Section 11 - Leasing Terms Flashcards
Residential & Commercial Lease Basics; Dual Nature of a Lease: Contract & Conveyance
The physical removal of the tenant, accomplished by legal process.
ACTUAL EVICTION
The substitution of tenants, putting the responsibility for the lease contract in the new tenant’s hands (although it doesn’t fully relieve the former tenant from liability should the new tenant fail to pay); requires landlord’s written permission
ASSIGNMENT
A situation in which the tenant is prohibited from quiet enjoyment of the premises, and vacates (in such cases, the tenant is evicted for all practical purposes because enjoyment of the premises is not available)
CONSTRUCTIVE EVICTION
An agreement or promise made between the parties
COVENANT
A type of possession in which a tenant stays after the right to possess has terminated.
ESTATE AT SUFFERANCE
A type of leasehold estate in which the duration of the lease is unknown at the time it is created
ESTATE AT WILL
A fixed termination type of lease that may be for a day, week, month, year, several years, or any definite period of time; when the specified date occurs, the lease terminates automatically
ESTATE FOR YEARS
A tenant who refuses to leave after the expiration of a lease
HOLDOVER TENANT
A contract that transfers possession for consideration
LEASE
The legal relationship between the parties who sign the lease; grants possession, but not title, to the tenant, and is for a limited period of time
LEASEHOLD ESTATE
Tenant
LESSEE
Landlord
LESSOR
The right of a tenant to renew a lease upon the expiration of a lease period (seen frequently in commercial leases)
OPTION TO RENEW
Involves possessory interest that’s automatically renewed at the end of each period specified in the lease (e.g., month-to-month)
PERIODIC ESTATE
Tenant’s right to enjoy the property without being dispossessed or trespassed upon
QUIET ENJOYMENT
A sum provided by a tenant to a landlord to cover extraordinary expenses or unpaid rent when a tenant vacates
SECURITY DEPOSIT
Illegal eviction in which the landlord has taken matters into his own hands, and evicts the tenant without using legal procedures
SELF-HELP EVICTION
An agreement for a new occupant to live in the premises and pay rent to the former tenant, who pays the landlord (requires landlord’s written permission; doesn’t relieve the former tenant from liability)
SUBLEASE
Landlord pays all expenses related to the property
GROSS LEASE
Tenant pays some or all expenses separately
NET LEASE
Tenant pays a base rent plus a percentage of their gross sales
PERCENTAGE LEASE
