Session 11: Landlord/Tenant & Property Management Flashcards
Assignment of rents clause
Mortgage clause that states if a mortgagor (borrower) gets foreclosed on, the mortgagee (lender) can collect the rents directly from the tenants
Non-disturbance clause
Mortgage clause that states that if the mortgagor (borrower) gets foreclosed on, the mortgagee (lendee) won’t terminate the tenancies of the lessee’s who are paying their rent on time
Lease option
A provision in a lease that allows the tenant the right to renew their lease if proper notice is given before the expiration of the lease
Lease with option to buy
Allows the tenant to purchase the property at or during the lease period. There is no obligation for the tenant to buy the property at the end of the lease
Lease purchase agreement
two contracts signed at one time, lease and the purchase contract. Lessee is obligated to purchase the property from the lessor at the end of the lease. If either party refuses to fulfill the purchase agreement, they will be in breach of contract
Quiet enjoyment
the right of the tenant to have uninterrupted possession of the property without the interference of the landlord
Sale and leaseback
The owner sells the property and then leases it back (model homes, Walmart)
Estoppel
Tenants agree to the terms of the lease before the building is sold to the new owner
Excess rent
When rent of an existing lease exceeds the rental rate on comparable existing space
If the lease expires on excess rent what will the new rate be?
Market rate
Economic rent
market rent that real estate can demand in an open market
Contract rent
The actual rent paid under existing lease contracts executed between owners and tenants
Market rent
potential rental income a property could receive on the open market as of the effective date of an appraisal
Anchor Tenant
Major department or chain store strategically located at a shopping center to give maximum exposure to smaller satellite stores
Reversionary right
In a lease situation, the landlord has the right to take back possession of the property
Does a lease cancel at death?
No, it falls under personal property law
What lease will cancel at death?
Estate at will
What are the requirements for a valid lease?
Capacity to contract, legal objective, description of the premises, use of the premises, term of the lease, consideration
Who does the security deposit belong to?
tenant
How much can the landlord charge for a security deposit
No more than 1.5 times the rent
Are deposits refundable?
Yes
Are fees refundable?
No, and must be stated as so in the lease
Statue of Fraud
All contracts need to be in writing to be enforceable
Are there exceptions to the statute of fraud?
Yes, if the lease is less than 1 year and broker to broker agreements
