Landlord and Tenant
Landlord and Tenant
This domain tests lease creation, the covenants that allocate risk between landlord and tenant, and the consequences of assignment, subletting, and breach.
Lease essentials
- A lease requires a certain term, exclusive possession, and the intention to create a landlord–tenant relationship; rent is not essential.
- A legal lease for more than three years must be by deed; shorter leases may be created orally or in writing, depending on statute.
- Implied covenants: quiet enjoyment and non-derogation from grant; repair obligations depend on the express terms and statute.
Assignment and subletting
- Assignment transfers the whole unexpired term; subletting grants a smaller estate out of the tenant’s term, retaining a reversion.
- Privity of estate binds assignees to covenants that touch and concern the land; privity of contract keeps the original tenant liable unless released.
- Qualified alienation covenants require consent not to be unreasonably withheld; breach may lead to forfeiture or damages.
Worked example
T holds a 10-year lease containing “no assignment without landlord’s consent, such consent not to be unreasonably withheld.” T assigns to X without asking. Landlord sues. Reasoning: the covenant is qualified, but T still needed to request consent. The assignment is not automatically void; the landlord may claim damages or forfeiture if the lease provides. Reasonableness would be assessed if consent had been refused.
Traps
- Confusing assignment with subletting; only assignment transfers the whole term.
- Assuming rent is essential to a lease; exclusive possession and certainty of term matter more.
- Overlooking registration requirements for leases.
- Waiving forfeiture by accepting rent with knowledge of the breach.