Chapter 7 Flashcards
The act of passing all of one’s rights and responsibilities under a legal agreement to a third party
Assignment
Costs of maintaining the common areas of a commercial property that are typically passed through to tenants
Common Area Maintenance Fees
An assurance made by the grantor that no other party will disturb the grantee claiming to own the property or to have a lien on it; a promise from the lessor that the tenant has the right of exclusive possession of the property during the term of the lease
Covenant of Quiet Enjoyment
A limit on the amount of operating costs to be borne by the landlord in a commercial lease agreement
Expense Stop
A lease that stipulates that the rent will be adjusted periodically as the value of the building changes, as determined by an appraisal
Reappraisal Lease
A clause in a lease agreement that defines the parties’ agreement regarding renewal of the lease upon termination
Renewal Option
Contract between a landlord and a tenant authorizing the tenant to use and occupy space under certain terms and conditions
Rental Agreement
An amount required by a lessor in advance of occupancy as security against potential damages caused by the lessee
Security Deposit
A type of rental agreement in which the rent is scheduled to increase over time according to an agreed-upon schedule
Step-Up Rent Lease
A lease contract that stipulates a fixed rent amount for the period of the lease
Fixed-Rent Lease
A lease contract that stipulates scheduled rent increases over the period of the lease
Graduated-Rent Lease
A lease contract stipulating that the landlord will pay all operating expenses, taxes, and insurance for the property during the period of the lease
Gross Lease
A long-term lease for vacant land
Ground Lease
A lease in which rent payments are adjusted based on changes in the cost of living
Index Lease
A legal agreement between lessor and lessee
Lease
The act of transferring a portion of the leasehold estate to a third party
Subleasing
A leasehold estate that defines a tenant’s right to occupy the property against the wishes of the lessor
Tenancy at Sufferance
An informal leasehold estate of indeterminable length that may last as long as the parties agree
Tenancy at Will
A leasehold estate that has definite starting and ending dates
Tenancy for a Stated Peroid
The person who receives a leasehold interest in a property from the lessor
Lessee
The person who gives a leasehold interest in a property to a lessee
Lessor
A lease that stipulates that the lessee will pay operating expenses for a property during the lease period
Net Lease
A lease that stipulates that the lessee will pay operating expenses and insurance for the property during the lease period
Net-Net Lease
A lease that stipulates that the lessee will pay operating expenses, insurance, and property taxes for the property during the lease period
Net-Net-Net Lease
