Landlord & Tenant Flashcards
A freehold estate is
a form of ownership with an indeterminate length.
A leasehold interest, or leasehold estate, is
an interest in the occupation of a property established through a lease.
A lease can establish one of the following types of estates:
Estate for years: stipulates a specific starting and ending time to the lease; also known as a tenancy for years or tenancy for a specific term
Periodic estate: has a fixed lease period, after which it is automatically renewed until either party to the lease acts to cancel it; also known as a periodic tenancy, estate from period to period, or estate from year to year
Estate at will: allows a tenant to occupy a property with the landlord’s consent; the tenant or the landlord can end the lease at any time
Estate at sufferance: occurs when a tenant remains in possession of the property beyond their lease’s terms without the consent of the landlord; also called a tenancy at sufferance
holdover tenant.
The tenant who stays beyond their lease’s term
proprietary lease.
It’s a long-term and exclusive lease given to the resident and stock owner of a cooperative.
This is very similar to a standard lease between a tenant and a landlord. The difference is that, in this case:
The landlord is the cooperative.
The tenant is the shareholder (who is also residing in one of the cooperative’s units).
lease-option agreement,
is a contract in which the buyer can lease a property for a period of time (usually a year or two) and then have the option to buy the property.
lease-purchase agreement
required to buy it
gross lease
is a lease in which the tenant will be responsible for the payment of a fixed monthly charge, while the landlord is responsible for paying all operating expenses.
A net lease is
a lease in which the tenant pays a base rent rate plus all or part of the operating expenses.
There are three different types of net leases:
A single-net lease: rent + property taxes
A double-net lease: rent + property taxes and insurance
A triple-net lease: rent + prorated portion of all operation expenses
A percentage lease is
a type of (usually commercial) lease in which the tenant pays a base rent amount and a percentage of their business profits to the landlord.
To calculate rent costs under a percentage lease, let’s take a look at the formula:
Fixed rent + (Overage x Sales rate) = Rent
Overage = gross sales
Sales rate = percentage of sales applied to the rent
A variable lease is
a leasehold agreement in which the base rent changes. Simple as that! It can take the form of a graduated lease or an index lease.
A graduated lease is
a lease in which the rental rate increases over time in specific increments. This is also referred to as a step-up lease.
escalation clause, which is
a clause in a lease allowing payments to increase by a specific factor. That factor is variable
An index lease is
an agreement that also allows for a graduated increase of rent at periodic intervals; however, the increases are relative to an economic indicator, such as the Consumer Price Index (CPI). The CPI is a monthly index of the prices of general commodities and is used to calculate national inflation levels.
A ground lease, also known as a land lease, is
the lease of bare, undeveloped land.
URLTA
The Uniform Residential Landlord and Tenant Act (URLTA) is national legislation that helps regulate the leasing of residential properties.
Demising clause:
This is the part of the contract that grants the lessee possession of the property.
sublease occurs when
a tenant transfers part of their right of possession in a leased property to another person for a period of the lease term. The tenant is essentially just calling in a substitute tenant to take their place.
Reversionary Rights
the landlord has the power to retake the property after the lease term has expired.
There are three main types of evictions we will discuss, however only one is legal:
Summary ejectment ⏳🚪: A legal process to quickly remove a tenant for specific reasons (e.g., non-payment of rent) in North Carolina.
Retaliatory eviction 🚫😡: Illegal in North Carolina! Landlords can’t evict tenants in retaliation for exercising their legal rights, like reporting code violations.
Self-help eviction 🚫🔑: Also illegal in North Carolina! Landlords can’t force tenants out without going through the proper legal eviction process.
novation
the substitution of a new contract in place of an old one.
The North Carolina Residential Rental Agreements Act
There are exclusions, though! The properties and living situations that are exempt from the rules and regulations in this act are:
to spell out the obligations of both landlords and tenants and to ensure that the housing that is available to North Carolina renters is well-maintained and habitable. It also helps to protect residential tenants from being subject to unfair practices by landlords.
Transient occupancy in a hotel, motel, or similar lodging that is subject to regulation by the Commission for Public Health
Commercial or industrial rentals
Vacation rentals (more on those later!)
Any dwelling furnished without charge or rent
North Carolina Tenant Security Deposit Act
North Carolina has specific requirements surrounding security deposits
Doctrine of Constructive Eviction
If the tenant gives the landlord notice that the property is uninhabitable and it is not corrected in a reasonable amount of time, this doctrine effectively allows the tenant to cancel the remainder of the lease and vacate the premises without penalties.
Statute of Frauds
state-level law that requires certain types of contracts to be set out in writing to be enforceable.
requires North Carolina leases with terms of three years or more to be in writing?
Both the statute of frauds and the Connor Act require North Carolina leases with terms of three years or more in length to be in writing.
