RP UNIT 17 Flashcards
What is a lease?
A contract between owner of real estate (lessor) and tenant (lessee) to transfer rights of exclusive possession and use in exchange for the payment of rent and other obligations.
The owner retains the reversionary right to possession.
What does the Statute of Frauds state regarding leases?
In most states, to be enforceable, a lease for more than one year must be in writing.
A lease that can be performed in a lesser period of time is usually enforceable in court even if it is oral.
What is the best practice regarding lease agreements?
Use a written lease, signed by both lessor and lessee.
This protects all parties involved.
What is an estate (tenancy) for years?
Continues for a definite period of time, regardless of how long, with specific beginning and ending dates.
No notice is required to terminate.
What is an estate (tenancy) from period to period?
Exists for a fixed period of time but automatically renews with proper notice required to terminate.
The payment and acceptance of the rent extends the lease for another period.
What defines an estate (tenancy) at will?
Exists with the consent of the landlord, is usually informal and oral, and is indefinite in length.
Automatically terminates at the death of either party.
What is an estate (tenancy) at sufferance?
Created when the tenant who legally obtained possession of the property now illegally remains in possession.
Example: Tenant whose lease has expired but refuses to move out.
What are the requirements of a valid lease?
- Capacity to contract
- Legal objectives
- Offer and acceptance
- Consideration
Usually rent but can be labor or other services.
What is the covenant of quiet enjoyment?
An implied right for the tenant that ensures they can enjoy the premises without disturbance.
This is implied by law regardless of whether addressed in the lease.
What is the landlord’s obligation regarding maintenance of premises?
Most jurisdictions require landlords to make repairs on residential units to keep them in habitable condition.
The tenant must return the premises in the same condition as received, except for ordinary wear and tear.
What happens if a tenant abandons the property?
The tenant is still liable for the terms of the lease, including rent payments.
This applies even if the tenant no longer occupies the property.
What is an assignment in lease agreements?
The transfer of all of the tenant’s interest.
Subleasing is the transfer of part of the tenant’s interest.
What is a gross lease?
The tenant pays a fixed rental amount, and the landlord pays all of the property charges.
Most often used for residential and commercial office space rentals.
What is a net lease?
The tenant pays a fixed rental amount plus some or all of the property charges.
Generally used for large commercial or industrial leases.
What is a percentage lease?
The tenant pays a fixed amount of rent plus a percentage of the gross income of the business.
Most commonly used in retail businesses.
What is a ground lease?
Usually involves separate ownership of land and buildings, allowing the tenant to construct a building on land that the tenant does not own.
Typically for terms of 50 to 99 years.
What is a lease purchase?
The tenant leases the property with part of the rent applied toward the purchase price.
The purchase is the primary consideration, the lease is secondary.
What is constructive eviction?
If the landlord breaches the lease, the tenant has the right to sue for damages and may abandon the premises.
This applies if the landlord’s neglect has rendered the premises uninhabitable.
What does the Fair Housing and Civil Rights Laws ensure?
That all persons have access to housing of their choice without differentiation based on race, color, religion, sex, familial status, disability, or national origin.
Changes in 1988 had significant impacts on rental practices.
