Comprehensive Volume, 18 th Edition Chapter 53: Leases

Classification of Tenancies 1.Tenancy for years (Fixed Term) 2.Periodic tenancy (Indefinite length; runs period to period) 3.Tenancy at will (Indefinite length terminable by either party at any time) 4.Tenancy at sufferance (hold over tenant) (can remain only if landlord permits)

Nature of Leases The agreement between a lessor and a lessee by which the latter holds possession of real property owned by the former is a lease. State statutes prohibit discrimination and require that the lease not be unconscionable. Tenancies are classified according to duration as tenancies for years, from year to year, at will, and at sufferance.

Termination of Leases A lease is generally not terminated by the death, insanity, or bankruptcy of either party except for a tenancy at will. Leases are usually terminated by the expiration of the term, giving of notice, surrender, forfeiture, or destruction of the property or because of fraud. A lease may require written notice of termination to prevent automatic renewal of the lease, or it may require written notice of intent to renew the lease.

Tenant’s Rights and Duties A tenant has the right to acquire possession of the property, enjoy use of it without interference, and retain possession until the lease is ended. Evictions may be either actual or constructive, and may violate the tenant’s rights unless tenant has not fulfilled his duties. The tenant is under a duty to pay rent as compensation to the landlord.

Repairs and Condition of Premises The tenant need not make repairs to the premises, absent an agreement to the contrary, but is liable for damage caused by the tenant’s willful or negligent acts. The landlord may enter the residence, with notice, to make repairs or evaluated the condition of the premises. Various laws impose health and safety standards for leased dwellings. Most states imply in residential leases a warranty of habitability.

Liability for Injuries A landlord is liable to the tenant for injuries caused by latent defects or by non-apparent defects of which the landlord had knowledge. Some states apply a strict tort liability, holding the landlord liable to a tenant or a child or guest when there is a defect that makes the premises dangerously defective even if the landlord does not have any knowledge of the defect. The landlord is not liable to the tenant for crimes of third persons unless they are reasonably foreseeable.

Assignment vs. Sublease An assignment of a lease by the tenant is a transfer of the tenant’s entire interest in the property to a third person. A sublease is a transfer of less than an entire interest—in either space or time. A lease may prohibit both an assignment and a sublease.

Liability in Assignment or Sublease If the lease is assigned, the assignee is liable to the landlord for the rent. Such an assignment, however, does not discharge the tenant from the duty to pay rent. In a sublease, the sublessee is not liable to the original lessor for rent unless that liability has been assumed or is imposed by statute.