Definition
In the context of real estate, something ‘implied’ is assumed to be in force based on actions, facts, and circumstances, even though it is not written or spoken. It is legally binding and enforceable. For instance, many jurisdictions recognize an implied warranty of habitability, requiring landlords to maintain rental properties in livable condition without having an explicit agreement in writing.
Examples
1. Implied Warranty of Habitability:
In many states, landlords must ensure that any rental property is fit for habitation, even if this is not explicitly agreed upon in the rental contract. If there are building code violations making a property uninhabitable, the tenant can still demand necessary repairs.
2. Implied Easement:
A property owner may have an implied easement to access their land if it is landlocked, even if no formal document grants this right.
3. Implied Agreement:
A handshake agreement where both parties conduct themselves as if a contract exists can be enforceable as an implied contract.
Frequently Asked Questions
1. What is an implied contract?
An implied contract is an agreement created by actions, behavior, and circumstances of the parties involved, rather than written or spoken words. It has the same binding legal force as a written contract.
2. How does implied warranty of habitability work?
It requires that landlords maintain rental properties in good and livable condition, meeting safety and health standards as defined by local building codes.
3. Can implied terms override written agreements?
Implied terms cannot override the clear terms of a written contract but can fill in gaps that the written contract does not address.
4. Are implied agreements enforceable in court?
Yes, courts can enforce implied agreements just as they would enforce written contracts, as long as there is sufficient evidence of mutual agreement and intent.
5. Is an implied warranty of habitability necessary for all rental properties?
Yes, in states that recognize it, this warranty cannot be waived by lease agreements; it ensures basic living conditions.
- Expressed Contract: A contract whose terms the parties have explicitly stated.
- Easement: A legal right to use another’s land for a specific limited purpose.
- Building Code: Regulations concerning building design, construction standards, safety, and other requirements.
- Warranty: A guarantee that specific facts or conditions are true or will happen.
Online Resources
References
- Restatement (Second) of Contracts: Legal principles foundational in understanding implied contracts.
- Uniform Residential Landlord and Tenant Act (URLTA): Standardizes the law regarding the rental of residential property.
Suggested Books for Further Studies
- “Real Estate Law” by Robert J. Aalberts
- “The Law of Property” by C. Edward Merriam
- “Understanding Property Law” by John G. Sprankling
- “Practical Real Estate Law” by Daniel F. Hinkel
Real Estate Basics: Implied Terms Fundamentals Quiz
### Does an implied warranty of habitability require an explicit agreement between tenant and landlord?
- [ ] Yes, it must be in writing.
- [ ] Yes, it must be verbal.
- [x] No, it is assumed under the law.
- [ ] It depends on the moisture conditions.
> **Explanation:** An implied warranty of habitability does not require an explicit agreement. It is automatically assumed under the law that rental properties must be habitable.
### Can implied terms be legally enforceable?
- [x] Yes, they can be enforced like written terms.
- [ ] No, only written terms can be enforced.
- [ ] Yes, but only in criminal cases.
- [ ] No, they require mutual consent to write in.
> **Explanation:** Implied terms are legally enforceable as they are considered to exist based on the actions, behaviors, and circumstances of the involved parties.
### What is an implied easement primarily based on?
- [ ] Formal agreements
- [x] Necessity and previous use
- [ ] Real estate agent's discretion
- [ ] Construction material type
> **Explanation:** Implied easements are typically based on necessity and prior use, rather than formal, written agreements.
### Are landlords allowed to waive the implied warranty of habitability?
- [ ] Yes, if stated in lease agreements.
- [x] No, it is a non-negotiable requirement.
- [ ] Yes, through verbal agreements.
- [ ] No, unless during winter months.
> **Explanation:** In states recognizing it, the implied warranty of habitability cannot be waived by lease agreements to ensure that tenants always have a right to a livable dwelling.
### What binds an implied contract?
- [ ] Written words
- [ ] Documentation through real estate agents
- [x] Actions, behavior, and circumstances
- [ ] Verification by court
> **Explanation:** Implied contracts are established through actions, conduct, and circumstances indicating mutual agreement and intent, leading to legal enforceability.
### For an implied warranty, what happens if a property violates building codes?
- [x] The landlord must fix the issues.
- [ ] The tenant must fix the issues.
- [ ] The warranty is voided.
- [ ] No action is required until a lawsuit.
> **Explanation:** If a rental property violates building codes, the landlord must address the issues to meet the standards of habitability.
### Is an implied warranty limited to residential properties?
- [ ] Yes, only residential properties.
- [ ] No, it also includes industrial areas.
- [x] Mostly applied to residential, some include commercial.
- [ ] It applies to all lots of land.
> **Explanation:** The implied warranty of habitability mostly applies to residential properties, though some commercial leases might incorporate similar terms under explicit agreements.
### Why is an implied contract significant in real estate?
- [ ] It is not significant at all.
- [ ] It ensures high real estate values.
- [x] It fills in gaps in written contracts and establishes obligations.
- [ ] It avoids the need for lawyers.
> **Explanation:** Implied contracts are significant because they fill in gaps where written contracts might not cover all necessary obligations or rights, ensuring fair dealings.
### Can an implied warranty cover aesthetic aspects of a rental property?
- [ ] Yes, including painting.
- [ ] No, only written agreements provide this.
- [x] No, only health and safety standards.
- [ ] Yes, under tenant requests.
> **Explanation:** An implied warranty of habitability covers health and safety standards, not aesthetic aspects which would require explicit mutual agreements.
### Can a tenant legally enforce repairs on an implied warranty?
- [x] Yes, through legal or administrative action.
- [ ] No, not unless it’s written.
- [ ] Yes, but only after one year.
- [ ] No, only if rent is high.
> **Explanation:** Tenants can legally enforce the implied warranty of habitability, requiring landlords to conduct necessary repairs to meet the standards of habitable living conditions.
