Landlord-tenant law: delivery of possession

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Landlord-tenant law delivery of possession
destruction of premisesPosners Law Economics
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Delivery of possession

• Maryland statute in effect changes from American
  to English rule
• Virginia retains American rule except where L
  willful

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Delivery of possession leases

• T waives right to cancel collect damages
• T need not pay rent until no longer leased to or
  occupied by anyone else.
• Term of lease ends on date set forth regard-less
  of date when possession delivered

• T waives right to cancel lease collect damages
• However, T doesnt have to pay rent until date of
  possession.

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Md. Code Ann., Real Prop. 8-112

• If improvements on property rented for a term of
  lt 7 yrs becomes untenantable due to fire or
  unavoidable accident
• Tenancy terminates, and
• All liability for rent ceases on payment
  proportionately to day of fire or unavoidable
  accident.

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Lease provisions re destruction of premises

• L can terminate lease rent apportioned
• If L repairs, as soon as practicable. Rent
  apportioned
• T waives right to end lease
• No release of T from any liability T releases L
  to extent of Ts insurance
• Name L as additional insured T understands that
  L will not carry insurance on Ts personal
  effects L not obligated to repair or replace Ts
  personal property.

• L has to advise T w/in 10 days after that it will
  not repair, lease ends and rent apportioned
• If L repairs, as soon as practicable. Rent
  apportioned
• T gives up right to end lease when apt unusable,
  except where theres lt 6 mos left in lease term.
• Each party gives up right of recovery against
  other party for loss from fire damage.

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Va. Ann. Code 55-226

• If bldg destroyed by fire or otherwise, or lessee
  deprived of possession by the public enemy, no
  covenant or promise by lessee to pay rent shall
  have effect, unless there are other words showing
  contrary intent of parties.
• Reasonable reduction of rent until value of what
  was destroyed is restored to T. In case of
  deprivation of possession, similar reduction
  until possession restored to T.

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Posners Law and Economic

• Critique of regulation

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Posner Fig. 1
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Posner

• If you change only slightly the angle of the
  demand and marginal cost curves, you can have
  dramatically different results concerning the
  amount of housing that will be lost due to
  housing code enforcement.

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Posner Fig. 2
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Posner Fig. 3

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