RIGHTS OF PRIVATE TENANTS AFTER A DISASTER Roger Cook Legal Aid of North Carolina December 5, 2016

VIRTUAL DESTRUCTION OF RENTAL PREMISES: SURRENDER BY TENANT NC GEN STAT 42-12 permits surrender by tenant by: (1) Writing letter to LL within 10 days of damage or destruction stating intent to surrender, and (2) Paying all rent accruing prior to the destruction If lease provides otherwise, the lease provision will control.

Statutory Lease Termination Rights Per NC Gen Stat 42-14, unless lease agreement provides otherwise, Tenant may give notice to terminate tenancy of: One week prior to end of month, for month to month periodic tenancies Two days prior to end of week, for week to week periodic tenancies 30 days prior to end of year, for year to year periodic tenancies

Warranty Rights NC Gen Stat 42-42 Implied Warranty of Habitability requires owner to maintain fit and habitable premises Duty to pay rent mutually dependent with owner’s compliance (NC Gen Stat 42-41) While no right to withhold rent without judicial determination per NC Gen Stat 42-44(c), if owner fails to restore premises to fit condition within reasonable time, tenant may declare rescission. Premises lacks any fair market rental value.

Warranty Rights, 2 If owner can repair and undertakes to do so, but significant time is required, tenant to negotiate with owner to pay only reasonable fair market rental value during this period

Owner Liability if Demand Rent Refusal of owner to make adequate or full repairs, while still demanding full rent, will support a Chapter 75 claim for Unfair and Deceptive Trade Practice

Owner Not Responsible for Tenant Property Losses Caused by Disaster Unless damage to tenant’s personal property caused or exacerbated by owner’s failure to make required repairs or maintain in fit and habitable condition, owner not responsible for tenant’s personal property losses

No Right of Owner to Lock-Out or to Seize Tenant’s Personal Property Owner may not lock tenant out of premises: Self-help evictions prohibited. Owner may not seize tenant’s personal property Owner must initiate Summary Ejectment action to regain possession, where tenant remains in possession. Owner’s breaches of these duties give rise to claims for monetary damages per NC Gen Stat 42-25.6 et seq. and Chap. 75, and for common law breach of the covenant of quiet enjoyment, for trespass, and for conversion

Practical Tips Tenant to communicate with owner in writing, keep copies Review written lease agreement, if there is one, for assessment of rights [consonant with state law] Tenant to clearly state what she wishes regarding continued occupancy of the premises or ending the tenancy Tenant to negotiate with owner regarding reasonable rental amount if repairs are being undertaken Tenant has right to occupy premises until judicial order entered ending the tenancy