Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
30 Cards in this Set
- Front
- Back
- 3rd side (hint)
Lease |
A lease is a contract between a lessor and lessee. A lease transfers the lesser's rights to exclusive possession and use of the property to the tenant for a specified period of time and establishes the consideration the lessee is to pay rent the use of property. |
|
|
Leasehold estate |
A tenant's right to possess real estate for the term of the lease is called a leasehold estate. A leasehold is generally considered personal property. |
Less than Freehold |
|
Leasehold Estates |
1. Estate for Years. 2. Estate from period to period. 3. Estate at Will. 4. Estates at Severance |
|
|
Estate for years |
An estate for years is a leasehold estate that continues for definite period. This amount of time maybe years, months, weeks, or even days. Always has a specific starting and ending date which is unaffected by the original lessor's death or sale of property. |
|
|
Estate from period to period |
Is created when the landlord and tenant into an agreement for an indefinite time. The tenancy is created initially to run for definite amount of time with no expiration date. Tenancy continues indefinitely and is automatically renewable until proper notice of termination is given. |
|
|
Estate at will |
Gives the tenant the right to possess the property with the landlord's consent for an unspecified or uncertain term and there was no initial period of occupancy specified to begin with. |
|
|
Estate at Severance |
This arises when a tenant who lawfully took possession of real property continues possession without the landlord's consent after the right of possession has expired. The landlord then can object to the tenant holding over or informing the tenant with a notice to quit. |
|
|
Holdover tenancy |
The landlord can accept rent offered by the tenant, thereby creating a new tenancy under conditions of the original lease period limited to one year |
|
|
Requirements of a valid lease |
Capacity to contract Legal Objective Offer and acceptance Consideration |
|
|
Possession of premise |
Bound by the Covenant of quiet enjoyment, the lessee can occupy the premises without interference from the owner or anyone else except in emergencies, the tenant's permission is usually required to enter the property. |
|
|
Lease contacts may include |
Possession of premise, use of premise, term of lease, security deposit, improvements, accessibility, maintenance of premise, destruction of premise, assignment and subleasing, recording Elise, non-disturbance clause, and options. |
|
|
Assignment |
In an assignment of lease, a tenant transfer the entire leasehold interest to another person. The new tenant is legally obligated to comply with all the promises the original tenant made in the lease. |
|
|
Sublease |
Under a sublease, a tenant transfers less than the entire leasehold interest by subletting the premise to a new tenant. The original tenant remains responsible for rent being paid by the new tenant and for any damage done to the rental during the lease term. The sublessor's interest in the real estate is known as a sandwich lease. Must have consent from the lessor. |
|
|
Non-disturbance clause |
A non-disturbance clause is included in the financing instrument used to mortgage leased premises. So long as the lessee is current and payment of the required rent, should the mortgagee forclose, the mortgagee agrees not to terminate the tenancy. |
|
|
Options |
A lease may contain a clause that grants the lessee the privilege of renewing the lease, called a renewal option, or even in some cases the option to purchase the premise, called a purchase option. |
|
|
Types of leases |
1. Gross lease. 2. Net lease. 3. Percentage lease |
|
|
Gross lease |
Tenant pays a fixed rent and some or all of the utility expenses, while the landlord pays all taxes, Insurance, repairs, any other utility expenses, and maintenance connected with the property. Residential and Commercial office leases are most often gross leases. |
|
|
Net lease |
The tenant pays all or most of the property expenses, such as Hazard Insurance, property taxes, and or common area maintenance charges in addition to rent. Leases for entire commercial or industrial buildings, ground leases, and long-term leases are usually net leases. |
|
|
Percentage lease |
The rent is based on a minimum fixed rental fee plus a percentage of the gross income received by the tenant doing business on the leased property. |
|
|
Variable lease |
Is when a lease may allow for increases in the rental charges during the lease term |
|
|
Ground lease |
When a landowner leases unimproved land to a tenant who agrees to erect a building on the land, is most often used in commercial and industrial property development. Ground leases typically involve separate ownership of the land and the buildings. Often run for 50 to 99 years. Generally net leases. |
|
|
Oil and gas lease |
Usually only covers subsurface rights comma except for enough surface space to conduct extraction operations. Usually the landowner receives a cash payment. If oil or gas found the landowner usually receives a percentage of its value as a royalty. |
|
|
Lease purchase |
Is used when the tenant wants to purchase the property but is not yet able to do so. The down payment is paid and part of the periodic rent may be applied towards the purchase price of the property. |
|
|
Sale and leaseback |
The property owners sell the property and then lease it back for an agreed period nd rental. Often used by a company that owns its own office building but it needs capital. |
|
|
Breach of lease |
When a tenant breaches any lease provision, the landlord me Sue the tenant to obtain a judgment to cover past due rent, damage to the property, or other defaults. |
|
|
Suit or possession- Actual eviction |
When a tenant breaches a lease or improperly retains leased premises, the landlord May regain possession through a legal process known as actual eviction. Most lease terms require a 10-day notice in the case of default. |
|
|
Tenants remedies- constructive eviction |
If a landlord breaches any Clause of a lease agreement the tenant has the right to sue and recover damages against landlord. The tenant may have the right to abandon the property. Constructive eviction terminates the lease agreement. |
|
|
Uniform residential Landlord and Tenant Act |
Was created in 1972. The ACT addresses such issues as •the landlord's right of Entry. •Maintenance of the premises. •The tenant protection against retaliation by the landlord for complaints. •The disclosure of the properties owner's name and address to the tenant. |
|
|
Index lease |
Allows the rent to be increased or decreased periodically based on the changes in the Consumer Price Index or some other indicator |
|
|
Graduated lease |
Provides the specified rent increases at set future dates |
|