Property Outline
LEASEHOLD
Two Trends
1. Contract Law
2. Helping the tenant
3 types of leases
1. Term of Years – Set termination
2. Periodic Tenancy – continues until terminated/month to month
3. Tenancy at will – Both parties can terminate whenever
Garner v. Gerrish
Tenancy at will v. something similar to L.E. determinable
Rule: A lease may provide for termination at the will
Of the tenant only
Holdovers (Tenancy at sufferance)
Choices (Once you choose one, you can’t change)
1. Evict
2. Treat as a trespasser
3. Treat as a tenant
Crechale & Polles, Inc v.Smith
Rule: A landlord who elects to treat a holdover as a trespasser Cannot later elect to hold the tenant liable for a new lease Term.
U.S. Fair Housing Code
Federal
Race, Gender, Religion, Familial Status, Handicap
States can provide extra
Ex: Marital status, sexual orientation
Exceptions (Can discriminate)
– Single Family House: IF owner has no more than 3 such houses
– Multifamily House: IF owner lives in it
– Religious or Private Groups: Issue w/ defining what a private club is
– Retirement Communties
–
Soule v. U.S. Department of House
Case about how the FHA works
RULE:
– A plaintiff must show membership in a statutorily protected class, application for and qualification to rent or purchase housing, and rejection despite housing remaining available. The burden then shifts.
– The defendant must then rebut with evidence showing the reason for rejection was legitimate. The plaintiff must then show the reason was pretext for discrimination.
PROCESS OF RULE: Burden of proof shift
1. P must show prima facie case
a. denied housing
b. within protected group
2. D has opportunity to rebut the prima facie case
3. P then has opportunity to show that the reason was
pretextual
APPLICATION
D offered to person with child, so that was evidence
Against pretextual.
Sublease v. Assignment
Def:
Assignment: Transfers all of the full share. L and T2 have privity of estate. L and T1 remain in privity of contract therefore T1 is always secondarily liable to T.
Sublease: Transfer of less than full share of estate. L and T1 privity stays in
by making reasonable efforts to re-let a property that has been abandoned
Policy Reasons
1. Fairness
2. Increase Marketability
3. Cut down litigation
4. Might be better for both parties
– tenant: less damage
– Landlord: Tenant not likely to pay
EX: Sommer v. Kridel
Landlord did not rent abandoned apartment and
Allowed damages to increase before re-letting.
Landlord had the duty to mitigate the damages.
Surrender
Can be implied by landlord reletting, not pursuing
OR Express
Landlord Security Devices
– Security Deposit
– Liquidated Damages (bad idea)
Warranties (Landlord Duties)
Delivery of Property
2 rules for who is responsible to deliver possession
Trend towards English rule
1. English rule = lessor responsible
– No one wants to inherit a lawsuit
– LL may have more information
– LL incented by desire to rent
