Ch. 18 Leasing Flashcards
actual eviction
when a tenant breaches a lease or improperly retains leased premises, the landlord may regain possession through this legal process (suit for possession)
assignment
a tenant transfers the entire leasehold interest to another person
constructive eviction
leased premises become unusable for the purpose stated in the lease, the tenant may have the right to abandon them
estate (tenancy) at sufferance
arises when a tenant who lawfully took possession of real property continues in possession of the premises without the landlord’s consent after the right of possession has expired
estate (tenancy) at will
gives the tenant the right to possess property with the landlord’s consent for an unspecified or uncertain term
estate (tenancy) from period to period
periodic tenancy, created when the landlord and tenant enter into an agreement for an indefinite time-lease does not contain a specific expiration date (automatically renewing)
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
ground lease
when a landowner leases unimproved land to a tenant who agrees to erect a bldg on the land (usually net leases)
holdover tenancy
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
lease
the foundation of the relationship between a property owner and tenant is the lease. A lease is a contract between a lessor and a lessee
lease purchase
is used when a tenant wants to purchase the property but is not yet able to do so
leasehold estate
A tenant’s right to possess real estate for the term of the lease. A leasehold is generally considered personal property
lessee
a person who holds the lease of a property; a tenant.
lessor
the owner of real estate, or landlord
month-to-month tenancy
created when a tenant takes possession with no definite termination date and pays monthly rent
net lease
the tenant pays all or most of the property expenses, such as hazard insurance, property taxes, and/or common are maintenance (CAM)
nondisturbance clause
included in the financing instrument used to mortgage leased premises A type of clause in a mortgage contract. that ensures that the rental agreement between the tenant and the landlord will continue under any circumstances. This is done primarily to protect the renter from eviction by the mortgagor if the property is foreclosed upon.
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percentage lease
either a gross lease or a net 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
purchase option
A lease that grants the lessee the option to purchase the leased premises
renewal option
A lease that contains a clause that grants the lessee the privilege of renewing the lease
rent
a fixed, periodic payment made by a tenant of a property to the owner for possession and use, usually by prior agreement of the parties
reversionary right
the return of the rights of possession and quiet enjoyment to the lessor at the expiration of a lease
right of first refusal
allows the tenant the opportunity to buy the property before the owner accepts an offer from anther party
sale-and-leaseback
property owner sells the property and then lease it back for an agreed period and rental /Allows the original owner to use the property as a tenant while freeing up capital for other business purposes
security deposit
used if the tenant defaults on payment of rent or destroys the premises
sublease
a tenant transfers less than the entire leasehold interest by subletting the premises to a new tenant
estate (tenancy) for years
a leasehold estate that continues for a definite period of time. Always has a specific starting and ending date
Graduated lease
provides for specified rent increases at set future dates
Index lease
allows rent to be increased or decreased periodically
Oil & Gas Lease
lease covers subsurface rights, if oil or gas is found, the landowner usually receives a percentage of its value as a royalty. As long as oil or gas is obtained in significant quantities, the lease continues indefinitely.
Sales Clause
Opposite of the nondisturbance clause, a lease may contain a sales clause stating that requires the tenant be given some period of notice before termination under a new landlord/ or may terminate or renegotiate terms of the lease
