1. Modern Real Estate Practice in Pennsylvania 12th Edition Chapter 6: Leasehold Estates

2. 6Landlord and Tenant Interests Learning objectives –Identify the four types of leasehold estates –Describe the requirements, general conditions of a valid lease; how it may be discharged –Explain the rights of landlords and tenants in an eviction proceeding, and the effect of pro-tenant legislation and civil rights laws on the landlord- tenant relationship –Distinguish the various types of leases –Define key words 2 ©2012 Kaplan, Inc.

3. 6Landlord and Tenant Interests Leasehold estates –Estate for years –Estate from period to period (periodic tenancy) –Estate at Will –Estate at Sufferance 3 ©2012 Kaplan, Inc.

4. 6Landlord and Tenant Interests 4 ©2012 Kaplan, Inc.

5. 6Landlord and Tenant Interests Requirements of a valid lease –Offer and acceptance –Consideration –Capacity to contract –Legal objectives 5 ©2012 Kaplan, Inc.

6. 6Landlord and Tenant Interests Lease agreements –Possession of premises –Use of premises –Term of lease –Security deposit In Pennsylvania: may not be considered rent Amount determines interest paid Bond in lieu of escrowing –Improvements –Maintenance of premises 6 ©2012 Kaplan, Inc.

7. 6Landlord and Tenant Interests Lease agreements –Destruction of premises –Assignment and subleasing –Recording a lease –Nondisturbance clause –Options 7 ©2012 Kaplan, Inc.

8. 6Landlord and Tenant Interests Protecting Tenants at Foreclosure Act –Tenants current on rent are protected from immediate eviction –At least 90 days notice 8 ©2012 Kaplan, Inc.

9. 6Landlord and Tenant Interests Types of leases –Gross lease –Net lease –Percentage lease –Variable lease –Ground lease –Oil and gas lease –Lease purchase –Sale and leaseback 9 ©2012 Kaplan, Inc.

10. 6Landlord and Tenant Interests Discharge of leases –Suit for possession: actual eviction –Breach of lease (in Pennsylvania) Notice 15 days to three months Court process Only constable can forcibly remove tenant, belongings –Tenant’s remedies: constructive eviction Tenant must move out In Pennsylvania: warrant of habitability Landlord and Tenant Act of 1951 10 ©2012 Kaplan, Inc.

11. 6Landlord and Tenant Interests Fair Housing and Civil Rights Laws –Affect landlords and tenants –Cannot discriminate against protected classes –All persons must have opportunity to rent –All persons must have accessibility 11 ©2012 Kaplan, Inc.