Estate at Sufferance

Estate at sufferance or tenancy of sufferance is used for an estate when the tenant wrongfully holds over after the expiration of his term. The landlord can evict the tenant as a trespasser or accept the tenant for a similar term under the tenant's previous holding conditions. 

What Is Tenancy at Sufferance?

Landlords and the tenants usually sign a lease agreement allowing the tenant to live in the property for a specific period. Still, there are situations when the tenant might live in the residence after the period expires, creating a tenancy at sufferance where both the landlord and the tenant have some rights. 

Tenancy At Sufferance Definition: A tenancy at sufferance is also called a holdover tenancy when the tenant continues to pay the lease even after the tenancy agreement expires.    

It occurs when the tenant lives in the rental property after the lease term ends; however, if the tenant fails to comply with the lease terms, the landlord can initiate eviction procedures.   
 
If the landlord has not yet asked the tenant to leave and has not filed to evict the tenant, it is a tenancy at sufferance if they have not given the tenant permission to stay in the unit. It applies to both residential and commercial properties. In some conditions, the tenant must stop paying rent to be considered a tenant at sufferance. 

In many cases, the lease terms are redesigned if the landlord accepts payments, and in other cases, one simply prolongs the lease for another month.    It depends on local legislation, which can be mentioned in the lease terms. 

If the landlord wants to remove the tenant from the estate, they can decline to accept payment and start the eviction process; in other words, treat the tenant like a trespasser. The court proceedings are called holdover proceedings, and the eviction is not based on missed rental payments. 

The court proceedings can be started if the owner wants to remove a squatter from the property, someone who never had a lease, or the tenant caused a public nuisance on the estate. 

If both parties wish to avoid the tenancy at sufferance, the landlord may offer a new lease. Even a written and signed one-sentence agreement stating the original duration of the lease is extended can fulfil the legal requirement.

Also, one must know that during the eviction proceedings, the landlord may be forced to take the tenancy at sufferance, especially when the eviction proceedings take several months in court. 

What Is Tenancy in Common?

A tenancy in common agreement is a situation where two or more people hold an interest in a property, and each owner has the right to leave their share of the property to the beneficiary upon their death.

Some of the key features of a tenancy in common are –

• It involves two or more people who jointly own the property. Each person holds a distinct and separate share of the property.

• They have clearly defined shares, which can vary depending on the prearranged agreement or the financial contribution to the property.

• Such a property has a co-owner right where one can transfer or sell the share of the property without getting consent from the other owners. It means that one person under the tenancy in common can sell their share to someone else without affecting the other owners' rights or ownership. 

• If one of the co-owners dies, their share can be passed on to the chosen beneficiary as per the will.    The share of the property will not automatically pass to the surviving co-owners. 

• In the case of such an ownership, the co-owners share the responsibilities and expenses associated with the property, which include mortgage repayments, maintenance and damage repairs.    The amount one must pay depends on the ratio of share of ownership.    A tenancy in common gives legal rights and protection to the co-owners regarding the share of property and the necessary rights. 

Tenancies In Common Vs. Joint Tenancies

There are two types of joint ownership - tenancies in common and joint tenancies.    Both serve a similar purpose that allows people to co-own the property.    The way the ownership is set up and its rules are slightly different. 

One can decide between the joint tenants and the tenants in common based on the situation and who one wants to co-own with, so one must carefully consider the option most suitable for their needs, or you risk facing problems.

In the case of tenancy in common, when one owner passes, they pass the ownership interest onto a beneficiary in the will, which does not happen in the case of joint tenancy.    

The property's title is automatically given to the surviving owner regardless of whether you have a will which names someone else.    It is called the Rights of Survivorship. 

The tenants in common can give a different percentage share of the ownership in the property, whereas, in joint tenancy, one has ownership of the whole 100% of the property.    

The breakdown of tenants in the common agreement can be a variable where one owns 50 per cent, others own 25 per cent, or each has one-third of 33.33%. 

Joint tenants are registered on the same deed, and it is the one transaction where each acts as one party, so the property immediately goes to the other when one dies.

It is not necessary to enter into a tenancy in common at the same time, and if you are a co-owner, then you can obtain an interest in the property years after the co-ownership is set up.

Some common rules for joint tenancy and tenancy in common are - that both need a joint mortgage to get the jointly owned property. All co-owners must agree to sell; if all do not agree, one owner can file a partition to try and force the sale of the property.

How a Tenancy at Sufferance Works?

Tenancy At Sufferance Definition: A tenancy at sufferance is created when the tenant holds over past the end of the durational period of tenancy. It is also referred to as holdover tenancy or the estate at sufferance. 

It means a tenant continues to live on the premises without permission after the lease term expires and before the landlord decides to evict him. 

Tenancy at Sufferance Vs Tenancy at Will

The tenancy at sufferance happens without the landlord's permission, and the tenancy at will is the condition where the landlord permits the tenant at will to live in the rental property after the original lease agreement ends. So, the tenant stays in the house beyond the lease without consent. 

What Is an Estate at Sufferance, For Example?

The term estate at sufferance is used for situations where the tenant rightfully gets possession of the land and reconsiders the possession after the expiration of the lease term. 

Estate at sufferance is when the tenant occupies the premises without the landlord's consent or other legal agreement with the landlord. Such an estate involves a tenant who fails to vacate at the time of lease expiration, which leads to continued occupancy without the right to do it. 

Tenancy at sufferance example – Smith rents an apartment in a building that he owns to John, who lived for six months in the apartments, and he is expected to lease the flat once the six months are completed.    

However, John stays in the flat even after the period without the landlord's consent. It is legally considered trespassing since the landowner's consent is not present. 

It is a term used to tell between the person who entered the let-out property with valid documents and the trespasser who never had the authorization to enter.

Since the occupant does not hold the contract to stay, the owner is not required to give legal notice of termination. Even when the resident is living without a lease, the landholder cannot force them out, and they need to follow the proper regulatory procedure for eviction. 

It is used for leased assets used in tenancy reference where the renter stays in possession of the property after the expiration of the lease or without the approval of the proprietor after the agreement has lawfully ended.

It is the kind of holding by a person who does not want to move out but initially entered through a valid agreement. However, they remain in it without the property owner's permission. 

Such a condition mostly happens when the resident has lived for a long time and retains control without the homeowner's approval.

This is considered an unlawful act where one can take steps like selling the possession to get an exit, or they may offer a new agreement.

Even in case of legal expulsion, it may take more than six months to get an outcome, but during the process, the dweller must comply with the renter's lease term.  

Estate by Sufferance Law and Legal Definition

Tenancy At Sufferance Definition: Tenancy at sufferance happens when an originally lawful tenant continues to occupy a property past the lease expiration. As a landlord, you must notify the tenant when you are not renewing the lease. 

The amount of notice required depends on your state. Tenancy at sufferance has rights, although based on where one lives. 

Estate At Sufferance in Real Estate

The landlord has the right to evict the tenant at sufferance if they are responsible for disrupting business, and they can hold up the prospective tenant after the expiration of the contract. One can also evict the tenant if they restrict the landlord's business or cause mental distress. 

Tenants at suffrage have some rights, like their legal eviction cannot happen without the scrutiny of the contract and the real scenario. The tenant has the right to get a habitable place and suitable living conditions in case of wear and tear management. 

They can defend themselves in court to prevent eviction or to postpone to buy some time to move. The tenants must get at least 14 days prior notice from the owner who asks them to clear the property premises and go to court for legal action.

Landlord's Rights in A Tenancy at Sufferance

The landlords do not need to provide the tenant with written notice to vacate the house until they take some legal action where they need to provide the tenant with a legal eviction notice. 

The landlord has the right to make claims against the tenant if the tenant fails to move out of the house as per the agreement, and the landlord can charge the damages to the property during the overstay period. 

The landowners do not randomly show up for visits as they are not allowed to drop in anytime. They need to provide the tenant with a 24-hour notice before dropping by. If the tenant is absent for the visits, they can nominate someone else to go. 

What are the Different Types of Leasehold Estates?

A leasehold estate allows the tenant to retain possession of the property for an extended period. If you rent a property to tenants, you can have the leasehold estate. Leasehold estates can vary from one property to another from person to person. 

Some last a few years, others for a few months and others for a few days. Tenants have different rights from property to property regarding the leasehold estate. 

Leasehold can be of four types – 

• Estate from period to period – It refers to the lease term specified in the agreement for a given period, which can be year to year, month to month or weekly.

• Estate for years – It is used for commercial spaces having fixed yearly terms, which normally last for more than a typical one–year lease.

• Estate at Suffernace – In estate at sufferance, the contract term states the tenant can occupy the property once the specific term ends as long as the tenant continues to pay the agreed-upon rent. The landlord can terminate the leasehold estate at any time. 

• Estate at will exists when there is no written end date for the tenant's residency. It is often considered month-to-month. In an estate at will, either party, landlord or renter, can terminate the lease. The terms of termination are laid out before a tenant moves into the property, and it can specify that prior notice is required. 

What Is Holding Over Under a Tenancy at Will?

There are four types of tenancy: fixed term, periodic, tenancy at sufferance (or holdover tenancy), and tenancy at will. 

The main difference between tenancy at sufferance and tenancy at will is that the landlord permits the tenant at will to live in the rental property once the original lease agreement ends. 

In the case of tenancy at will, a tenant has the rental property with the owner's permission (under the oral contract), enforced under the fraud statute. 

The tenancy will terminate on the death of either the landlord or tenant. The lease agreement also terminates on the landlord's death if the landlord holds a life estate interest in the property, as the landlord could not have expressed an interest beyond their interest.

What Is Tenancy at Suffering in Commercial Real Estate?

Tenancy at sufferance is considered unlikely in the conventional leasehold estate. In certain situations, if the industrial manufacturing park decides to terminate a lease with one of the tenants, the owner can renovate and resell the building the tenant occupies. 

If the tenant does not vacate the premises, they become tenants at sufferance whether they continue to pay monthly rent. If the tenant fails to recognize the lease agreement terms, the situation becomes more complicated when the owner takes the tenant to a court of law. 

There is no guarantee of avoiding the situation of tenancy of sufferance. Due to its precise nature, it can occur if the holdover tenant does not recognize the termination of the lease for any reason. 

Since there are certain consequences of a tenant remaining in occupation after the contracted lease has expired, the parties involved in commercial real estate must consider a system to review the property portfolio regularly.

One must review the strategy for the property's investment when the contractual terms of the lease are expiring at least 12 months or 18 to 24 months in advance. 

The landlords must avoid the problems associated with unwanted tenants who remain in occupation by having an exit strategy to allow sufficient time for tenants to assess the costs involved. 

The landlords should have a plan to consider the expired lease, where they need to see if a rent stop is required to ensure the property or managing agents are instructed accordingly.

If the party wish to enter the new lease, then any negotiations should start early, and it should be ensured that the tenancy is regularised once the lease expires and the new lease is pending. 

What's the Difference between Tenancy at Sufferance and Other Types of Leasehold Estates?

Tenancy at sufferance is not a form of trespassing or squatting. Trespassing occurs when the individual enters the property through a legal agreement and remains on the premises for an extended period.

Tenancy at sufferance definition: Tenancy at sufferance differs from a tenancy for years, a common form of leasehold that takes shape when the landlord and the tenant agree to a year-to-year tenancy term within the fee simple real estate. 

The lease agreement is renewed for an indefinite amount of time unless either party breaks the agreement with prior notice. 

In periodic tenancies, the tenant and landlord agree to a definite amount of time the tenant can occupy the landlord's property before the lease expires. 

The agreement can be broken at any time with prior notice; the periodic tenancy can be formed month-to-month, week-to-week or day-to-day. The tenancy at will exists without any distinct termination or renewal timeframe.