What do we do with this grant? O -> X and her heirs for 10 years - PowerPoint PPT Presentation

What do we do with this grant? O -> X and her heirs for 10 years • Law treats it differently – X has a non-freehold estate • X is a lessee/tenant • O is a lessor/landlord

Term of Years ( TOY ) • Dura=on – the term • No=ce – none needed, automa=c

Periodic Tenancy ( P/T ) • Dura=on – the period • No=ce – period before termina=on - Must end at the end of a period

Tenancy at Will ( T/W ) • Dura=on – whim of either party • No=ce – immediate upon termina=on

Garner v. Gerrish for and during the term of quiet enjoyment from for and during the term of ______________ from the first day of May , 1977 which term will end – the _____ day of ____, 1977 which term will end – Lou Gerrish has the privilege of termina9on [sic] _________________________________________ this agreement at a date of his own choice _________________________________________

Crechale v. Smith • Dec.-Jan. ‘ 68- ’ 69 – Poten=al agreement • Feb. 4, ’ 69 – LeJer Smith to Crechale, confirm oral agreement to extend • Feb. 6, ‘ 69 – LeJer C to S, denies agreement, say must get out midnight on Feb. 6, ‘ 69 • Mar. 3, ‘ 69 – S sends check for Feb. – Mar., C cashes • Apr. 6, ‘ 69 – S sends check for Mar. – Apr., says “ final payment, ” C not cash • Apr. 7, ‘ 69 – S tenders building • Apr. 19, ‘ 69 – C says S holdover, treat renewal to Feb. 6, ‘ 74

Hannan v. Dusch • Covenant of Quiet Enjoyment • Implied? • Waivable? • Covenant of Delivery of Possession • Implied? • Should it be? • Statutory modifica=on • Waivable?

Ernst v. Condi@ • June 18, 1960 – Ernst leases to Rogers • Sec=on 5 – “ Lessee shall have no right to assign or sublet the leased premises without prior wriOen approval of Lessors ” (p. 442-43) • July 1960 – Rogers sells biz to CondiJ • Rogers and CondiJ go to Ernst for permission • Sec=on 5 – “ Lessor hereby consents to the sublePng of the premises to A.K. CondiO ” • All three par=es sign (p. 443-44) • Lease extended

Leasehold P/K L T P/E

Assignment P/K L T P/E P/K * P/K P/E T 1

Sublease P/K L T P/E P/K P/E P/K * T 1

Kendall v. Ernest Pestana, Inc. • City of San Jose leases hanger to Perlitch • Jan. 1, ‘ 70 – Perlitches in 25 year sublease to Bixler • ini=al 5 year term, with four 5-year op=ons to renew • rent increased every 10 years • 1981 – Bixler looks to sell business (and sublease) to Kendall and O’Hara • Pestana, successor-in-interest to Perlitch refuses • wriJen consent required before assignment of interest

Reste Realty Corp. v. Cooper • Cooper lease for five years on May 13, 1958 • During 1958 – rains causes interior flooding • Sign new five year lease star=ng April 1959 • Donigian promises to remedy water problem • Donigian dies on March 30, 1961 • “Crowning blow” – December 20, 1961 • Ask to clean up on December 21, 1961 • Cooper no=fies leaves on December 30, 1961

Doctrine of ConstrucGve EvicGon • L can breach Covenant of Quiet Enjoyment through her act or omission that: • renders the premises substan=ally unsuitable for the purpose for which it was leased or • seriously interferes with the beneficial enjoyment of the premises • Must be permanent interference • T must provide no=ce of interference • T must leave

Illegal Lease • When defect must be present? • What type of defect? • Remedy?

Implied Warranty of Habitability • What types of defects does it apply too? • What must be defected? • What standard do you apply to determine whether its a defect? • Is it waivable? • Does it apply to commercial leases?

Implied Warranty of Habitability -- Remedies • Hilder measures rent reduc=on: • FMV(complying) – FMV(non-complying) • Note 3 alterna=ve: • Rent Agreed - FMV(non-complying) • Difference? Note 4(d) under either op=on • Hilder method gives T $50 (offsets rent owed) • Alterna=ve gives T $0 (owes $50) • Other damages available: • consequen=al damages • puni=ve damages

Chicago Board of Realtors, Inc. v. City of Chicago • IWOH a good thing?