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P. 813-34: Landlord-Tenant Law I.   

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Leasehold Estates Landlord agrees to transfer possession of property for specified period to tenant in return for tenant’s promise to make a periodic rental payment Lease is both a conveyance of important property interest & a contract b/w landlord & tenant Tenancy Categories 1) Term of years  Specified period of time (can be any length)  Death of either party does NOT terminate tenancy  Landlord not entitled to evict tenant before end of term (UNLESS tenant breaches material term)  Future interest that follows terms of years, if retained by landlord = reversion  If at time lease signed, owner provides that property will shift to 3rd party at end of leasehold, 3rd party holds = remainder 2) Periodic tenancy  Renew automatically at specified periods unless either landlord or tenant chooses to end relationship  Required notice for termination is length of one period (up to some maximum, like 6 months)  Month-to-month tenancies: form of periodic tenancy (renew auto. each month)  Death of either does not terminate tenancy & Uniform Residential Landlord & Tenant Act requires 60 days for notice (varies though) 3) Tenancy at will  Similar to periodic but can be ended with NO notice by either party (most states abolished at will ones)  Death of either terminates tenancy at will 4) Tenancy at sufferance [Holdover tenant]  Tenant at sufferance = tenant rightfully in possession who wrongfully stays after leasehold terminated  Can’t just physically remove or call police like w/ trespasser  Usually require eviction proceeding & court judgment (if landlord accepts check, may be agreeing to new tenancy) Commercial & Residential Tenancies Residential = renting property for purpose of est. a home Commercial = any nonresidential use (operation of business for profit or nonprofit institution)  Residential leases (usually 1 year) tend to be shorter than commercial (up to a decade or more)  Courts adopt CL rules for residential & contractual for commercial (URLTA applies only to residential) Regulation of Landlord-Tenant Relationships Procedural reg. (impose formal requirements for crating landlord-tenant relationship) Statute of frauds (leases of more than one year be in writing, while 1 year or less enforceable written or oral) Substantive reg. (parties’ obligations to each other) Termination of relationships: 1) Notice 2) Eviction Proceeding & court judgment to evict tenant  May also provide summary process (expedited court proceedings) Consumer protection statutes [Ex = consumers of housing services allowing tenant to bring claims against landlords]  Courts must determine… 1. Whether tenants are protected by general consumer protection statutes that prohibit “unfair” or “deceptive” trade practices in sale of “goods” & “services” to consumers 2. What kinds of conduct constitute “unfair” or “deceptive” practices Distinguishing Tenancies from Other Property Relationships Vásquez v. Glassboro Service Association, Inc. Facts  ∆ is non-profit corp. comprised of farmers who contracted w/ Glassboro for migrant farm labor  Contract provided if employee was discharged, hearing was to occur no later than 5 days after notice  1976: foreman told π he was discharged & “hearing” a few hours later  7/76: Farmworkers Rights Project filed complaint seeking order permitting π to reenter his living quarters & enjoining ∆s from depriving him of use of quarters except through judicial process Court’s holding  should proceed in summary manner under R. 4:67  CL: one who occupied premises as employee of owner & received use of premises as part compensation for his services or under a contract of employment was not considered tenant

P. 813-34: Landlord-Tenant Law  1.

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NJ §2A allows eviction if tenant’s employment by landlord/owner as superintendent, janitor, or in some other capacity & employment is being terminated Question is whether Legislature intended to include migrant farmworkers in the phrase “in some other capacity”  Where general words follow specific enumeration, ejusdem generis requires general words are applicable only to the same class of things already mentioned  No, not similar to “superintendent” or “janitor” (don’t go home & not w/ family) [NOT a tenant] Farmworker entitled to notice before dispossession?  Migrant farmworker required to accept contract as presented by ∆  Puerto Rican Depart. of Labor & ∆ negotiated (may not have same interests as migrant worker)  Migrant farmworker has even less bargaining power than a residential tenant  Contract where one party, as here, must accept or reject contract does not result from consent of that party. It is a contract of adhesion!!  Failing to provide for reasonable time to find alternative housing makes contract inconsistent w/ the enlightened attitude of the Legislature & courts towards migrant farmworkers  Unconscionable & Inequitable relationship  Courts should devise remedy to fit circumstances of each case  Appropriate remedy may include time in addition to that implied in contract, assistance in obtaining alternative housing, return passage to Puerto Rico, etc.

Notes  Almost all states outlaw self-help in removing tenants, instead obligating landlords to use court proceedings (eviction) to recover possession  If no statute answers question of tenancy, case generally decided by asking whether owner has transferred exclusive “possession” of a defined space (yes  lease found, no  no lease found)  Distinguishing b/w licenses & leases  License if agreement does NOT transfer exclusive possession & did not identify any particular space w/ right to occupy  Contract Regulation views) i. Unequal bargaining power (need to be regulated) o Housing is a necessity & structural disparities b/c landlords own real property & tenants do NOT & landlords collude by using form leases drafted by real estate ass. that favor landlords ii. Freedom of contract (hardly ever regulate) [limits choices of the poor & their free will] iii. Minimum standards (regulate to ensure comply w/ legal framework of free & democratic society) o Consumer Protection laws I.  II.  

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The Sharing Economy in the Rental Housing Sector Criticized for reducing stock of available housing in tight rental market & safety concerns (Uber, Airbnb, etc) Conflicts about Occupancy Disputes arise cuz either (1) landlord interfered w/ tenant’s possession (“quiet enjoyment”) OR (2) tenant breached obligation to pay rent Landlord asserts claim against tenant, may seek either or both 1) Back rent 2) Possession of the premises (eviction) 3) Damages  Tenant may answer by denying or raise defenses admitting but entitled cuz landlord breached first Tenant may respond by… 1) Counterclaims (damages from landlord’s breach & court may order rent abatement) 2) Injunctive relief If tenant sue landlord initially…  Need (a) damages resulting from landlord’s breach OR (b) injunction ordering landlord to fix to comply w/ terms of lease or housing code Initial Occupancy: Landlord’s Duty to Deliver Possession Majority rule = landlord has duty to deliver possession of rented premises to tenant at beginning of leasehold Failure to deliver actual possession of premises to new t4enant constitutes breach of lease by landlord

P. 813-34: Landlord-Tenant Law  IV.

Minority rule = landlord has only duty to deliver right to possession but no duty of actual possession During the Leasehold A. Landlord’s Right to Inspect & Repair  URLTA §3.103 Access a) Tenant shall not unreasonably w/hold consent to landlord to enter dwelling in order to inspect, repairs, decorations, improvements, exhibit it, etc. b) Landlord may enter the dwelling unit w/o consent of tenant in case of emergency c) Landlord shall not abuse right of access or use it to harass tenant. Should give tenant 2 days of notice & enter at reasonable time, except in case of emergency or impracticable to do d) Landlord has no other right of access except 1) Pursuant to court order 2) Permitted by §4.203(b) [right to enter to fix damage caused by tenant] 3) Unless tenant has abandoned or surrendered premises B. Tenant’s Right to receive visitors & to marry C. Tenant’s Duties not to commit waste or cause a nuisance, & the problem of domestic violence D. Tenant use restrictions & obligations 1) Use restrictions o Usually limit use of premises to “residential purposes” 2) Covenants to operate o Tenants may be affirmatively obligated in some circumstances to continue use contemplated in lease o Most courts refuse to interpret % leases to find implied covenant if base rent is substantial o If base rent is nominal or much less than fair rental value, courts will find implied covenant o Courts will enforce express covenants to operate, but deny injunctive relief if unprofitable business 3) Anchor stores o Intended to attract large numbers of patrons and to serve as a draw to the shopping center that would enable smaller stores there to attract customers....