New York Real Estate Salesperson ExaminationProperty OwnershipHard
A tenant in an apartment building has a lease agreement that grants them the right to occupy the unit for a fixed period of one year. After the year expires, the tenant continues to pay rent monthly, and the landlord accepts it, without a new formal lease. What type of estate in land describes the tenant's current occupancy?
- AEstate at Sufferance
- BEstate for Years
- CEstate at Will
- DPeriodic Estate
Show answer & explanationAnswer & explanation
Correct answer: D. Periodic Estate
When a lease for years expires and the tenant continues to pay rent which the landlord accepts, a periodic tenancy (or periodic estate) is created. This renews automatically for successive periods until proper notice to terminate is given by either party.
Why the other options are wrong
- A. An Estate at Sufferance occurs when a tenant unlawfully holds over after the lease expires without the landlord's permission, which is not the case here as the landlord accepted rent.
- B. An Estate for Years has a definite beginning and end date, which has already expired in this scenario.
- C. An Estate at Will can be terminated by either party at any time without notice, which is less formal than the implied agreement by accepting rent.
Periodic Estate (Periodic Tenancy)
A leasehold estate that automatically renews for successive periods (e.g., month-to-month) until either party gives proper notice of termination.
- Created by express agreement or by holding over with landlord's acceptance of rent.
- Requires notice to terminate, typically one period in advance.
- No definite end date, unlike an estate for years.
Memory trick: Years is fixed; Periodic keeps paying; Will is whenever; Sufferance is staying.