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Chapter 29

Chapter 29. LANDLORD AND TENANT. WHAT IS A LEASE?. Lease an agreement in which one party receives temporary possession of another’s real property in exchange for rent Rent the consideration given in return for temporary possession Landlord the lessor or the person who gives the lease

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Chapter 29

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  1. Chapter 29 LANDLORD AND TENANT

  2. WHAT IS A LEASE? • Lease an agreement in which one party receives temporary possession of another’s real property in exchange for rent • Rent the consideration given in return for temporary possession • Landlord the lessor or the person who gives the lease • Tenant the lessee or the person who receives the lease • Leasehold estate the ownership interest of the tenant • A lease may be oral, but under the statute of frauds, leases that extend for more than one year must be in writing or courts may refuse to enforce them.

  3. WHAT TYPES OF LEASEHOLD ESTATES MAY BE CREATED? • There are four types. • Periodic Tenancy when a leasehold is for a renewable period of time with rent due at stated intervals • most common • Tenancy from Month to Month if the rent is paid by the month • Tenancy for Years is created when a leasehold is for a definite period of time • has name even when period for lease is less than one year

  4. Tenancy at Sufferance If a tenant remains in possession after the lease has expired • landlord may treat tenant as a trespasser • Tenancy at Will If a party possesses land with the owner’s permission but without an agreement as to the term of the lease or the amount of the rent • this leasehold may be terminated at any time by either party

  5. WHAT ARE THE RIGHTS AND DUTIES OF A TENANT? • The right to possession • the tenant has the right to the possession of the real property starting at the time agreed upon in the lease • eviction if the landlord removes the tenant from possession of all the real property • partial eviction depriving the tenant of the possession of only one part • constructive eviction when property becomes so unfit for habitation through fault of landlord that the tenant is forced to abandon it

  6. The right to the use of the property • The tenant is allowed to use the leased property in the manner specified in the lease. If a use is not stated in the lease, the tenant my use the property for any purpose for which it is designed or customarily used • The duty to pay rent • The tenant’s most important duty is to pay the agreed upon rent when it is due • The duty to take care of the property • duty of reasonable care a tenant must take reasonable care of the leased property and return it in the same condition it was in when the lease began

  7. The right to assign the lease or to sublet • a tenant may assign the lease or may sublet the premises • assignment of lease takes place when the tenant transfers his or her entire interest in the lease to a third person • subletting tenant’s transferring part of interest to another • leases all of the property to a third person for a period of time that is less than the term remaining on the lease • or leases part of the property to a third person for part or all of the term remaining • The duty to satisfy conditions • leases contain two kinds of duties a tenant must fulfill • lease covenant a promise made by a tenant which, if violated, allows the landlord to sue for damages while the lease remains in effect • lease condition if violated, allows the landlord to terminate the lease and evict the tenant

  8. WHAT ARE THE RIGHTS AND DUTIES OF A LANDLORD? • The right to rent • The landlord’s primary right is to the rent agreed upon in the lease • If the tenant fails to pay the rent, the landlord may take legal action to recover the rent and sue to evict the tenant • The right to regain the realty and fixtures • At the end of the lease term, the lessor is entitled to regain possession of the real property, such as any fixtures added by the tenant

  9. The duty to maintain the premises • The duty to maintain the leased property generally falls on the tenant. There are exceptions. • The duty to pay taxes • In the absence of contrary agreement, the landlord pays all the property taxes and assessments on the lease property. • Long-term leases of commercial property commonly provide that the tenant will pay such taxes and assessments

  10. HOW CAN A LEASE BE TERMINATED? • A lease can be terminated in several ways: • the end of a definite period of time • neither the lessor nor the lesse is required to give advance notice before termination • by agreement before the expiration of the term • In a periodic tenancy, the party seeking to terminate must notify the other party. There is usually a requirement in the lease that this notice be in writing and be given so many days before the end of the lease period.

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