Chapter 4: Leases and Property Management Flashcards
A contract outlining the rights and obligations of landlord/tenant and a conveyance creating a leasehold interest in real property
Lease Agreement
Generally concerns only the right to occupy property and lease classified as personal property
Leasehold Estate (Interest)
Estate with a definite period of time with a term date specified
Estate Tenancy for Years
Estate that automatically renews @ set intervals and requires proper notice to terminate
Estate/Tenancy Year to Year
Estate with indefinite period of time, and requires term notice
Estate/Tenancy at Will
Possession without landlords consent
Estate/Tenancy at Sufferance
If a lessee leases a part of his interest to another
Sublease
To let or to lease
Demise
Land retains right to possess property after lease term expires
Reversionary Estate
Landlord may restrict the use of premises
EX: shopping center lease may restrict one restaurant tenant to seafood only, while restricting another to burgers
Restrictive Covenants
Leasee in a commercial/retail space may need to protect agasint competitors in the same complex and will use this clause
Protective Covenant
Clause that states lease is subordinate to all present and future mortgages affecting property
Subordination Clause
This clause gives leasee the right to purchase leased property @ specific price, for specific time under specific terms and conditions
Option Clause
What is a bilateral contract that survives the death of parties and sale of property?
Lease
Clause that allows for an up and down adjustment of certain payments
Escalator Clause