Leases Flashcards
Assignment
The transfer of rights and interest in property from one person to another. Ex: assignment of a purchase and sale agreement or a mortgage.
Actual Eviction
Legal process where the landlord forces the tenant to vacate the premises ( as opposed to constructive eviction ).
Constructive Eviction
Action by landlord that makes it impossible to remain and therefor effectively terminates the tenancy ( As opposed to actual eviction )
Demise
Conveyance of an interest in real estate for specific period of time as in rent or lease.
Descent
Acquisition of an estate by means if inheritance. ( Without a will )
Devise
Transfer of property by means of a will. The owner ( divisor ) transfers to the recipient ( divisee ).
Escalated Lease
Lease where the payment vary up or down with certain conditions such as a change in expenses. ( taxes, insurance, utilities ) or late payments.
Estate for term
(Also known as the estate for years )Tenancy for a specific period of time Can be less than a year
First right of refusal
Right to have the first chance to purchase or lease a piece of property may or may not specify additional terms such as price
Gross lease
A lease where the tenant ( leasee ) pays fixed rental amount and the landlord (lessor )pays all expenses (also known as flat lease)
Freehold estate
An estate for an indefinite period of time ( as compared to a non-freehold or lease Estate).
Graduated lease
a lease where the amount of rent increases over the term of the lease
Ground lease
A lease for the land alone. separate the ownership of the land and the buildings. when the leasee constructs a building it remains the leasees property. usually long-term net lease also known as a” land lease”
Hold over tenancy
A person who remains after a tenancy has ended. See tenant at sufferance
Index lease
A lease that provides for an adjustment in rent based on changes to some index such as the consumer price index
Lease
An agreement( writen or verbal )between an owner( lessor) and a tenant ( leasee) to grant the exclusive right of occupancy to real property. For a specific period of time
Lease option
A clause in a lease that gives the tenant the right to buy the property under certain conditions.
Lease purchase
A transfer of ownership that begins as a lease that ends with the purchase of the property by the leasee
Lease Fee estate
The estate or rights the lessor has leased to the leasee
Leasee
The tenant in a landlord( lessor )and tenant ( leasee) relationship
Lessor
The landlord in a landlord( lessor )and tenant( leasee) relationship
Net lease
A lease where the leasee ( tenant ) pays a fixed rent plus other expenses.( Also known as triple net on tenant pays taxes insurance and other operating expenses.)
Non-freehold estate
An estate for a definite period of time: a lease( as compared to a fee-hold estate as in a deeded transfer of title.)
Option
An agreement to keep an offer to purchase or to sell open for some period of time. The party agreeing to the option terms ( usually the seller ) is bound by the option but not the party making the option offer ( usually the buyer )
Percentage lease
A lease with the amount of rent for a period of time is based on a percentage of sales for that.
Tenancy from period to period.
A form of Tenancy that is less than freeholds and has no specific End date. Renews at the end of each period Until one of the parties takes action to end the tendency.
Rent
The fixed periodic Payment by the leasee to the lessor for the use of the leased property
Right of possession
The right of the leasee to occupy the leased property
Revisionary rights
The rights remaining with the grantor when less then fee simple to transferred to a grantee example life estate
Sale and lease back
Property owners sells a piece of property and as part of the same transaction leases it back and keeps the right to occupy. Often use for accounting and tax purposes
Sandwich Lease
A lease where a tenant in Lessor-leasee relationship leases to a third-party
Security deposits
A payment by a tenant to a landlord to be held as insurance against the default or damage to the property by the tenant
Step up lease
Same as graduated lease
A lease where the amount of rent increases over the term of the lease
Straight lease
See gross lease
A lease where the tenant ( leasee ) pays a fixed rental amount and the landlord (Lessor )pays all the expenses ( also known as Flat Lease )
Sublet
A lease given by a leasee for a part of the premises or part of the time with the leasee retained some interest. Transfer of the total lease is in assignment
Tenancy at sufferance
A form of tenancy when the tenant remains after the legal tendency is over
Tenancy at will
A form of tenancy with no Specific duration that can be terminated at anytime by either party. Can be written or verbal. In Massachusetts either party must give 30 day minimum notice as of the rent due date
Tendency for years
A form of tenancy that is less than freehold and has a set time with a specific end date. Can be for less than a year
The property to whom real property is rented ( leasee )
Tenant
Term
The length of time or duration of a lease
Lease where tenant pays rent plus taxes insurance and other maintenance expenses. Technically redundant as net lease means the same but emphasize the tenants payment of rent plus all expenses
Triple net lease
Improper use or abuse of property by one in possession; such as tenant
Waste
Types of leasehold Estates or tenancies
1 estate / tenancy for years
- Estate / tenancy from period to period
- Estate / tenancy at will
- Estate / tenancy at sufferance
Types of leases
- Gross lease
- Net lease
- Percentage lease
- Graduated lease
