Leases

Question 1

Types of Leaseholds

Answer 1

1. Tenancy for years
2. Periodic Tenancy
3. Tenancy at Will
4. Tenancy at sufferance

Question 2

Tenancy for Years

Answer 2

• interest that lasts for a fixed and ascertainable amount of time
• if the term is longer than one year, then the agreement must be in writing because of the Statute of Frauds

Question 3

Periodic Tenancy

Answer 3

• A periodic tenancy is a repetitive and ongoing interest that continues for a set period of time until it is terminated by proper notice from either party (e.g., month-to-month, year-to-year lease. etc).
• proper notice requires the terminating party give notice before the start of what will be the last term. The notice is effective on the last day of the term.
• The parties must intend to create a periodic tenancy. Intent can be
  1. express (a specific term in the signed lease agreement)
  2. implied (ongoing payment of rent)

Question 4

Tenancy at Will

Answer 4

• A tenancy at will continutes until it is terminated by either party. It may be terminated at any time for any reason, and may be terminated without notice. If either party dies, the tenancy at will is terminated
• the parties must intent to create a tenancy at will. Intent can be
  1. express (agreement that says “right to terminate at will)
  2. implied (ongoing payment of rent at will)

Question 5

Assignment

Answer 5

If the lease does not prohibit an assignment or sublease, a tenant can assign or sublease her interest in the lease.

Question 6

Eviction

Answer 6

A tenant can sue for constructive eviction (commercial or residential) if the tenant can prove that the landlord breached a duty to the tenant and this breach caused a loss of substantial use and enjoyment of the premises, and the tenant vacated the premisses within a reasonable time after giving the landlord adequate notice.

Question 7

Implied Warranty of Habitability

Answer 7

• breached only in a residential lease if the premises are inhabitable (reasonably suitable for basic human needs)
• the tenant has a variety of remedies including vacating the premises, suing for damages, offsetting damages from his lease, etc.

Question 8

Duties of a tenant

Answer 8

The tenant must pay rent. If the tenant does not pay rent but has abandoned the property, the landlord can sue the tenant for damages or treat it as a surrender.

Question 9

Surrender

Answer 9

A surrender terminates the lease agreement and ends the landlord-tenant relationship between both parties. The landlord needs to consent.

Question 10

Abandonment

Answer 10

• Abandonment occurs when the tenant unilaterally returns possession of the leased premise before the lease expires without the landlord’s consent.
• Here, the tenant will have to continue paying rent until the landlord is entitled to damages for the difference between the original rent and the rent received from the replacement tenant.

Question 11

Duty to Mitigate

Answer 11

• Under common law, the landlord has no duty to mitigate damages. Many states have abandoned this approach and require that the landlord make a **reasonable effort **to mitigate damages
• the landlord is entitled to damages for the difference between the original rent and the rent received from the replacement tenant