Bài giảng Business Law - Chapter 25: Landlord and Tenant

Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin5Personal Property and BailmentsReal PropertyLandlord and TenantEstates and TrustsInsurance LawPropertyPARTLandlord and TenantPAETRHC25Justice, though she’s painted blind, is to the weaker side inclined.Samuel ButlerLearning ObjectivesRecognize various legal principles applicable to landlord–tenant relationshipsDescribe nature of leases and tenanciesDiscuss rights, duties, and liabilities or both landlord and tenantExplain lease terminationTypical lease today is for commercial or residential purposesPrimarily a contractual relationshipBargaining 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 sufferanceLeases TodayCharacteristics of Lease TypesLandlord’s RightsLandlord entitled to receive agreed rent for the term of the lease and upon termination, landlord has the right to the return of property in as good a condition as it was when leased, except for normal wear and tearLandlord may demand security or other depositsLandlord’s Duties -- WarrantiesImplied warranty of possession guarantees tenant’s right to possess the property for the term of the leaseImplied warranty of quiet enjoyment guarantees that a landlord’s act or omission will not interfere with tenant’s possessionLandlord may not enter leased property during the lease term except for purposes of inspection or repair as stated in the lease agreementImplied warranty of habitability: like the one implied for sale of real property, landlord-grantor must deliver a habitable dwelling at the beginning of leaseFor a lease, landlord-grantor also must maintain premises in a habitable condition State law may obligate the landlord to comply with any applicable housing codesIn Brooks v. Lewin Realty III, Inc., landlord failed to comply with code and child was injuredLandlord’s Duties -- WarrantiesBreach of Landlord’s DutiesState law remedies for breach of the implied warranty of habitability differ, but include:Action for damages. Measured by diminished value of the leaseholdTermination of lease. Landlord’s breach must have been extreme enough to be material breachRent abatement. Tenant may withhold part of rent for period during which landlord was in breach Repair-and-deduct. Tenant may repair defects and deduct costs from rent after notice to landlord and opportunity to cureConstructive EvictionDoctrine of constructive eviction aids a tenant when property becomes unsuitable for the rental purposesApplies to residential and commercial propertyTenant may terminate the lease because s/he has effectively been evictedNo further rent obligation if tenant vacates promptly after giving the landlord reasonable notice and opportunity to correct problemLandlord’s Duties – Federal LawFair 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 that is a place of public access (i.e., a commercial property) to make reasonable accommodations and physical modifications, to allow access to disabled personsLandlord’s Tort LiabilityGeneral rule: landlord has no tort liabilityCurrent trend: landlords will be held liable for injuries for breach of the following duties:Duty to maintain common areas Duty to disclose hidden defectsDuty to use reasonable care in performing repairs Duty to maintain property leased for public admissionDuty to maintain furnished dwellingsPrimary duty of tenant is to pay rentTenant also has duty not to commit waste on the property (i.e., duty not to destroy premises) and to return the property to the landlord at lease terminationTenant has rights to exclusive possession and quiet enjoyment of the property during the lease termTenant’s Duties and RightsTenant normally liable to persons who suffer harm while on the portion of the property over which tenant has control, if injuries resulted from tenant’s negligenceIf a tenant breaches the lease, landlord may take action to evict the tenantState law generally allows for speedy eviction procedureTenant’s LiabilitiesLike other contracts, rights and duties may be assigned unless otherwise prohibited in the lease contractAssignment: landlord or tenant transfers all rights under the lease to another personSubleasing: tenant transfers some (not all) rights to possess the property to anotherRelationship of tenant to sublessee becomes one of landlord and tenantLease AssignmentSignificance of distinction is that an assignee acquires rights and duties under the lease between landlord and original tenant, but a sublessee does notAssignee steps into shoes of original tenant and acquires any rights original tenant had by leaseUnder assignment or sublease, original tenant remains liable to landlord for commitments made in the leaseAssignment v. SubleaseThought QuestionsHave you ever had a problem with a lease?Do you think the court ruled correctly in Matthews v. Amberwood Associates Limited Partnership, Inc.? How should the landlord have handled the situation?