A lease is a type of legal agreement that is entered into when an individual, called a tenant, rents property from the owner, called a landlord. A residential lease is signed when the property is used for a residential purpose, or for living.
Lease agreements usually contain terms and conditions of the lease, including the date that the lease expires and the amount of rent the tenant is required to pay. The lease will also outline the legal rights and responsibilities of the parties.
Specifically, a residential lease is used to ensure that the residential property offers sufficiently habitable living conditions and that the landlord does not interfere with the rights of the residential tenant unless absolutely necessary.
There are several different types of residential leases which may be used for houses, apartments, or other types of residential units. Although it is not absolutely necessary to hire an attorney when considering a residential lease, it is very helpful to have an attorney review the document prior to signing.
An attorney can ensure that the prospective tenant is not agreeing to any terms which would constitute unfair bargaining practices and that the document is not fraudulent or forged. In addition, if the prospective tenant wishes to negotiate a lease term, their lawyer would be able to assist and ensure their interests were protected.
Condemnation is defined as the taking or acquisition of private property for a public purpose. In some cases, the right to condemn is referred to as the power of eminent domain. According to condemnation law, local, state, and federal governments have the right to condemn private property.
These rights have been delegated to governmental agencies. In addition, these rights have been delegated to certain private entities, including public utilities and common carriers. An entity that has the right to condemn is known as a condemning authority.
A property is condemned when a local government determines that a property is no longer fit for human habitation. There are numerous housing code violations that can result in a building being condemned.
Individuals are not permitted to live or work inside a building that has been condemned. However, it is possible to reoccupy the building if all of the violations are corrected to the local government’s standards with the necessary documentation. If an individual is unable to fix the problems, they may be required to move out immediately and permanently.
Some of the reasons that a local government may condemn a home include:
- The home is vacant and has been abandoned or completely boarded up for at least two months
- There are no utilities connected to the home such as power, running water, etc.
- An inspector makes a report which cites specific hazards in the home which may include dangerous materials or location
- The home is dilapidated, meaning the inspector determines the home is qualified for condemnation without citing a specific hazard
Complete condemnation of a property will terminate a lease because there is no housing remaining for the tenant to reside in. Pursuant to condemned house rules, condemnation terminates the tenant’s liability for the accrual of rent after title to the property vests in the condemner, which is typically the local government or housing authority.
Is Rent Paid after the City Housing Authority or the Government Takes over Returnable to Me?
If an individual receives a notice that their residence is going to be condemned, there are steps they may be able to take to prevent that from happening. In many cases, the individual can create a contract with the local government agency to negotiate a timeline for the rehabilitation of their property.
Once the repairs are completed, the individual can schedule a time for the local inspector from the housing authority to visit the residence and confirm all of the code violations are remedied. In order to reverse a condemnation status, the individual will need to have at least the following items in working order:
- Heat
- Hot water
- Light fixtures
- Plumbing
- Safe electrical outlets
- Ventilation
The individual will need to ensure their residence does not have any pest issues and is structurally sound. This includes having any balconies, porches, and railings in good condition.
Condemnation can also apply to land. Land condemnation is a legal process by which the condemner seizes private land for a public purpose, benefit, or use pursuant to eminent domain. In order for the condemnation to be constitutional, the condemner must demonstrate that the action serves a public purpose and pay just compensation to the owner of the land.
If an individual is renting a residence or a piece of property, any rent that was paid in advance prior to condemnation should be refunded to the tenant. A condemnation provides a tenant with two possible claims for compensation. These include:
- The value of the unexpired portion of the lease
- The value of the fixtures that the tenant has made on the property, including:
- Installations
- Alternations
- Additions
- Improvements
When a tenant’s property is condemned, they may be able to recover compensation or apply for a refund by filing a claim with the condemning authority. This is often done through an attorney so the individual receives the value of their remaining lease term.
A lawyer will advise the tenant on the best legal action they can take to get compensation for the issues caused by the condemnation. The terms of the individual’s lease will be the key to determining the individual’s right to obtain compensation in a situation involving condemnation.
In most situations, if the lease is terminated because of the condemnation, a tenant will be able to claim the value of the remaining lease period they had agreed to. In some situations, a tenant may also be able to request compensation for relocation costs or other damages they suffered because of the condemnation.
When an individual is looking to apply for compensation, they can take the following steps:
- Review their lease: The lease agreement may contain specific clauses about the tenant’s rights when condemnation occurs.
- Reach out to the condemning authority: Once a tenant is notified of the condemnation, they can contact the agency that is responsible and ask if there is a process for filing a compensation claim.
- Consult with a lawyer: A lawyer can assess their potential compensation claim and help the individual throughout the process.
There are also several factors that an individual should consider related to seeking compensation for condemnation issues, including:
- Proving damages: In order to support a claim for compensation, an individual should provide documentation of financial losses they incurred due to the condemnation, such as:
- relocation costs
- lost business income
- State law: The rights a tenant has in a condemnation process can vary by state, so it is important to consult with an attorney to understand local laws and regulations.
- Negotiations and settlements: In some situations, it may be possible for an individual to negotiate a settlement with the condemning party instead of having to go to court.
Issues such as damages and negotiations can be complex; they are best approached with the guidance of an experienced attorney.
What Happens if Only Part of the Land, Property, or Building Is Condemned?
Partial condemnation occurs when only part of a piece of property or part of the property rights is seized under the power of eminent domain. The condemning authority will be required to provide just compensation for the decrease in value of the remaining portion of the property.
For example, if a partial condemnation results in a city taking most of a store’s parking lot, then that store will likely suffer a loss of revenue because customers cannot park. In addition, the property not taken will decrease in value due to the partial taking.
With a partial condemnation, the question of whether that taking terminates a lease is not entirely clear. Courts are split on how to handle a lease connected to a partial condemnation.
Generally, the courts have held that if a condemnation affects the nature and character of the lease and substantially impairs the habitability of the residence, then the lease should be terminated.
Can a Tenant Recover for the Remaining Part of the Lease?
Generally, so long as there is no agreement to the contrary, a tenant whose lease is terminated by a condemnation has a claim for the value of the unexpired lease term. However, the tenant can only recover for that unexpired term if they are likely going to suffer losses related to being required to pay for alternative housing.
In other words, if the residential market for similar accommodations requires the tenant to pay more, the tenant may recover losses. In addition, the tenant cannot recover attorney’s fees for going to court for their claim to recover losses that are related to the lease.
If a tenant is a month-to-month tenant, they can only recover a portion of the rent they would have paid if they had lived on the premises for the entire month. In other words, if the tenant had intended to reside on the property for 30 days but the condemnation required them to leave after only 15 days, they would only be entitled to recover half the rent. A month-to-month tenant is not entitled to recover moving costs or attorney’s fees which are related to the condemnation.
How Often Do Condemnation Clauses Appear in Leases?
It is common for a condemnation clause to appear in a commercial and a residential lease, especially in areas which are disaster prone, including areas near:
- Oceans
- Rivers
- Earthquake zones
A tenant should review these clauses carefully before signing a lease. If condemnation does arise, the tenant should refer to the clause in their lease.
Should I Contact a Lawyer?
Yes, it is very important to contact a landlord-tenant lawyer with any condemnation issues you may face. If you are a tenant who is in a long term lease or a tenant with a commercial lease, it is important to contact a lawyer as soon as possible.
The termination of a long term lease can result in serious loss for you as a tenant and, therefore, you have substantial rights. Your lawyer can review your lease, explain your rights, and help you recover for your losses sustained as a result of a condemnation.
When you use LegalMatch’s lawyer matching services, you can find a lawyer who can provide you with many benefits and services, which can include:
- Negotiating with the party condemning the structure to secure fair market value for your property
- Ensuring the condemnation notice is accurate
- If possible, challenging the reason for condemnation
- Getting an independent appraisal to make sure your property valuation is accurate
- Represent you in court to contest the decision about the condemnation
All of this assistance provided by a lawyer will make sure that you get proper condensation for your property when it is taken by the government using its power of eminent domain. The party conducting the condemnation will be more likely to respond in a reasonable manner and offer you higher compensation for the property.
Using LegalMatch is as easy as submitting your issue or concern online on the website in as little as 15 minutes. After that, you will get responses from attorneys who are LegalMatch members, meaning they are licensed and pre-screened, who are ready and able to help you with your condemnation issue.
