Landlord-Tenant Law

1
Landlord-Tenant Law

• Real Estate Transactions I
• Mike Brigner, J.D.

2
Todays Discussion

• Leases at Common Law Definitions
• Ohio Landlord-Tenant Law
• Preparing a Residential Lease
• Commercial Leases

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Leases at Common Law Definitions

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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

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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

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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
  dont 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

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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 tenants 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

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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

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Ohio Landlord-Tenant Law

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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)

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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

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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

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Revised Code Chapter 5321

• Applies to residential leases, except
• Condominiums
• Hotels, motels, tourist homes
• Boarding schools
• Jails
• Does not apply to commercial leases

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Forbidden Lease Terms

• R.C. 5321.13
• Agreement to pay other partys attorney fees
• Agreement to waive legal duties of landlord
• Limitation or forgiveness of a landlords legal
  liabilities

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Landlords 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

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Landlords Restrictions

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

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Tenants Obligations

• Keep premises safe sanitary
• Obey applicable safety housing rules
• Dont damage or destroy premises or fixtures, or
  allow others to do so
• Maintain appliances supplied by landlord

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Tenants Obligations

• Use electrical plumbing properly
• Do not disturb neighbors, or allow others to do
  so
• No controlled substances
• Allow reasonable access for inspection repairs

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Tenants Rights

• R.C. 5321.02
• Landlord may NOT increase rent, decrease
  services, or start eviction to retaliate for
  tenants 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

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Tenants Rights Security Deposits

• R.C. 5321.16
• Security deposit of over one months 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

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Preparing a Residential Lease

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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.

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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

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Lease Elements

• DURATION RENEWAL Notice required? Terms of
  renewal?
• RENT Total amount, monthly installments, date
  place due, late fees. Sometimes 1st /or last
  months rent payable in advance
• DEPOSITS Security deposit, pet deposit --
  amount, conditions for return, interest

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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

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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

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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.