Chapter 49 Landlord-Tenant Law and Land Use Regulation

Landlord-Tenant Relationship  A relationship that is created when the owner of a freehold estate transfers to another person the right to exclusively and temporarily possess the owner’s real property  Nonfreehold estate: An estate where the tenant has a right to possess the real property but does not own title to the property 2

Landlord-Tenant Relationship  Leasehold: A tenant’s interest in the property  Landlord: An owner who transfers the leasehold  Tenant: The party to whom leasehold is transferred 3

Landlord-Tenant Relationship  Lease: A transfer of the right to the possession and use of real property for a set term in return for certain consideration  The rental agreement between a landlord and a tenant  Tenancy for years: A tenancy created when a landlord and a tenant agree on a specific duration for a lease 4

Exhibit Landlord–Tenant Relationship 5

Landlord-Tenant Relationship  Periodic tenancy: Created when a lease specifies intervals at which payments are due but does not specify how long the lease is for  Tenancy at will: Created by a lease that may be terminated at any time by either party 6

Landlord-Tenant Relationship  Tenancy at sufferance: Created when a tenant retains possession of property after the expiration of another tenancy or a life estate without the owner’s consent 7

Landlord’s Duties to a Tenant  Duty to deliver possession: A landlord owes a duty to deliver possession of the leased premises to the lessee  Duty not interfere with tenant’s right to quiet enjoyment:  Covenant of quiet enjoyment: A covenant that says a landlord may not interfere with the tenant’s quiet and peaceful possession, use, and enjoyment of the leased premises 8

Landlord’s Duties to a Tenant  Duty to maintain the leased premises:  Building codes: State and local statutes that impose specific standards on property owners to maintain and repair leased premises 9

Landlord’s Duties to a Tenant  Implied warranty of habitability: Provides that leased premises must be fit, safe, and suitable for ordinary residential use  If breached, tenant may:  Withhold rent amount reflecting loss of value  Repair defect and deduct expenses from rent  Cancel lease if breach constitutes constructive eviction  Sue for damages 10

Tenant’s Duties to a Landlord  Duty to pay rent:  Gross lease: A lease in which the tenant pays a gross sum to the landlord and the landlord is responsible for paying the property taxes and assessments on the property 11

Tenant’s Duties to a Landlord  Commercial rental arrangements  Net lease  Double net lease  Triple net lease: The tenant is responsible for paying the rent, property taxes, utilities, and insurance 12

Tenant’s Duties to a Landlord  Duty not to use leased premises for illegal or nonstipulated purposes  Duty not to commit waste  Duty not to disturb other tenants 13

Transfer of Leased Property by Landlords  Rent-control ordinances: Local laws that stipulate the amount of rent a landlord can charge for residential housing 14

Assignment of a Lease by Tenants  Assignment of a lease: Transfer by tenant of his or her rights and duties under a lease to another  Assignor: A tenant who transfers rights under a lease  Assignee: A party to whom a tenant transfers rights under a lease 15

Exhibit Assignment of a Lease 16

Sublease of a Lease by Tenants  Sublease: An arrangement in which a tenant transfers some of his or her rights under a lease to another party  Sublessor: Original tenant who transfers some or all of his rights under a lease  Sublessee: The new tenant in a sublease arrangement 17

Exhibit Sublease 18

Antidiscrimination Laws and Real Property  Civil Rights Act of 1866: A federal statute that prohibits discrimination in the selling and renting of property based on race or color  Fair Housing Act of 1968: A federal statute that makes it unlawful for a party to refuse to sell, rent, finance, or advertise housing to any person because of his or her race, color, national origin, sex, religion, handicap (disability), or familial status (family has children under 18 years of age, pregnant women) 19

Antidiscrimination Laws and Real Property  Title III of the Americans with Disabilities Act: A section of a federal statute that prohibits discrimination on the basis of physical or mental disability in places of public accommodation operated by private entities  State and local fair housing laws: To prohibit discrimination in housing  State and local laws that are stricter than federal laws are permitted 20

Government Taking of Real Property  Due Process Clause: A clause of the U.S. Constitution that allows the government to take property for “public use”  Eminent domain: The government’s power to take private property for public use, provided that just compensation is paid to the private property holder 21

Government Taking of Real Property  Just Compensation Clause: A clause of the U.S. Constitution that requires the government to compensate the property owner, and possibly others, when the government takes property under its power of eminent domain 22

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