Renting or Owning a Home

Chapter 9

What do you know about renting a

house or apartment?

Lease terms, landlord and tenant responsibilities, deposits, and lease agreements

The relationship• If you rent real property, you are a

tenant!

• If you own real property and rent it to someone you are a landlord.

• The lease is the contract between a tenant and landlord.

Types of Tenancies• Tenancy for years - right to occupy for a definite

or fixed period of time. May be one week, six months, one year, five years, 99 years, or any other period of time. A tenancy for 100 years or more can result in absolute ownership

• Periodic tenancy - continues to be successive, fixed periods of time. Either party can terminate by giving advance notice. If not given, the tenancy continues for that same period of time.

• Tenancy at will - real property that continues for an indefinite period of time. No writting is necessary to create this tenancy. 30 days olive to terminate.

• Tenancy at sufferance - a tenant dos not leave the premises when the tenancy expires. They no longer have legal rights in the property. Not entitled to notice to vacate and must pay rent for the illegal occupancy.

The lease agreement

• The lease creates the landlord-tenant relationship.

• The terms of the lease set forth the rights and duties of the landlord and tenant.

• The tenants basic rights are possession and continued occupancy.

• The landlords' basic rights are rent and possession of the property in good condition at the terms end.

• In addition to the first months rent, landlords often require a security deposit and the las months rent before you can move in.

• If a landlord does not want you to sublease your apartment, the lease must state it. The original tenant is responsible for the rent to the landlord, no matter who is living at the apartment.

• Renewing the lease is extending the amount of time you will live there. Rent may increase with a renewal.

Responsibilities• Landlord

• Is against the law to refuse rent to any one because of race, religion, color, national origin, gender, age, ancestry, or marital status.

• Rental space must be fit for human habitation. Be relatively clean, properly heated, furnished with utilities, and safe.

• Tenants are entitled to exclusive peaceful possession and quite enjoyment of the premises.

Responsibilities• Tenant

• Pay rent when it's due. Observe valid restrictions contained in the lease. Failure to do so may result in the landlord seeking eviction.

• Avoid waste; damaging or destroying the property as to decrease the property's value. Leave property in good condition.

• Return fixtures - stoves, refrigerator, kitchen cabinets, light fixtures... You can take shelves and such with you if you installed it.

Eviction • You can be evicted for not paying rent,

staying after the lease expires, damaging the property, and violating provisions in the lease.

• It is illegal for the landlord to use force to evict tenants. Must first obtain a court order. The court appoints an officer to carry out the eviction.

• A construction eviction occurs when a landlord breaches a duty under a lease. Deprives you of electricity, or some other service. You may consider the are terminated, leave the premises, and stop paying rent.

Buying a Home

The Nature of Real Estate

• Estate is the interest or right that a person has in real property.

• A freehold estate is an estate in which the holder owns the land for life or forever. Anyone can transfer the interest to another by sale, gift, will, or dying without a will.

• Fee simple estate is where an owner owns the property outright with exclusive use

• Life estate is where the owner owns real property for the length of their life or another's life.

Taking Ownership• Co-ownership - your share goes to the other

owner upon death. An owner may deed away his interest without permission from the other owner.

• Transfer of ownership - transferred with a written deed (transfers the title of ownership).

• There are 4 types of guarantees: general warranty deed, special warranty deed, bargain and sale deed, and quitclaim deed.

• General - warranties are a personal promise of the grantor that if the title is discovered to be faulty, the grantor will make up for any loss.

• Special - no defect arose in the title during the time that the grantor owned the property. No guarantees of defect before the owned property

• Bargain and sale - no given warranty. Require consideration to be valid. Cannot be used to make a gift or real property.

• Quitclaim - transfers whatever interest the grantor has in the property but does not warrant the grantor any interest. It merely releases the grantors right to the property.

• Limitations on Property use - zoning laws limit the way property may be used in specified areas.

• Might be zoned for single family houses, business, industry, or farming.

• Eminent domain means the govt can take private land for public purpose. Highways, schools, buildings, promote economic development.

• Proper can be limited by liens, licenses, or easement.

• Liens are legal claims against another persons property as security for a debt to be repaid.

• License is a temporary, revocable right to the limited use of another's land.

• Easement is an irrevocable right to the limited se of another's land. Cross someone's driveway to lay pipe or wire.