Louisiana Law on Lease: Conflict of Interest between Tenant and Owner in an Act of Sale - Research Paper Example

In answering the case, let us define first some key elements of the lease contract. Under the Louisiana Landlord and Tenant Laws, the lease is defined as an agreement that binds the landlord and the tenant within a desired prescribed period of occupancy (Armstrong & LaMaster, 2006). The lease could either be oral or written although it’s legally recommended to have written lease agreements to have verifiable documents that can be used in case conflict arise and the resolution is brought to court for adjudication (Louisiana Civil Code, 2012; McClatchey, 2006).

Lease and its terms
A lease can be a fixed-term lease, a month-to-month lease, with a renewable clause or without a renewable clause. The fixed-term lease has a specific period of time or months under the agreement while the month-to-month lease is presumed under the law that there is the absence of an expressed period of occupancy in the agreement, thus, the landlord reserve the right to terminate the lessee or change the terms of the lease within 10 days written days prior to the ending of the month (Caldwell, 2008. p. 14). For those leases with automatic renewable clauses, the same lease terms apply. Automatic renewal can renege if either the tenant or the landlord gives written notice to vacate the property which must be given within 30 days before the lease expires (Caldwell, 2008). The same is applied for that lease on a monthly basis. In the absence of a renewable clause, if the tenant stays in the apartment for a week after the lease expires, then it’s deemed that there is automatic intent to renew the lease agreement (Caldwell, 2008).

The Case and the Law
In the case at bar and under the law, the landlord has the obligation to deliver the property to the tenant at the agreed time and to protect the tenant’s right to peaceful possession for the duration of the lease (Caldwell, 2008; Civ. Code Art. 2669). The law further provides that if the landlord sells the property within the lease period stipulated under the agreement, the new owner may change the lease terms or may evict the tenant whichever is sound and applicable (Lousiana Civil Code Sec. 2668 to 2777, 2005). The law further directed that to avoid such undue termination of the lease and unnecessary disturbance to the dweller, the lease must be recorded in the parish where the property is located (Caldwell, 2008. p. 14) and the tenant may file a legal action against the landlord for loss incurred as a consequence of the sale (Baton Rouge City Court, 2012).

In some cases e.g. Industrial Tile Inc. v Stewart 388 So, 2nd 171, 175; 449 U.S. 1081 (1981), the landlord and tenant can enter into an intelligible agreement, expressly and in unequivocal language, where one party agrees to indemnify the other of losses from eventualities due to sale, then such agreement can be upheld as a resolution to the issue (Moore, 2008). The tenant may seek reimbursement for advance payments and may seek indemnity for the damages and sudden inconveniences suffered (Lemmon, 2003).

While the Act of Sale is clear that ownership of the property is immediately transferred to the buyer after full payment [8 Tul. L. Rev. 178 (1933-1934)], however, impending conflict of interests can be resolved through proper communication and dialogue between parties to avoid escalation of conflicts and mounting of legal action (Bird, 2011). The owner must be able to communicate his plan to the lessee about selling the property to prepare the tenant for the consequences of such transfer of ownership and at the same time, avail a venue where matters can be deliberated amicably so that remedies can be opted to protect the rights of the lessee, as well as, settle issues pertaining to advance payments, if there is any and if it's under the fix lease terms (Bird, 2011). The situation should be amicably discussed with the new owners too so that remedies can be applied without undergoing the tedious process of legal action or court proceedings (Vidal, 2005).
Conclusion
In conclusion, it can be assailed that while laws can be availed for resolution, there are also statutes that could prevent the escalation of conflicts to legal action. 

After all, isn’t it that all courts should encourage the exhaustion of amicable settlements of an issue before legal action be taken for a judicious rendition of cases?

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