Chapter 18 Leases

Question 1

lease

Answer 1

between a lessor (landlord) and lessee (tenant).
transfers the lessor’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 for the use of the property

Question 2

leasehold estate

Answer 2

a tenant’s right to posess RE for the term of the lease.

It is considered personal property.

Question 3

Estate for Years

Answer 3

a tenancy for years is a leasehold estate that continues for a definite period. always has a specific starting and ending dates.

Question 4

An estate from period to period

Answer 4

is created when the landlord and tenant enter into an agreement for an indefinite time. does not contain specific expiration date.

Question 5

month to month

Answer 5

when a tenant takes posession with not definite termination date and pays monthly rent

Question 6

holdover tenancy

Answer 6

is created when an estate for years remains in possession or Holds over after the lease term expires.

Question 7

Estate at Will

Answer 7

give the tenant the right to possess property with the landlord’s consent for an unspecified or uncertain term.

Question 8

Estate at Sufferance

Answer 8

arises when a tenant who lawfully took possession of real property continues in possession of the premises without the landlords’ consent after the right of possession has expired.

Question 9

notice to quit

Answer 9

start of an eviction notice

Question 10

Requirements of a vaild lease

Answer 10

Capacity to contract-be of legal and and sound mind.

Legal objective- lease must be legal

Offer and acceptance- mutually agree on all terms of contract

Consideration-$ in exchange for promises

Question 11

covenant of quiet enjoyment

Answer 11

the lessee can occupy the premises without interference for the owner or anyone else

Question 12

Security Deposit

Answer 12

held by the landlord during the lease term.

Question 13

assignment

Answer 13

of a lease the tenant transfers the entire leasehold interest to another person.

Question 14

Sublease

Answer 14

a tenant transfers less than the entire leasehold interest by subletting the premises to a new tenant.

Question 15

Sandwich lease

Answer 15

the lease a sublessor’s contract with the new sublessee

Question 16

nondisturbance clause

Answer 16

is included in the financing instrument used to mortgage lease premises.

Question 17

Renewal option

Answer 17

grants the lessee the privilege of renewing the lease

Question 18

purchase option

Answer 18

gives the tenant the right to purchase the property at a predetermined price within a certain period possibly the lease term.

Question 19

right of first refusal

Answer 19

allows the tenant the opportunity to buy the property before the owner accepts an offer from another party.

Question 20

Gross Lease

Answer 20

the tenant pays a fixed rent and some or all of the utility expenses, while the landlord pays all the taxes, insurance, repairs, and other utility expenses and maintenance connected with the property.

Question 21

Net Lease

Answer 21

tenant pays all or most of the property expenses, such as hazard insurance, property taxes, and common area maintenance charges in addition to the rent.

Question 22

Percentage leases

Answer 22

generally used for retail businesses. the rent is based on a minimum fixed rental fee plus a percentage of the gross income received by te tenant doing business on the leased property.

Question 23

variable lease

Answer 23

allows for increases in the rental charges during the lease term.

Graduated lease- provides for specified rent increases at set future dates

Index lease- allows rent to be increased or decreased periodically based on changes in the consumer price index or some other indicator

Question 24

Ground lease

Answer 24

leased unimproved land that a tenant builds on and leases from the landowner

Question 25

Oil and Gas Lease

Answer 25

when oil companies leases land to explore for oil and gas, a special lease agreement must be negotiated.

Question 26

lease purchase

Answer 26

used when a tenant wants to purchase the property but is not yet able to do so.

Question 27

sale and leaseback

Answer 27

the property owners sell the property and then lease it back for an agreed period and rental.

Question 28

breach of lease

Answer 28

when a tenant violates any lease provision. the landlord may sue the tenant to obtain a judgment to cover past due rent, damages to the premises, or other defaults

Question 29

suit for possession-actual eviction

Answer 29

When a tenant breaches a lease or improperly retains leased premises, the landlord may regain possession through a legal process known as actual eviction

Question 30

Constructive Eviction

Answer 30

if a leased premises becomes unusable for the purpose stated in the lease, the tenant may have the right to abandon them. and terminates the lease agreement