Chapter 3 Flashcards
Real Property Leases
A bilateral contract in which the lessor promises to provide exclusive possession of the property to the lessee in return for the lessee’s promise to pay rent.
Lease
The owner or landlord giving the lease is called..
Lessor
The person receiving the lease is called..
Lessee/Tenant
Money Paid for the use of leased property.
Rent
The rights that the tenant acquires in the lessor’s property.
Leasehold Estate/Leasehold Interest or Tenancy
Where do the acquired rights a tenant obtains through attach to? (the property or the lessor?)
Property
Does the sale of property or transfer of ownership due to death of the lessor affect a lease?
No
The various forms of residential leases are classified as…
1) Tenancy for years, 2) periodic tenancy, 3) tenancy at will, 4) tenancy at sufferance and 5) holdover tenancy.
This type of residential lease has a specific timeframe which can be any length of time. It also does not require notice to terminate.
Tenancy for Years
This type of residential lease has no specific ending date and automatically renews itself, going from period to period, week to week, month to month or year to year.
Periodic Tenancy
This form of residential lease has no definite duration and exists at the will of the parties. In this instance the tenant can remain on premise as long as they choose, however the lessor retains the right to terminate the lease at their discretion.
Tenancy at Will
This form of residential lease is created when a tenant wrongfully possesses the owner’s property.
Tenancy at Sufferance
This form of tenancy is created when a lessor accepts the rent from a tenant with a terminated lease. Acceptance of rent is considered to be ratification of the tenants right to continue occupying the property.
Holdover Tenancy
What are the essential elements to the formation of a residential lease?
1) Consideration, 2) Legal Purpose, 3) Offer, 4) Acceptance, 5) Competent Parties, 6) Description of the premises, 7) Rights and obligations of each party, 8) Starting Date, 9) Time and method of termination.
When a tenant does NOT sign the lease however takes possession of the premises, this is called.
Acceptance by Ratification
When a tenant transfers all of his or her rights to another person, that is called…
Assignment
When a tenant transfers less than all of their rights under the lease while retaining some portion of interest, that is called
Sublet
A sublease can also be called/considered…
Sandwich Lease
This clause clearly states and designates responsibility of repairs or maintenance between the lessor and the lessee.
Repair and Maintenance Clause
This clause clearly states improvement rights between the lessor and the lessee
Improvements Clause
This clause describes which rights and responsibilities the lessor and less have if property becomes partially or completely destroyed.
Destruction Clause
Contractual agreements that keep an offer open for a specified period of time, is called an…
Option
The option given to buy a property, is called
Purchase Option
The option given to extend the lease term under certain circumstances, is called
Renewal Option
In some cases, what is required in order for options to become available?
Fee
What happens if option expires without being utilized?
Fee is not refunded
This type of option requires that the owner give the tenant the opportunity to purchase the property on the same terms being offered by other party.
First right of refusal
Statements required by local, state and federal laws, is called…
Provisions of Law
This clause states that each clause of the lease is a separate clause and that if one clause is unenforceable, it will not invalidate or affect any part of the lease.
Unenforceable Clause
Residential leasing agents should be familiar with the types of lease provisions and clauses, however they must never…
Draft Them
A residential leasing agent drafting lease provisions and clause is considered…
Unauthorized Practice of Law.
