Leaseholds Flashcards
(14 cards)
Types of Leaseholds
Term of Years
Fixed duration (e.g., 1 day, 5 years, 3000 years).
End date is set from the start—no notice required to terminate.
Can include unilateral termination rights (e.g., “10 years or until L sooner terminates”).
Death of landlord or tenant does not affect the lease.
Periodic Tenancy
Lease for fixed intervals that renew automatically (e.g., month-to-month, year-to-year).
Notice is required to terminate:
Year-to-year: 6 months’ notice.
Shorter than 6 months: Notice equal to the period.
Termination must coincide with the end of a rental period.
Many states now allow 30-day termination notice regardless of term length.
Death of landlord or tenant does not end the tenancy.
Tenancy at Will
No fixed duration; lasts as long as both parties wish.
Can be terminated by either party (even if lease says only one can).
Ends upon death of either landlord or tenant.
Modern statutes often require advance notice (e.g., 30 days).
Tenancy at Sufferance
Arises when a tenant holds over after lease expiration.
Landlord may:
Evict and seek damages, or
Accept rent and create an implied periodic tenancy (usually month-to-month in residential leases).
Many states have specific statutes for holdover situations.
Legal Nature of a Lease
Conveyance: Transfers possessory interest in land.
Contract: Contains covenants like paying rent or maintaining utilities.
Modern legal trend: Emphasizes contractual principles (e.g., good faith, duty to mitigate, warranty of habitability).
Exception: Breach of repair covenant doesn’t suspend rent—tenant must sue.
Dependent covenants: Rent obligation tied to quiet enjoyment only.
Housing Stability and Tenant Protection Act of 2019 (NY)
Passed in 2019 after Democratic control of state legislature.
Key provisions:
Made rent regulation laws permanent.
Capped rent increases for rent-controlled tenants.
Banned tenant blacklists.
Limited security deposits to one month’s rent.
Required prompt return of security deposits.
Required landlords to mitigate damages after a lease break.
(Mitigation requirement for commercial leases not enacted.)
COVID-19 Eviction Moratoria
Public health rationale: Prevented homelessness and facilitated self-isolation.
Federal CARES Act: Banned evictions for nonpayment (March–July 2020).
CDC Order (Sept–Dec 2020): Extended moratorium for “covered persons,” but rent obligations remained.
New York Tenant Safe Harbor Act:
Prevented evictions for rent owed between March 7, 2020 and start of Phase 4 reopening.
Allowed money judgments only (not physical evictions).
Protected only those financially impacted by COVID-19.
Expired January 2022.
§ 223-a: Remedies When Possession Not Delivered
Every lease implies a condition that the lessor must deliver possession at lease start.
If the lessor fails, the lessee can:
Rescind the lease.
Recover any consideration paid.
Still pursue damages.
§ 226-b: Right to Sublease or Assign
Assignment:
Requires written landlord consent.
If consent is unreasonably withheld, the tenant may cancel lease with 30 days’ notice.
Subleasing (for buildings with 4+ units):
Landlord’s consent required but cannot be unreasonably withheld.
Tenant must send a certified letter with detailed info (term, subtenant info, reason, etc.).
Landlord has 30 days to respond; silence = deemed consent.
If consent is unreasonably withheld, tenant may sublet and recover costs if bad faith is proven.
Waivers of these rights in leases are void.
§ 226-c: Rent Increase or Nonrenewal Notice
Required written notice if:
Rent increase is ≥5%.
Landlord does not intend to renew.
Notice periods based on tenant duration:
<1 year: 30 days.
1–2 years: 60 days.
≥2 years: 90 days.
Failure to give notice = tenancy continues under current terms until notice period ends.
§ 227: Destruction or Damage of Premises
If premises become uninhabitable (not due to tenant’s fault) and no contrary lease clause:
Tenant can surrender premises.
Tenant is not liable for rent after surrender.
Rent paid or due is adjusted to surrender date.
§ 227-c: Lease Termination for Domestic Violence Victims
Tenants with orders of protection may:
Request court order to terminate lease.
Must show continued risk, landlord’s refusal to voluntarily terminate, and good faith.
Court will grant only if:
Rent is paid through termination date.
Tenant vacates or co-tenancy is severed if others remain.
Lease clauses waiving these rights are void.
§ 227-e: Landlord Duty to Mitigate Damages
Applies if tenant vacates early in violation of lease.
Landlord must:
Try in good faith to re-rent at fair market value or existing rent.
New lease terminates old lease and reduces damages recoverable.
Burden of proof is on party seeking damages.
Lease clauses waiving this duty are void.
§ 228: Termination of Tenancies at Will or By Sufferance
Such tenancies can be terminated by written notice of at least 30 days.
