Nov02

Document Sample
Nov02 Powered By Docstoc
					     Property
Class XX – Leasehold
       Estates

    Prof. David Glazier
       Nov 2, 2006
Today’s Class
The Leasehold Estates
 - The Term of Years
 - The Periodic Tenancy
 - The Tenancy at Will

Cases:
 Garner v. Gerrish
    - The Tenancy at Will
    - Leasehold v. Freehold Estate
 Crechale & Polles v. Smith
    - Holdover tenants
                          End at 11:40
California Bar Exam Subjects
Civil Procedure          Professional Responsibility
Community Property       Real Property
Constitutional Law       Remedies
Contracts                Torts
Corporations             Trusts
Criminal Law/Procedure   Wills and Succession
Evidence

  State specific law tested
  Also covered by MBE
Renting v. Owning
Leasehold Estate    Freehold Estate
The Term of Years
Leasehold estate that lasts for fixed period
 - despite name, may be short or long
     -- 1 day, 1 month, 1 year, 5 years, etc.
 - common law had no limits
 - many states now limit by statute
     -- Cal limits agricultural land to 51 years
     -- Cal limits urban land to 99 years
Can specify event that will end tenancy
 - “To T for 25 years or until his death”
No termination notice required at lease end
The Periodic Tenancy
Fixed duration lease continuing until
  one side gives notice
 - “To A from month to month”
 - “To B from year to year”
If term not specified, equals rent
   frequency
Common law notice requirement
 - 6 mos. for year to year
 - lease period for any shorter lease
   -- e.g. 1 month for month to month
Tenancy at Will
Continues as long as parties mutually agree
 - Either party can terminate as desired
 - Generally 30 days notice required
     -- or time equal to rent interval
 - Also ends at death of either party (PT/TOY don’t)

Courts may find a Tenancy at Will if:
 - oral lease where state SOF requires a writing
 - lease allows one party to terminate (historically)
Garner v. Gerrish (NY 1984)
The Facts:
Robert Donovan owned house in Potsdam, NY
Leased to tenant Lou Gerrish in April 1977
  - details filled in on preprinted lease form
     -- rent set at $100/month
     -- Gerrish can terminate at date of his choice
     -- right of reentry if rent not paid 30 days after due
Donovan died in November 1981
Executor David Garner served notice to vacate
Garner v. Gerrish (NY 1984)
The Issue:
Does lease giving one party right to terminate
 still create a tenancy at will?
 - If so estate ended with Donovan’s death
 - Executor’s order to vacate valid
                     or
Did lease create a “life tenancy”
  - If so Gerrish can remain for his natural life
  - Fixed payment of $100/month
Garner v. Gerrish (NY 1984)
Analysis:
The common law
  - If lessee is at will, lessor must also be
     -- otherwise would effectively be a life estate
     -- can’t create a fee w/o livery of seisen
Modern law
 - No reason to be bound by antiquated rules
 - Intent of contracting parties should govern
Garner v. Gerrish (NY 1984)
Decision:
What did the court decide?



What estate did Gerrish have?
Crechale & Polles v. Smith (Miss 1974)
The Facts:
C gave S a five year lease ending Feb 1969
  - monthly rent was $1250
S sought month-to-month extension in Dec/Jan
C says he said no; S says C said he could stay
  - C tells S to leave/must pay double rent if holdover
S pays rent for Feb-Mar and C cashes check
S pays “final” rent (Mar-Apr) but C rejects check
  - S telegrams that he’s tendering premises
Crechale & Polles v. Smith (Miss 1974)
The Sad Saga Continued:
After S says he’s out, C declares he’s renewed
  - asserts S liable for new 5-year term

A year later C says pay up or vacate
S’s attorney then returns key to C!?
Crechale & Polles v. Smith (Miss 1974)
Holdover Tenants: The Law:
Landlord has two common law options:
  (1) treat as trespasser and evict
                        or
  (2) hold as tenant for a new term
   [full duration of original lease if < 1 year,
   additional year if original lease > 1 year]
Crechale & Polles v. Smith (Miss 1974)
The Decision:
Landlord didn’t exercise either traditional option:
  (1) Demanding tenant vacate precludes
  subsequent renewal of lease
                        but
  (2) Accepting rent and failing to eject creates
  right of tenant to remain
                        so
 landlord here creates month-to-month tenancy
  - S owes rent for actual occupancy and damages
Holdover Tenants: Takeaways
Common law:
  Landlord’s option: evict or hold to new term
State statutes:
  May limit holdover term (e.g., month to month)
  May provide double rent (e.g., Miss.)
  Typically address “self-help”
Customary Exceptions:
  Circumstances beyond tenant’s control
  Ongoing negotiations
  De minimis holdover
Looking Ahead
Next Class – Tue 11/07 pp. 373-87
 The Lease -              Skim pp. 373-376 ***
 Discrimination Law -     Skim pp. 376-383 ***
 Delivery of Possession - Read pp. 384-387
  - Hannan v. Dusch pp. 384-87
  - Notes 1-3 on pp. 387
    -- English v. American rules-your thoughts??

 Office hours today: 2:00-3:30
Questions?

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:0
posted:3/13/2012
language:
pages:19