Ownership of real property - Types of tenancies

Learning Outcomes

This article clarifies the principal types of non-freehold estates, commonly known as tenancies or leaseholds. It details the creation, characteristics, and termination methods for each type, including the Tenancy for Years, Periodic Tenancy, Tenancy at Will, and Tenancy at Sufferance. After studying this material, you will be equipped to differentiate between these tenancies and analyze related issues concerning duration, notice requirements, and termination as they appear on the MBE. Strictly 50-100 words MAX.

MBE Syllabus

For the MBE, you are required to understand the different types of leasehold estates and how they are created and terminated. This involves analysing the specific characteristics that distinguish each tenancy type. You should be prepared to:

  • Distinguish between freehold and non-freehold (leasehold) estates.
  • Identify the four main types of tenancies: tenancy for years, periodic tenancy, tenancy at will, and tenancy at sufferance.
  • Analyze the requirements for the creation of each type of tenancy, including the role of express agreements, implication, and operation of law (e.g., Statute of Frauds applicability, holdover tenants).
  • Understand the duration and termination rules specific to each tenancy type, particularly notice requirements for periodic tenancies and tenancies at will.
  • Recognize the rights and liabilities associated with a tenancy at sufferance.

Test Your Knowledge

Attempt these questions before reading this article. If you find some difficult or cannot remember the answers, remember to look more closely at that area during your revision.

  1. A lease agreement specifies a term beginning January 1, 2023, and ending December 31, 2023. This creates which type of tenancy?
    1. Tenancy at will
    2. Periodic tenancy
    3. Tenancy for years
    4. Tenancy at sufferance
  2. A tenant rents an apartment on a month-to-month basis, starting February 1. On May 10, the tenant gives the landlord written notice of intent to terminate the lease. Assuming common law rules apply, when is the termination effective?
    1. May 10
    2. May 31
    3. June 10
    4. June 30
  3. Landlord orally leases Greenacre to Tenant for two years. Tenant enters possession and pays rent monthly. What type of tenancy results in most jurisdictions?
    1. Tenancy for years
    2. Tenancy at sufferance
    3. Periodic tenancy (month-to-month)
    4. Tenancy at will

Introduction

Beyond freehold estates (Fee Simple, Fee Tail, Life Estate), which denote ownership, lie non-freehold or leasehold estates, representing a tenant's right to possess property owned by a landlord. These estates are characterized by the tenant's right of possession for an agreed-upon period, after which possession typically reverts to the landlord. Understanding the distinctions between the four main types of tenancies—Tenancy for Years, Periodic Tenancy, Tenancy at Will, and Tenancy at Sufferance—is fundamental for analysing landlord-tenant issues on the MBE. Each type has distinct rules governing its creation, duration, and termination.

Tenancy for Years

This tenancy, despite its name, can be for any fixed and determinable period—days, weeks, months, or years. The key characteristic is that the duration is fixed from the outset.

Key Term: Tenancy for Years A leasehold estate that continues for a fixed period.

Creation

A tenancy for years is typically created by express agreement (a lease) between the landlord and tenant. The agreement specifies a definite beginning and ending date. Due to the Statute of Frauds, leases for a term longer than one year must generally be in writing and signed by the party to be charged to be enforceable. An oral lease for more than one year creates a tenancy at will, although rent payments may convert it to a periodic tenancy (see below).

Termination

A tenancy for years terminates automatically at the end of the agreed-upon period. No notice is required from either the landlord or the tenant for termination to occur, as the end date is fixed at the creation of the lease. Termination can occur earlier if the tenant surrenders the leasehold and the landlord accepts (surrender), or if either party breaches a material lease covenant where the lease provides for termination upon breach.

Worked Example 1.1

Landlord leases an apartment to Tenant "from June 1, 2023, until August 31, 2023." On August 31, Tenant moves out without giving Landlord any prior notice. Landlord claims Tenant breached by not providing notice. Is Landlord correct?

Answer: No. This lease created a tenancy for years because it had a fixed duration (June 1 to August 31). A tenancy for years terminates automatically at the end of the specified term. No notice is required from either party. Tenant vacated on the termination date and therefore did not breach by failing to give notice.

Periodic Tenancy

A periodic tenancy continues for successive intervals (e.g., month-to-month, year-to-year) until terminated by proper notice from either party. It renews automatically at the end of each period.

Key Term: Periodic Tenancy A leasehold estate that continues for successive intervals until terminated by proper notice by either party.

Creation (Periodic Tenancy)

A periodic tenancy can be created in three main ways:

  1. Express Agreement: Landlord and Tenant explicitly agree to a tenancy for repeated periods (e.g., "Landlord leases to Tenant month-to-month").
  2. Implication: A lease with no set termination date but providing for regular rent payments (e.g., monthly payments) implies a periodic tenancy based on the payment interval.
  3. Operation of Law:
    • Invalid Lease: If a tenant takes possession under a lease that is invalid (e.g., violates the Statute of Frauds by being an oral lease for two years), but pays rent periodically, a periodic tenancy is created based on the rent payment interval.
    • Holdover Tenant: If a tenant remains in possession ("holds over") after a tenancy for years expires, and the landlord accepts rent from the tenant, the landlord generally creates a periodic tenancy based on the rent payment frequency in the original lease (subject to statutory modifications in some states).

Termination (Periodic Tenancy)

Termination requires proper notice from either party.

  • Common Law:
    • Year-to-year tenancy: Requires six months' notice.
    • Tenancies less than one year: Requires notice equal to the length of the period (e.g., month-to-month requires one full month's notice), but not exceeding six months.
  • Statutory Changes: Many states have shortened the notice periods by statute (e.g., one month for year-to-year).
  • Timing: Notice must typically terminate the tenancy at the end of a natural lease period (e.g., notice given May 10th for a month-to-month tenancy ending on the last day of the month would terminate the tenancy effective June 30th).

Tenancy at Will

This is a tenancy of no fixed duration, terminable at the will of either the landlord or the tenant.

Key Term: Tenancy at Will A leasehold estate with no fixed duration, terminable by either landlord or tenant at any time.

Creation (Tenancy at Will)

A tenancy at will is usually created by express agreement that the lease can be terminated at any time by either party. If a lease grants only the landlord the right to terminate at will, the tenant also acquires that right by implication. However, if only the tenant has the right to terminate at will, it is often interpreted as a life estate or determinable fee, not a tenancy at will benefiting the landlord. It can also arise by implication if a tenant takes possession with permission but without rent payments or a specified duration.

Termination (Tenancy at Will)

  • By Either Party: Traditionally, no advance notice was required. Today, most states require reasonable notice (often equal to the period of rent payment, or 30 days) for termination.
  • By Operation of Law: Terminates automatically upon:
    • Death of either party.
    • Tenant committing waste.
    • Tenant attempting assignment.
    • Landlord transferring interest.
    • Landlord executing a term lease to a third party.

Tenancy at Sufferance (Holdover Tenant)

This arises when a tenant who rightfully entered possession wrongfully remains after the lease terminates (a "holdover" tenant). It is not a true tenancy but allows the landlord to pursue eviction.

Key Term: Tenancy at Sufferance Arises when a tenant wrongfully remains in possession after the termination of a lawful tenancy.

Key Term: Holdover Tenant A tenant who remains in possession of leased property after the expiration of the lease term.

Creation (Tenancy at Sufferance)

It is created by the tenant's action of holding over without permission. It is distinct from trespass, as the tenant's original entry was lawful.

Landlord's Options

The landlord has two primary options:

  1. Evict: Treat the tenant as a trespasser and initiate eviction proceedings (e.g., unlawful detainer action). Self-help is generally prohibited.
  2. Create New Tenancy: Bind the tenant to a new periodic tenancy, usually month-to-month (in residential leases) or based on the original lease term (in commercial leases, often up to one year). The terms of the original lease generally apply unless the landlord notified the tenant of changes (e.g., increased rent) before the original lease expired.

Termination (Tenancy at Sufferance)

The tenancy at sufferance lasts only until the landlord either evicts the tenant or elects to hold the tenant to a new periodic tenancy. No notice is required to terminate the tenancy at sufferance itself before eviction proceedings begin.

Worked Example 1.2

Tenant's one-year lease expires on July 31. Tenant remains in possession and on August 5 sends Landlord a check for August rent, which Landlord deposits. On August 10, Landlord tells Tenant to vacate immediately. What type of tenancy exists, and can Landlord evict immediately?

Answer: By accepting the August rent check after the original lease expired, Landlord likely created a new periodic tenancy (probably month-to-month, assuming a residential lease or monthly rent payments). Tenant is no longer a tenant at sufferance. Landlord cannot evict immediately but must provide proper statutory notice (likely one full month, effective September 30th) to terminate the new periodic tenancy.

Key Point Checklist

This article has covered the following key knowledge points:

  • Leaseholds are non-freehold possessory interests in land.
  • Tenancy for Years: Fixed, ascertainable period; terminates automatically; written lease often required if over one year.
  • Periodic Tenancy: Continues for successive intervals (month-to-month, year-to-year); renews automatically; termination requires proper notice (common law or statutory).
  • Tenancy at Will: No fixed duration; terminable by either party (usually with notice); also terminates by operation of law (e.g., death).
  • Tenancy at Sufferance: Tenant wrongfully holds over after lease ends; landlord can evict or create new periodic tenancy.
  • Statute of Frauds applies to leases longer than one year.
  • Rent payments under an invalid lease or by a holdover tenant can create a periodic tenancy.
  • Notice periods for terminating periodic tenancies vary (common law vs. statutory).

Key Terms and Concepts

  • Tenancy for Years
  • Periodic Tenancy
  • Tenancy at Will
  • Tenancy at Sufferance
  • Holdover Tenant
The answers, solutions, explanations, and written content provided on this page represent PastPaperHero's interpretation of academic material and potential responses to given questions. These are not guaranteed to be the only correct or definitive answers or explanations. Alternative valid responses, interpretations, or approaches may exist. If you believe any content is incorrect, outdated, or could be improved, please get in touch with us and we will review and make necessary amendments if we deem it appropriate. As per our terms and conditions, PastPaperHero shall not be held liable or responsible for any consequences arising. This includes, but is not limited to, incorrect answers in assignments, exams, or any form of testing administered by educational institutions or examination boards, as well as any misunderstandings or misapplications of concepts explained in our written content. Users are responsible for verifying that the methods, procedures, and explanations presented align with those taught in their respective educational settings and with current academic standards. While we strive to provide high-quality, accurate, and up-to-date content, PastPaperHero does not guarantee the completeness or accuracy of our written explanations, nor any specific outcomes in academic understanding or testing, whether formal or informal.
No resources available.

Job & Test Prep on a Budget

Compare PastPaperHero's subscription offering to the wider market

PastPaperHero
Monthly Plan
$10
AdaptiBar
One-time Fee
$395
Assessment Day
One-time Fee
$20-39
BarPrepHero
One-time Fee
$299
Job Test Prep
One-time Fee
$90-350
Quimbee
One-time Fee
$1,199

Note the above prices are approximate and based on prices listed on the respective websites as of May 2025. Prices may vary based on location, currency exchange rates, and other factors.

Get unlimited access to thousands of practice questions, flashcards, and detailed explanations. Save over 90% compared to one-time courses while maintaining the flexibility to learn at your own pace.

All-in-one Learning Platform

Everything you need to master your assessments and job tests in one place

  • Comprehensive Content

    Access thousands of fully explained questions and cases across multiple subjects

  • Visual Learning

    Understand complex concepts with intuitive diagrams and flowcharts

  • Focused Practice

    Prepare for assessments with targeted practice materials and expert guidance

  • Personalized Learning

    Track your progress and focus on areas where you need improvement

  • Affordable Access

    Get quality educational resources at a fraction of traditional costs

Tell Us What You Think

Help us improve our resources by sharing your experience

Pleased to share that I have successfully passed the SQE1 exam on 1st attempt. With SQE2 exempted, I’m now one step closer to getting enrolled as a Solicitor of England and Wales! Would like to thank my seniors, colleagues, mentors and friends for all the support during this grueling journey. This is one of the most difficult bar exams in the world to undertake, especially alongside a full time job! So happy to help out any aspirant who may be reading this message! I had prepared from the University of Law SQE Manuals and the AI powered MCQ bank from PastPaperHero.

Saptarshi Chatterjee

Saptarshi Chatterjee

Senior Associate at Trilegal