Section 3 - Chapter 17 Flashcards
lease is:
a contract between owner of real estate (lessor) and a tenant (the lessee); sets time/length and price
reversionary right:
lessor receives property back after lease is up
lessor’s interest is called:
a leased fee estate plus reversionary right
statute of frauds says:
lease agreements be in writing to be enforceable if they are for more than one year; written rule also applies to leases for less than a year not being performed within one year of contract date
verbal leases:
for one year or less that can be performed within a year are enforceable
leasehold estate:
the tenant’s right to possess real estate for the term of the lease; considered personal property
“estate for years”
a lease for a definite period of time
“tenancy for years”
any definite period
“estate from period to period” - periodic tenancy
an agreement for an indefinite time period; characterized by continuity, automatically renewable
holdover tenancy
lease is up, but tenant can keep paying to keep it going for a temporary time
“estate at will”
tenant can possess property with the landlord’s consent for an unspecified or uncertain term; indefinite duration
“estate at sufferance”
tenant who lawfully possessed real property continue possession without landlord’s consent
lease agreements may be
written, oral or implied
use restrictions say:
what a lessee can and cannot use the space for
perpetual leases usually are deemed:
invalid unless specifically stated in lease that it’s indefinite
landlord typically is responsible for
maintenance of property, safe habitat,
lease transfers from tenant to another person are called;
assigned
less-than-full interest transfers from tenant to new tenant is called:
sublease; sublet
nondisturbance clause:
mortgage clause saying that can’t terminate paying rentors if mortgagee forcloses
gross lease:
lessee pays basic rent, that’s all
net lease:
lessee pays rent plus some or all of property charges
triple-net lease:
lessee pays rent plus ALL other property charges
percentage lease:
rent + percentage of gross income generated through that lease property
graduated and index leases allow:
changes in rent during the lease periods
ground lease is:
lease land to someone who improves the land with a building; usually separate ownership of land and building
lease purchase used when:
tenant wants to buy the property but can’t do so
sale-and-leaseback
owners sell then lease back
actual eviction is:
landlord’s process to reclaim property
constructive eviction:
tenant’s right to terminate lease based on breach of lessor
