O damages fmv rent for remainder of lease rent

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
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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!