ÇRepair problem yourself and deduct expenses from rent due. ÈStay on the premises and withhold rent. BETTER CHOICE -- WHY? ¼Risky to leave premises if you rely on breach of the covenant of quiet enjoyment … what happens if there wasn’t a breach? ¼¼If T withholds rent, arguing that it is not habitable and if L sues – the court may decide that T unjustifiably withheld rent and L may be entitled to EVICT. Furthermore, T would be liable for damages (back-rent). ¼¼¼May not be easy to find a new place to live and relocate. !±HOW TO ASCERTAIN DAMAGES FOR THE BREACH OF THE WARRANTY (Hilder v. St. Peter) ³Difference b/t the value of the dwelling as warranted and the value of the dwelling as it exists in its defective condition ´Damages should be awarded for T’s discomfort/annoyance arising from breach µIf L is notified of defect and fails to fix it and then T pays for it, T may be able deduct cost of repair from future rent. (Can also sue L for breach of K on his promise to fix it). ÃPunitive damages available for health/safety hazards. !±±REASONS FOR THE WARRANTY ³T may be uninformed and lack bargaining power (need protection from law). °Look for ways to argue exceptions to the above rationale on the exam. RENT CONTROL !±±±BENEFITS OF RENT CONTROL ³Helps people retain their housing by keeping prices low when market pressures might otherwise lead to price increases
°Í´(RADIN) Promotes personhood for individuals °home = paramount example of personal prop µFosters community by allowing people to stay in their neighborhoods ÃBolsters overall economy by allowing consumers to have more money to spend on other items (derivative of supply-side economics). ±"POSNER’S CRITICISMS OF RENT CONTROL ³Will reduce resources that L devotes to improving quality of housing, by making provision of rental housing more costly, thus reducing the quantity of housing and new construction projects. ´L will offset costs by charging higher rents, finders fees, and security deposits µL will screen applicants more carefully and a marginal T will have trouble. CO-OWNERSHIP / CONCURRENT OWNERSHIP Tenancy in Common Joint Tenancy Tenancy in Entirety Each tenant has the right to occupy the whole Each tenant has the right to occupy the whole Each tenant has the right to occupy the whole No Survivorship Rights Survivorship Rights Survivorship Rights Unilateral Transfer (No Severance) Unilateral Transfer (Severance) No Unilateral Transfer Unequal Shares Equal Shares Equal Shares ±TENANCIES IN COMMON ³Each tenant has an undivided interest in the property, including right to possession of the whole. When one tenant dies, the other tenant has no survivorship rights. Equal shares not necessary, and co-tenants can own different types of estates in the property. No right of survivorship in the remaining tenant.