Also known as: paramount title · superior title
Written by attorneys · grounded in primary & secondary sources — see below
A superior legal interest in leased property held by a third party at the time a lease is made that is not terminable at the landlord's will or by the time the tenant takes possession. Assertion of the interest that deprives the tenant of the contemplated use constitutes a breach of the landlord's obligations.
Tiana Tan leased a warehouse to Tori Taylor for one year. After the term ended Taylor remained in possession but made no claim that any third party held a better title. The landlord brought an action to recover possession. Because Taylor continued without asserting a superior title the court treated the occupancy as an estate at sufferance rather than a claim of paramount title.
Tristan Thompson leased retail space from Theresa Tucker. At the time of the lease a recorded mortgage held by Tidal Energy covered the entire building and was not terminable at Tucker's will. When Tidal Energy later asserted its interest Thompson could treat the mortgage as paramount title and pursue remedies against Tucker before taking possession.
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Tracy Torres leased an entire office building from Trevor Tate. Before Torres took possession a court order enforcing a prior judgment gave a third party the right to occupy the building. Because the paramount title would deprive Torres of the entire contemplated use Torres elected to terminate the lease and recover damages from Tate.
Triumph Manufacturing leased a factory complex from Torchlight Media. A recorded easement held by Trinity Pharmaceuticals affected only the loading dock area. Triumph Manufacturing affirmed the lease as to the unaffected portions and obtained an abatement of rent proportional to the lost use of the dock.
Tori Taylor took possession under a lease from Tiana Tan. Months later a holder of paramount title obtained a judgment and evicted Taylor from half the premises. Taylor remained in the unaffected portion and recovered damages plus a rent abatement for the portion lost to the paramount title holder.
Theresa Tucker leased land to Tristan Thompson. A third party holding superior record title evicted Thompson shortly after entry. Thompson sued Tucker for breach because the paramount title had been asserted and had deprived Thompson of the use the parties had contemplated under the lease.
A legal interest held by a third party at the time the lease is made qualifies as paramount title if it is not terminable at the landlord's will or by the time the tenant is entitled to possession. An equitable interest receives the same treatment unless a later purchaser for value took without notice of it.
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The tenant may terminate the lease and recover damages. If the paramount title affects only part of the premises the tenant may affirm the lease as to the unaffected portion and obtain damages plus a rent abatement.
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No. After entry there is no breach from the mere existence of paramount title. A breach occurs only if the paramount title holder actually evicts the tenant and thereby deprives the tenant of the contemplated use.
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An estate at sufferance arises when a person who once held a possessory interest continues in possession after termination without asserting any claim to superior title. A claim of paramount title requires assertion of a superior interest that can oust the tenant.
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…any act or omission of the landlord or of anyone who acts under authority or legal right from the landlord, or of someone having superior title to that of the landlord, which renders the premises substantially unsuitable for the purpose for which they are leased, or which seriously interferes with the beneficial enjoyment of the…