This concludes Chapter 10. Below is a brief summary which you can review before you take your chapter quiz. 

The four main types of Leasehold Estates are An Estate for Years (definite beginning and ending date); Estate From Period to Period (periodic tenancy); Estate at Will (stay without a lease) and Estate at Sufferance (tenant must be evicted through the court).

Actual Eviction: landlord's remedy to regain possession of property; Constructive Eviction: tenant must vacate the property, send notice to the landlord, and put the rent money in escrow.

A lease is an agreement that creates a landlord-tenant relationship. The Lessor (owner) has a freehold interest; the Lessee (tenant) has a leasehold interest.

• Escalator clause- the parties agree to an adjustment of rent based on set increases in taxes, insurance, maintenance, and other operating costs.
• Non-disturbance Clause- requires that tenants cannot be disturbed if the property is foreclosed upon.
• Economic Rent- the rental income that real estate can command in an open market at any given time.

California Statute of Frauds:

1. A lease for more than one year MUST be in writing.
2. While a verbal lease of greater than one year IS valid, it is NOT ENFORCEABLE under the law.
3. IF a lease is written, then it MUST be signed by the lessor.
4. Both the lessee and lessor must be legally capable of making a contract (lease).

A California lease has the following minimum requirements:

1. State the length or duration of the lease.
2. Include the amount of rent and the date on which it is to be paid.
3. Contain the names of the parties.
4. Include a sufficient description of the property.
5. Give evidence of both the landlord's and the tenant's intent to create a landlord-tenant relationship.

Regarding California leases and rent:

• Periodic tenancy: the lease agreement must state the periods involved.
• Unless a lease agreement states otherwise, rent becomes due only at the end of the term.
• Estate for years: if there is no due date given in the lease agreement, then the rent is due on the last business day of the calendar year.
• Contract Rent is the term given to the actual amount of rent to be paid;
• Rent control is a government regulation of the amount of rent a landlord may charge a tenant.
• No government agency may adopt any rent control restrictions on non-residential property.

An assignment is the transfer of a tenant's remaining rental rights (not responsibilities) in a property to a third party; Subletting, or subleasing, is the partial transfer of a tenant's right in a rental property to a third party. Both transfer possession only, not ownership.

A sandwich lease is a leasehold interest in a property that lies between the ownership interest and the tenancy interest. A lease renewal creates a new and distinct tenancy. Lease extension is a continuation in possession under the original lease.

Security deposits:

• Security deposits CANNOT be labeled as "nonrefundable."
• The maximum allowed security deposits for residential properties (in addition to first month's rent) are:
  • For an unfurnished rental, 2 months' rent; for a furnished rental, 3 months' rent.
• Statement of property condition: inspection report that states the condition of the property upon the tenant's moving in and moving out of the property.
• If there is NO damage or cleaning required to the vacated property, then the landlord has a maximum of 21 days from the date of the tenant vacating the property to refund the security (and "cleaning") deposits. 

Landlord’s rights and responsibilities:

1. Implied right of habitability: guaranteeing that the property meets the minimum health and housing codes.
2. Ensuring that the property's common areas are safe.
3. Respect the tenant's use and quiet enjoyment of the property,as long as the tenant is following the terms of the lease.
4. Live by federal and state fair housing laws.
5. Allowed to terminate a month-to-month rental agreement (WITHOUT a reason or violation by the tenant) by serving a previous notice.
6. Right to inspect a property periodically, but must follow specific guidelines when doing so.

The landlord may ONLY enter the rental property under certain circumstances and at certain times, and must always give or attempt to give advance notice, EXCEPT in the case of an emergency.

Tenants’ rights and responsibilities:

1. NOT damage the property.
2. Give at least 30 days' notice prior to vacating the property.
3. Tenants must not interfere with the rights of other tenants.
4. Keep the premises clean and sanitary.

Rental offset: the tenant has the right to spend up to one month's rent in repairs.

Eviction is the legal procedure of removing a tenant from a property because there is a breach of the lease or rental agreement.  It is ILLEGAL for a landlord to forcibly remove the tenant himself, or to take matters into the landlord's own hands.