Leases Section Eight Learning Objectives ► To know of the Louisiana Civil Law concerning Leases. ► To know the different types of Leases in Louisiana Civil Law. ► To know Eviction Laws and Security Deposit Laws. The existence of a Lease permits one person to reside on the land of another. But the lease is not a real right. It is not classified as an immovable and does not have to be in writing, regardless of the term (length) of the lease. A. Written Lease If the lessor (landlord) and the lessee (tenant) enter into a written agreement, it governs the relationship between them. B. Verbal Lease If the lease is not in writing, then the civil code articles will govern. C. Common Law versus Civil Law There is no Louisiana concept of non-freehold estate or the various tenancies or estates known to common law, such as estates for years, periodic tenancy, tenancy at will, nor tenancy at sufferance. D. Definition of Lease A lease is a synallagmatic (bilateral) contract to which consent alone is sufficient and by which one party gives to the other the enjoyment of a thing at a fixed price. E. Kinds of Leases Two kinds of Leases are: (1) letting out of houses and movables, called lease for rent, and (2) letting out of predial or country estates, called a farming lease.. 1 F. Month to Month 1. 2. G. Reconduction House/Farm 1. 2. 3. H. 2. 3. The lessor has a privilege on movables found on the premises, except for certain items exempt from seizure, even if the movables belong to a third party. The third party may claim them prior to judicial sale. If the movables have been removed from the premises, the lessor can have them seized in exercise of his privilege within fifteen (15) days of removal. Eviction 1. 2. 3. 4. 5. 6. J. If a lease has expired and the lessee continues in possession for a week without opposition, the lease is presumed to have continued. The ten-day legal notice must be given before he can be compelled to vacate. If it is a farm lease, and the farmer holds over a month without opposition, the lease shall continue for a year. Lessor’s Privilege 1. I. If no time is specified in the lease the lease is a month to month lease. At least ten (10) days’ notice before the expiration of the month is required to terminate it. For failure to pay rent, the lessee can be expelled. If he has not waived notice, in writing, and the lease does not provide otherwise, the lessor must give five (5) days’ notice to vacate. Upon filing eviction suit, the court will order the lessee to vacate, if the lessee is in default. Within three (3) days, if he does not vacate, the court may order that he be expelled and the property cleared. Special laws apply to these proceedings. Action by the lessor to evict, without following these laws and without court order, may result in liability of the lessor to the lessee, regardless of the default of the lessee. Duty to Minimize Damages 1. Should the lessee furnish an advance deposit to secure any party of the lease, the lessor must return it upon termination of the lease within one (1) month, less any amount required to remedy a default or unreasonable wear to the premises. 2 2. 3. 4. 5. K. An itemized statement must be given to the lessee, accounting for the proceeds retained and giving the reasons for the retention. Should the lessee abandon the premises without notice or prior to termination, the lessor may retain the deposit without the itemizations. The tenant may recover actual damages or $200.00, whichever is greater, plus costs and attorney’s fees for willful failure to comply with these provisions. No waiver of the lessee’s rights concerning these provisions is valid. Transfer of Deposit 1. 2. The licensee should be aware that, if the lessor sells the leased premises during the term of a lease, the deposit should be turned over to the purchaser. The seller is then relieved of further liability regarding the deposit, and the buyer is then responsible. 3