Key Terms Flashcards
A contract between an owner of real estate (lessor) and a tenant (lessee)
Lease
Lessor
Owner of real estate
Lessee
Tenant
A contract to transfer the lessor’s rights to exclusive possession and use of the property to the tenant for a specified period
Lease
The return of the rights of possession and quiet enjoyment to the lessor at the expiration of a lease
Reversionary Right
The lessor’s interest is called a(n) ___.
Leased fee estate plus reversionary right
A tenant’s right to occupy real estate during the term of a lease, generally considered to be a personal property interest
Leasehold estate
A leasehold estate that continues for a definite period of time
Estate for years
An interest for a certain, exact period in property leased for a specified consideration
Estate for years
Also called tenancy for years
Estate for years
Also called fixed-term tenancy
Estate for years
An interest in leased property that continues from period to period - week to week, month to month, or year to year
Periodic tenancy
A tenancy whereby a lessee retains possession of leased property after the lease has expired and the landlord, by continuing to accept rent, agrees to the tenant’s continued occupancy as defined by state law
Holdover tenancy
An estate that gives the lessee the right to possession until the estate is terminated by either party, the term of this estate is indefinite
Tenancy at will
The tenancy of a lessee who lawfully comes into possession of a landlord’s real estate but who continues to occupy the premises improperly after his lease rights have expired
Tenancy at Sufferance
Also called estate at sufferance
Tenancy at sufferance
A(n) ___ arises when a tenant who lawfully possessed real property continues in possession of the premises without the landlord’s consent after the rights expire (a holdover)
Tenancy at sufferance
A(n) ___ can arise when a tenant for years fails to surrender possession at the lease’s expiration and continues until the landlord completes the eviction process.
Tenancy at sufferance
A(n) ___ can occur by operation of law when a borrower continues in possession after foreclosure sale and beyond the redemption period’s expiration
Tenancy at sufferance
Under IL law, a(n) ___ arises when a tenant remains in possession after the term of the lease expires.
Tenancy at sufferance
A payment by a tenant, held by the landlord during the lease term and kept (wholly or partially) on default or destruction of the premises by the tenant
Security deposit
A theory in landlord/tenant law in which the landlord renting residential property implies that the property is habitable and fit for its intended use
Implied Warranty of Habitability
The transfer in writing of interest in a bond, mortgage, lease, or other instrument
Assignment
Occurs when a tenant transfers all of his leasehold interests to another person, and the new tenant is legally obligated for all the promises the original tenant made in the lease.
Lease assignment
Sublet
Sublease
The leasing of premises by a lessee to a 3rd party for part of the lessee’s remaining term
Sublease
When a tenant transfers less than all the leasehold interests by leasing them to a new tenant
Sublease
Sublessor
Original lessee
The sublessor’s interest in real estate
Sandwich lease
A(n) ___ gives notice of the interest but does not disclose the terms of the lease - only the names of the parties and a description of the property.
Memorandum of lease
A mortgage clause stating that the mortgagee agrees not to terminate the tenancies of the lessees in the event the mortgagee forecloses on the mortgagor-lessor’s building
Nondisturbance Clause
A mortgage clause stating that in the event that the mortgagee forecloses on the mortgagor-lessor’s building, the mortgagee agrees not to terminate the tenancies of lessees who pay their rent
Nondisturbance clause
A lease may contain an option that grants the lessee the privilege of renewing the lease, called a(n) ___.
Renewal option
Some leases grant the lessee the option to purchase the leased premises, called a(n) ___.
Purchase option
A clause allowing the tenant the opportunity to buy the property before the owner accepts an offer from another party
Right of First Refusal clause
Option in a lease that normally allows the tenant the right to purchase the property at a predetermined price within a certain period, possibly the lease term.
Purchase option
A lease of property according to which a landlord pays all property charges regularly incurred through ownership, such as repairs, taxes, insurance, and operating expenses.
Gross lease
A lease requiring that the tenant pay not only rent, but also costs incurred in maintaining the property, including taxes, insurance, utilities, and repairs
Net lease
In a(n) ___ lease, the tenant pays all operating and other expenses in addition to rent.
Triple-net lease
Also called a net-net-net lease
Triple-net lease
A lease commonly used for commercial property, whose rental is based on the tenant’s gross sales at the premises; it usually stipulates a base monthly rental plus a percentage of any gross sales above a certain amount
Percentage lease
A(n) ___ lease provides for specified rent increases at set future dates
Graduated lease
A(n) ___ lease allows rent to be increased or decreased periodically based on changes in the consumer price index or some other economic indicator
Index
A lease of land only, on which the tenant usually owns a building or is required to build as specified in the lease.
Ground lease
The purchase of real property, the consummation of which is preceded by a lease, usually long term. Typically done for tax or financing purposes
Lease purchase
In a(n) ___, the owners of property sell the property and then lease it back again for an agreed period
Sale-and-leaseback arrangement
In an agricultural lease, the amount of money given as rent to the landowner at the outset of the lease, as opposed to sharecropping
Cash rent
In an agricultural lease, the agreement between the landowner and the tenant farmer to split the crop or profit from its sale
Sharecropping
A lease agreement may contain language that permits a new landlord to terminate existing leases. This clause is most commonly called a(n) ___ and requires that tenants be given some period of notice before termination.
a sale clause
The legal process that results in the tenants being physically removed from the leased premises
Actual eviction
Any business that finds, attempts to find, or offers to find for any person for consideration a unit of rental real estate or a lessee for a unit of rental real estate not owned or leased by the business.
Rental-finding service
