Landlord Tenant Law

Landlord-tenant law governs the rental of commercial and residential property. It is composed primarily of state statutory and common law.  The basis of the legal relationship between a landlord and tenant is grounded in both contract and property law. The tenant has a property interest in the land for a given period of time. The length of the tenancy may be for a given period of time, for an indefinite period of time, terminable at any time by either party, or at sufferance if the agreement has been terminated and the tenant refuses to leave (holds over).

Housing codes were established to ensure that residential rental units were habitable at the time of rental and during the tenancy.  Housing code violations may lead to administrative action or to the tenant being allowed to withhold rent. The habitability of a residential rental unit is also ensured by warranties of habitability which are prescribed by common and/or statutory law.  A breach of the warranty of habitability or a covenant within the lease may constitute constructive eviction, allow the tenant to withhold rent, repair the problem and deduct the cost from the rent, or recover damages.

In commercial leases rent is commonly calculated in part or whole as a percentage of the tenants sales. Rent acceleration clauses that cause all the rent to become due if the tenant breaches a provision of the lease are common in both residential and commercial leases. Summary eviction statutes commonly allow a landlord to quickly evict a tenant who breaches statutorily specified lease provisions. Landlords are also restricted from evicting tenants in retaliation of action the tenant took in regards to enforcing a provision of the lease or applicable law.

Foreclosure

Foreclosure is a process that allows a lender to recover the amount owed on a defaulted loan by selling or taking ownership (repossession) of the property securing the loan. The foreclosure process begins when a borrower/owner defaults on loan payments (usually mortgage payments) and the lender files a public default notice, called a Notice of Default or Lis Pendens. The foreclosure process can end one of four ways:

1. The borrower/owner reinstates the loan by paying off the default amount to during a grace period determined by state law. This grace period is also known as pre-foreclosure.

2. The borrower/owner sells the property to a third party during the pre-foreclosure period. The sale allows the borrower/owner to pay off the loan and avoid having a foreclosure on his or her credit history.

3. A third party buys the property at a public auction at the end of the pre-foreclosure period.

4. The lender takes ownership of the property, usually with the intent to re-sell it on the open market. The lender can take ownership either through an agreement with the borrower/owner during pre-foreclosure or by buying back the property at the public auction. These are also known as bank-owned or REO properties (Real Estate Owned by the lender).
This process allows for three opportunities for finding bargains on foreclosure homes.



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