tenancy.

Question 3

For holdover tenancies, do you need a formal new lease ? IF so what terms?

Answer 3

No it can be inferred by cashing into cheque. A new lease has the same terms as the previous lease.

Question 4

FHA– can you discriminate against kids? Give example of something that is discriminatory and what isn’t

Answer 4

No can’t say I won’t rent kids to the top floor cuz they are loud or no I cant rent a 3 bed to a family of 6 with kids. You can say occupancy limit however. You can say “quiet tenants”

Question 5

Explain sublease. who can sue who?

Answer 5

sublease gives part of your lease to someone else. ONLY PART OF IT

LL can only sue the original tenant

Question 6

Explain assignment. Who can sue who?

Answer 6

Give away your remaining time to someone else.

LL can sue original tenant and new assignee.

a middle assignee cannot be sued as privity.

Question 7

Surrender from the Tenant means what

Answer 7

The LL agrees the tenant to end the lease early. Typically agrees for prepaid rent

Question 8

Abandonment from the tenant means what? Does the LL have a duty to try and re-rent the premises?

Answer 8

Moving out without justification and no agreement and defaults on rent.

At common law no.

Modern rule the LL has a duty to use reasonable efforts to mitigate damages if tenant abandons. They need to try and re rent it, you cant hold it without someone. Tenant would have to pay for re rent costs.

Question 9

In a mitigation state, a shopkeeper approached the landlord and asked if any abandoned premises in the shopping center were available for rent. The LL replied that they were not, and that they had already been relet. This, in fact, was not true. The LL was awaiting an appointment the next day with a person who may be able to pay higher rent. Four months later, the LL was finally successful in renting the property to a national chain at a higher rent.

Can the landlord charge the abandoning tenant for rent due under its old lease for the four months the store was vacant?

Answer 9

No. The duty to mitigate requires the LL not to discourage offers to rent. The LL is free to decide to refuse these offers, but if the refusal is not reasonable, then the LL cannot charge the abandoning tenant for the unrented months.

Question 10

What is waste?

What are the two types?

Do tenants have a duty to not commit waste?

Answer 10

Waste is changes to the premises.

Two types
1) Voluntary waste direct wilful or intentional injury to the premises aka punching wall.

2) Permissive waste is the result of neglect or omission and allowing structure to get damaged aka letting mold from leaky bathroom spread.

Tenants have duty to return place in same condition minus reasonable wear and tear.

Question 11

What if you made changes to property that increased value when leasing?

Answer 11

Traditionally this was considered voluntary waste.

Now jurisdictions allow reasonable changes to the premises if they are necessary to the intended use of the property.

Question 12

What are damages to waste for the LL? What if the place was trashed and you couldn’t rent it cuz of the waste, can you claim rent for that time?

Answer 12

Money and YES. Loss of value

Question 13

Emilee, the landlord, and Peter, the tenant, have entered into a lease to begin on the 1st of next month. On that date, Peter arrives at the premises and is ready to take possession. However, he finds that the former tenant – Molly – is holding over.

Is it Emilee, the LL’s problem to deal with, or is it Peter’s?

Answer 13

Under English rule it is LL’s problem. Under American rule it is Emile’s problem.

Question 14

What are independent covenants for leases? Are there implied and express?

Answer 14

A lease included a bunch of covenants both express and implied like the covenant to give place back to owner, or the covenant of quiet enjoyment. Covenants are independent of one another

Question 15

What is the only covenant that if not down, a tenant does not need to pay rent?

Answer 15

Quiet Enjoyment

Question 16

What is the covenant of quiet enjoyment? why is it important?

Answer 16

If you are NOT given your convent of quiet enjoyment, you can leave early. If you don’t have this covenant, you do not have to pay rent.

Question 17

What are latent defects?

Answer 17

Things that you must tell when you sell the house that you cannot see when doing an inspection. i.e. a crack in the foundation

Question 18

What is the implied warranty of habitability?

Answer 18

That there is a rule that the land lord had a duty of the home being habitable. You must tell people of latent and patent defects in all essential facilitates of the rented unit.

Basically if a reasonable person would find it uninhabitable.

Question 19

What are the damages for a breach of the implied warranty of habitability?

Answer 19

If rent is 1k and the actual price of the unit in this condition is 500 then you get 500 in monthly damages. you can also withhold payment of future rent or deduct it from the rent

Question 20

What does it mean when we say real estate contracts are executory?

Answer 20

It means title is not automatically transferred because buyers and sellers need to do alot of things between the time of closing. Buyers need to do title search, get a mortgage, get inspection etc. Sellers need to move out by a certain date, allow inspection etc.

Question 21

Do deeds transfer property or purchase agreements?

Answer 21

DEEDS TRANSFER PROPERTY. Purchase agreements are executory contracts

Question 22

At closing, does the buyer or seller deliver a deed?

Answer 22

The seller does.

Question 23

True or false, Buyers give the bank a mortgage in their purchased property, the bank gives money in return.

Answer 23

True.

Question 24

STATUE OF FRAUDS (HE WILL TEST US ON THIS)
WHAT IS IT?
Who needs to sign the deed according to SOF?

Answer 24

Enacted to make people more secure in real estate transactions.

SOF says deeds only need to be signed by a dealer

Question 25

What are three things you need under the SOF for a deed? PPS

Answer 25

PPS

Price
Property description
Signature

Question 26

What are two exceptions to the SOF?

Answer 26

1) Part Performance
- Can enforce an oral agreement. Aka you can move in early but we close in 2 weeks then something falls through.

2) Estoppel
- when some relied on a contract. Aka we have the purchase agreement, so I sold my property and then you back out.

Question 27

He said it is a good hypo to know

O, owner of Blackacre, executes and delivers a deed for Blackacre to her daughter, A, as a gift. The deed is not recorded. Subsequently, O tells A that she would like Blackacre back, and A, a dutiful daughter, hands the deed back to O and says, “The land is yours again.” O tears up the deed.

Who owns Blackacre?

Answer 27

A owns Blackacre. Since title passed to A by the deed from O, the Statute of Frauds requires a deed from A to O signed by A to pass title back to O.

Question 28

What is equitable conversion?

What is an example? (risk of loss)

Answer 28

If there is a contract for the sale of land, the buyer is viewed in equity as the owner from the date of the contract and the seller has a claim for money.

I have a purchase agreement to buy a house but before it closes it burns down. Now what happens? EQ happens which means the buyers might be entitled to the sellers insurance proceeds but the seller would still get the sale price.

Question 29

Stambovsky v Ackley– Duty to Disclose Defects?

Answer 29

Widow got a house where it is haunted.

Is “haunting” a latent defect that needs to be disclosed?

Yes. you have a duty to disclose all material facts they know about.

Question 30

What are the two tests to see if the defect is material?

Answer 30

Objective test (reasonable person)

Subjective test (whether it affects value)

Question 31

What is the stigma statute for houses?

Answer 31

States have statutes that shield sellers for failing to disclose stigmatize properties. i.e. someone was murdered in it or suicide.

Question 32

Do real estate agents have a duty to disclose crime and drugs in the area?

Answer 32

NO.