Leases/Options

Generally
The relationship of landlord and tenant arises from a lease of real property. 

A lease affords the tenant an exclusive right to possess the subject premises for some fixed period of time (e.g. one year) or on a periodic basis (e.g. month to month).  The lease must usually be in writing to be enforceable if for a period greater than one year.

Remedies
If the tenant stops paying rent and remains in possession, the landlord may, after service of a three day notice to pay rent which goes ignored, evict the tenant by means of an unlawful detainer suit. A tenant with a residential lease, however, may be justified in not paying rent, and will prevail in such a suit, if the   premises are maintained by the landlord in an uninhabitable state (that is in violation of the implied warranty of habitability). Alternatively, is such a situation if the landlord fails to repair dilapidations after due notice to him by the tenant to do so, the tenant may undertake the repairs himself and legitimately deduct the costs for so doing from one month's rent. This can be done no more than twice a year.

Any action by a landlord that effects the quiet enjoyment by the tenant of the leased premises (including a violation of implied warranty of habitability) may effect a constructive eviction but the tenant has to move out to assert this. Damages for such include moving costs and the rent increase for substitute premises.

Periodic lease non-default termination
A (periodic) month to month tenancy may be terminated upon 30 days notice given at any time by either landlord or tenant. A landlord, in a residential month to month lease situation, however, has to, with exceptions, give 60 days notice to do this except he may be limited in his ability to effect such termination by a local rental control ordinance. Such a non-default lease termination is enforceable by an unlawful detainer suit; the same as in a default situation.  A landlord in a residential lease situation, may be prevented from evicting a tenant upon such notice if such termination is being sought in retaliation for the tenant reporting the landlord to a governmental agency for non compliance with health and safety or building codes, or for the tenant asserting the implied warranty of habitability defense in a prior unlawful detainer suit based upon a default in rent, or taking a rent deduction to pay for dilapidations as mentioned above.

Option to Purchase
Big problems can arise with regards to the enforceability of an option to purchase contained within a lease.  An option is an irrevocable offer that remains so up through the time it may be exercised by the tenant.  The option has to be very precisely written otherwise it may not be enforceable against the landlord.  It should be included as part of the lease. The purchase price must be specified along with all the terms of purchase.  It is suggested that the purchase contract containing the purchase terms be attached to the lease and be referred to therein as an exhibit. The date by which the option can be exercised should also be set forth in the lease.

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