Class XXI – Leasehold Estates Prof. David Glazier Nov 7, 2006 PropertyProperty

Today’s Class Review of Leasehold Estates The Lease Housing Discrimination Hannan v. Dusch - Delivery of Possession - English v. American Rules

Leasehold Estates The Term of Years - lasts for fixed period (day, month, year) - can specify event that will end tenancy - - “To T for 25 years or until his death” The Periodic Tenancy - fixed duration continued until one party gives notice - if period not specified, equals rent periodicity -- “To T month to month” The Tenancy at Will - continues as long as both parties agree - either party can end by serving notice - ended by death of either party (TOY/PT are not)

Leasehold Notice Hypotheticals 1. L leases Blackacre to “T for one year from Jan 1.” T moves out the following Dec. 30 without notice. 2. Same lease as 1 except to “T from year to year” T moves out the following Dec. 30 without notice.

Leasehold Notice Hypotheticals 3. Same lease except to “T for $24,000 per year.” T moves out following Dec. 30 without notice. 4. L leases Blackacre to “T for as long as L and T agree.” T moves out the following Dec. 30 without notice.

Lease *** Agreement in which owner (lessor) grants lessee exclusive possession of property - commonly for specific term - rent usually specified - lessor retains reversion Historically treated as a conveyance - governed exclusively by property law Modern view incorporates [some] contract law - remedies, warranties, etc.

Lease *** No specific wording required - SOF requires writing (usually > 1 year) Leases need to be distinguished from: - Conveyance of freehold interest -- e.g., life estate - License -- non-exclusive right to enter premises -- revocable at will

Federal Fair Housing Act Originally enacted in Amendments permit DOJ enforcement Bars discrimination based on: - race/color - religion - national origin - familial status - sex - handicap Exceptions: single boarder and religious institution Prima facie case based on discriminatory effect

Federal Fair Housing Act Prohibited practices include: - refusal to sell/rent or negotiate in good faith - discrimination in terms/conditions - advertisement of preference/limitation - false representation of non-availability - creation of restrictive covenants - sexual harassment of buyers/tenants - refusal to make reasonable accommodations - refusal to permit reasonable modifications based on protected classifications

California Civil Rights Law Extends protections to discrimination based on: - sexual orientation - marital status - ancestry - medical disability/condition (cancer/HIV/AIDs etc.) - age Dept of Fair Employment & Housing enforces Many other states have protective statutes and/or state enforcement mechanisms

It Hasn’t Always Been Like This “92 nd Street Outrage”

Hannan v. Dusch (Vir. 1930) The Facts: -Dusch gave Hannan 15 year property lease -Signed in Aug 1927 with entry Jan 1, No specific provision about delivery of premises -Hannan found part of property occupied in Jan -Dusch refused to take action to oust holdover -Hannan sued for damages

Hannan v. Dusch (Vir. 1930) The Issue: -Absent specific lease agreement, must landlord deliver possession or just right to possession? English rule: lessor must deliver actual possession American rule: lessor must deliver legal possession

Delivery of Possession Which rule do you prefer? English rule now U.S. majority rule Advice to clients [and you] - Get it in writing - Read the lease!

Looking Ahead New Office hours: T 2:00-3:30 F 12:30-2:00 Next Class – Thu 11/09 Subleases and Assignments - Ernst v. Conditt pp Note 1 on pp Kendall v. Ernest Pestana, Inc. pp Notes 1&2 on pp

Questions?