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
Real estate/financing technique whereby an owner sells property to an investor or lender, then leases that same property back. Gives the seller or leasee possibly much needed cash while assuring buyer/seller a guaranteed tenant, therefor reduces investment risk
Sale Leaseback
This type of lease pays a fixed rate rent, and lessor pays taxes, insurance and all other expenses such as maintenance and repairs
Gross Lease
This is a type of lease where the lessee pays base rent (fixed amount) and also pays a prorated share of taxes, insurance and other specified operating expenses- usually based on % of sq foot leased
Net Lease
This type of lease usually requires a certain fixed minimum rent to be paid regardless of tenants biz income. Tenant pays % of any biz income that exceeds agreed upon minimum gross income
Base rent + % of sales
Percentage Lease
This type of lease provides for predetermined rental increases @ specified times, based on changes in Consumer Price Index
Graduated Lease
An owner leases vacant land to a tenant who the builds his own building. These are usually long term leases
Ground Lease
This is a written lease with no fixed rent amount and primarily used in cooperatives. Lease is between the corporation (owner) and stockholer (tenant).
Proprietary Lease
A lease in which rent is adjusted periodically, according to reevaluation of the real estate
Revaluation Lease
Lease that says nothing about particular issue
Silent Lease
Ways a lease can be terminated:
- Expiration
- Proper Notice
- Destruction or condemnation
- AGreement
- Abandonment
- Breach
Any violation of any of the terms or conditions of a contract without legal excuse
Breach
Landlord institues a suit for possession in effort to obtain a court order removing tenant from premises when theres a breach
Actual Eviction
If landlords actions or lack thereof renders the leased premises uninhabitable then law may declare that this eviction has occured and teneant has been forced to move out there by terminating lease without liability
Constructive Eviction
When an owner seeks to regain possession by throwing out 1 who has no legal right to possession
Ejectment
