Leases Flashcards

(51 cards)

1
Q

Why were landowners in a fee simple historically considered higher class citizens than lease holders?

A

Historically, in English common law, land ownership was tied very closely to social status, political power, and even voting rights. Here’s the basic idea:

Freeholders (owners of a fee simple) held the strongest and most complete form of property ownership. They could use, sell, or pass the land to heirs. Importantly, owning land outright often made someone eligible to vote, hold office, or be considered a “gentleman” — a class of citizen with social privileges.

Leaseholders, by contrast, only held a contractual right to occupy land for a limited time under a lease. They had far fewer rights and were often seen legally and socially as inferior, akin to tenants or renters.

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2
Q

In what ways today are leaseholders still inferior to landowners with fee simples?

A

Property taxes: In many places, homeowners with full ownership (freeholders) benefit from tax exemptions, homestead credits, or mortgage interest deductions. But leaseholders — especially renters — often don’t get these benefits directly.

Public perception: Owning a home free and clear is still often considered a major mark of financial success and social respectability, while renting or holding only a lease (even a long one) can carry stigma

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3
Q

What is the implied warranty of habitability?

A

(not waivable protection in most jurisdictions)- A landlord must make sure that the property is habitable and keep it that way. If it is not, sometimes tenants can stay in the property without paying rent

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4
Q

What rights to landlords have over tenants?

A

Right of entry for specific purposes (like maintenance, inspections, repairs, or emergencies)
Right to collect rent

Right to enforce lease terms (like rules about property use, pets, alterations, etc.)

Right to regain possession if the tenant breaches the lease (like eviction for nonpayment)

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5
Q

What rights does the tenant have over the landlord?

A

Tenants have a right to exclude
the right to possess the land
the right in some cases to withhold rent if the landlord is not holding up to their promises
and the right to transfer property via subleasing
the right to have visitors

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6
Q

What is a leasehold?

A

Leaseholds- a landlord agrees to transfer possession of the property for a specified period to the tenant in return for the tenant’s promise to make a periodic rental payment

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7
Q

What are the common law leasehold estates?

A

1) Term of years
2)Periodic tenancy
3)Tenancy at will
4)Tenancy at sufferance

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8
Q

What are term of years?

A

There is a fixed period with specified end date, and no notice is required to terminate the lease (no cause termination). it automatically ends when the fixed term expires

Sometimes even with terms of years landlords do not have absolute authority to evict a tenant. Tenants cannot evict a tenant out of retaliation (ex- tenant complains about an issue then landlord evicts him the next day)

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9
Q

What is a periodic tenancy?

A

Initial fixed period, then auto-renewal for successive period (usually a year and then month to month)

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10
Q

How is notice given in a periodic tenancy? (majority opinion)

A

Notice was required to terminate —
The party (landlord or tenant) had to give notice equal to the length of the period but it is capped at six months

If you failed to give proper notice:

You owed rent for the next period (e.g., another month).

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11
Q

How is notice given in a periodic tenancy? (minority opinion)

A

They said that if you don’t give notice within the period,
➡️ The tenancy automatically renews for another full period!
➡️ Not just paying one more month’s rent — you’re stuck for another full term (another month, or even another year for year-to-year).

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12
Q

What is a tenancy at will?

A

No fixed duration and either party can terminate immediately w/o notice

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13
Q

If a landlord can terminate at any time, is it implied that a tenant can too?

A

Yes

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14
Q

If a tenant can terminate at any time, is it implied that a landlord can too?

A

No

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15
Q

What is a tenancy at sufferance?

A

a legal label for the situation where a tenant wrongfully remains (holds over) after their lawful lease has expired.

Tenant had lawful possession originally (under a valid lease).

Lease expires or terminates.

Tenant does not leave.

Now they are staying without permission — “at sufferance” of the landlord.

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16
Q

What are a landlord’s options for tenants at sufferance?

A

1) Start legal proceedings to evict the holdover tenant (treat them as a trespassor)

2) Create a new tenancy by accepting rent
- they made significantly raise the rent if they do not accept the original rent
-Look at the circumstances to see if the landowner is acquiescing to a new lease

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17
Q

What are policy reasons behind giving time before evicting a residential tenant?

A

Purpose: Shelter — basic human need for survival and dignity.

Court attitude: More protective of tenants.

Courts are more cautious about eviction.

Tenants might get more time to move out (longer notice periods, more defenses like habitability claims, retaliation protections).

Evicting someone from their home has serious consequences, so the law tends to favor housing stability.

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18
Q

What are policy reasons having to do with evicting commercial tenants?

A

Purpose: Shelter — basic human need for survival and dignity.

Court attitude: More protective of tenants.

Courts are more cautious about eviction.

Tenants might get more time to move out (longer notice periods, more defenses like habitability claims, retaliation protections).

Evicting someone from their home has serious consequences, so the law tends to favor housing stability.

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19
Q

What two things are required to evict a tenant?

A

Notice and a hearing

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20
Q

Will courts enforce notice and a hearing (due process) even without a statute?

A

Yes for basic fairness and avoiding abrupt homelessness.

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21
Q

Vazquez farmworker case: What are institutional arguments in favor of the landlord?

A

➡️ The legislature already regulates farmworkers (e.g., barracks conditions).
➡️ If they wanted to include housing eviction protections for farmworkers, they would have.

➡️ Courts stepping in to create new rights undermines the legislative role.
➡️ Landowners and workers should negotiate terms privately without court interference.

22
Q

Vazquez farmworker case: What are institutional arguments in favor of the tenant?

A

➡️ Common law forbids self-help evictions in many contexts — court has a traditional role here.

➡️ Legislature might have assumed farmworkers were already protected as tenants.
➡️ Legislature can’t foresee every problem; courts fill gaps to prevent injustice.

➡️ Some agreements (like agreeing to slavery or uninhabitable conditions) are void even if both parties consent — courts must step in to enforce public policy

23
Q

Vazquez farmworker case: What are fairness arguments in favor of the landlord?

A

Worker isn’t fulfilling job duties — unfair to force employer to provide free housing.

People should freely negotiate the arrangements they want.

24
Q

Vazquez farmworker case: What are fairness arguments in favor of the tenants?

A

Losing a job shouldn’t mean instant homelessness.

Basic human dignity demands a fair process (notice + hearing) before eviction.

25
Vazquez farmworker case: What are utility arguments in favor of the landlord?
Imposing procedural rights could make employers: Hire fewer workers, Lower wages,
26
Vazquez farmworker case: What are utility arguments in favor of the tenants?
Short-term inconvenience to employers is outweighed by massive hardship (homelessness) to vulnerable workers. Protecting basic housing stability ultimately helps labor markets too.
27
Vazquez farmworker case: What are administrability arguments in favor of the tenants?
Flexible standards (look at the facts: nature of housing, reliance, vulnerability) promote fairer outcomes. A rigid rule would allow obvious injustices — like immediate homelessness — just because the worker didn’t pay "rent" technically. Courts can tailor fairness without dismantling all private housing arrangements.
28
Vazquez farmworker case: What are administrability arguments in favor of the landlord?
Bright-line rules (no protection for non-paying farmworkers) make things clear and predictable. Employers and workers know their rights in advance — no messy case-by-case litigation. Easy to administer = saves judicial resources
29
What is privity in contract?
When two people make a contract together (like a lease agreement), they are in privity of contract. They are bound by the promises (covenants) they made directly to each other. Obligation flows because of the agreement, not the land ownership, so even if a tenant moves out, they are still liable unless released from the contract
30
What is privity in estate?
A legal relationship based on holding a property interest, where liability flows from covenants that run with the land, such as paying rent.
31
What two things typically run with the land?
Paying rent = touches and concerns the land. Maintaining the property = touches and concerns the land.
32
What is an assingment in land?
A conveyance of the rest of the interest of the land Original tenant and landlord have no privity of estate but they do have privity of contract. Landlord can sue either for matters that touch and concern the land and original tenant for personal matters
33
What is a sublease?
conveys part of the interest but not all of it (ex- subleasing for 3 months then T goes back) Landlord has privity of estate and contract with only the original tenant
34
What is the presumption for transferring a lease?
The assumption is that you can transfer, so if there is nothing in the lease preventing you from subleasing or assigning property, you can
35
What is the traditional rule for a landlord's refusal to the consent of subleasing or assinging property?
The landlord could arbitrarily refuse consent
36
What is the modern rule for a landlord's refusal to the consent of subleasing or assinging property?
The landlord can not unreasonably consent (is there a good faith commercial objection, Assignee cannot pay rent reliably. Assignee wants to change property use in a major way. Assignee's business is inconsistent with the property’s nature.
37
What are arguments against making a duty for a landlord to mitigate damages?
- Nothing in the lease says the landlord has a duty to mitigate - Burden shifting: The landlord is not the wrongdoer here, so imposing the task of looking for other tenants on the landlord is wrong - Vacant stock, a potential tenant came in and the landlord could only show them an available apartment, but with the duty to mitigate they would have to show them the one that the tenant abandoned, possibly hurting their profits
38
What are arguments in favor of making a duty for a landlord to mitigate damages?
- The landlord’s business is to find renters - Sophistication of bargaining position: most tenants are not in the position to bargain at all for terms of a lease
39
What is the old common law rule for what a tenant could do if property fell into disrepair?
They still had to pay full rent and could only file a lawsuit for damages: Exception: - The covenant of quiet enjoyment- the only time a tenant could cease to pay rent. Accomplished by a landlord wrongfully and actually evicting a tenant (ex- changing the locks). Tenants have a right to private and quiet enjoyment (look up def)
40
What is constructive eviction?
Constructive eviction- the landlord is not actually kicking the tenant out but the conditions show that the landlord has done it
41
How to know if a landlord has breached the covenant of quiet enjoyment
As is. Breach only upon actually eviction, then later breach about construction eviction as well. Landlord must engage in wrongful conduct that substantially interferes with the tenant’s use
42
What is wrongful conduct under The CQE?
Wrongful conduct- includes act or failure to abide by a duty which could be derived from the lease, a statute or common law, but could be waived
43
What is the modern rule for what a tenant could do if property fell into disrepair?
The implied warranty of habitability. Tenants could stay inside the premises and not pay rent or pay partial rent
44
what a landlord has to do to keep a premise habitable:
- The tenants have to give notice to the landlord and give them a reasonable time to fix them - The duty of the landlord can be found in local housing codes, and beyond that to the common law doctrine of the warranty itself
45
Fairness arguments in favor of the warranty of habitability being waivable:
Allowing the waiver is treating everyone equally by allowing everyone to make their own choices (homeless people example)
46
Fairness arguments against the warranty of habitability being waivable:
Having protection even if tenants don’t know the extent of the consequences if they did waive it - Nobody would actually choose to enter into a lease for a property that wasn’t actually habitable if they weren’t forced to by their lack of choices - There are some things like this that society has deemed that they should not be contracted around. Landlords should not be able to profit off of selling individuals property that is not habitable
47
Utility arguments in favor of the warranty of habitability being waivable:
Landlords would be in such tight margins that they stop selling completely and even people who could afford housing struggle to find it People should be able to save money on rent and use it for other essential things Rent prices will go up if the warranty is not waivable
48
Utility arguments against the warranty being waivable:
Society as a whole would suffer if people were living in unhabitable conditions, causing injuries, death, negligence claims, emergency room expenses, etc We don’t actually know whether landlord’s will raise rent We are concerned with poverty, but allowing a poor person to waive their rights to a habitable property is not a good solution to things like that
49
What is the law of waste?
The law of waste- tenants cannot do something so detrimental to the property that it ends up interfering with future tenants’ possession of the property The greater the possessory interest, the more leeway the tenant has to do what they want to the property
50
What are the two types of waste?
Affirmative waste- doing something to impair the property Permissive waste- Not doing things that you could do to upkeep the property
51
What happens if a tenant does something to the property that increases its value?
- The improvement isn’t waste but the removal might constitute waste or violate the law of fixtures - There are certain situations in which an originally movable piece of property gets fixed to a unit and it becomes part of the property and you cant take it when you leave