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About: American rule (property)     Goto   Sponge   NotDistinct   Permalink

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In property law, the American rule of possession states that a landlord is obligated only to deliver legal possession, but not actual possession, of a leased premises to a tenant. Thus, if a tenant arrives at a leased premises only to discover that it is still inhabited by a previous tenant who is holding over, or by squatters, it is the tenant who has standing to sue for eviction and/or damages, and not the landlord. The tenant may not cancel the lease or refuse to pay rent due to the landlord for the time that the tenant is out of actual possession of the lease. The American rule survives in only a minority of jurisdictions.