MANGMT 3540 1st Edition Lecture 23 Outline of Last Lecture I Assuring Good Title II Real Estate Financing III Mortgage Options IV Default V Priorities of Mortgages Deeds Outline of Current Lecture VI Types of Tenancies VII Leases VIII Rights to Possession IX Duty to Repair X Tenant s Obligation to Repair Current Lecture I Types of Tenancies A Tenancy for Years i A tenancy for any specific amount of time even less than one year B Periodic Tenancy i A tenancy for automatically renewable successive periods of time such as month to month These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute C Tenancy at Will i A tenancy with no specific time frame terminable by either party at any time NOT recognized in Missouri D Tenancy at Sufferance i Wrongful possession of land by a tenant wrongful initial possession or a wrongful holding over after a lease term E Missouri Rule i A periodic tenancy tenancy at will tenancy at sufferance or an oral lease are all converted to month to month unless the lease is for agricultural land then they are converted to year to year II Leases A Temporary Exclusive Possession B Covenants in Lease i Dependent Covenants breach is material non breaching party is released from the lease 1 Examples paying rent for tenants keeping possession for landlords ii Independent Covenants breach is immaterial non breaching party is still bound to the lease 1 Examples failure to make minor repairs for landlords failure to keep property clean for tenant C Conditions i A breach of a condition may result in forfeiture early termination of the lease ii Example having 10 unrelated people where the lease allowed only 3 III Rights to Possession A Landlord Must Give Possession i English Rule The landlord must give actual possession ii American Rule legal right to possession burden on tenant B Landlord Must Prevent Interference with Tenant s Possession i Interference by Previous Tenants ii Nuisance by other tenants 1 Nuisance using one s land in a way which unjustifiably interferes with the use or enjoyment of another s real estate C Landlord Has a Reversionary Interest i A future interest in the property in which the right of possession is returned to the landlord at the end of the lease D Three types of Eviction i Eviction is removal of the tenant by the landlord and can happen in three ways 1 Actual eviction occurs by eviction notice or legal action 2 Constructive eviction occurs if three requirements are met a Defect in premises cause substantial interference with the ability to live there b Tenant notifies landlord who fails to remedy the defect c Tenant leaves the premises 3 Retaliatory eviction an eviction as a response to a complaint to a housing authority E Causes of Eviction i Non payment of rent ii Waste or prohibited alterations iii Unlawful use or nuisance iv Examples crack house is unlawful use IV Duty to Repair A Landlord s Duties i Common Law no duty of landlord to repair ii Modern Rule Missouri 1 Housing Codes require landlords to meet certain standards 2 Implied warranty of habitability requires residential landlord to keep the property fit for human habitation occupancy that is the property must be free of defects which endanger life health or safety 3 Duty to keep common areas safe 4 Contractual duties B Landlord s Liability for Injuries i Common Areas 1 A landlord is liable for injuries to tenants and third parties which occur because of negligent maintenance of common areas such as parking lots sidewalks and recreational facilities 2 Liability to tenants may be limited through a valid exculpatory clause ii High Crime Areas 1 Landlords may be liable for inadequate security V Tenant s Obligation to Repair A Commercial i Entire obligation to repair often allocated to tenant B Residential i Tenant s duty reduced by housing codes and the implied warranty of habitability ii Tenant may contract to make certain repairs and is also responsible for intentional or negligent actions which damage the property C Areas in Tenant s Control i Must be kept safe for invited guests