Leasing & Property Management Flashcards
Professional liability insurance that protects real estate licensees from mistakes or negligence.
Errors and Omissions Insurance
Person in a position of trust, held by law to high standards of good faith and loyalty.
Fiduciary
An agent authorized to handle all of the principal’s affairs in one area or in specified areas.
General Agent
Physically forcing someone off of property, preventing someone from reentering property, or using the legal process to make someone leave.
Eviction
A leasehold estate set to last for a definite period (e.g., one week, three years), after which it automatically terminates. Also called a term tenancy.
Estate for Years
Lease for which the landlord pays all ownership expenses such as property taxes, insurance, etc.
Gross Lease
Lease under which the tenant leases only the land from the owner, but the tenant owns the building. Also called a ground lease.
Land Lease
A lessee who remains in possession of property after the lease has expired; a tenant who refuses to surrender possession of property at the tenancy’s end.
Holdover Tenant
A lease in which the amount of the rent is tied to some common index indicator such as the Consumer Price Index or the Wholesale Price Index. As the agreed upon index increases, the rent goes up by the same percent of change.
Index Lease
Conveyance of a leasehold estate from the fee owner to a tenant; a contract where one party pays the other rent in exchange for possession of real estate.
Lease
The establishment of the maximum number of occupants allowable in a given rental dwelling, intended to help promote an adequate and safely occupied inventory of housing.
Occupancy Standard
A leasehold estate that continues for successive periods of equal length (such as from week to week or month to month), until terminated by proper notice from either party. Also called an estate from year to year or a period-to-period tenancy.
Periodic Tenancy
A method for financing commercial or industrial properties in which a company constructs the building and then becomes a tenant by selling the building to an investor.
Sale-and-Leaseback
Money a tenant gives a landlord at the beginning of the tenancy to ensure the tenant will comply with lease terms. The landlord may retain all or part of the deposit at the end of the tenancy to cover unpaid rent, repair costs, or other damages.
Security Deposit
Someone who occupies an abandoned or unoccupied space or building that the squatter does not own, rent, or otherwise have permission to use.
Squatter
Giving up an estate (such as a life estate or leasehold) before it has expired.
Surrender
Lawful possession of real property, an estate.
Tenancy
Possession of property by a holdover tenant. Also called estate at sufferance.
Tenancy at Sufferance
When a tenant is in possession with the owner’s permission, but with no definite lease term and no rent being paid (or rent is not paid on a regular basis); e.g., a landlord lets a holdover tenant remain on the premises without paying rent until a new tenant is found. Also called estate at will.
Tenancy at Will
A property developed for co- ownership, where each co-owner has a separate interest in an individual unit, combined with an undivided interest in common areas of the property.
Condominium
When a landlord’s act (or failure to act) interferes with the tenant’s quiet enjoyment of the property, or makes the property unfit for its intended use, to such an extent that the tenant is forced to move out.
Constructive Eviction
A building owned by a corporation, where the residents are shareholders in the corporation; each shareholder receives a proprietary lease on an individual unit and the right to use the common areas.
Cooperative
The rent the property could currently command on the open market
Economic rent
Lease where the landlord pays all property taxes, insurance, etc.
Gross Lease
Lease where a tenant pays a percentage of gross sales in addition to rent.
Percentage Lease
Lease where tenants pay all taxes,insurance, etc., plus utilities and rent.
Net Lease
Exclusive, longer term lease given to a person who lives in a cooperative and owns stock in the cooperative.
Proprietary Lease
An ownership interest that gives the owner a right to possession of the property only for specific, limited period each year.
Timeshare
When a tenant transfers only part of their right of possession or other interest in leased property to another person for part of the remaining lease term (as opposed to an assignment, where the tenant gives up possession for the entire remainder of the lease term).
Sublease
A transfer of the terms of a contract from one party to another, for example, when a tenant transfers their right of possession, or other interest in leased property, to another person for the entire remainder of the lease term.
Assignment
The landlord interest in a lease; a right to future possession that is retained by owners, such as when they lease their property to someone else.
Reversion
