11 Landlord/Tenant Flashcards
Security Deposit
- Used for nonpayment of rent or 2. damage to the property.
Cannot be more than 1.5 times monthly rent.
Lease
Lease is a contract between a landlord (lessor) and a tenant (lessee) that transfers the right of possession for a definite period of time.
Statute of Frauds
All real estate contracts must be in writing to be enforceable except for a lease of a year or less and broker to broker agreements.
Estate for Years
Has a beginning and ending.
Estate from Period to Period
Automatically will renew.
Estate at Will
Stay as long as you want. Verbal lease. Proper notice of termination is required by either party. Death will CANCEL this tenancy.
Estate at Sufferance
Tenant had possession by permission at one time, and now refuses to move out. They become a holdover tenant.
Assignment
The transfer of all legal rights from one person (assignor) to another person (assignee).
Sublease
A tenant (sublessor) transfers part of their interest to another party (sublessee) but still retains reversionary interest. Lessee is still liable for paying rent to the lessor and the sublessee pays their rent to the lessee.
Novation
The substitution of a new contract for an old one.
Assignments of Rent Clause
A mortgage clause that states that if a mortgagor does not make the mortgage payments, the mortgagee can collect the rents directly from the tenants.
Non Disturbance Clause
Mortgage clause that states that if the mortgagor gets foreclosed on, the mortgagee won’t terminate the tenancies of the lessee’s who are paying their rent on time.
Lease Option
Provision that allows the tenant the right to renew their lease if proper notice is given before expiration of the lease.
Lease with Option to Buy
Allows tenant to purchase property at or during the lease period. There is no obligation for the tenant to buy at the end of the lease.
Lease Purchase Agreement
2 contracts signed at once, the lease and the purchase contract. Lessee is obligated to purchase at the end of the lease.
Quiet Enjoyment
The right of the tenant to have uninterrupted possession of the property without interference of the landlord.
Sale and Lease Back
Owner sells the property and then leases it back.
Actual Eviction
Landlords remedy if the tenant breaks the rules, or stops paying rent. Landlord must file suit in court.
Constructive Eviction
Tenants remedy if the landlord is in violation of the rules. Allows tenant to break the lease.
Landlord Options for Tenant not following Lease.
- Non-payment of rent. 5 day notice. Pay or Quit. Eviction on 6th day.
- Material Non Compliance. Violation of rules. Unauthorized pets. Give tenant 10 day notice. Eviction on 11th day.
- Material Non Compliance affecting health and safety. Hoarding. 5 day notice. Eviction on 6th day.
- Material and irreparable breach. Immediate. Meth lab. Gangs. Eviction same day.
Abandonment
Tenant vacates before lease expiration. Hold belongings for 10 days.
Eviction
A legal remedy by tenant or landlord to terminate lease if either party is violating the lease agreement.
Expiration
Term of lease is over.
Destruction of Premises
This generally terminates a lease.
Sales Clause
Allows a new landlord with proper notice to change the terms or cancel an existing lease.
Surrender and Acceptance
Mutual agreement of landlord and tenant to end lease agreement.
Gross Lease
Fixed amount. Most common.
Ground Lease
One person owns the land, one person owns the improvement and pays rent for use of land.
Net Lease
Used in commercial leases. Pays a fixed amount plus a percent or all of landlords expenses. Most common is triple net where tenant pays portion of landlords taxes, maintenance and insurance.
Oil and Gas Lease
Owner receives royalties for allowing exploration rights.
Percentage Lease
Tenant pays fixed amount of rent plus a percent of the annual income. Retail leases. Shopping malls.
Variable Lease
Rent increases during lease period. Two types. 1. Graduated Lease - increases at predetermined dates. 2. Index Lease - Periodic changes based on some economic index.
Distraint for Rent
Landlord seizing personal property for non payment.
Subrogation
Allowing the insurance company to act on my behalf. (To go after the fault party for reparations of funds paid out to me)
