Property
Class Notes
Statutory tenancy
In
fairly recent years, beginning in 1975, there has been more and more regulation
of the landlord-tenant relationship, especially in the residential
setting. Virtually every state has
created some form of regulated tenancy.
Sometimes this has been created by judicial action only. For example, every lease may be found to
create a implied warranty of inhabitability that can’t be waived. In other states like
Precedent
in this area is of somewhat dubious value because the law is changing very
quickly as far as the law goes. That
means that if you look at a case from 1955 decided by a state Supreme Court and
there’s no case overruling it, you can’t count on that case still being good
law. That just means that the court hasn’t
considered the subject recently, and
the law may well change the next time it comes up.
A periodic tenancy problem
A
month to month tenant notifies the landlord in the middle of November that she
is going to vacate the premises two weeks later. The tenant leaves, and the landlord tries to
relet the premises, but isn’t able to until April. The landlord sues for the rent between December
and April. How much should the landlord
recover? The rule is that the notice
must coincide with the period of the tenancy.
So if your tenancy is the first of the month to the end of the month,
the 30 days notice must be given on the first of the month so that the 30 days
will be up at the end of the month. The tenant
will owe some rent: but will she owe one month’s rent or four month’s rent
(because her notice was inadequate)? Can
we construe the tenant leaving on November 30th as notice? What about that action plus her words of
November 16th? Probably she’ll
only be liable for one month’s rent.
So
what’s going on here? This is about some
squatters in
Will
the landlords have to use the Forcible Entry and Detainer statute, or will they
be able to use self-help? This is why it
matters whether the squatters are tenants or trespassers. Under the statute, even a tenancy at
sufferance cannot be terminated without 30 days notice. That means that the tenants will be entitled
to stay in the building for at least another 30 days. The FED statutes create a tradeoff: the tenants
get some protection, but the landlords get a quicker procedure. For example, consider
So
what is self-help? The landlords might
do things like change the locks, turn off the heat, and other sort of
underhanded stuff. When is self-help
allowed under the
“The
state has an interest in monopolizing violence.
If there’s going to be violence it’s going to be the police or the
sheriff that does it and not private individuals. In that way, it’s controlled.”
This
may not apply to commercial leases.
Force is much more likely to be permissible as between businesses than
between a landlord and a private, individual tenant. In commercial situations, the same policies
are not at stake.
The lease
Say
two kids get forcibly kicked out of a restaurant for not wearing shoes. Do they have any cause of action? Maybe they have some kind of tort if
excessive force was used. Do they have a
cause of action like the tenants in Walls v. Giuliani? They’re not exactly trespassers. Are they tenants? Can they stay in the restaurant for 30
days? No, because they don’t have a
lease. We must distinguish between a
lease and other things. A lease may or
may not be a contract, but it carries certain rights, including the right not
to be dispossessed. If you get kicked
out of a movie theatre, you don’t have a lease, but rather a license, which
means you don’t have a property right to remain where you are subject to some
judicial proceeding terminating that property right. So it’s important to distinguish between
leases and licenses.
The
statute of frauds applies to leases, but not short-term leases. Generally, all transfers of real property
have to be in writing to be effective.
One exception is short term leases.
If you have a lease for a year or less (or three years or less in some
places), it doesn’t need to be written.
Also, most courts hold that the Rule Against Perpetuities doesn’t apply
to leases because they are a form of vested estate. But options on the renewal of leases may
violate the Rule Against Perpetuities.
But if you’re in a state where that’s the law, then all you have to do
is say that the tenant has the option to renew every year during the tenant’s
lifetime or during the tenant’s lifetime plus 21 years. What would kind of get around the problem,
but not really, would be to make it a periodic tenancy. But that wouldn’t give the tenant the same
thing that this gives the tenant. The tenancy
could be terminated with appropriate notice.
What is being bargained for in our example is a lease that can be
renewed at the same rate basically forever.
What
is an indenture? Think of the word “indented”. Indentures were used when people couldn’t
read much. If you wanted to know if
someone else had a copy of what you have, you would tear a piece of paper with
a jagged edge and then you could always check if they fit together. This has no meaning anymore really, but
sometimes we’ll call a lease “an indenture of lease”.