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Landlord-Tenant Law

Landlord-Tenant Law. Real Estate Transactions I Mike Brigner, J.D. Today’s Discussion. Leases at Common Law & Definitions Ohio Landlord-Tenant Law Preparing a Residential Lease Commercial Leases. Leases at Common Law & Definitions. Lease Law. Leases are covered by

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Landlord-Tenant Law

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  1. Landlord-Tenant Law Real Estate Transactions I Mike Brigner, J.D.

  2. Today’s Discussion • Leases at Common Law & Definitions • Ohio Landlord-Tenant Law • Preparing a Residential Lease • Commercial Leases

  3. Leases at Common Law & Definitions

  4. Lease Law • Leases are covered by • Common law of contracts • Common law of real estate • Federal & state anti-discrimination laws • State landlord-tenant law • Local statutes

  5. Common Law: Contracts • A lease is a contract & must meet four basic criteria for a valid, binding agreement: • Offer & acceptance • Consideration • Capacity of parties to contract • Legal subject matter • Contracts are usually drawn by, & favor, landlord • Under contract law, in event of dispute over terms, all contracts are construed against the drafter • Best if both parties are represented, and negotiate a fact-specific and mutually fair agreement

  6. Common Law: Real Estate • Historically, caveat emptor, buyer beware • Tenant took premises as he/she found it • Landlord had no duty to provide habitable premises, or to make repairs • Most states now require habitable condition, and don’t allow tenant to waive this right • Landlord only had duty to keep common areas and fixtures safe • This idea has carried over into modern law

  7. Common Law Remedies • Constructive eviction: If premises becomes uninhabitable, tenant could move out & not pay rent • Distress: If tenant failed to pay rent, landlord could use self-help: forcibly remove tenant, and seize tenant’s goods to satisfy rent arrearage • Most states, including Ohio, now forbid self-help in residential leases, and require a legal eviction proceeding, with proper notice & hearing

  8. Statutory Law • Common law has been greatly modified, by statutory law, such as: • Federal laws • Fair Housing Act (42 U.S.C. § 3604) • Handicap accommodation (24 CFR 100.204) • Ohio statutes • Landlord Tenant Law (R.C. Chap 5321) • Ohio Fair Housing (R.C. 4112(H)) • Local ordinances • Zoning ordinances, health codes, rent caps • Occupancy & use limits, safety rules

  9. Ohio Landlord-Tenant Law

  10. Lease Definitions • Lease: A document that conveys a leasehold interest in real property, which includes: • Right of possession, but not ownership • For a certain period of time • In return for the payment of rent • Statute of Frauds requires any transfer of an interest in real estate, including a leasehold interest, to be in writing (R.C. 1335.04) • Leases for less than one year generally do not have to be in writing (R.C. 1335.05)

  11. Parties to a Lease • Lessor = Landlord • Party to a lease who owns the property and transfers occupancy in exchange for rent payments • Issue: Does landlord have good title? • A concern for tenants primarily in long-term & commercial leases • They can: do title search

  12. Parties to a Lease • Lessee = Tenant • Party to a lease who occupies the premises and pays rent • Issue: Is tenant financially responsible? • A concern for landlords • They can: do credit check, get deposits, get third party guarantees

  13. Revised Code Chapter 5321 • Applies to residential leases, except: • Condominiums • Hotels, motels, tourist homes • Boarding schools • Jails • Does not apply to commercial leases

  14. Forbidden Lease Terms • R.C. 5321.13 • Agreement to pay other party’s attorney fees • Agreement to waive legal duties of landlord • Limitation or forgiveness of a landlord’s legal liabilities

  15. Landlord’s Obligations • R.C. 5321.04 • Comply with all health, safety, housing codes • Keep premises fit & habitable • Keep common areas safe & sanitary • Supply running water, hot water, reasonable heat • Give reasonable notice (24 hours) of intent to enter, except in emergencies

  16. Landlord’s Restrictions • R.C. 5321.15 • Forbids landlord from • cutting off utilities, • locking out tenant, • seizing tenant’s possessions, • or threatening any unlawful act against tenant • Violation allows tenant to recover damages and attorney fees

  17. Tenant’s Obligations • Keep premises safe & sanitary • Obey applicable safety & housing rules • Don’t damage or destroy premises or fixtures, or allow others to do so • Maintain appliances supplied by landlord

  18. Tenant’s Obligations • Use electrical & plumbing properly • Do not disturb neighbors, or allow others to do so • No controlled substances • Allow reasonable access for inspection & repairs

  19. Tenant’s Rights • R.C. 5321.02 • Landlord may NOT increase rent, decrease services, or start eviction to retaliate for tenant’s action of: • Complaining to landlord of a breach of any R.C. 5321.04 duty • Depositing rent with clerk • Complaining to a government agency of any code violation • Joining other tenants to bargain collectively with landlord

  20. Tenant’s Rights: Security Deposits • R.C. 5321.16 • Security deposit of over one month’s rent kept for 6 months or more carries 5% interest • Deposit may be applied to any unpaid rent • Landlord must provide written statement of any deductions within 30 days • Tenant must provide forwarding address

  21. Preparing a Residential Lease

  22. Residential Lease Elements Date the lease is executed Parties to the lease Description of the premises Duration of the lease, & renewal Rent Misc. terms: security deposit, default, pets, option to purchase, alterations, subletting, etc.

  23. Lease Elements PARTIES: By name or at least number. Can landlord forbid: Kids? Seniors? Handicapped? Sexual predator? DESCRIPTION: Address, apartment number, in some states legal description, parking places

  24. Lease Elements DURATION & RENEWAL: Notice required? Terms of renewal? RENT: Total amount, monthly installments, date & place due, late fees. Sometimes 1st &/or last month’s rent payable in advance DEPOSITS: Security deposit, pet deposit -- amount, conditions for return, interest

  25. Lease Elements PERSONALTY: If furnished premises --Should have inspection before/after INSURANCE/INDEMNITY: Landlords may try to limit liability for property or personal injury damages to tenant (Illegal in Ohio) MAINTENANCE/REPAIRS: Spell out who is responsible for what

  26. Lease Elements ALTERATIONS: What may tenant change? May require written permission. May restrict tenant from placing liens. Fixtures (existing & new) to remain after lease. SUBLETTING: Require prior consent? --Tenant remains liable until original lease term expires

  27. Landlord-Tenant Law END OF CLASS: (EVERY Class) Clean up classroom; log off computers; check for personal property & computer disks; make sure you have signed in. Concluded Thank You Mike Brigner, J.D.

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