MANGMT 3540 1st Edition Lecture 23 Outline of Last Lecture I. Assuring Good TitleII. Real Estate Financing III. Mortgage OptionsIV. DefaultV. Priorities of Mortgages/DeedsOutline of Current Lecture VI. Types of TenanciesVII. LeasesVIII. Rights to PossessionIX. Duty to RepairX. Tenant’s Obligation to RepairCurrent LectureI. Types of TenanciesA. Tenancy for Yearsi. A tenancy for any specific amount of time, even less than one yearB. Periodic Tenancyi. A tenancy for automatically renewable successive periods of time, such as month to monthThese 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 Willi. A tenancy with no specific time frame-terminable by either party at any time (NOT recognized in Missouri)D. Tenancy at Sufferancei. Wrongful possession of land by a tenant – wrongful initial possession or awrongful holding over after a lease termE. Missouri Rulei. A periodic tenancy, tenancy at will, tenancy at sufferance, or an oral leaseare all converted to month to month unless the lease is for agricultural land, then they are converted to year to yearII. LeasesA. Temporary Exclusive PossessionB. Covenants in Leasei. Dependent Covenants—breach is material, non-breaching party is released from the lease1. Examples: paying rent for tenants, keeping possession for landlordsii. Independent Covenants—breach is immaterial, non-breaching party is still bound to the lease1. Examples: failure to make minor repairs for landlords, failure to keep property clean for tenantC. Conditionsi. A breach of a condition may result in forfeiture—early termination of the leaseii. Example: having 10 unrelated people where the lease allowed only 3III. Rights to PossessionA. Landlord Must Give Possessioni. 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 Possessioni. Interference by Previous Tenantsii. Nuisance by other tenants1. Nuisance: using one’s land in a way which unjustifiably interferes with the use or enjoyment of another’s real estateC. Landlord Has a Reversionary Interesti. A future interest in the property in which the right of possession is returned to the landlord at the end of the leaseD. Three types of Evictioni. Eviction is removal of the tenant by the landlord, and can happen in three ways1. Actual eviction occurs by eviction notice or legal action2. Constructive eviction occurs if three requirements are met:a. Defect in premises cause substantial interference with the ability to live thereb. Tenant notifies landlord who fails to remedy the defectc. Tenant leaves the premises3. Retaliatory eviction: an eviction as a response to a complaint to a housing authorityE. Causes of Evictioni. Non-payment of rentii. Waste or prohibited alterationsiii. Unlawful use or nuisanceiv. Examples: crack house is unlawful use IV. Duty to RepairA. Landlord’s Dutiesi. Common Law—no duty of landlord to repairii. Modern Rule- Missouri1. Housing Codes—require landlords to meet certain standards2. 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 safety3. Duty to keep common areas safe4. Contractual dutiesB. Landlord’s Liability for Injuriesi. Common Areas1. 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 facilities2. Liability to tenants may be limited through a valid exculpatory clauseii. High Crime Areas1. Landlords may be liable for inadequate securityV. Tenant’s Obligation to RepairA. Commerciali. Entire obligation to repair often allocated to tenantB. Residentiali. Tenant’s duty reduced by housing codes and the implied warranty of habitabilityii. Tenant may contract to make certain repairs and is also responsible for intentional or negligent actions which damage the propertyC. Areas in Tenant’s Controli. Must be kept safe for invited