Real Property--Landlord And Tenant

Front 1

Leaseholds: Four Types

Back 1

(1) tenancy for years

(2) periodic tenancy

(3) tenancy at will

(4) tenancy at sufferance

Front 2

Tenancy for Years: Definition

Back 2

Tenancy that lasts for some specified (fixed) period of time, no matter how short.

Front 3

Tenancy for Years: Termination

Back 3

Terminates automatically at end of stated period (without notice by either party)

Front 4

Tenancy for Years: Statute of Frauds

Back 4

must be in writing if period = over 1-year

Front 5

Periodic Tenancy--Definition

Back 5

Tenancy for some fixed period that continues (i.e., automatically renewed) for successive periods until terminated by proper notice by either party.

Front 6

Three Ways to Create Periodic Tenancy

Back 6

(1) express agreement

(2) implication

(3) operation of law

Front 7

Periodic Tenancy by Implication

Back 7

if lease silent as to duration = presumed to be PT measured by rent payment.

(e.g., month-to-month if rent paid monthly)

Front 8

Periodic Tenancy by Operation of Law--Two Situations

Back 8

(1) oral lease violating SOF--if attempted lease agreement violates SOF, PT created by operation of law if landlord accepts rent.

(2) hold-over case--where tenant stays after expiration of lease, new PT created by operation of law if landlord accepts rent

Front 9

Periodic Tenancy--Termination

Back 9

Terminated by proper notice from either party

Front 10

"Proper Notice" to Terminate PT

Back 10

Usually, notice must be:

(1) one full period in advance*; and

(2) timed to end on right effective day (i.e., last day of period)**

*year-to-year lease = 6 months' notice required

**MI: no "right" effective day requirement

Front 11

Tenancy at Will--Definition

Back 11

Tenancy terminable at will by either party

Front 12

Tenancy at Will--Creation

Back 12

generally requires express agreement that lease can be terminated at any time.

*absent such agreement, periodic rent payments will cause court to treat as PT

Front 13

Tenancy at Will: Termination (Ways)

Back 13

(1) by either party (any time without notice*); or

(2) by operation of law

*MI: requires 1 months' notice

Front 14

Tenancy at Will: Ways to Terminate by Operation of Law

Back 14

(1) death of either party

(2) waste by tenant

(3) assignment by tenant

(4) transfer of title by landlord

(5) lease by landlord to someone else.

Front 15

Tenancy at Sufferance--Definition

Back 15

Hold-over tenancy that continues (under terms of expired tenancy) until landlord evicts tenant or elects to bind him to another term.

Front 16

Tenancy at Sufferance--Creation

Back 16

Arises when tenant wrongfully remains in possession after expiration of lawful tenancy.

Front 17

Tenancy at Sufferance--Hold-Over Doctrine

Back 17

In hold-over case, landlord may either:

(1) Evict tenant; or

(2) Elect to bind tenant to new periodic tenancy

Exception: cannot impose new tenancy if not reasonable (e.g., hold-over for only few hours, delay not tenant's fault, etc.)

Front 18

Hold-Over Doctrine: What Terms Apply to New Periodic Tenancy?

Back 18

Terms and conditions of expired tenancy apply to new tenancy, but length measured:

(1) residential lease = new period always month-to-month.

(2) commercial lease = new period depends on length of previous tenancy period:

(i) 12+ months: year-to-year

(ii) less than 1 year: same rent period as old one

Front 19

Can L raise the rent for the new periodic tenancy?

Back 19

only notice about higher rent given to T before expiration of lease

Front 20

Landlord Duties: Quiet Enjoyment

Back 20

every lease includes implied covenant that neither landlord nor paramount title holder will interfere with tenant's quiet enjoyment and possession of premises

Front 21

Obligation to Pay Rent: Partial Eviction

Back 21

when tenant physically excluded from part of leased premises, duty to pay rent depends on who's responsible for partial eviction:

(1) landlord = no obligation re: entire premises

(2) third person = apportionment of rent

Front 22

Constructive Eviction: Definition

Back 22

occurs when landlord's breach of duty renders premises unsuitable for occupancy

Front 23

Constructive Eviction: Elements

Back 23

T must prove:

(1) L breached duty to T

(2) breach substantially and materially deprived T of use and enjoyment of premises;

(3) T gave L notice and reasonable time to repair; and

(4) thereafter, T vacated premises.

Front 24

Constructive Eviction: Remedy

Back 24

terminate lease and seek damages

*but if so, cannot remain on premises

Front 25

Implied Warranty of Habitability: Definition

Back 25

nonwaivable covenant of habitability for residential leases

Front 26

Implied Warranty of Habitability: Remedy

Back 26

(1) terminate lease;

(2) make repairs and offset cost against future rent;

(3) abate rent to amount equal to fair rental value in view of defects; or

(4) remain in possession, pay full rent, and sue for damages.

Front 27

Retaliatory Eviction: Definition

Back 27

L may not terminate lease or otherwise penalize T in retaliation for T's exercise of his legal rights

*including reporting housing or building code violations

Front 28

Retaliatory Eviction: MI Presumption

Back 28

retaliatory motive presumed if L acts within 90 days after T exercises rights

*to overcome, L must show valid, non-retaliatory reason for his actions

Front 29

Periodic Tenancies: Proper Notice to Terminate (Year-to-Year Tenancy)

(1) MBE:

(2) MI Distinction:

Back 29

(1) 6 months' notice

(2) 1 years' notice required

Front 30

Tenancy at Will: Termination

MI Distinction:

Back 30

1 month's notice required

Front 31

Tenancy at Sufferance: Termination

MI Distinction:

Back 31

1 month's notice required

Front 32

Tenant Duties: Destruction of Premises Without Fault

MI Rule:

Back 32

if premises rendered untenable, T may terminate lease (provided no contrary written agreement) and terminate liability for rent accruing subsequent to surrender.

Front 33

Landlord Remedies: Tenant on Premises But Fails to Pay Rent

MI Rule:

Back 33

(1) if T neglects or refuses to pay rent, L may terminate tenancy by giving T written 7-day notice to quit; and

(2) if T fails to pay rent due (within seven days from service of written demand for possession, L may recover possession by summary proceedings in district court.

Front 34

MI Landlord's Implied Covenants: Define

Back 34

In every residential lease, lessor makes following covenants:

(1) that premises and all common areas fit for use intended by parties;

(2) to keep premises in reasonable repair during lease term; and

(3) to comply with applicable health and safety laws.

*except when disrepair or violation caused by T's willful or irresponsible conduct or lack of conduct

Front 35

MI Landlord's Implied Covenants: Can these obligations be modified by the parties?

Back 35

only if lease term is at least one year

Front 36

MI Contracts to Repair: Landlord Liability

Back 36

L not liable for consequential damages--i.e., tort damages resulting from failure to repair