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creating a leasehold - Coggle Diagram

- - - - when a T attempts to surrender the lease before the lease expires...
        
        traditional / min rule = LL doesnt have duty to mitigate damages
        
        modern / jam rule = LL does have duty to mitigate and must take reaosnable steps to re-let the property. reaosnable steps = make efforts to show the apartment, advertise
        
        these rules are triggered by the attemtped surrender on the part of the T
  - - - when a T holds over, LL has 2 options = treat T like a trespasser and kick them out, eviciton; hold the T over for a new lease term, tnenacy at sufferance
        
        LL must choose oen or the other, cant start treating the tenant as a tenancy at suffereance and then try to evict them
  - - - self help = using methods that arent through the legal process of eviciton to remove a T from property. ex. changing locks. these were permiteted at common law so logn as they were peaceable
        
        modern rule = LL canot use self hemp, must use legal process
        
        wrongful eviciton = when LLs still used self help even though the jursdiciotn only permits legal eviction
        
        some states still do let LLs use self help
        
        eviciton for acts of third parties
        
        many leases contain clauses prohibiting illegal activities in the premises
        
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- - - - anti discrimination stattutes are borad and go beyond just hte protection agasint LLs refusing to rent ot ccertain Ts. define protected classes of people and prohibit discrimination agaisnt people ased on their membership in a protected class
        
        federal fair housing act FHA = most important anti discrimination statute in US
        
        passed in 1968, has been amended many times
        
        3601 = statement of policy
        
        3604 = meeat of FHA
        
        two components = prohibition, protected classes; nothing about sexual orientation, familia status, defined in 3602k, presence or absence of minor children
        
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- - - - many leases include an express covenant of quiet enjoyment = if lease is silent on this issue, then courts will read an implied covenant of quiet enjoyment. T has queit use and enjoyment of the property if T is able to use the proeprty without interference nad if no other person is asserting a right to be able to use or possess the proeprty.
        
        covenant of quiet enhjoyment = older doctrine
        
        at common law, T's obligation to pay rent and LL's obligation to gie quiet enjoyment were independent of each other
        
        if T moves out because right to quiet enjoyment has been violated, they are consisdedered to have suffered consturctive eviction, releived of rent
        
        if T doesnt move out, then they can sue for damges under CQE, but have not been sconstructvely evicted, have to keep paying rent
        
        constructive eviciton = when LL has breach the CQE to the degree that the T is forced to move out of the peoprty
        
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  - - - what do you need ot prove IWH? living conditions not fit for human habitation, focus on hosing codes, dconditions harmful to health / safety of the T.
        
        Ts do not have t omove out of the apt to stop paying rent in IWH situation
        
        Ts do need ot give the LL the opportunity to fix the problem and the LL has to fail in fixing the problem. courts differ on what constitutes reasonable lengths of itme to allow LLs to address / solve issues in a T's property
        
        Ts can get punitive damges under IWH
        
        LLs can violate both CQE and IWH at teh same time
        
        exam tip = never alk about IWH or CQE without bringing the other up, enven if most likly only one applies
        
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- - - - sublease = original T transfers something less than all of their rights / interst to the new T. ex. L leasess to T for a term of 5 years, ending Dec 31, 2020. T transfers he rights under hte lease to T1 for a term ending nov 20, 2020. T transfers some of the lease duration to T1, but still retains time for herself. the transfer from T to T1 is a sublease.
        
        courts will look at the substance of a trasnfer rather than what the parties call it when deciding if something is an assignemtn or a sublease
        
        parital assignment = whe na T assigns ful interest to only part of the perorperty, i.e., one acre on a two acre plot, full transfer on part of the proeprty
        
        whether a transfer is an assignemtn or a sublease can impact the privity relationships bewtewen the parites
        
        two people are in privity if they are parites to a ceratin type of transaction
        
        privity of contract = when parties are on opposite sides of a contract
        
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  - - - law genrally favors free alienability of proepty
        
        subleases and assignments are the mechanism Ts use to transfer their rights under a lease. restriction on subleases and assignmetns represents a restriction on the alienability of a proprety interest.
        
        if lease is silent on issue, then they are freely assignable and transferrable
        
        some leases will say the T cant assing / sublease AT ALL PERIOD
        
        otehr leases will say that T cant assign / sublease w/out LL's permission
        
        maj rule = LL can arbitrarily say no to a T that wants to sublease / assign interest
        
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- - - - LL retains a reversion that becomes possessory when the leasehold interest expires
        
        a lease is also a contract
        
        part of a lwase contains a conveyance of hte property interst
        
        in a lease, teh LL and T each make binding ocntractual promises to each other
        
        hybrid property ocntract nature of a lease
        
        historically, the preoprty aspect of the lease dominated with all the ritghts and responsibilties of ownership
        
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- - - - most states dont regulate the maximum rent that a LL may charge a T, but they do regulate the maximums amount htat can be charged for a security deposit. also regulate how long a LL has to return an unused security deposte and how it must be held by teh LL. these statues typically only apply to residientail leases.
        
        the lease itself = statute of fradus requries that a lease for a term of more than 3 years be in writing
        
        written lease must at minimum contain certain essential terms = names of the parties, identity of the property to be leased, duration of lease, amount of rent, signatures of both parties
        
        a well drafted lease shold anticipate and address foreseeable problems between LL and T, leases end up being lengthy docuemnts usually
- - - - we like the english rule better because a LL is in a much better position to know about any holdover Ts
        
        under both english and american rule, there is an implied covenant in the lease that hte LL has a duty to delvier the legal right of possession to the T
        
        T, however, doesnt have a reciprocal duty to actually take possssession unless the lease expressly requires it
- - - - duty to not use the premises for illegal purposes = implied covenant to not use the property for illegal purposes exists both in commercial and residential elases. LL may sue for damages if T uses property for illegal purposes. in some jursdicitons, LL can be held liable for T's criminal acts if LL knew or should have known about hte illegal activity
        
        duty to not commit waste = most leases include express prohibitions on waste, so a waste dispute between a LL and T typically will turn more on teh langugae of the lease than the common law of waste. some provisions apply = T will be laible to the LL for committing affirmative or permissive waste, LL can use security deposits to help compensate for any watste a T might ocmmit. Ts have an implied duty to make minor reparis and will be liable if they fail to take reasonble steps to keep the proepty form fallign into despair