431. Guaranty Policies are frequently issued by responsible corporations which guarantee the title to be clear up to and including a certain date, after which time additional facts of record may be made by a continuation of the abstract. These policies are of value in assuring purchasers of the chain of title, and against any possible remote claim which may be raised. They also serve to simplify the matter of examination of abstracts, and relieve the buyer from anxiety concerning errors and oversights which the average attorney may make in inspecting a title. They are in common use in the larger cities.

CHAPTER XLVIII

REAL ESTATE CONVEYANCES - Continued

LEASES

432. Landlord and Tenant. The relation of landlord and tenant is created by an agreement wherein the landlord conveys an interest in real estate, which interest is less than a freehold estate, to another person, called the tenant, who is to use and hold the land, building, or room for a term of years. This agreement is called a lease and may be made orally or in writing, though most states now provide that all leases for a period longer than one year must be in writing. The compensation, whether in money or produce, is called the rent.

433. Kinds of Tenancies. The principal classes of tenancies are estates for years, tenancies from year to year, tenancies at will, and tenancies at sufferance. A lease for a definite time, as six months, two years, or ninety-nine years, conveys a tenancy for years. If after the term of the lease expires, the tenant continues to occupy the premises without objection from the landlord, he has a tenancy from year to year, (or month to month, depending on the term of his original lease) and his duties continue to be the same as they were under the written lease. He can only be removed from possession at the end of a year, or month, as the case may be. A tenancy which may be terminated by either party at pleasure is a tenancy at will, while a tenancy at sufferance exists when one who has originally come into possession of land lawfully holds possession without right or permission by the landlord after the expiration of his term.

Since these various tenancies are regulated by statutes or judicial decision, the student should consult the particular laws of his own state when questions arise as to their termination or creation.

434. A Lease is a contract for an interest in lands, and as previously noted is generally required to be in writing when made

party of the second part,

Taitnesseth, That the party of the first part, in consideration of the covenants of the party of the second part, these Presents, gase to the party of the second part, the following described property, to-wit:

bereinafter a forth,

The building lowe

Chicage,

cated at 277 Adams St

ape January

190, to

the thirty-first

,190 And the party of the second part, in consideration of the leasing the

as above set forth, cov and agrees with the party of the first part to pay the party of the first part, at

the office of the party of the first part. Fifteen Hundreds

as follows, to-wit:...

rent for the same, the sum of Dollars, payable

monthly unadvance in hay minte

during the term of this bar on the firstdatwenty five

and every

minth

And the Party of the Second Part Covenants with the party of the first part, that at the expiration of the term of, this lease he will yield up the premises to the party of the first part, without further notice, in as good condition as when the same were entered upon by the party of the second part, loss by fire or inevitable accident and ordinary wear excepted.

It is Furtber Agreed By the party of the second part, that neither.he- nor legal represents tives will underlet said premises or any part thereof, or assign this lease without the written assent of the party of the first part first had thereto.

And it is Further Expressly Agreed Between the parties hereto, that if default shall be made in the payment of the rent above reserved, or any part thereof, or any of the covenants or agreements herein contained to be kept by the party of the second part, it shall be lawful for the party of the first part or legal representatives, into and upon said premises or any part thereof, either with or without process of law, to re-enter and re-possess the same at the election of the party of the first part, and to distrain for any rent that may be due thereon upon any property belonging to the party of the second part. And in order to enforce a forfeiture for non-payment of rent it shall not be necessary to make a demand on the same day the rent shall become due, but a failure to pay the same at the place aforesaid or a demand and a refusal to pay on the same day, or at any time on any subsequent day, shall be sufficient; and after such default shall be made, the party of the second part and all persons in possession under im shall be deemed guilty of a forcible detainer of said premises under the statute.

my that the

aforesaid,

And it is Further Covenanted and Agreed Between the parties are sand farty of the second part alf bills for waters,

and electric fight term of

that may become the the bu

the

The covenants berein shall extend to and be binding upon the heirs, executors and administrators of the parties to

this Lease.

Witness the bands and Seals of the parties aforesaid, the day and year first above written.

JAB Anstead

D.B Stewark

Beat

Sear

for a period longer than one year. In some states, by statute, this limit is extended to three years. By common law the lease need not be sealed; but if by statute it must be recorded, it is required to be both sealed and acknowledged. In order to protect the tenant in the enjoyment of a long lease many states require it to be recorded. In Connecticut, Mississippi, Oregon, Rhode Island, South Carolina, Tennessee, and Vermont, if leases are given for more than one year, they should be recorded. In Maine, Maryland, Massachusetts, and New Hampshire, leases for seven years or longer should be recorded. In Texas all leases should be recorded. The lease should be signed by both parties, and it should be made in duplicate, each party retaining a copy.

435. Parts of a Lease. The words usually used in the granting clause are "demise and lease," but these exact words are not necessary. The premises should be so described that they can be identified with certainty. The length of the lease is usually a matter of agreement, and may be as long as the parties choose, except that the landlord cannot grant a greater estate than he owns. In large cities a lease for ninety-nine years, or even longer, is not an uncommon thing. In such leases, the rental is usually agreed upon for a shorter term of years; and at the end of this time a revaluation of the property is made according to some plan agreed upon in the contract, and the amount of the rental for the next period determined. Such leasehold interests are often very valuable, because the price of real estate may rise considerably before the time of revaluation comes around.

436. The Rent. The amount of rent is usually agreed upon in advance, but it may be left for future determination according to some agreed plan. It may be a gross sum in advance, a monthly sum, or a certain share in the crops to be raised during the term of the lease. When a monthly rent is named, the tenant, in the absence of a special agreement, has until the last of the month to make payment. When nothing is said about the place of payment, it is sufficient if tendered on the premises.

437. Landlord's Covenants. The covenants which the landlord usually makes in a lease include guarantees to give the tenant quiet enjoyment of the property and protection against mort

gages and other incumbrances, to make necessary repairs, and to pay taxes and assessments. There may be other covenants peculiar to special cases. The covenant of quiet enjoyment is implied, and exists whether it is stated or not. Under it the landlord is bound not to do any act, nor to permit any which will materially affect the rights of the tenant in the quiet enjoyment of his holding. Any material interference with the tenant's right to the beneficial enjoyment of the premises, will amount to an eviction in law, which will justify the tenant in declaring the term at an end, and in refusing to be further bound by the terms of the lease. Without a covenant for protection against incumbrances, if the tenant should be evicted by a mortgagee, he would lose all his rights under the lease. With the covenant, he may sue the landlord for any damages or losses which are the consequence of his eviction.

The covenant to repair can never rest upon mere implication, for the common law, with regard to expenses of this kind, presumes so strongly against the tenant, that even though the premises should be burned to the ground, he must continue to pay rent, unless there is an express covenant to the contrary in his lease, and yet he is given no power to compel his landlord to rebuild the structure destroyed. But by statute and precedent this rule has been very generally set aside. The custom very commonly prevails of inserting a clause in all written leases providing for the suspension of rent "in case of fire or other unavoidable casualty"; and that the "landlord may at his option terminate the lease, or repair the premises within thirty days, and failing to do so, the term hereby created shall cease and determine." If the house is dilapidated and disfigured as to paint and paper, locks and blinds, the tenant cannot demand their repair, in the absence of express agreement. It is therefore important for the tenant to ascertain the condition of the premises before taking possession, and to obtain a specific agreement as to the making of repairs. In tenements or apartments where several tenants occupy various portions of the premises, the landlord must keep the roof, basement, halls, entrances, walks, and yard in repair, as the tenants do not individually control them, and they are intended for common use. When the landlord covenants to repair and fails to do so, the tenant is seldom justified in refusing to pay