Property II – Edwards – Spring 2010
I. Main Types of Leasehold Estates
A. Term of Years(A non-freehold or leasehold estate that has a fixed or definite maximum duration)
1. Features:
a) Can terminate upon a stated event
b) No notice needed to terminate
c) For a fixed period of time
d) May be written or oral, as long as the oral agreement does not violate the applicable Statute of Frauds
(1) N.C.G.S. § 2-22 – If a lease is >3 years from the making (not the beginning date of the lease itself), it must be in writing to be valid.
(2) Ex. On January 10, 2007, A orally agrees to lease with X to lease A’s house in Durham from July 1, 2007 through June 1, 2010.
(a) X = Term of Years
(b) Term = July 1, 2007 – June 1, 2010 is two years, eleven months.
(c) Is there compliance with N.C. Gen. Stat. § 22-2?
i) NO. Agreement was made on January 10, 2007 – consequently, the lease would extend beyond the three-year period.
2. TERMINATION:
a) Stated event which occurs
b) Abandonment (but tenant is still responsible for rent)
c) Mutual Agreement
d) Condemnation or Eminent Domain
e) There is no notice of termination required
3. Common law – no limit
4. Modern law – whatever the state statutes says the limit is.
Future Interests
a) Landlord will have reversion
b) Third-party (if any) will have remainder
c) Can be subject to condition subsequent, determinable or subject to executory limitation
(1) Ex. L leases to T “for three years beginning January 15, 1998, so long as T pays rent of $300 each month, to be paid by the 1st day of the month, and if T fails to pay rent as agreed, the lease shal
Periodic Tenancy
Features:
a) Duration is continuous and indefinite until proper notice of termination is given either by the Landlord or the Tenant
b) Automatically continues for the predetermined period until terminated
c) Death does not terminate
d) Can be implied by law (expressly) or created by implication
(1) Can be oral or in writing
(2) Land Lord gives possession for unspecified period, where rent is paid periodically
(a) Ex. Land Lord leases Black acre to tenant from January 20, 1999 for $500/mo. Generally, if the rent is paid monthly, the law will imply a tenancy from month-to-month
Holdover tenant with Land Lord’s consent
(a) Ex. Land Lord leased Green acre to tenant for 2 years. At the end of the two year period, tenant remained in possession and continues to pay the same monthly rent to the Land Lord.
(b) In NC, the new duration of the new implied periodic tenant will depend on 2 things:
i) The length of the original term for years, and
ii) The way rent is paid
· If the original term for years was for 1 year or longer, the new implied periodic tenancy will be from year-to-year. If the original term was for less than 1 year, the new implied tenancy is based on the way rent was reserved (weekly, monthly, etc.)
Tenant takes possession under a void lease and makes periodic rent payments:
(a) If the original lease was >1 year, then the new period is from year to year
(b) If the original lease was
