Holdover Tenancy Act (P.L. 10-67)

C . The Honorable Diego Benavente Speaker of the House of Representatives Northern Marianas Saipan, MP 96950 Commonwealth Legislature The Honorable Jesus R. Sablan President of the Senate Tenth Northern 96950 Commonwealth Legislature . Dear Mr. Speaker and Mr. President: This to inform you that I have signed into law entitled “The Holdover Tenancy Act,” which was passed by Tenth Northern Man an as Com m t h ture. The enactment of H.B. 10-287 provides landlords with a much needed legal mechanism necessary to take timely action against tenants who fail to leave their leased premises upon of their lease I fully agree with the Legislature that leasehold related actions should not be relegated to drawn out breach of contract actions. Notwithstanding the fact that I signing 10-287 into law, I am not convinced that this particular bill is the best possible law that could have been enacted to provide landlords prompt relief while preserving the rights of their tenants. I would have Legislature to considered enacting a comprehensive Act. would be invaluable that could cover ali residential and commercial leases structured not only to include ”holdover” situations (as is in H.B. but would also provide rights, remedies and relief for all landlord-tenant matters. However, as problems may arise with regard to H.B. 10-287’s implementation, I am that the Legislature further consider amending this law as may be necessary to provide a fair balance tenants’ and landlords’ rights H.B. 10-287 becomes Public Law No Sincerely yours, COi'vl~·lON\VE:\LTH OF THE NORTI-IER:< .\1.-\Rli\~i\ ISLA:'\DS FROIL-\.°" C. TE~ORJO Governor JESLS BORJ,-\ Lr. GO\'ernor Tenth T. AUG. 0 i 1997 Caller Box I c-::::, ')-; Saipan. \.1P <:c-6~•.SC• Telephone: (670) 66-1--2200 Fax: 16,0i 664-22' l Marianas Saipim, MP IS 287"), onweal conclusion legal have , an s ta.t-trto ry will between Legisla term. am H.B. tool House Bill No. 10-287, SS l ("H.B. 10 the Landlord-Tenant with prefcw:J t;1e Sucb .;.;} t~ct ::.ti~ J :>e provided 10-287), confident and remedies. 10-67. HOUSE OF REPRESENTA TENTH NORTHERN MARIANAS COMMON WEALTH LEGISLATURE SPECIAL SESSION. I . 10-67 HOUSE NO. A N ACT To provide a summary procedure for eviction of a holdover tenant or lessee and for granting of immediate possession of the property to the lessor or landlord; for other purposes. ~ Offered by Representatives: David M. Apatang, Oscar M. Babauta, Diego T. Benavente, I . Guerrero, F. Camacho and Pete P. Date: September 12, 1996 HOUSE ACTION Referred to: Committee on Natural Resources Standing Committee Report: None First and Final Reading: February 21, 1997 Accepted Senate Amendments: June 11, 1997 SENATE ACTION Standing Committee Report: None Second and Final Reading: April 2, 1997 \ H se Clerk TIVES TH/RC 1997 PuB; ,Ic LAvl ,'10. BILL 10-287, ss1 and Crispin Deleon Rosiky Reyes 1 '2 3 4 6 7 8 9 10 11 12 13 14 1s 16 17 18 19 TH NORTHERN R I AN A ON L EG I T U RE NO, H. SECOND SESSION. AN To provide a procedure for eviction of holdover or lessee and for granting of immediate possession of the property to the lessor or landlord; and for other purposes. Section Short Title. This Act shall be "The Holdover Section 2. Findings-and Purpose. The of public policy and as a constitutional mandate, the leasehold transaction over real :state has become most common economic activity that investments from both and local sources. It has been observed, that lessors encounter delays in holdover tenants after the of the lease or breach the lease agreement. Zurrently, an action for eviction of a holdover tenant must be filed as a breach of contract i n which the landlord or lessor court costs and attorney's fees. 'This can take months and even years, before a tenant is from the leased premises the landlord or lessor is restored to possession. These prolonged proceedings are unfair of the landlords right to possession and result i n considerable court costs and legal fees are borne by the landlord. The purpose of this act is to provide prompt and fair procedure for the eviction of a holdover tenant from the Section 3. of this Act. This shall not to lease agreement the government, its agencies, or is Nothing in Act hall be construed as in any manner impairing or affecting the right of the parties to create rights, duties, and obligations in and by virtue of agreement. The provisions this Act shall be in addition to all other rights allowed by in creditor-debtor or andlord-tenant relationship. 5 t· TEN MA SCOMM \'VEALTH SLA PUBLIC LA 10-67 B. NO. 10-287. SS 1 REGULAR 1996 ACT summary tenant BE IT ENACTED BY THE TENTH NORTHERN MARIANAS CO\L\JOMVEALTH LEGISLATliRE: 1 matter :ore1gn ~vie ting 1. : I . : i :omplamt, : ' ·emedy md lenial vhich ;ummary J j which l: S dditional >f CN11I the Application known 3.S Tenancv Act." outright sale of re;.;.l propeny b1~ing,rest'rie:ted as spurs however, termination rncurs Act of evicted for a leased ;1ff11,iscs apply ,ill' instrumentalities a party. a rental law a an 111 this 1 2 3 4 6 7 8 10 12 13 . 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 PUBLIC HOUSE BILL NO. Section Rent; Duration of Tenancies. (a) Unless otherwise agreed. rent payable demand or notice; periodic rent is payable at the beginning each payment period: rent is apportionable from day to day. If the rent agreement contains no provision to duration of the tenancy. the duration is determined by the periods for which the rent is payable. If the rent is payable weekly, then the tenancy is from week to week: if payable monthly, tenancy is month to if payable quarterly, is from to if payable yearly, tenancy is from to When any tenancy created by instrument in the of which is limited, has expired and the tenant holds the possession of the premises without renewing the lease by some in then such holding over shall ued to be a tenaricy at sufferance. of or rent shall not be construed to be a renewal of the term. but if the holding over be continued with the written consent of the lessor then the tenancy shall a tenancy at will as described in subsection (b) above. Section of Rental Unless otherwise agreed, a tenancy may be terminated by either notice as follows: (a) When the tenancy is from year to year, by giving not less than 60 days' notice to the end of the annual period: (b) When the tenancy is from quarter to quarter. by not less than notice prior to the end of any quarterly period; (c) When the tenancy is from month to n o t less than 15 days' notice prior to the end of any monthly period: and When the tenancy is from week to week, by giving not less than 7 days' notice prior to the end of any period. Section 6. Causes for Removal of Tenants. 4ny tenancy of any houses, buildings, lands or tenements, and the assigns, under or egal representatives of such tenant or lessee, may be removed from the premises in the after provided in the following cases: (a) Where such person holds and continues i n the possession of the demised premises, or any part thereof, after the of his time, without the 2 4. 5 (b) fro:n month; 9 (c) 11 5. Tennination pnor (d) 1erein permission of the landlord. LAW NO. 10-67 10-287, SSl lS without of rent and unifom1ly as tenancv year year. quarter quarter; an writing, term over rn further instrument wnnng ·rhe m~lt payment acceptance of become A1:..rreement. party giving written weekly over Page g1vrng n1onrh .. by giving expiration 30 days' tenants manner 1 2 3 4 6 8 9 10 11 12 13 14 15 16 17 18 19 21 22 23 24 25 26 27 28 29 30 31 PUBLIC NO. 10- 67 HOUSE BILL NO. 10-287, (b) such person holds over without permission a s aforesaid, any default in the payment of rent pursuant to the agreement under which the premises held, and 3 days' notice in writing requiring the of the rent or the possession of the premises has been served by the person entitled to the rent on the person owing the The service of the notice be by hand delivery of true copy thereof, or, if the tenant is absent from the rented premises, by leaving a copy thereof at such place. The 3 day notice required of this subsection shall contain in substantially the following form: You hereby notified are indebted to the sum O f dollars for rent and of the premises (address of the leased now occupied and that I demand payment of or possession of the . . , premises Saturday, Sunday, before the of holidays) the date of delivery of this notice, to wit: on name. address and number) . such person holds over without permission after failing to cure a material breach of the lease or oral agreement, other than nonpayment of rent, and when days' written notice requiring the cure of such breach or possession of the premises has been served on the tenant. This subsection applies when the lease is silent on the matter or when the lease is an oral one. The notice may a longer time period for the cure of the breach or surrender of the premises. I n the absence of a lease provision prescribing the method notices, service shall be by hand delivery of a true copy or, is the rented premises, leaving a copy thereof at such place. , Section 7. Tenant Over. If the tenant holds over and i n of the premises or any part thereof after termination of the rental agreement without he of the landlord , the landlord recover possession of the premises in the nanner provided in Section of this Act. The may also recover double the of ent due on the premises, or any part thereof, for the period during which the tenant refuses to possession. 5 7 20 LArv SS1 Where after payment same. a a statement are that you rnem 1.he use premises) , CN?vlI, by you the rent within J days (excluding and legal from or day , 19 . (landlord's telephone (c) 'Where 15 )0Ssess10n permission urrender Remedies: 8 fN -sr•rv1crng thereof, i~- -~t t(inant ab•;cntifrom Holding may landlord Page 3 continues amount are by 1 2 4 6 7 8 9 10 11 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 . PUBLIC L A W NO. 10-67 HOUSE BILL NO. 10-287, SS I Section 8. Possession (a) The landlord or applying for t h e removal of shall stating the which authorize the of the tenant. and in the Superior Court i n the district where the premises are situated. Al, defenses of or fact shall be contained in the tenant's answer which shall be filed within days after- service of process. If the answer incorporates a counterclaim. the landlord shall include all of law or fact in his answer to the counterclaim serve i t within days after of the counterclaim. other pleadings are permitted. All defensive motions. including to quash, shall be heard by the court prior to (b) Depositions on ora1 be taken by any party at any time. Other discovery and admissions m a y had on of court the time for postpones the for except for cause shown or by stipulation of the (c) Trial. A jury trial is authorized, and any party may demand it in any pleading or by a separate paper not later than days after the comes t o issue. When jury is in attendance at the close of the or time of demand for jury trial, the action may be tried immediately: otherwise, the court shall order a special venire to be summoned immediately. If a special venire be the party demanding the jury shall deposit sufficient money the clerk to pay the jury fees which shall be taxed as costs if the demanding party prevails. (d) New for new trial shall be filed and served within 5 days after entry of reserve motion for directed verdict shall be renewed within the period for moving (e) Appeal. of be filed and served within 30 days from the rendition of the judgment appealed from. Section 9. Service. (a) The summons and shall be served provided by the rules of the court. (b) If the defendant cannot be found in the senatorial district i n which the action is pending and either he has no usual place of abode or there is no person of suitable age or discretion then residing therein, or is n o agent by appointment or by law to receive service of process service may be made any of the CNMI. ..., .) 5 12 Summary Pleadings. tenant file a complaint Proceedings. his ~,aorney facts anv describing the prern °ses removal senatorial motions law 5 and shall No Discoverv. compliance. No dis~overy panies. Jury a ,T.... r ..... ia .... l. Motion judgment. n. served complaint Page4 ddenses 5 trial. examination may be only titiie 5 pleadings with as there order t1ial the service action settm~ good summoned, authorized m part 1 2 3 4 6 7 8 9 10 11 12 13 14 15 16 17 18 20 21 22 23 24 25 26 27 28 29 30 31 32 33 PUBLIC NO. HOUSE BILL NO. 10-287, S (c) After at least two attempts to obtain service provided by the rules the court, the defendant cannot be the C N M I : officer serving process shall serve the same by attaching a copy and complaint to of the premises in the proceeding a wall of any store, shop, dwelling, or other building, and if none to some permanent object thereon such as tree or fence). The time between two artempts shall be 6 hours. (d) If the landlord causes, or a defendant to be served a summons and complaint solely attaching them to some conspicuous of the premises involved in the proceeding, landlord shall provide the clerk of the court with two additional copies of the and envelopes addressed the defendant. One envelope shall be addressed to such address or location as been designated by for of notice a lease or other agreement or, if address the tenant, if known. The second envelope be addressed to the last known address of the tenant. The clerk of the court mail the copies of the summons and complaint by first class mail, note the fact of in the docket, and file a certificate in the court file of the fact and date of mailing. shall be effective on the date of or mailing, whichever occurs later; and at working days the date of service must have elapsed before a judgment for final removal of the defendant be entered. Section Removal of Tenant: Judgment. If the issues are found for the plaintiff, udgment shall be entered that he recover possession of the premises. If the plaintiff expressly nd sought money i n the complaint, in addition to the of of the money in favor of he plaintiff and against the o f found owing, and unpaid the defendant, with costs. If issues are found for defendant judgment shall be entered the action. ne Section 11. and Attorney's Fees. In any civil brought under this the arty in whose favor judgment or decree has been rendered recover reasonable including attorney's fees, the party. Section of Writ. entry of judgment in favor of plaintiff the clerk hall the premises and commanding the officer t o the is to persons from the premises, and plaintiff i n possession. Page ,.. ll# ' ' '• 5 19 LMl 10-67 as of if found in the the summons (such as some pan involved then minimum the ro obtain service anticipates causing, by the complaint two presramped the tenant rescipt m written no has been designaled, ·ro the residential mailing of posting 10. shall shall .immediately mailing Service least 5 specifica!ly r i,:mages ,ossess10n plaintiff, th•~ :.:er'.:- c;h:111 also dir·~ct 1h~ ~ntry of a defe:-i...:,:ct for'the amount mo'ney ,y .ismissing Costs a the osts, from 12. Execution issue a writ describing irected remove all nonprevailing After put 5 action may business from judgment due, whom a with pan to has may award Act, court writ 2 3 4 5 6 7 8 11 12 13 PUBLIC L A W 10-67 HOUSE BILL NO. 10-287, SSI Section 13. Severability. If provision of this Act or the application of any such provision to any person or circumstance should be held invalid by court competent jurisdiction, remainder of this or the application of its provisions to or than those which is held invalid shall not be affected Section Savings This Act and any repealer contained herein shall not be sonstrued as affecting any existing right acquired under- contract or acquired under statutes or under any rule, regulation or order adopted under the statutes. contained this affect any proceeding instituted under or pursuant to prior law. of this Act shall not have effect of any way modifying, any civil or criminal, which already be in existence at the date this Act becomes Section 15. Effective Date. This Act shal l effect upon its approval the or its becoming without such CERTIFIED BY: T. Speaker House of Representatives ATTESTED BY: the Northern Islands Page 6 1 9 10 I the circumstances other 14. 0epealed n A!:t shall not !nactment iability, ~ffective. 3ovemor upon any Ac: to 1t Clause. the shall law '~-~ DIEOO BENAVENTE----.:> / tenninating, or in take approval. a of persons thereby. Repealers by LEMING erk The M/.:aST day of--+~--'------9 ' , 1997 ,' ,.;- -,-.;. "'Y""F--i{~'. ,F . :v~·-a ~a;*N=e~ti~ttYr~1'-'--:::....-:--=--:--c--=--. --..~ -(? Jfr Mariana