2023 Lecture OUTLINE 17 - Leases of Real Property
.docx
keyboard_arrow_up
School
George Washington University *
*We aren’t endorsed by this school
Course
3601
Subject
Law
Date
Jan 9, 2024
Type
docx
Pages
4
Uploaded by MagistrateAtom12857
Leases of Real Property
LEASES are, at the same time, both a
CONTRACT
and a
TRANSFER OF TITLE
between LANDLORD (LESSOR)
and TENANT (LESSEE).
The relative balance has changed over time, from
TRANSFER
to
CONTRACT.
Leases of real property are still called a
TENANCY FOR YEARS.
The law governing a particular lease depends on whether the lease is commercial or residential.
What is a commercial lease?
Office building, coffee shop, etc. If the premisis is going to be used for some business use.
Multiple Choice Question
Regarding the common characteristics of residential versus commercial leases,
a.
Parties to a residential lease typically have more equal bargaining position and negotiable terms.
b.
Parties to a commercial lease typically have more equal bargaining position and negotiable
terms.
c.
Parties to a residential lease typically have more equal bargaining position and nonnegotiable
terms.
d.
Parties to a commercial lease typically have unequal bargaining position and negotiable terms.
Residential
Commercial
The parties tend to have uequal bargaining
position. Landlord is at a stronger position.
The parties tend to have a more equal bargaining
position. The tenant is in the stronger position.
Typically non-negotiable. A form lease.
Terms are negotiable. Each commercial lease is
unique. A term isn’t a standard term.
Fungible. Residential elases are like all other
residential reases.
Are non-fungible. They are each unique.
There are many statutory rules to protect the
tenant.
The leases are governed by the common law of
the contract.
DC Tenant Bill of Rights
Which typically has a longer TERM (the
DURATION
of the lease)?
Commercial leases. There is the presumption that a commercial tenant doesn’t want to move.
A residential tenant wants more flexibility of where they live.
page 2 of 4
What if a lease mentions no term or the term has expired?
If there is no end date listed of if the term has expired, then it established a periodic tenancy
PERIOD-TO-PERIOD LEASE (PERIODIC TENANCY) – THE TIME PERIOD IS DETERMINED BY LOOKING AT THE
FREQUENCY THAT RENT IS DUE.
Under the common law, period-to-period leases automatically renew for another period unless one
party gives the other party
A PERIOD IN AN ADVANCE
notice.
What does it mean to say that parties to a lease must mitigate damages?
The nonbreaching party has the responsibility to take steps to minimize losses.
Why should the landlord in a commercial lease have less
of a duty to mitigate damages than the
landlord in a residential lease?
This is because comerical leases are not fungiuble. If landlord has to find a new tenant, that is
bery hard to do because the new tenant may be very different from the current one.
An IMPLIED WARRANTY OF HABITABILITY is implied in all
REDIENTIAL
leases.
Landlord implied promises the property will be "habitable," otherwise tenants can
WITHHOLD RENT
or use the rent money to
MAKE THE REPAIRS THEMSELVES.
What must a residential property have to be "habitable?"
Have bacis utilities, water, power, electricity, no rodents, doors with locks, fire escapes, safe
staircases, smoke alarms, emergency exits, has to be safe
Local jurisdiction has a list
This implied warranty cannot be
WAIVED
by the
RESIDENTIAL
tenant.
Landlord’s Liability for Injuries on the Premises
Suppose the landlord wants an exculpatory clause in the lease. In which type of lease is it more likely
allowed?
The landlord is not liable for injuries sutained while the tenant is leasing the building.
These are only allowed in commercial real restate because residential leaseses are in an unequal
bargaining position, as they sign a form lease.
The Case of the Bad Balcony
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help