1. Understand Sales, Consumer, Property and Cyber Laws
Objective 6.02
PROPERTY LAW
Owners & Tenants

2. Relationship between Landlords and Tenants
Parties to the contract to lease or rent
Lessor/Landlord
Lessee/Tenant
Tenant - Wants possession and occupancy free from interference or annoyance
Landlord – Wants rent money and property in good condition at the end of rental term

3. Rights and Duties: Covenants of the Contract
Covenant = Promise
Affect both the landlord and the tenant
May be express or implied
Number and type vary depending on type of property

4. Leasing of Real Property
Types of Leases
Periodic tenancy – renewable period of time with rent due at stated intervals
Week to week, month to month, etc.
Tenancy for years –definite period of time stated, including stated ending date. Can be for less than one year

5. Types of Leases
Tenancy at sufferance – remaining in possession of rented property after the lease has expired
Tenancy at will – possessing land without an agreement as to the term of the lease or the amount of rent

6. Rights and Duties of Tenant
Right of possession
Right to use property
Right to assign the lease or sublet the premises
Duties:
Duty to pay rent
Duty to take care of the property
Duty of care to those who enter the property

7. Rights and Duties of Landlord
Receive rent
Right to evict tenant if lease is violated
Right to regain possession of property at end of lease
Duties:
Duty to provide habitable premises
Duty to conform to governmental requirements

8. Quiet Enjoyment Tenants have a right to:
expect the undisturbed possession of the property called quiet enjoyment.
expect exclusive use of the property free from interference or annoyances.
State laws vary and the landlord may or may not have the right to enter the premise without prior notice.
Add covenant to lease to address entry issue

9. Implied Covenants Implied warranty of habitability by landlord
May be enforced by city housing codes
Health and safety of citizens is considered
Duty of landlord to provide property free of defective conditions
Waste - The landlord expects reasonable wear and tear by tenant, but unreasonable damage is called waste and tenant can be required to pay the cost to repair waste.

10. Assignment and Subletting
When a tenant transfers the remaining period of time on a lease to another party
May or may not be allowed by landlord
May have to get prior approval by landlord

11. Renewals of Lease Tenancy ends at the expiration of stated time
Lease may have renewal clause making provisions for renewal by the parties to contract
Agreement usually requires either party to give advance notice of their intent to non-renew the lease

12. Security Deposits
A money deposit as security for payment of rent due or repairs for damages done by the tenant
Most landlords require one or two month’s rent in advance as security deposit
When lease expires, if all rent is paid in full and there is no waste, the security deposit is returned to tenant by landlord.

13. Payment of Rent
A critical issue to both parties. Be sure contract is clear on:
What is cost of monthly rent/lease?
When is payment due?
Is there a late fee if payment is late?
What constitutes “late”?
Is late payment grounds for breach of contract and termination of tenant rights?

14. Termination of Lease
If the contract has a specified term, it is a tenancy for years.
Leases can be terminated prior to the end of the term by either party, but penalty clauses may apply.
Breach of contract exists if the tenant chooses to vacate and the property cannot be leased to new tenant in a timely manner.
Landlord may sue for monetary damages. Landlord must attempt to lease property and mitigate any damages from loss of rents.

15. Anti-Discrimination
Anti-discrimination laws such as the Civil Rights Act bind landlords in the selection of tenants.
Special emphasis is given on human rights and needs.
Law forbids discrimination on basis of race, religion, color, national origin, sex, age, ancestry, marital status, blindness, military service or future plans to have children.

16. Tort Liability Applies to both landlord and tenant
May require responsibility for injuries occurring on the premise
Landlord is usually responsible for common areas where landlord is in control
Tenant is usually responsible for injury caused by defects in the portion of the premise over which he/she has control.

17. Fixtures
Fixtures are items of personal property attached to real property.
The addition of fixtures by the tenant causes problems when tenant prepares to vacate the premise.
Who owns fixtures that become real property?
What damage will be caused if item is removed?
Will tenant be reimbursed for improvement to premise?

18. Breach of Lease and Remedies
Eviction – The landlord has the right to deprive the tenant of physical possession of the premises but landlord
Must obtain a court order allowing removal of tenant
Must provide just cause, such as:
Nonpayment of rent
Damage to property
Violations of lease provision
Lien may also be attached to tenant’s property to pay back rent or costs of repair due to waste

19. Breach of Lease and Remedies
Constructive eviction – When the landlord breaches his or her duties of the lease covenant, the tenant may consider the lease terminated, leave premise and cease rent payment
Example: Landlord deprives tenant of gas, electricity, or other fundamental service
WORKSHEET:
Property Matching
WORKSHEET:
The Apt. Part 2
WORKSHEET:
The Apt. Part 1