Real Estate Termination Methods

Tenancy for Years

• Establishes tenant ownership for a fixed period, ranging from days to years, with a specific start and end date.
• Terminates automatically at the end of the fixed term, with no notice required.

Termination of Tenancy for Years Lease

• No notice is necessary for termination since the end date is predetermined.

Written Agreement Necessity

• Requires a written lease if it exceeds one year; shorter leases do not need to be in writing.

Landlord and Tenant

• Landlord (Lessor): Holds fee simple interest or less; may act as sublessor in some cases.
• Tenant (Lessee): Has exclusive use and possession during the tenancy period.

Types of Tenancies

• Includes tenancy for years, periodic tenancy, tenancy at will, and tenancy at sufferance.

Periodic Tenancy

• Established with no agreed expiration date; automatically renews until notice of termination is given.
• Ends upon notice from either party, with the notice period at least equal to the length of the tenancy.

Lease Types

• Express Lease: Terms stated clearly, can be verbal or written.
• Implied Lease: Created without a stated duration but involves regular rent payments.

Renewal and Transition

• Periodic tenancy automatically renews unless notice of termination is given.
• A tenancy for years becomes a periodic tenancy if continued without notice post fixed term.

Termination Requirements

• Periodic tenancies require written notice to terminate, matching the length of the tenancy.

Tenancy at Will

• No fixed duration; continues until termination notice is given by either party.

Tenancy at Sufferance

• Occurs when a tenant remains after lease termination, allowing the landlord to collect rent despite no formal agreement.

Factors Influencing Rental Rates

• Location, competition pricing, vacancy rates, intended use, lease length, and rent control regulations.

Common Lease Structures

• Gross Lease: Fixed monthly rent with no operating expenses paid by tenant.
• Modified Gross Lease: Fixed rent plus a share of operating costs.
• Triple Net Lease (NNN): Tenant pays fixed rent plus property operating costs.

Rent Control

• Legal price regulation that ensures landlords receive a reasonable return on investment.

Lease Provisions

• Must include parties' names and signatures, property description, lease term, and rent amount.

Security Deposits

• Advance payment for damages; not for ordinary wear and tear.
• Refund required within 3 weeks post-vacation of premises.
• Maximum amount varies by property type in California.

Landlord and Tenant Maintenance Duties

• Landlord: Required to maintain common areas, address critical repair needs.
• Tenant: Responsible for returning the property in its initial condition, excluding normal wear and tear.

Implied Warranty of Habitability

• Landlord must ensure residence meets basic living standards; no such warranty exists for commercial leases.

Tenant Remedies for Breaches

• May include suing landlords, withholding rent, tenant repairs, rent abatement, or lease termination in significant breaches.

Unlawful Detainer Process (Eviction)

• Formal process to evict a tenant for lease breaches.
• Requires proper notice and timeline for tenant response.

Retaliatory Eviction

• Landlords cannot evict tenants in retaliation for exercising their rights under lease agreements or law.

Americans with Disabilities Act (ADA)

• Prohibits discrimination based on disability in public accommodations.
• Requires reasonable modifications for accessibility in commercial properties.### Building Code Violation
• Landlord cannot terminate the lease, raise rental rates, or harass tenants in case of building code violations.
• Tenants have the right to sue landlords for unjust eviction attempts.

Mitigation

• Landlords must actively seek a new renter if a tenant prematurely terminates a lease.
• The cost incurred during this process is equivalent to the difference in rental expenses.

Constructive Eviction

• Defined as a wrongful eviction allowing tenants to terminate their lease, vacate the property, and avoid further rent obligations.

Place of Public Accommodation

• Refers to businesses, buildings, or facilities that are accessible and offer services to the general public.

Negligence

• Describes conduct that fails to meet the standard of care expected from a reasonable person in similar situations.

Unlawful Detainer

• A legal mechanism landlords must utilize to evict tenants.

Action for Ejectment

• Represents the judicial process undertaken for eviction.

Mitigation of Damages

• A legal principle obligating the injured party to take reasonable measures to minimize damages after a breach has occurred.