Leases and Clauses Flashcards
Assignment
A transfer to another of any property or right; the transfer of one’s entire interest in property
Cash Rent
Lease between an agricultural landowner and tenant. Rent paid for exchange of use of agricultural land
Graduated Lease
A lease that provides for agreed-upon rent increases
Gross Lease
A simple lease used in most houses and apartment complexes
Ground Lease
A long-term lease for the use of land
Hold Harmless Clause
A clause in commercial leases that transfers all liability for the leased premises to the tenant
Index Lease
A lease that allows for periodic increases in base rental fees based on a predetermined guideline
Net Lease
A commercial lease wherein the tenant pays a base rent plus maintenance, property taxes, and insurance
Novation
A formal assumption in which a new borrower is substituted for the original maker of the note
Oil or Gas Lease
A lease that generally requires a flat fee for the exploration for gas and oil and a royalty if any is found
Option Clause
A lease clause giving the tenant the option to renew the lease or to purchase the property
Percentage Lease
Commercial lease in which the tenant pays a percentage of the gross income received by the tenant, in addition to rent
Rooftop Lease
Used to rent the airspace above a piece of real estate
Sale and Leaseback Leases
Used after a person has developed a building and wants his or her working capital available for other developments
Sale Clause
A clause in residential leases that allows the tenant or landlord to terminate the lease in the event the subject property is sold
Sandwich Lease
A lease held by a lessee who becomes a lessor by subletting; sandwich leaseholder is neither owner nor the user of property typically
Sharecropping
Lease between an agricultural landowner and tenant. Land owner may provide equipment and land in return for tenants maintaining and harvesting crops
Sublease
A lease from a lessee to another lessee; the new lessee is a sublessee or subtenant
Variable Lease
A lease that provides that the rent may increase during the term of the lease including an index lease and a graduated lease
