© 2010 Pearson Education, Inc., publishing as Prentice-Hall 1 LANDLORD-TENANT LAW AND LAND USE REGULATION © 2010 Pearson Education, Inc., publishing as.

© 2010 Pearson Education, Inc., publishing as Prentice-Hall© 2010 Pearson Education, Inc., publishing as Prentice-Hall 1

LANDLORD-TENANT LAW AND LAND USE

REGULATION

© 2010 Pearson Education, Inc., publishing as Prentice-Hall© 2010 Pearson Education, Inc., publishing as Prentice-Hall

CHAPTER 49 CHAPTER 49

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Landlord-Tenant Relationship

• Created when owner of a freehold estate

(landlord) transfers a right to exclusively

and temporarily possess the owner’s

property to another (tenant).

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Landlord-Tenant Relationship(continued)

• Nonfreehold Estate – tenant has right to possession of the property but not title to the property.

• Leasehold – tenant’s interest in the property.

• Landlord – owner who transfers the leasehold.

• Tenant – party to whom leasehold is transferred.

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Lease

• Rental agreement between landlord and tenant.– Must contain essential terms.

– Must be in writing if lease term exceeds one year.

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Types of Tenancy

Type of Tenancy

Description

Tenancy for Years

Continues for the duration of the lease and then terminates automatically without notice.Does not terminate upon death of either party.

Periodic Tenancy

Continues from payment interval to payment interval. May be terminated by either party with adequate notice. Does not terminate upon death of either party.

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Types of Tenancy (continued)

Type of Tenancy Description

Tenancy at Will Continues at the will of the parties. May be terminated by either party at any time with adequate notice. Terminates upon death of either party.

Tenancy at Sufferance

Arises when tenant wrongfully occupies real property after expiration of another tenancy or life estate. Continues until owner either evicts the tenant or holds tenant over for another term.Terminates upon death of tenant.

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Landlord’s Duties

• The landlord owes tenant duty to:– Deliver possession.– Not interfere with tenant’s right to quiet

enjoyment.– Maintain leased premises.

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Duty to Deliver Possession

• Tenant has right to exclusive possession of leased premises − for the term of the lease, or − until tenant defaults on obligations under

the lease.• Landlord may not enter leased premises

unless the right is specifically reserved in the lease.

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Tenant’s Right to Quiet Enjoyment

• Implied in all leases.• Landlord who interferes with tenant’s quiet

and peaceful possession, use, and enjoyment of property is liable for wrongful eviction.

• Landlord who allows premises to become unfit is liable for constructive eviction.– E.g., by failing to provide electricity, failing to

make repairs.

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Landlord’s Duty to Maintain the Leased Premises

• State and local building codes impose specific standards for maintenance and repair of premises.– E.g., minimum standards for heat, light, water.

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Implied Warranty of Habitability

• Leased premises must be fit, safe, and suitable for ordinary residential use.

• If breached, tenant may:– Withhold amount from rent reflecting loss of

value.– Repair defect and deduct expenses from

rent.– Cancel lease if breach constitutes

constructive eviction.– Sue for damages.

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Tenant’s Duties

• Tenant owes the landlord duty:– To pay rent.– Not to use leased premises for illegal or

nonstipulated purposes.

– Not to commit waste.

– Not to disturb other tenants.

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Duty to Pay Rent

• Duty to pay agreed-upon amount of rent for the leased premises to the landlord at agreed-upon time and terms.

• Common commercial rental arrangements:– Gross lease– Net lease– Double net lease– Net, net, net lease (triple net lease)

• Upon nonpayment, landlord may bring unlawful detainer action.

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Premises Liability

The liability of landlords and tenants

to persons injured on their

premises.

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Landlord’s Duty of Reasonable Care

• Landlord must not negligently cause injury to tenants or third parties.

• Must guard against foreseeable dangers.– E.g., have adequate security.

• Landlord who breaches duty is liable for tort damages.

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Transfer of Rights to Leased Property

• Landlord may sell, gift, devise, or otherwise transfer interest in leased property.– If complete title is transferred, property is

subject to the existing lease.• Tenant’s right to transfer possession of

leased premises to another depends on the terms of the lease.– Assignment – Sublease

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Assignment of a Lease

• Transfer by tenant of his or her rights and duties under a lease to another.

• Tenant is assignor.• Party to whom rights have been transferred is

assignee.• Assignor remains responsible for his or her

obligations under the lease.

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Assignment

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Sublease

• Occurs when a tenant transfers only some of his or her rights under the lease.

• Sublessor transfers those rights to the sublessee.

• No legal relationship is formed between landlord and sublessee.

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Sublease (continued)

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Rent Control

• Rent control ordinances stipulate the amount of rent a landlord can charge for residential housing.

• Rent is fixed at a specific amount, with minor annual increases.

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Civil Rights Act

• Prohibits racial discrimination in the transfer of real property.

• Permits lawsuits to recover damages and injunctions.

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Fair Housing Act

• Unlawful to refuse to rent or sell a dwelling to any person on the basis of race, color, national origin, sex, or religion.

• Prohibits discrimination by real estate brokers, mortgage lenders, and advertisers concerning the sale or rental of real property.

• Applies to landlords leasing four or more units.

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Americans with Disabilities Act

• Prohibits discrimination on the basis of disability in public accommodations. – E.g., hotels, theaters, stores.

• Does not generally apply to residential facilities.• New construction and alterations must be made

readily accessible to and usable by disabled persons.

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Takings of Real Property

• Eminent Domain – Under 5th Amendment, government may take private property for public use, provided just compensation is paid to the private property holder.

• Kelo case permitted taking of private property for purposes of economic development.– Satisfied “public use” standard.– Controversial decision.