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If a leasehold is condemned or taken via eminent domain, what is the effect on a tenant's duty to pay rent?

Bar Exam Prep Real Property Landlord-Tenant If a leasehold is condemned or taken via eminent domain, what is the effect on a tenant's duty to pay rent?
😀 Real Property • Landlord-Tenant PROP#093

Legal Definition

If an entire leasehold is taken by eminent domain, the tenant's duty to pay rent is extinguished. However, if only temporary or partial, the tenant is not discharged, but is entitled to compensation.

Plain English Explanation

If you're a tenant who leases property, but the government steps in and takes the property you are leasing, your duty to continue paying rent is terminated. However, if the government only temporarily takes your property, or partially takes it, the tenants still has to pay rent but they are entitled to some compensation.

Hypothetical

Hypo 1: Bob owns Blackacre, which is next to a public highway. Amy leases Blackacre for 1 year. The government wants to widen the highway to accommodate more cars, but it can't unless it buys Blackacre. Bob refuses to sell, so the government forces Bob to sell via eminent domain. Bob receives money, and Amy is kicked out of Blackacre. Result: Amy still has a lease that requires her to pay Bob, however, because Blackacre was taken under eminent domain, she no longer is required to pay Bob rent.

Hypo 2: Bob owns Blackacre, which is next to a public highway. Amy leases Blackacre for 1 year. The government wants to widen the highway to accommodate more cars, but in order to do that, it needs to temporarily take part of Blackacre's backyard in order to fit the construction equipment and build the road. For 3 months, half of Blackacre's yard is full of bulldozers and, for safety reasons, a fence is built to keep everyone out of the area. Result: This would usually qualify as a partial eviction, but since it is eminent domain, Amy is still expected to pay rent to Bob, but Amy is entitled to some compensation for losing part of the property she leases. Bob can either reduce Amy's rent, or pay her a portion of the money he received from the government when they temporarily took his land.

On a more personal note, I've witnessed this exact issue happen near where I live. The government is expanding the 405 freeway, and has temporarily taken over the backyards of homes that run up against the freeway in order to fit their machinery. When they are finished, they will rebuild those backyards.

Visual Aids

If a leasehold is condemned or taken via eminent domain, what is the effect on a tenant's duty to pay rent?

Related Concepts

How do lease covenants affect a landlord-tenant relationship where one party breaches? How may a landlord waive a covenant prohibiting assignment? If an assignment occurs, what is the relationship between the assignee and the landlord? If a tenant breaches one or more of their duties, what remedies are available to the landlord? If a tenant violates a covenant against assignment or sublease, what remedies are available to the landlord? In a landlord-tenant relationship, who has a duty of restoration when the premises being leased are destroyed due to no fault of either party? In assessing a landlord's tort liability, what six duties does a landlord have to make the premises safe? In assessing a landlord-tenant issue, what is an assignment? In assessing a landlord-tenant relationship, what are the landlord's duties? In assessing a landlord-tenant relationship, what are the tenant's duties? In assessing a landlord-tenant relationship, what is the result of a tenant's covenant to repair? What are the exceptions to the hold-over doctrine? What constitutes a constructive eviction? What constitutes an actual eviction? What constitutes a partial eviction? What is a landlord's duty to deliver possession? What is a landlord's duty to provide quiet enjoyment? What is a landlord's duty to repair? What is a leasehold estate? What is a periodic tenancy and how does it terminate? What is a retaliatory eviction? What is a sublease? What is a tenancy at sufferance and how does it terminate? What is a tenancy at will and how does it terminate? What is a tenancy for years and how does it terminate? What is a tenant's duty to not use the premises for an illegal purpose? What is a tenant's duty to pay rent, and how does it affect their security deposit? What is a tenant's duty to repair? What is the hold-over doctrine? What is the implied warranty of habitability, and what remedies are available to the tenant if breached? When does a covenant run with the land? When does a tenant cause ameliorative waste? When does a tenant cause permissive waste? When does a tenant cause voluntary waste?
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