Real Property

Front 1

What is an assignment?

Back 1

T transfers everything, holding nothing back!

Front 2

What is a sublease?

Back 2

T transfers a portion of the lease period, holding some time back.

Front 3

ASSIGNMENTS

Back 3

Intro Card

Front 4

Situation One: Landlord sues tenant

Back 4

Are successive tenants on a lease liable to the landlord?

Front 5

A lease is considered two things, what are they?

Back 5

a lease is both a CONVEYANCE and a CONTRACT, and these are separate and independent grounds of liability.

Front 6

Where does liability on the conveyance come from?

Back 6

Privity of estate.
Ask: is there POE btw L and whichever T is being asked about? If yes, liability on conveyance.

Front 7

Liability on the contract comes from where?

Back 7

Privity of contract.
Ask: Is there POC between L and whichever T is being asked about?

Front 8

What if there is only POE or POC, not both?

Back 8

T is liable to L-- there's no need for both.

Front 9

Privity of estate exists only between whom?

Back 9

The present L and the present T!

Front 10

Privity of contract exists between whom?

Back 10

Exists where there is an agreement between the parties, or where assignee 'expressly assumes' the obligations under the lease.

Front 11

In addition to rent, what other covenants might there be?

Back 11

Other covenants will run with the land IF they TOUCH and CONCERN the land.

Front 12

What the "Touch & Concern" test?

Back 12

If performance of the covenant makes the land more valuable or more useful, then it meets the T&C test and runs with the land. (such as a promise to fix the fence, that will T&C the land).

Front 13

Situation Two: Tenant sues Landlord

Back 13

If L sells to a successor landlord, can T sue the original landlord and any successor landlord on the lease?

Front 14

Will the original landlord continue to be liable to T?

Back 14

Yes, b/c of privity of contract.

Front 15

Is successor landlord also liable?

Back 15

Yes, as long as the lease covenant runs with the land AND there is either privity of contract or privity of estate.

Front 16

SUBLEASES

Back 16

Intro Card

Front 17

Is a sublessee liable to L for?

Back 17

No, b/c no POC or POE (because the sublessOR is deemed to have kept the estate).

Front 18

What if a clause says "T may not assign or sublet without L's permission"? Is it valid and enforceable?

Back 18

Yes, even though it's a restraint on alienation.

Front 19

What if there's a violation of the non-assignment or non-sublease clause?

Back 19

Then the attempted transfer is merely VOIDABLE at the option of L. If L does nothing, nothing happens.

Front 20

What is the effect of L's giving permission for an assignment?

Back 20

Giving permission ONCE means the clause is then waived for all time, unless L states otherwise at the time of giving permission.

Front 21

What if L accepts rent by the assignee or sublessee?

Back 21

Then that gives permission for a transfer.

Front 22

CONDEMNATION (EMINENT DOMAIN)

Back 22

Intro Card

Front 23

If the State takes property under a lease by its power of condemnation, what are the two questions to ask?

Back 23

1. Is T excused from paying rent?
2. Will T share in the condemnation award?

To answer, look to see if only part or all of the leased property is taken!

Front 24

What if the condemnation is just a partial taking?

Back 24

It doesn't release T from the obligation to pay full rent, but T gets a condemnation award equal to the rent that will have to be paid over the remainder of the lease for the property taken.

Front 25

What if the condemnation is a full taking?

Back 25

The lease will extinguish, and T is excused from paying rent.

T shares in the condemnation award only to the extent that the fair rental value of the lease exceeds the rent due under the lease.

Front 26

LANDLORD'S TORT LIABILITY

Back 26

Intro card

Front 27

What is the general rule on tort liability for the landlord?

Back 27

No duty of Landlord to T or to T's invitees for injuries on the premises during the life of the lease.

Front 28

What are the 5 exceptions to the general rule on L's tort liability?

Back 28

1. Latent defects
2. Short term lease of a furnished dwelling
3. Common areas under landlord's control
4. Negligent repairs
5. Public use exception

Front 29

Latent defects rule?

Back 29

L is under a duty to disclose latent defects which L either knows or has reason to know of.

Front 30

What does T need to know about the defect?

Back 30

T does not know of the defect, and a reasonable person in T's position would not discover it.

Front 31

Does L have to repair the latent defect?

Back 31

No, L must only disclose it.

Front 32

Rule for Short Term lease of a furnished dwelling?

Back 32

L is liable for defects even if L neither knows nor has reason to know of them.
A short term = 3 mos or less.

Front 33

Common areas under landlord's control?

Back 33

If injury is in an area subject to L's control, then L is liable if L failed to use reasonable care.

Front 34

Negligent repairs?

Back 34

L is liable for injury resulting from L's repair of a defect in the premises, even if L used all due care in making the repair! (L creates the deceptive appearance of safety, for which L is liable).

Front 35

Public use exception?

Back 35

L is liable for injury from defects in the premises, if 3 conditions are satisfied.

Front 36

What are the 3 exceptions?

Back 36

1. L must know or should know of major defects, AND
2. L must know or should know that T will not fix the defect, AND
3. L must know or should know the public will be using the premises.

Front 37

TENANT'S TORT LIABILITY

Back 37

Intro Card

Front 38

What is always true of T's tort liability?

Back 38

T is always liable to third party invitees for negligent failure to correct dangerous conditions on the premises, regardless of whether L may be contractually liable or not.