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Property II
Seton Hall Unversity School of Law
Waldeck, Sarah

Property Outline

A. Landlord and Tenant
1. Leasehold Estates
1. Term of Years: fixed calendar date particularly for when the lease ends
a. Must be fixed but can be terminable earlier upon the happening of some event/condition
b. No responsibility of notice as to when the lease is going to end

2. Periodic Tenancy: arrangement to rent/lease property for a time period that is more vague/general (month-to-month, year-to-year)
a. @ CL: six months notice to terminate for year-to-year, a notice equivalent to the length of the period for any thing other than year-to-year

3. Tenancy at Will: no fixed end date, lease will last for as long as the landlord and tenant want it to, notice is typically 30 days, usually arises from implication
a. Garner v. Garrish- Garrish maintains there was a tenancy at will b/c there was no definite term listed on lease
i. Holding: the lease expressly and unambiguously grants to the T the right to terminate, and does not reserve to the L a similar right
ii. Reas: To hold that such a lease creates a tenancy terminable at the will of either party would violate the terms of the agreement and the EXPRESS INTENT of the contracting parties

4. Tenancy at Sufferance: Arises when a tenant remains in possession after termination of the tenancy
a. CL gives the landlord two options: eviction (plus damage) or consent (implied/explicit) to the creation of a new tenancy
b. How much one is bound for is dictated by the period of the lease
c. Crechale & Polles, Inc. v. Smith- tenant stays after the termination of the years b/c not ready to move out, requests to extend to a month-to-month, dispute over whether he is
i. Rule: Tenancy at sufferance: L can evict or transform tenancy at sufferance to periodic tenancy, T also give L the option of treating him as a trespasser
ii. Absent evidence to show a contrary intent on the part of the L, a L who accepts rent from his holding-over T will be held to have consented to a renewal/extention of the leasing
iii. L failed to pursue the remedy of ejecting T
5. The Lease: transfers a possessory interest in land, also has K implications b/c it contains promises

2. Selection of Tenants: Housing Discrimination
1. Fair Housing Act, 42 USCA §§ 3601-3619, 3631
a. Anyone injured by a discriminatory practice may commence a civil suit for injunctive relief and damages
b. Discriminatory motive need not be proved in order to make a prima facie case; proof of discriminatory is sufficient
2. Gov. has interest in fair housing (equal opportunity in buying/renting properties)
3. § 1982: solely about race discrimination
a. § 1982 requires an intent (always has to do with race)
4. § 3603: Exceptions (can discriminate): 1) own house, for sell w/o help of agent or 2) renting in a small multi-family dwelling and living on-site
5. § 3604: Prohibits most types of discrimination: a) renting/selling, b) terms/conditions, c) print/publish, d) availability, 3) induce/entice another person to participate in discriminatory practices
a. §3604(b): can’t change terms/conditions (deals w/post-transaction/agreement portion-further protect against discrimination)
b. § 3604(c) deals w/advertisements
6. Unprotected classes: profession, sex, age, marital status

3. Subleases and Assignments
1. Theories under which L can sue a T:
a. Privity of Estate (who property is coming to landlord from)
property would go back to L @ the end of the lease period
b. Privity of Contract (1. whenever 2 parties have entered into K, 2. tenant somewhere down the chain promises to assume conditions of originating K)
i. Novation: written release form contract
àonly way to get out of privity of contract

2. Sublease: creates a new L-T relationship
a. A à B , privity of K, privity of estate
B (sublessor) à C (sublessee), privity of K, privity of estate
b. Sublessor liable to original lessor for all covenants in the original lease
c. Sublessee liable to the sublessor for the covenants in the sublease
d. Sublessee has no obligation to the original lessor

3. Assignment: triangle of relationships among the original lessor, original lessee who transfers her right (the assignor) and the person who receives the right(the assignee)
a. Privity of K continues between lessor & assignor
b. Privity of K created between assignor & assignee
c. Privity of estate arises as a matter of law between lessor & assignee

4. Third Party Beneficiary Rule: is a person who may have the right to sue on a contract, despite not having originally been a party to the contract. This right arises where the third party is the intended beneficiary of the contract, as opposed to an incidental beneficiary. It vests when the third party relies on or assents to the relationship, and gives the third party the right to sue either the promisor or the promisee of the contract, depending on the circumstances under whi

ed L of plan to abandon apt, L did nothing and sued for unpaid rent
a. Issue: Does L have a duty to mitigate damages?
b. Factors:
i. L’s past practices
ii. L’s efforts to get tenants
iii. L’s period of time in which he seeks re-letters
c. CL Approach: no responsibility for L to mitigate
i. Why: interest has been transferred for a defined term, during that term, it is the T’s responsibility
ii. Abandonment/open to vandalism, L’s not the wrong doer, demonstration of a surrender (implicit)
d. Arg in favor of mitigation:
i. Prevent abandonment/vandalism
ii. Fairness to Ts
iii. Use of property
iv. A lease is a K and K’s principles should apply
e. L has burden to prove he/she has mitigated
f. L can accept surrender through:
i. Express: written agreement
ii. Implicit: by virtue of her actions

4. Duties: Rights and Remedies
A. T’s Rights:
i. Early CL: only responsibility L has to T is to convey the land
ii. Only concern was the actual land (soil)
iii. As economy changed, buildings became more relevant in terms of property law
iv. Caveat lessee: Buyer beware, T’s problem
v. Small exceptions: L has to make premises habitable before T moves in, suitable for specific purposes

B. Quiet Enjoyment and Constructive Eviction
i. Quiet Enjoyment: T’s entitlement to be satisfied in its leased premises
ii. Constructive eviction: any act/omission of the L/of anyone who acts under authority/legal right from the L, or of someone having superior title to that of the L, which renders the premises substantially unsuitable for the purpose for which they are leased, or which seriously interferes w/the beneficial enjoyment of the premises

C. Reste Realty Corp. v. Cooper-T abandoned office prop after flooding, L attempted to recover rent
1. Court: Defect: Ex: failure to supply heat, sewage backup, Must be serious defect to qualify
2. Violations amount to:
i. Quiet enjoyment: use property for purpose that L & T intended