you be the judge · tenant’s reasons for failing to move in just don’t matter. c) we cannot...

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REALTORfest 2012 1 You Be The Judge Common Leasing and Property Management Mistakes R I C H M O N D ASSOCIATION OF REALTORS ® Linda S. Price, Esq. Elizabeth Godwin Jones, Esq. Godwin, Jones and Price R I C H M O N D ASSOCIATION OF REALTORS ® Fact pattern 1: Patty “Par-tay” Jones & Barb “Cosmo” Smith Tenant Landlord

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Page 1: You Be The Judge · Tenant’s reasons for failing to move in just don’t matter. c) We cannot determine who wins because we don’t know whether the lease is governed by the Virginia

REALTORfest 2012

1

You Be The JudgeCommon Leasing and Property

Management MistakesR I C H M O N DASSOCIATION OF REALTORS®

Linda S. Price, Esq.Elizabeth Godwin Jones, Esq.Godwin, Jones and Price

R I C H M O N DASSOCIATION OF REALTORS®

Fact pattern 1:Patty “Par-tay” Jones & Barb “Cosmo” Smith

Tenant Landlord

Page 2: You Be The Judge · Tenant’s reasons for failing to move in just don’t matter. c) We cannot determine who wins because we don’t know whether the lease is governed by the Virginia

REALTORfest 2012

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R I C H M O N DASSOCIATION OF REALTORS®

1. Who wins the landlord's claim for repair of damages?

a) The landlord wins. The tenants left damages that only a licensed contractor could have repaired, so it doesn't matter that he fixed them right away.

b) The tenants win. The landlord didn't give them notice of the walkthrough inspection.

c) The landlord wins. He is required to mitigate his damages and he had to make the repairs quickly so that he could get the apartment re-rented as soon as possible.

d) The tenants win. The landlord obviously had it in for these poor tenants and is just exaggerating the condition of the apartment.

Fact pattern 1:Patty “Partee” Jones & Barb “Cosmo” Smith

R I C H M O N DASSOCIATION OF REALTORS®

2. Who wins the tenants' claim for the loss of their property?

a) The landlord wins. Nobody in their right mind would leave the most valuable stuff to move out last.

b) The landlord wins. He was entitled to assume that anything left after the tenants moved out could be thrown away.

c) The tenants win. The landlord obviously had it in for these poor tenants and wanted to hurt them as much as possible.

d) The tenants win. The landlord should have given them notice before throwing away the things they left behind.

Fact pattern 1:Patty “Partee” Jones & Barb “Cosmo” Smith

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REALTORfest 2012

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R I C H M O N DASSOCIATION OF REALTORS®

3. What rent is the landlord allowed to recover?

a) The next 12 months. The lease automatically renewed and the landlord can get judgment for the whole term.

b) Nothing. The landlord evicted the tenants unlawfully thereby terminating the lease.

c) It is too soon to determine the amount of rent the landlord will win.

Fact pattern 1:Patty “Partee” Jones & Barb “Cosmo” Smith

Fact pattern 2: Sally “Drama Mama”

R I C H M O N DASSOCIATION OF REALTORS®

Tenant Landlord

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REALTORfest 2012

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R I C H M O N DASSOCIATION OF REALTORS®

1. Who wins tenant’s claim that the landlord has waived his rights?

a) Sally wins. Since landlord consistently accepted late rent in the past, the parties' course of conduct has modified the lease terms.

b) Sally wins. Since landlord consistently accepted late rent in the past, he has waived Sally’s obligation to pay rent in a timely manner.

c) Landlord wins. The fact that he did not previously enforce timely rent payment does not prohibit him from enforcing it in the future.

Fact pattern 2: Sally “Pity Me”

R I C H M O N DASSOCIATION OF REALTORS®

2. Who wins tenant’s claim that the case should be dismissed, right of redemption:

a) Sally wins. This was the first court filing and since she paid all amounts due on the Summons, the case should be dismissed, right of redemption.

b) Landlord wins. Even though this is the first court filing, Sally is not entitled to claim the right of redemption,

c) It cannot be determined who wins because we need to know whether the lease is governed by the Virginia Residential Landlord and Tenant Act.

Fact pattern 2: Sally “Pity Me”

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REALTORfest 2012

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R I C H M O N DASSOCIATION OF REALTORS®

3. Who wins tenant’s argument that payment in the drop box is sufficient?

a) Sally wins. Landlord was negligent for not checking the drop box before court.

b) Landlord wins. Sally was negligent in not hand-delivering the check tendered so close to the court date.

c) The case should be thrown out as a draw since both parties were at fault.

Fact pattern 2: Sally “Pity Me”

Fact pattern 3: Cindy “Success” Stevens

R I C H M O N DASSOCIATION OF REALTORS®

Tenant Landlord

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REALTORfest 2012

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Fact pattern 3: Cindy “Success” Stevens

R I C H M O N DASSOCIATION OF REALTORS®

1. Who wins tenant’s claim that the lease cannot be enforced because she did not take possession?

a) Betty wins. She does not owe the landlord any money because she did not move in.

b) Betty wins. She does not owe the landlord any money because the landlord failed to provide her with a signed copy of the lease.

c) Landlord wins. He has been holding the apartment for her.

Fact pattern 3: Cindy “Success” Stevens

R I C H M O N DASSOCIATION OF REALTORS®

2. Who wins tenant’s claim that the alleged breach is excused due to a job transfer?

a) Betty wins. Her failure to rent was excused because her job is located more than 90 miles from Richmond.

b) Landlord wins. Tenant’s reasons for failing to move in just don’t matter.

c) We cannot determine who wins because we don’t know whether the lease is governed by the Virginia Residential Landlord and Tenant Act.

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REALTORfest 2012

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Fact pattern 3: Cindy “Success” Stevens

R I C H M O N DASSOCIATION OF REALTORS®

3. Who wins tenant’s claim that she is entitled to a refund of her security deposit?

a) Betty wins. A deposit cannot be forfeited.

b) Landlord wins. The application provides that the deposit is forfeited.

c) Landlord wins. Landlord may keep that portion of the deposit as damages for loss of rent until the apartment is re-rented.

d) The Virginia Consumer Protection Act prohibits liquidated damages such as deposit forfeitures, and Landlord may be subject to fines and penalties.

Questions ??

R I C H M O N DASSOCIATION OF REALTORS®

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REALTORfest 2012

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You Be The JudgeCommon Leasing and Property

Management MistakesR I C H M O N DASSOCIATION OF REALTORS®

Thank You for Attending Today’s Presentation

Linda S. Price, Esq.Elizabeth Godwin Jones, Esq.Godwin, Jones and Price