Leases: Landlord and Tenant Flashcards
Unit 12, Page 225
Owner of real estate that is giving someone a lease to the property.
Lessor
Tenant
Lessee
Lessor
Owner of real estate that is giving someone a lease to the property.
Lessee
Tenant
A lease MUST be in writing if it is for what length of time?
Three years
Estate for years
For a definite period of time. Has a specific start date and end date. Does NOT have to be in year intervals! Can be less than a year. Does not need notice to terminate lease at the end of the term.
Types of leasehold estates?
-Estate for years
-Estate from period to period
-Estate at will
-Estate at sufferance
Estate from period to period
Periodic tenancy. Automatically renews at agreed upon interval (weekly, monthly, yearly, etc) until notice is given that lease is ending.
Lease for a definite period of time. Has a specific start date and end date.
Estate for years
Tenancy at will
Tenant has the right to possess the property with the consent of the landlord for an indefinite period of time.
What type of lease is called periodic tenancy and automatically renews at the end of the term.
Estate from period to period.
What type of lease has no end date and runs until landlord ends it?
Tenancy at will
Tenancy at sufferance
Tenant who lawfully came into possession of property continues to hold possession of the premise after their rights have expired without the consent of the landlord.
Which lease has a tenant stay after their lawful lease is expired?
Tenancy at sufferance
What are the standard lease provisions?
-Capacity to contract (parties must be sane adults)
-A demising clause (the lessor to let (rent) and the lessee to take the premises)
-Description of the premises (description should be clearly stated)
-A clear statement of the term (duration)
-The rent and how it is to be paid
-MUST be in writing IF the least is more than three years
-Signatures of both parties
Can a real estate licensee draw up a residential lease?
Yes. If the lease term is for more than one year, a three day attorney review is required.
When was lead-based paint banned?
1978
What is the maximum security deposit for residential leases?
Month and a half.
When does any remainder of security deposit have to be mailed back to the tenant?
Within 30 days. If it is not sent within 30 days, the violation is double the security.
What is the maximum security deposit for commercial properties?
There is none. This is part of the negotiation process.
Implied warranty of habitability
Every residential lease guarantees that the leased property is fit for human habitation and that the tenant is not subjected to any conditions that could endanger life, health or safety.
What guarantees that the leased property is fit for human habitation and that the tenant is not subjected to any conditions that could endanger life, health or safety?
Implied warranty of habitability
Sublet
When the tenant transfers most of the term but not all, or only a portion of the premises. Example, renting a single room, or renting the property for 3 months out of a 12 month term.
ADA
Americans with Disabilities Act
Constructive eviction
If a landlord fails to provide such basic services necessary for human habitation as heat, electricity, or water, and the premise becomes uninhabitable, a tenant may move out and cease paying rent. Tenant MUST MOVE OUT to claim constructive eviction.
Suit for eviction
Actual eviction. When a tenant breaches a lease or improperly retains possession of leased premises, the landlord may regain possession through a suit for possession or summary proceeding to recover possession of real estate.
New Jersey’s Anti-Eviction Act
Provides, with only a few exceptions, that tenants who are current with their rent payments may not be evicted solely on the grounds of foreclosure.
Three primary types of lease
-Residential - Gross lease. Lessee pays basic rent. Lessor pays property charges (taxes, repairs, insurance, etc).
- Commercial/industrial - Net lease. Lessee pays basic rent plus all or most property charges. Lessor may pay some property charges.
-Retail - Percentage lease, Lessee pays basic rent plus percent of gross sales (may pay property costs.) Lessor may pay some or all property charges.
Types of Leases
-Gross lease
-Net lease
-Percentage lease
-Variable lease
-Ground lease
-Oil and gas lease
Gross lease
Most common in residential lease. Tenant pays rent, landlord pays insurance, taxes, etc.
Net lease
Most common in commercial lease. Tenant pays rent plus insurance, taxes, etc.
Percentage lease
Rent changes based on the income of the business.
Variable lease
Rent can change over time
Ground lease
Tenant rents bare land and builds on it.
