Leases Flashcards
Leasehold Estate
less than freehold; tenant’s right to possess real estate for the term of the lease
Estate (Tenancy) for Years
leasehold estate that continues for a definite period
Estate (Tenancy) from Period to Period
created when the landlord and tenant enter into an agreement for an indefinite time
Holdover Tenancy
when a tenant remains and no new lease agreement has been made
Estate (Tenancy) at Will
gives the tenant the right to posses property with the landlord’s consent for an unspecified or uncertain term
Estate (Tenancy) at Sufferance
arises when a tenant who lawfully took possession of real property continues in possession of the premises without the landlord’s consent
Lease Assignment
a tenant transfers the entire leasehold interest to another person
Sublease
tenant transfer less than the entire leasehold interest
Nondisturbance Clause
in the event the mortgagee forecloses on the property and takes possession they agree not to terminate the tenancy of the lessee so long as they are current in the payment of required rent
Renewal Option
clause that grants the lessee the privilege of renewing the lease
Purchase Option
gives the tenant the right to purchase the property at a predetermined price within a certain period
First Right of Refusal
allows the tenant the opportunity to buy the property before the owner accepts an offer from another party
Gross Lease
tenant pays a fixed rent and some or all of the utility expenses, while the landlord pays all taxes, insurance, repairs and maintenance
Net Lease
tenant pays all or most of the property expenses in addition to the rent
Percentage Lease
generally used for retail business leases, rent based on a minimum fixed rental fee plus a percentage of the gross income received by the tenant doing business on the leased property
