Bài giảng Business Law (13th edition) - Chapter 25: Landlord and Tenant

PropertyPersonal Property and BailmentsReal PropertyLandlord and TenantEstates and TrustsInsurance Law5McGraw-Hill/Irwin Business Law, 13/e© 2007 The McGraw-Hill Companies, Inc. All rights reserved.Landlord and TenantPAETRHC25“Justice, though she’s painted blind, is to the weaker side inclined.” Samuel Butler Learning ObjectivesNature of leases and tenanciesLandlord’s rights, duties, and liabilitiesTenant’s rights, duties, and liabilitiesTermination of the leasehold25 - *Typical real property lease is a contract for commercial or residential purposesBargaining position generally favors landlordDuration of tenant’s possessory right depends upon type of tenancy: tenancy for a term, periodic tenancy, tenancy at will, or tenancy at sufferanceOverview 25 - *Landlord’s Rights & Duties25 - *Landlord entitled to receive agreed rent for the lease term and the return of property at lease end in as good a condition as when leased, except for normal wear and tearImplied warranty of possession grants tenant’s right to possess property for lease termImplied warranty of quiet enjoyment guarantees that landlord (by act or omission) will not interfere with tenant’s possessionLandlord’s Duties25 - *Implied warranty of habitability: landlord must deliver a habitable dwelling at lease beginning and maintain premises in habitable condition State law remedies for breach of the implied warranty include: action for damages, lease termination, withhold rent, repair-and-deductConstructive eviction occurs when property becomes unsuitable for rental purposesTenant may terminate leaseLandlord’s Duties25 - *Fair Housing Act prohibits discriminatory practices in transactions affecting housing, including the rental of dwellingsTitle III of the Americans with Disabilities Act requires owners and possessors of real property with public access to reasonably accommodate and make necessary physical modifications to allow access to disabled personsLandlord’s Tort Liability25 - *General rule: landlord has no tort liabilityCurrent trend: landlords will be held liable for injuries for breach of the following duties:Maintain common areas, disclose hidden defects, use reasonable care in performing repairs, maintain property leased for public admission, maintain furnished dwellingsSee Matthews v. Amberwood Associates Limited Partnership, Inc.Primary duty of tenant is to pay rentOther duties: to not commit waste on the property (i.e., do not destroy premises) and return property to landlord at lease endRights to exclusive possession and quiet enjoyment of property during lease termTenant liable to persons harmed while on tenant’s leased premises if tenant negligentTenant’s Duties and Rights25 - *Assignment: landlord or tenant transfers all rights under the lease to another personAssignee steps into shoes of original tenantSubleasing: tenant transfers some (not all) rights to possess the property to anotherTenant becomes landlord to sublesseeFor assignment or sublease, original tenant ultimately remains liable to landlordLease Assignment or Sublease25 - *Test Your KnowledgeTrue=A, False = BA landlord has no liability for injuries a tenant’s guests suffer in or on the real propertyPrimary duty of tenant is to pay rentConstructive eviction means that tenant may terminate the lease because s/he has effectively been evicted due to landlord’s breach of the warranty of habitability25 - *Test Your KnowledgeTrue=A, False = BThe general rule is that landlords may not require a security deposit for greater than 10% of the lease amountThe term “repair-and-deduct” means that landlord may repair defects and deduct costs from the security depositThe Civil Rights Act prohibits discriminatory practices in housing transactions25 - *Test Your KnowledgeMultiple ChoiceBarb rented a house from Steven. When she tried to move in, she found the prior tenant’s furniture and trash. Barb: (a) may terminate the lease since the landlord breached the warranty of possession(b) must move in and pay rent, but may deduct the cost of removing the prior tenant’s furniture and trash from her rent(c) must file a complaint with county authorities before terminating the lease(d) none of the above25 - *Test Your KnowledgeMultiple ChoiceJack leased a space in a shopping center from owner ABC Properties. Jack’s customer was injured when she tripped on a very large pothole in the parking lot. Who is liable for the customer’s injury? (a) Jack since the customer was his customer(b) The customer since she didn’t look where she was walking(c) ABC Properties since they are liable for maintaining common areas and failed to do so25 - *Thought QuestionsHave you ever had a problem with a lease?Do you think the court ruled correctly in the Matthews v. Amberwood Associates Limited Partnership, Inc.? How should the landlord have handled the situation?25 - *