o Damages FMV Rent for remainder of lease Rent stipulated in lease for rent of

O damages fmv rent for remainder of lease rent

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o Damages= FMV Rent for remainder of lease – Rent stipulated in lease for rent of lease (+any special damages) o $200= $1000/mo (FMV) - $800/mo (rent) o 10 months left on lease you would collect $2000 Tenant does not have to continue to pay rent: o If he is not given possession o If there’s an eviction CONDITION OF PREMISES Traditional Approach: o Landlord’s Duty—“ Caveat Emptor” Tenant takes the premises “as is” & landlord had no duty to repair. Exceptions: 1. short-term leases of furnished dwellings; 2. leases of buildings under construction; 3. L fraudulently misrepresents or conceals condition of property; AND 4. Common areas L under no obligation to warrant premises are fit for anything Lease as conveyance—T has estate in Land Originally primarily agrarian— land itself “men were men” Men could inspect land IMPLIED WARRANTY OF HABITABILITY Covenant (duty) of Delivery Possession Covenant (duty) of Quiet Enjoyment CL Caveat Emptor generally applies to commercial leases; virtually all states have rejected its application to residential property. o In those jurisdictions a warranty of habitability is implied in residential leases . o Waiver to the implied warranty of habitability is NOT allowed!!! o Wade v. Jobe Modern leases are usually for use of structures, no equal bargaining power, follows trends in consumer protections laws, products liability, tort laws. A minor violation of a housing code is not a violation L only needs to maintain “bare living requirement.” Codes can be enforced through state and local employees. However, citizen is on the premises and is aware of problems so he needs to inform the state and local employees of the issue. Elements for breach of implied warranty of Habitability : 1. Premises not in habitable condition a. Substantially violate of Housing Code or threatening the health and safety of the T 2. L must have notice of the problem a. If at outset, L knew or should have known b. If after T had possession, L must have actual notice 3. L must have reasonable time after notice to repair 41
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Notice that T is not required to leave, this is dif. then constructive eviction. Remedies o T can continue to pay rent & sue L for reimbursement for excess rent o T can withhold rent (this is incentive for L to repair) o DAMAGES: Percentage Diminution approach reflects how much T enjoyment of the possession of the property has been reduce by the L’s breach How much should the rent be reduced (bring in an expert to determine this)? o Rat infestation -10% o No hot water -40% t/c reviews the materiality of the particular defects & the length of time such defects have existed Narrow and Broad Damages Formula: o Narrow Damages (Contract Rent – FMV in defective condition) = $$$ Applies only when the defect occurs AFTER you signed the lease!
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