Leases Flashcards
What transfers ownership interest in a property from one party to another?
Conveyance
What is not true about a lease?
It conveys legal title
Which type of leasehold estate requires proper notice to terminate and has no definite end date?
Estate from period to period
A tenant who doesn’t leave when the lease expires is called what?
A holdover tenant
What law requires a lease to be in writing to be enforceable?
Statute of Frauds
What covenant (agreement or promise) should be included in a lease agreement?
Description of the premises
What is the purpose of a security deposit?
To pay for damages beyond normal wear and tear that occurs during a lease
According to the Texas Property Code, a landlord has a right to set the maximum number of adults over what age for their property?
18
What code authorizes the process for a suit for possession?
Texas Property Code
What is not a valid reason for a lease termination?
The tenant dies
In what situations (3) would a lease automatically be terminated?
- Voluntary Agreement
- Property Destruction
- Condemnation
What type of lease requires the landlord to pay the property’s operating expenses (utilities, repairs, and maintenance) while the tenant pays only rent?
Gross Lease
Model law enacted as a blueprint for state laws to regulate leasing and management practices of landlords with residential properties is called what?
URLTA
(Uniform Residential Landlord and Tenant Act)
What is the aim of the URLTA?
To protect tenants from unethical practices
Which lease type bases rental amount off the percentage of sales made on the site?
Percentage lease
In a net lease, in addition to the rent, what does the tenant pay?
A fixed rent plus all maintenance and taxes
What is the lease called in which the tenant agrees to pay all taxes, insurance, maintenance and repairs?
Triple net lease (Net-net-net)
What is one major difference between residential and commercial leases?
Residential leases are typically shorter.
Landlord/Lessor:
The owner of the property which is leased/rented to another person or entity.
Lessee:
A tenant
(i.e. a person who rents land or property from a landlord/lessor)
Covenant:
A promise in a written contract or a deed of real property.
Conveyance:
The act of transferring an ownership interest in a property from one party to another.
Leasehold estate:
A temporary right to hold land/property in which a tenant holds rights of real property by some form of title from a landlord
(AKA: Less-than-freehold estate)
Freehold Estate:
Any estate that is “free from hold” of any entity besides the owner.
(Leasehold estates are distinguished from freeholds by their temporary nature)
Estate for years:
A lease that continues for a fixed period of time with no auto-renewal (year or more lease)
Periodic lease:
A lease with no definite ending date but runs from period to period.
(Also referred to as month-to-month lease)
Estate at will:
Leasehold without a lease
Estate at sufferance:
A leasehold estate in which a tenant stays in possession of a property without the consent of the owner/landlord after the lease has expired/has been legally terminated.
Holdover tenant:
A tenant who doesn’t leave when the lease expires.
Assignment:
The transfer of a lease by a tenant to a third party.
Suit for possession:
(a.k.a. Suit for Eviction)
Legal suit filed by a landlord if a tenant is in default.
If successful, the landlord can repossess the property and evict the tenant.
Gross lease:
(a.k.a Full-Service Lease)
Lease which requires the landlord to pay the property’s operating expenses (utilities, repairs, maintenance) while the tenant pays only rent.
Net type leases:
Lease that requires tenant to pay rent in addition to some/all maintenance and operating expenses (taxes, insurance, utilities, repairs)
Graduated lease:
Lease where rent payments start at a fixed amount but increase as the lease term matures.
Land lease:
Lease where the landowner grants the tenant a leasehold interest in the land only in exchange for rent.
Percentage lease:
a lease arrangement where the tenant pays a predetermined rent plus a percentage of sales made
Proprietary lease
A Co-op lease (btwn a cooperative apt association + tenant) that gives the right to occupy a specific apartment.
Index lease:
A type of lease where the rent fluctuates based on changes in the consumer price index.
