16. Leases

Question 1

ACTUAL EVICTION

Answer 1

The legal process that results in the tenant’s being physically removed from the leased premises.

Question 2

ASSIGNMENT

Answer 2

The transfer in writing of interest in a bond, mortgage, lease, or other instrument.

Question 3

CASH RENT

Answer 3

In an agricultural lease, the amount of money given as rent to the landowner at the outset of the lease, as opposed to sharecropping.

Question 4

CONSTRUCTIVE EVICTION

Answer 4

Actions of a landlord that so materially disturb or impair a tenant’s enjoyment of the leased premises that the tenant is effectively forced to move out and terminate the lease without liability for any further rent.

Question 5

ESTATE (TENANCY) AT SUFFERANCE

Answer 5

The tenancy of a lessee who lawfully comes into possession of a landlord’s real estate but who continues to occupy the premises improperly after his or her lease rights have expired.

Question 6

ESTATE (TENANCY) AT WILL

Answer 6

An estate that gives the lessee the right to possession until the estate is terminated by either party; the term of this estate is indefinite.

Question 7

ESTATE (TENANCY) FOR YEARS

Answer 7

An interest for a certain, exact period of time in property leased for a specified consideration.

Question 8

ESTATE (TENANCY) FROM PERIOD TO PERIOD

Answer 8

An interest in leased property that continues from period to period—week to week, month to month, or year to year.

Question 9

GROSS LEASE

Answer 9

A lease of property according to which a landlord pays all property charges regularly incurred through ownership, such as repairs, taxes, insurance, and operating expenses. Most residential leases are gross leases.

Question 10

GROUND LEASE

Answer 10

A lease of land only, on which the tenant usually owns a building or is required to build as specified in the lease. Such leases are usually long-term net leases; the tenant’s rights and obligations continue until the lease expires or is terminated through default.

Question 11

HOLDOVER TENANCY

Answer 11

A tenancy whereby a lessee retains possession of leased property after the lease has expired and the landlord, by continuing to accept rent, agrees to the tenant’s continued occupancy as defined by state law.

Question 12

LEASE

Answer 12

A written or oral contract between a landlord (the lessor) and a tenant (the lessee) that transfers the right to exclusive possession and use of the landlord’s real property to the lessee for a specified period of time and for a stated consideration (rent). By state law leases for longer than a certain period of time (generally one year) must be in writing to be enforceable.

Question 13

LEASEHOLD ESTATE

Answer 13

A tenant’s right to occupy real estate during the term of a lease, generally considered to be a personal property interest.

Question 14

LEASE PURCHASE

Answer 14

The purchase of real property, the consummation of which is preceded by a lease, usually long-term. Typically done for tax or financing purposes.

Question 15

LESSEE

Answer 15

The owner of real estate in a lease. See also lease.

Question 16

LESSOR

Answer 16

The tenant in a lease. See also lease.

Question 17

MONTH-TO-MONTH TENANCY

Answer 17

A periodic tenancy under which the tenant rents for one month at a time. In the absence of a rental agreement (oral or written) a tenancy is generally considered to be month to month.

Question 18

NET LEASE

Answer 18

A lease requiring the tenant to pay not only rent but also costs incurred in maintaining the property, including taxes, insurance, utilities, and repairs.

Question 19

PERCENTAGE LEASE

Answer 19

A lease, commonly used for commercial property, whose rental is based on the tenant’s gross sales at the premises; it usually stipulates a base monthly rental plus a percent age of any gross sales above a certain amount.

Question 20

REVERSIONARY RIGHT

Answer 20

The return of the rights of possession and quiet enjoyment to the lessor at the expiration of a lease.

Question 21

SECURITY DEPOSIT

Answer 21

A payment by a tenant, held by the landlord during the lease term, and kept (wholly or partially) on default, or on destruction of the premises by the tenant.

Question 22

SHARECROPPING

Answer 22

In an agricultural lease, the agreement between the landowner and the tenant farmer to split the crop or the profit from its sale, actually sharing the crop.

Question 23

SUBLEASE

Answer 23

The transfer in writing of interest in a bond, mortgage, lease, or other instrument. See also subletting and assignment.