Real Estate Test Unit 17 Flashcards
actual eviction
the legal process that results in a tenant’s being physically removed from leased premises
constructive eviction
actions of a landlord that so materially disturb or impair a tenant’s enjoyment of the leased premises that the tenant is effectively forced to move out and terminate the lease without liability for any further rent
estate (tenancy) at sufferance
the tenancy of a lessee who lawfully comes into possession of a landlord’s real estate but who continues to occupy the premises improperly after the lease rights have expired
estate (tenancy) at will
an estate that gives the lessee the right to possession until the estate is terminated by either party; the term of this estate is indefinite
estate (tenancy) for years
an interest for a certain, exact period of time in property leased for a specified consideration
estate (tenancy) from period to period
an interest in leased property that continues from period to period- week to week, month to month, or year to year
gross lease
a lease of property according to which a landlord pays all property charges regularly incurred through ownership, such as repairs, taxes, insurance, and operating expenses. most residential leases are gross leases
ground lease
a lease of land only, on which the tenant usually owns a building or is required to build as specified in the lease. such leases are usually long-term net leases; the tenant’s rights and obligations continue until the lease expires or is terminated through default
holdover tenancy
a tenancy in which a lessee retains possession of leased property after the lease has expired and the landlord, by continuing to accept rent, agrees to the tenant’s continued occupancy as defined by state law
lease option
a lease under which the tenant has the right to purchase the property at an agreed upon price either during the lease term or at its end
lease purchase
the purchase of real property, the consummation of which is preceded by a lease, usually long term, that is typically done for tax or financing purposes
leasehold estate
a tenant’s right to occupy real estate during the term of a lease, generally considered a personal property interest, although a long-term lease may be eligible for treatment as real property for financing purposes
lease
a written or oral contract between a landlord (the lessor) and a tenant (the lessee) that transfers the right to exclusive possession and use of the landlord’s real property to the lessee for a specified period of time and for a stated consideration (rent). by state law, leases for longer than a certain period of time (generally one year) must be in writing to be enforceable
month-to-month tenancy
a periodic tenancy under which the tenant rents for one month at a time. in the absence of a rental agreement (oral or written), a tenancy is generally considered to be month to month
net lease
a lease requiring the tenant to pay not only rent but also costs incurred in maintaining the property, including taxes, insurance, utilities, and repairs
non disturbance clause
a mortgage clause stating that the mortgagee agrees not to terminate the tenancies of the lessees in the event the mortgagee forecloses on the mortgagor-lessor’s building
percentage lease
a lease, commonly used for commercial property, whose rental is based on the tenant’s gross sales at the premises; it usually stipulates a base monthly rental plus a percentage of any gross sales above a certain amount
purchase option
the right given by a lease to the tenant to purchase the property at a predetermined price within a certain period, possibly the lease term
renewal option
a clause in a lease that grants the lessee the privilege of renewing the lease
rent
a fixed, periodic payment made by a tenant of a property to the owner for possession and use, usually by prior agreement of the parties
reversionary right
the return of the rights of possession and quiet enjoyment to the lessor at the expiration of a lease
right of first refusal
a clause allowing the tenant the opportunity to buy the property before the owner accepts an offer from another party
security deposit
a payment by a tenant, held by the landlord during the lease term, and kept (wholly or partially) on default or on destruction of the premises by the tenant
subjective value
the perceived value of an item based on the benefits given to the owner
