Lease/ Rental Agreement

Question 1

Lessor

Answer 1

In a lease arrangement, the owner is the landlord, or lessor

Question 2

Lessee

Answer 2

In a lease arrangement, the renter is the tenant, or lessee

Question 3

Leasehold Estate

Answer 3

An estate that entails temporary rights of use, possession, and to an extent, exclusion, but not legal ownership

Question 4

Leased Fee Estate

Answer 4

In conveying the leasehold estate, the landlord squires a leased fee estate, which entails the rights to :
receive rent, re-possess the property following the lease term, monitor the tenant’s obligations to maintain the premises

Question 5

Lease Term

Answer 5

Duration of the lease. The four principal types of leasehold estate are:

• estate for years: has specific lease term
• estate from period-to-period: the lease automatically renews
• estate at will: has no specific lease term
• estate at sufferance: a tenancy without consent

Question 6

Subletting

Answer 6

Subletting (subleasing) is the transfer by a tenant, the sublessor, of a portion of the leasehold interest to another party, the sublessee, through the execution of a sublease. The sublease spells out all of the rights and obligations of the sublessor and sublessee, including the payment of rent to the sublessor. The sublessor remains primarily liable for the original lease with the landlord. The subtenant is liable only to the sublessor

Question 7

Assignment

Answer 7

An assignment of the lease Is a transfer of the entire leasehold interest by a tenant, the assigner, to a third party, the assignee. There is no second lease, and the assignor remains no residential rights of occupancy or other leaseholder rights unless expressly states in the assignment. The assignee becomes primarily liable for the lease and rent, and the assignor, the original tenant, remains secondarily liable. The assignee pays rent directly to the landlord

Question 8

Gross Lease

Answer 8

A lease requiring the landlord to pay all of the property’s operating expenses, including those that pertain to an individual tenant

Question 9

Net Lease

Answer 9

A lease which requires a tenant to pay rent as well as share of the property’s operating expenses to the extent provided for in the lease contract

Question 10

Percentage Lease

Answer 10

A retail property lease which requires a tenant to payment a minimum amount of rent plus an additional increment that reflects the sales achieved by the tenant

Question 11

Ground Lease

Answer 11

A lease of the land-only portion of a parcel of real property

Question 12

Default

Answer 12

A landlord or tenant who violates any of the terms and covenants of the lease has breached the contract and is in default

Question 13

Specific Performance

Answer 13

Forced performance of ones obligations in agreement, to the letter of the agreement. A legal remedy for damaged to party to take against a defaulting party

Question 14

Constructive Eviction

Answer 14

In an instance where the landlord’s negligence or disruptive action has rendered the property unoccupied, a tenant may vacate the premises and declared that the lease is cancelled by default. This action, called constructive eviction, can nullify the tenant’s lease obligations if the claim succeeds in court. In order to obtain a constructive eviction judgement, the tenant must vacate the premises

Question 15

Uniform Residential Landlord and Tenant Act

Answer 15

The Uniform Residential Landlord and Tenant Act (URLTA) is a model law enacted as a blueprint for state laws to regulate leasing and management practices of landlords with residential properties. Numerous states have enacted tenant-landlord regulations in response to the law. The act aims to:

• equalize and standardize rights of landlord and tenant
• protect tenants from unethical practices
• Prevent unfair, complex leases and their enforceability.