Leases Flashcards
A lease for a major department or chain store strategically located at shopping centers to give maximum exposure to smaller satellite stores
Anchor Lease
A clause in a lease or mortgage allowing the holder to increase the rental rates or interest rate under specific circumstances
Escalator clause – also called escalation clause
A lease with an escalator clause that calls for increases/decreases in rent at specified intervals
Graduated lease – also called graded lease
A lease for which the tenant pays a fixed amount to the landlord and the landlord is responsible for paying all expenses
Gross lease – also called flat lease or straight lease
A long-term lease under which the tenant lease is only the land from the owner, but the tenant owns the building
Ground lease – also called lend lease
A lease in which the amount of the rent is tied to some common index indicator such as the consumer price index or the wholesale price index
Index lease
At least that includes an option for the tenant to buy the property at the predetermined price during the lease term, usually with a portion of the lease payments applied to the purchase price
Lease option
A lease agreement that requires the Lessie tenant to pay some of the operating expenses and other costs associated with the property, which could include taxes, insurance, etc.
Net lease – also called triple net lease
A lease for which the tenant pays a minimum base rent plus a percentage of gross sales
Percentage lease
An exclusive, long-term lease that conveys a leasehold interest to an owner of shares in a cooperative
Proprietary lease
A method for a seller to free capital for business expansion by selling property to a buyer who has agreed to lease the same property back to the seller
Sale leaseback
A lease under the federal program that authorizes the payment of rental housing assistance to private landlords on behalf of low income household’s
Section 8
