Business Law Principles and Practice - Research Paper Example

Examine the parties involved in the agreement and the different types of leases. Explore the rights and duties of the parties and lease termination. Introduction In order to understand different forms of tenancy, it is necessary to understand each of the concepts and terminologies used in tenancies. Firstly, landlord is the person or business mandated to control a property, and who allows others to use the property (Jennings, 180). However, a landlord may be the owner of the property, or an agent mandated to manage the property. Conversely, the tenant is argued to be the person who uses or occupies the landlord’s property (Jennings, 180). In this regard, this right to occupy and use the property of another person is regarded as lease. With regard to these deliberations, in order for the two parties to have come to a conclusion that the landlord will allow the tenant to occupy the property and for the tenant to accept to occupy the property, the term lease agreement comes in. A lease agreement is the document that forms the basis of the landlord-tenant relationship by protecting all parties but gives final control to the landlord. A lease agreement is the document that outlines the foundation of the landlord-tenant relationship by protecting all parties but gives final control to the landlord. Upon entering into a lease agreement, both the landlord and the tenant must abide by the terms of the form of the tenancy. The lease agreement should clearly stipulate on the rights and duties expected to be fulfilled by the both parties (Sigismond, and Goldman, 495). In this regard, the rights and duties of the parties will be articulated upon under each form of tenancy in the succeeding paragraphs. Additionally, there are different termination circumstances and provisions of how each of the tenancies can be terminated. These will also be focused under each form of tenancy. Periodic tenancy Periodic tenancy is argued to be a tenancy, whereby its period continues until the tenant issues the landlord with notification indicating that he/she intends to end the tenancy (Jacobus, 46). However, this kind of tenancy can be created deliberately, or due to some implications such as when the lease does not specify the duration of the tenancy, although some preparations were made on how payments would be made at certain intervals or after a given specific duration of time. The real estate law stipulates that periodic tenancy involves an arrangement between the occupant and the owner, and that the landlord permits the tenant to occupy a property on a periodical basis (Jennings, 181). Tenancy may be designed on a weekly, monthly or on an annual basis (Battle, 68). Alternatively, though not common and not formal, the landlord and the tenant may agree on another set of period. A tenancy can take place for either residential or commercial properties. Nevertheless, this kind of tenancy arises and most commonly takes place after a formal written lease has expired. Each of the two parties involved in periodic tenancy has rights and duties, which must be adhered to. The landlord is entitled to a right to obtain payment on time. It is also the right of the landlord to expect that his/her property will not be subjected to any form of damage or used for illegal purposes. The land lord is also entitled to receiving compensation or payment for damages that the tenant may have caused during their stay in the property (Miller and Jentz, 647). On the other hand, the tenant has the right to “quiet enjoyment” during his/her stay in the rented premises. Tenant has also the right to receive a written notice as stipulated by law. It is also the right of the tenant to receive the full amount given as deposit. In addition, the landlord is expected to provide timely repairs to the premises after being informed by the tenant (Jennings, 181). Termination of periodic tenancy normally occurs, when one part offers the other with proper termination notice. It is also argued that the notice needs to be equal to one full period. For example, if payment period or duration is on the month-to-month basis, the party intending to end the tenancy should give a notice of one month before the intended date of termination. On the same note, some tenants may decide to get someone else to move in. If this has to happen, the tenant must notify the land lord about the intentions of letting another person to move on (Jacobus, 46). If the land lord agrees, it is necessary to have every detail of such an agreement in written for. The new tenant should also obtain a license agreement from the landlord. Tenancy for years Tenancy for years is designed by a lease that will run for a specific duration of time. In is argued that tenancy for the year has a fixed beginning and specified ending date. In this kind of tenancy, the lease ends automatically on the specified ending date. In addition, this kind of tenancy runs for a period of more than one year, according to the agreement between the tenant and the landlord. The lease agreement has to be in writing (Jennings, 182). In this form of tenancy, the landlord has a right to maintenance. This means that the landlord is at liberty to access the asset so as to assess areas that require maintenance. In addition, the landlord has also a right to enter into the property in times of emergencies. It is also within the rights of the landlord to use the judicial system to evict the tenant liable for the property damage. The tenant has also a right to remain in the property unless the landlord sells the property; however, the new landlord must abide by the terms of the current or existing lease agreement. However, a lease term may be terminated before its expiration date, but this has to be on the basis of joint conformity between the occupant and the property-owner (Sigismond, and Goldman, 495). Nevertheless, this form of tenancy can not be terminated at the option of a single party, unless, though not common, this is spelled out in the lease agreement. Upon termination of the tenancy, this marks the end of the association between the owner and the occupant and any other obligations attached or stipulated out in the lease agreement. Tenancy at will A tenancy at will can be created expressly when both the property-owner and the occupant agree to a lease of property, but provide no specified period for the lease (Miller and Jentz, 648). In this kind of tenancy, both parties are at liberty to terminate the tenancy at any given time without necessarily issuing with notice in advance. However, it is argued that, in some states, statutory provisions have altered this freedom, and necessitate some form of notice before termination of the tenancy. It is also argued that tenancies at will can arise with situations where there is a default by the processing parties. For example, if John leases the land where he has built his house, and the house was financed through a bank, if John leaves for some reasons, the home remains on the leased land; meaning that the bank, which credited the financing of the home, becomes the tenant at will on the land (Sigismond, and Goldman, 496). In this form of tenancy, the tenant has a legal responsibility of paying the landlord for the use of the place. On the other hand, the landlord is prohibited by law to demand for pre-payment of rent in excess from the tenant. The law also provides that the landlord can not charge the tenant any form of interest or penalty on late payment of the rent until 30 days after the due date for payment has passed. Nevertheless, the land lord has a right to evict the tenant immediately after the 30 days have passed without the tenant paying the rent (Battle, 68). Tenancy at sufferance Tenancy at sufferance occurs when a tenant coming from another form of tenancy stays put (holds over) on the landlord’s property after the original tenancy period expired (Jacobus, 46). For example, if a landlord leases a house to John for one year with the lease termination date of 30th December, John is expected to vacate the house by 30th December. However, if John decides to remain in the house even after the termination date passes, he is there as a trespasser. In this case, the landlord may decide to evict John. On the other hand, if the landlord accepts John’s rent after 30th December, then John’s tenancy crosses borders from a tenancy for years to a tenancy at sufferance. Nevertheless, if the tenant is occupies the property inform of residential tenancy, the tenancy enters into a month-to-month, if, on the other hand, the tenant occupies the property in the form of a commercial tenancy, the tenancy enters into year-to-rear tenancy. However, if the landlord decides to evict John, the tenancy ends because John does not enjoy possession any more (Jennings, 182). Conclusion The landlord is the person or business mandated to control a property, and who allows others to use the property. The tenant is the person who uses or occupies the landlord’s property. A lease agreement is the document that forms the basis of the landlord-tenant relationship by protecting all parties but gives final control to the landlord. Periodic tenancy is a tenancy, whereby its period continues until the tenant issues the landlord with notification indicating that he/she intends to end the tenancy. Tenancy for a year has a fixed beginning and specified ending date. A tenancy at will can be created expressly when both the landlord and the tenant agree to a lease of property, but provide no specified period for the lease. Tenancy at sufferance occurs when a tenant coming from another form of tenancy stays put (holds over) on the landlord’s property after the original tenancy period expired. Works cited: Battle, Carl. Legal forms for everyone. New York: Allworth Press, 2006. Print. Jacobus, Charles. Real estate principles. Mason, OH: Cengage Learning, 2010. Print. Jennings, Marianne. Real estate law. Mason, Ohio: South-Western Cengage Learning. 2011. Print. Miller, Roger and Jentz, Gaylord. Fundamentals of business law: excerpted cases. Mason, OH: South-Western Cengage Learning, 2010. Print. Sigismond, William and Goldman, Arnold. Business law: principles and practice. Mason, OH: South-Western Cengage Learning, 2011. Print. Read More