Chapter 9.1: Rental Agreements
Chapter 9.1 Vocab
• Lease
– Contract between a tenant and a landlord
• Lessee
– Tenant
• Lessor
– Landlord
• Tenancy
– Possession of land or property as a tenant
Types of Tenacities
• Tenancy for Years
• Periodic Tenancy
• Tenancy at Will
• Tenancy at Sufferance
Tenancy for Years
• The right to occupy property for a definite
or fixed period of time.
– 6 months
– 1 year
– 5 years
– 99 years
• Any amount of years, as long as the
amount is definite
• Some states require every tenancy to be
in writing, some require it to be in writing
only if it is over 1 year.
Periodic Tenancy
• Tenancy that continues for successive,
fixed periods of time.
– Year to Year
– Month to Month
– Week to Week
• Either party can terminate this tenancy by
giving advanced notice to the other
party.
• If notice is not given, tenancy continues for
the same period of time.
Tenancy at Will
• Interest in real estate property that
continues for an indefinite period of time.
• It exists without a contract or a lease
• It ends when the landlords or tenant
gives notice required by law.
– Usually 30 days noticed required
• This is desirable to both tenant and
landlord who wish to make changes in
future without needing to break a lease.
Tenancy at Sufferance
• Occurs when a tenant does not leave the
premises when the tenancy expires.
• AKA: holdover tenants- they are
wrongdoers.
• They no longer have legal rights to the
property.
• They must pay rent for the illegal
occupancy.
Lease Agreement
• Terms
– Rights and duties of the landlord and tenant.
– Tenant Rights: possession and continued
occupancy (free from intrusion).
– Landlord Rights: rent and possession of
property in good condition at end of lease
• Security deposit
– Amount of money a tenant will pay at the
beginning of a lease in addition to first months
rent. Landlord uses it to cover damage done
to property upon moving out.
Lease Agreement
• Assignment and Subletting
– Assignment: transferring remaining period
of lease to someone else.
– Sublease: transferring of part of the term of a
lease, but not the remainder of it, to
someone else.
• Options to renew
– Lease may contain provisions allowing renter
the option to renew the lease for one or more
additional periods.
Covenant
• Descriptions in the lease of the rights and
duties of the landlord and the tenant
– Responsibilities of Landlord
– Tenant Duties and Obligations
Responsibilities of Landlord
• Refrain from Discrimination
– You can’t refuse to rent property to any person
because of race, religion, color, national origin,
gender, age, ancestry, or marital status based
on the Federal Civil Right Act
• Maintain the Premise
– Must be fit for human habitation
– Must be relatively clean, properly heated,
furnished with utilities, and safe.
• Transfer peaceful possession
– Tenant are entitled to peaceful possession and
quiet enjoyment of premise
Tenants Duties and Obligations
• Abide by the terms of the lease
– Pay rent when it is due
– Observe the valid restrictions of the lease, failure to
abide by the terms can result in eviction
• Avoid Waste
– Cant damage or destroy property- decreases property
value
– Property must be in same condition it was when they
moved in
Tenants Duties and Obligations
• Return fixtures
– Tenant must return Fixtures: built-in stoves, kitchen cabinets, and
ceiling light fixtures
To determine if an items is a fixture courts consider the following:
1. Has there been temporary or permanent installation of the fixture?
2. Can it be removed without damage?
3. What was the intent of the parties at the time the attachment was
made?
• Trade Fixture
– A piece of equipment on or attached to the real estate installed by the
tenant
– They may be removed from the real estate (even if attached) at the end
of the tenancy
• Display Case, Lights, Shelves, etc.
Eviction
• Occurs when a landlord deprives a tenant of
the possession of the premise.
• Reasons for eviction:
–
–
–
–
Not paying rent
Staying after lease has expired
Damaging the premise
Violating provisions in lease
• Landlord CANNOT use force to evict a tenant.
• Landlord must obtain court order, officer carries
out eviction.
Constructive Eviction
• A landlord who deprives a tenant of
Utilities (electricity/heat/water)
– Infestation of roaches
• If conditions in your apartment are so bad
you think you cannot live there, you can
argue you were constructively evicted
• Allows you to break your lease and not
have to pay rent that would have been
due.
Tort Liability
• When someone is injured on rented or
leased property, both the landlord and the
tenant may be liable.
• Whoever is in control of the area where
the injury occurs determines liability.
• Landlords can be held liable for defects in
common areas: hallways, stairs, etc.
• Tenants can be held liable for defects in
private areas.
Vocab Continued
• Waste
– Anything beyond normal wear and tear to
rental property
• Rent Control
– Limit set on the amount a landlord can charge
for rent
Ch. 9.1 BINGO REVIEW
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Lessee
Lessor
Tenancy at will
Periodic tenancy
Tenancy at sufferance
Trade fixtures
Fixtures
Waste
Assignment
Sublease
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Constructive eviction
Landlord
Court order
Covenant
Tenant
Holdover
Eviction
Quiet enjoyment
Rent control
Security deposit