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.