Class 15 Flashcards
Something found in a percentage lease
Base rent
A word related to illegal possession of property
suffrance
The legal process to remove a tenant
eviction
Another name for a tenant
leasee
A leasehold with a definite termination date
estate for years
An estate for an uncertain duration
estate at will
consideration in a lease
rent
A lease that requires tenants to pay taxes
Net
Money given to cover damages
Security deposit
Can a landlord sue a tenant who breaches an oral lease
Yes
A lease whereby a tenant’s rent is based on a portion of the income the tenant produces is most likely a…
percentage lease
When a tenant assigns his leasehold tenant to another, the assignee and the lessor…
have a landlord/tenant relationship
A tenant whose lease has expired has asked the landlord if he can remain in the property until his new home is ready to close. If the landlord agrees to this arrangement, the tenant will remain in the property as a:
tenant at will
The assignment of a leasehold estate would be given to a party who is going to have the same rights as the:
tenant
A landlord’s interest in a lease can be best described as a…
reversionary
What circumstance would death terminate a lease
If the tenant was occupying the property as a tenant at will
A tenant in a residential apartment complex who was planning on moving has been told by his landlord that his lease has been automatically renewed for another six months. Base on this informatino, it would appear that….
the original lease agreement was a periodic tenancy
A landlord and tenant have entered into a lease which contains the following clause: “Tenant to pay $800 per month rent plus the annual real estate taxes.” What type of lease have the parties entered into?
Net lease
The purchaser of a leased porpoerty may take physical possession of the property when?
when the tenant’s lease expires
A lease is a contract that….
transfers a property interest from a lessor to a lessee.
The landlord is the _________; the tenant is the _________
lessor
lessee
The word demise means to
transfer a property interest through a lease
A lease conveys a personal property interest to the _____
lessee
The lessee’s interest in the property is what type
possessory
non-freehold
leasehold interest
A lessor’s/owner’s interest in the property is a
leased fee
reversionary interest
What is a non-freehold interest?
an interest with a stipulated time period
A lease may be oral or it may be in writing. Any lease that exceeds ____ months must be in writing. While leases under 12 months can be either oral or written
12 months
There are four types of leasehold estates recognized by law. What are they?
Estate for Years
Estate from year to Year
Estate at Will
Estate at Sufrance
what is estate for years
Definite beginning and ending
No notice required to terminate
Death of landlord does not terminate the lease
A tenant who remains in possession after the termination of an estate for years is called a ________. This type of tenant may be treated as a ______ tenant, or a tenant at __________.
holdover
periodic tenant or tenant at suffrance
Estate from year to year
Period to period (month to month, year to year)
Automatically renews unless notice is given
Death does not terminate a periodic tenancy
Estate at will
Tenant is at the will of the landlord
interest is for an uncertain duration
Under common law, no notice is needed to terminate this leasehold. Death does not terminate an estate at will
Estate at suffrance
unlawful possession of property
eviction tenants
Requirements for a valid lease
offer and acceptance consideration names of the parties property description legal objectives
An owner of property generally has the right to quiet enjoyment which means….
the owner has the right to possess property without the fear of another claiming to be the owner. In addition, a landlord promises that he will not interfere with a tenant’s possession of property
Security deposits are collected to cover damage by a tenant. Where must they be held and what do you ahve to provide to the tenant?
held in an escrow account
provide the tenant with the name of the bank, address of the bank, and the account number where the funds are being held
A _________ is an item of personal property used by a tenant to conduct a business. This item is considered to be the personal property of the tenant. Under common law, improvements constructed on the LAND by the leasee belong to the property owner.
Trade fixture
A ______ is the transfer of contractual rights. Unless the lease states otherwise, a lease may be ________.
Does this type of transfer relieve the first party from liability
Assignment
assigned.
No - a tenant who assigns his lease still has liability but no longer has legal rights to the property
Subletting: The lease agreement between the sublessor and his tenant, the sublessee, is called a _____ lease.
How does payment work
sandwich
The sublessee pays rent to his landlord the sublessor who in turn pays rent to this landlord the lessor.
As a general rule, what types of leases are recorded?
only long-term leases are recorded
Possession of leased property gives ________ to the world of a tenant’s interest in a property
constructive notice
A lease purchase obligates both parties while a lease option obligates only the ________
seller
under a ______ lease, a tenant pays only rent to the landlord (no taxes or other items)
gross
Under a _______ lease, a tenant pays some or all of the expenses of ownership in addition to the rent.
Net
in cases where the tenant pays all the expenses of ownership, the lease may be called a _________
triple net lease NNN
Under a __________ lease, the tenant’s rent is based on the gross income the tenant earns. Some of these types of leases may contain a fixed minimum rent called the ______ rent.
percentage lease
base rent
*Fayette Mall
Under a ________ lease, the rent payments start out low and step up over the term of the lease. This is a good lease to use to attract tenants in a tough market or for properties that may be difficult to lease
graduated
A _____ lease is a lease that is tied to a money market index, such as the consumer price index. As the index changes, so does the rent.
index
Index leases are also called ______ leases
escalation
A _________ lease is simply a lease of land. Most leases like this are net leases with long term contract.
ground
Under a _______ lease, a tenant’s rent is based on a percentage of the appraised value of the property. The property will be re-appraised at certain intervals.
appraisal lease
NOTE: Foreclosure of Mortgage:
A lease will terminate if the property is foreclosed and the lease was created after the mortgage. if a lease is created before the mortgage, the buyer at the foreclosure would take the property “subject to the lease”
If a tenant breaches a lease agreement, the landlord may…
sue for possession
In cases where a landlord breaches the lease agreement, the tenant may sue for damages or claim constructive eviction and abandon the property.
_______ is any action by a landlord or third party that interferes with a tenant’s use and possession of the leased property.
eviction
dedeedeeddd
A lien is not an ownership interest in real estate; it is an __________ that transfers with the land and lessens its value or impairs its use because it binds all successive owners until paid and cleared.
encumbrance
If a debtor defaults in payment of a debt secured by property, the lienholder can….
force the sale of the property
A general lien affects all of a debtor’s property, both ________ and _______.
A specific lien affects only ____________.
real and personal
identified property
Priority of liens is determined by the order in which the claims will be satisfied/paid off. Generally, the first lien to be recorded will take priority, but _______ and _______ usually take priority over all other liens.
A _____________ between lienholders can be used to change the order of priority
real estate taxes
special assessments
Subordination agreement
Real estate taxes are _______ taxes based on the value of the property
Ad valorem
The special assessment lien (for a mortgage) takes effect when the lender _________ the documents in the county where the property is located.
records
A judgment is a decree issued by a court and is a general, involuntary and equitable lien on both ________ and ________ property owned by a debtor. A judgment lien must be filed in every county in which the judgement debtor owns property
real and personal
