4. Leaseholds (SOF)

Question 1

What type of interests do leasehold parties have?

Answer 1

Tenant
- Present interest

Landlord
- Future interest (reversionary)

Question 2

What is required for a tenancy for years?

Answer 2

1) Fixed period of time
- Fee simple determinable
- Fee simple subject to condition subsequent

2) Writing (lease > 1 year)
- Statute of Frauds

Question 3

How may a tenancy for years be terminated?

Answer 3

After expiration (automatic)

Tenant’s breach of covenants
- Landlord must reserve right of entry

Tenant failed to pay rent
- Landlord does NOT need to reserve right of entry

Tenant surrenders interest
- Writing (lease > 1 year) (SOF)

Question 4

What is required for a periodic tenancy?

Answer 4

1) NO fixed period
- Runs for successive periods until terminated by either party

2) Either by;
- Express agreement (month-to-month)
- Implication (monthly rent => month-to-month; annual rent payable monthly => year-to-year)
- By operation of law (hold-over)

Question 5

What is required for terminating a periodic tenancy?

Answer 5

1) Notice
- Written + Delivered
- Otherwise automatically renewed

2) Terminate at end of natural lease period

3) In advance
- 6 months’ notice (common law) (year-to-year)
- 1 month’s notice (modern view) (year-to-year)
- 1 month’s notice (month-to-month)

Question 6

What is required for a tenancy at will?

Answer 6

Landlord must have express right to terminate tenancy

• Implies Tenant’s right to terminate
• Either Landlord/Tenant can terminate tenancy
• Otherwise treated as periodic tenancy

Question 7

What is required for termination of a tenancy at will?

Answer 7

Notice

• Within reasonable time (most states)
• NO notice (common law)

Operation of law

• Death
• Waste
• Tenant’s transfer (attempt)
• Landlord’s transfer

Question 8

What is required for a tenancy at sufferance?

Answer 8

Tenant ‘wrongfully’ remains in possession after end of lawful tenancy
- Tenant is liable for rent

Question 9

What is required for termination of a tenancy at sufferance?

Answer 9

NO notice

- Tenancy lasts until Landlord evicts Tenant

Question 10

When is noticed required for termination of tenancies?

Answer 10

Periodic tenancy

• 6 months’/1 months’ notice (year-to-year)
• 1 months’ notice (month-to-month)

Tenancy at will
- Within reasonable time

NOT tenancy for years
NOT tenancy at sufferance

Question 11

When does the ‘hold-over’ doctrine apply?

Answer 11

Tenant continues in possession after expiration of tenancy for years
- NO Landlord’s consent

Question 12

What are Landlord’s options in a ‘hold-over’ doctrine?

Answer 12

Reject rent payment => Bind Tenant to tenancy at sufferance

Accept rent payment + Bind Tenant to periodic tenancy
- Same terms + conditions of previous tenancy

Question 13

How long are new periodic tenancies?

Answer 13

Commercial lease

• Year-to-year (lease => 1 year)
• Based on rent payment frequency (lease < 1 year)

Residential lease

• Month-to-month (even though yearly tenancy)
• Week-to-week (rent paid weekly)

Question 14

When does the ‘hold-over’ doctrine not apply?

Answer 14

Tenant stays after ‘few hours’ since expiration of tenancy

Tenant leaves few personal property

Tenant NOT at fault for delay in leaving

Seasonal lease
- Summer cottage

Question 15

How much rent should be paid in new periodic tenancies?

Answer 15

New rent
- Landlord notified Tenant of new rent BEFORE expiration (even if T objects)

Old rent
- Landlord notified Tenant of new rent AFTER expiration