Landlord Tenant Law Unit 2: Basic Rights Possession

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Landlord Tenant LawUnit 2 Basic Rights-
Possession Rent and Transfer of Leasehold

• Fall 2009

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Overview

• Tenants Right to Possession
• Tenant to Tenant Transfers
• . Sublet v Assignment
• . LLs Right to Restrict Transfers
• Tenant Who Defaults
• . Surrender
• . Abandonment

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Tenants Right to Possession

• 1. Ts right to LEGAL possession
• 2. Ts right to Actual Possession
• a. Express covenant re actual possession
• b. General clause re Quiet Enjoyment
• c. Default Common Law Rules
• 1. English Rule
• 2. American Rule

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Remedies in the Holdover Tenant Situation

• LL OT
• English Rule American
  Rule
• NT

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Remedies in the Holdover Tenant Situation

• LL
  OT
• 1. evict as a trespasser
• 2. hold to a new term
  (breaching NTL)
• a. periodic
• b. term
• English Rule American
  Rule
• 1. possession damages 1.
  possession damages
• 2. terminate lease damages 2. hold
  OT to new term
• 3. part possession w rent reduction
• NT

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Sublet v Assignment

• 1. Substantive differences
• 2. Proof of each
• 3. Effect of an approval clause

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Sublet

• LL
• POE
• POK
• OT NT
• sublease
• OT primarily liable to LL for rent (per POK
  POE)
• NT liable to OT for rent (per sublease)

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Assignment

• LL
• POK
• OT NT
• POE
• NT primarily liable to LL for rent (per POE)
• OT secondarily liable to LL for rent (per POK)
• NT liable to OT for rent (per surety-ship law)

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Proof of Sublease or Assignment

• Common Law Reversion test
• Progressive Rule Intent test
• Limited effect of language
• OT intent to return/retain any interest

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Sublease or Assignment Collateral Matters

• Effect of breach of lease covenant
• If the head lease is terminated by OTs breach
• of a lease covenant sublessees or assignees
• possession ends
• Effect of a surrender by OT
• If OT surrenders her rights under the head
• lease sublessees or assignees possession is
• not disturbed

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Sublease or Assignment Collateral Matters

• Effect of Breach of Lease Covenant (by OT)
• If the head lease is terminated by OTs breach
• of a lease covenant sublessees or assignees
• possession ends
• Effect of a Surrender (by OT)
• If OT surrenders her rights under the head
• lease sublessees or assignees possession is
• not disturbed

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Approval of Sublet/Assignment Clauses

• General rule Restraints on alienation
  disfavored
• Exception Accepted re estates for years to
• prevent sublet/assignment without LL approval
• C.L. Absolute
• M.L Implied limit commercial reasonableness
• Restmt implies commercial reasonableness -
  but parties can freely negotiate an
  absolute consent requirement

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Tenant who defaults

• Common law rule
• substance
• proof
• Statutory replacement
• effect of statute exclusive?

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Surrender, Abandonment and Landlord Remedies

• Surrender
• Concept
• Types Express and Implied
• Effect
• Proof
• Abandonment
• LLs Options
• Accepted Surrender
• Rejected Landlords Remedies
• 1. Duty to Mitigate
• 2. Effect of Failure to Mitigate

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End