Unit 17 Key Terms

Question 1

When a tenant breaches a lease or improperly retains leased premises, the landlord may regain possession through a legal process.

Answer 1

Actually eviction

Question 2

A tenant transfers the entire leasehold interest to another person. The new tenant is legally obligated to comply with all of the promises the original tenant made.

Answer 2

Assignment

Question 3

If a landlord breaches any clause of the lease agreement, the tenant has the right to sue and recover damages against the landlord. If the leased premises become unusable for the purpose stated in the lease, the tenant may have the right to abandon them.

Answer 3

Constructive eviction

Question 4

Arises when a tenant who lawfully took possession of real property continues in possession of the premises without the landlords consent after the right of possession had expired.

Answer 4

Estate/Tenancy at Sufference

Question 5

Gives the tenant the right to possess property with the landlords consent for an unspecified or uncertain term.

Answer 5

Estate/Tenancy at Will

Question 6

Is a leasehold estate that continues for a definite period. When the estate expires, the leasee is expected to vacate. No notice is required to terminate the estate for years because the agreement has a specific expiration date.

Answer 6

Estate Tenancy for Years

Question 7

When the landlord and tenant enter into an agreement for an indefinite time-that is the lease does not contain an expiration date. One of the parties must give notice of termination. Otherwise, lease renewal is automatic. Residential.

Answer 7

Estate Tenancy for Period to Period

Question 8

The tenant pays a fixed rent and some or all of the utility expenses while the landlord pays taxes, insurance, repairs and any other utility expenses. Usually residential and commercial office leases.

Answer 8

Gross lease

Question 9

When a landowner leases unimproved land to an tenant who agrees to erect an building on the land, the lease is usually called a ground lease. Most often commercial or industrial development from 50-99 years.

Answer 9

Ground lease

Question 10

If no lease has been made. The landlord may evict the tenant or treat this tenant as one who has a periodic tenancy. The landlord can accept rent offered by the tenant, thereby creating a new tenancy under the conditions of the original lease.

Answer 10

Holdover tenancy

Question 11

A contract between he lessor and lessee. Transfers the right if possession and use to the lessee for a specific period of time in exchange for rent.

Answer 11

Lease

Question 12

When a tenant wants to purchase a property but is not yet able to do so.

Answer 12

Lease purchase

Question 13

A tenants right to possess real estate for the term of the lease.

Answer 13

Leasehold estate

Question 14

Another name for the tenant

Answer 14

Lessee

Question 15

The owner of real estate or landlord

Answer 15

Lessor

Question 16

When a tenant takes possession with no definite termination date and pays monthly rent. Often in residential leases.

Answer 16

Month-to-month tenancy

Question 17

The tenant pays all or most of the property expenses, such as hazard insurance, property taxes, common area maintenance, in addition to the rent.

Answer 17

Net lease

Question 18

Is included in the financing instrument used to mortgage leased premises. The mortgagee agrees NOT to terminate the tenancy of the lesee so long as the lessee is current in payment of rent.

Answer 18

Nondisturbance clause

Question 19

Either a gross lease or a net lease will have this lease generally for retail business leases. The rent is based on a minimum fixed rental fee plus a percentage of the gross income received by the tenant doing business in the leased property.

Answer 19

Percentage lease

Question 20

Gives the tenant the right to purchase the property at a predetermined price within a certain period, possibly the lease term.

Answer 20

Purchase option

Question 21

A lease may contain a clause that grants the lessee the privilege of renewing the lease. The lessee must give notice of intent to exercise the option.

Answer 21

Renewal option

Question 22

A fixed periodic payment made by a tenant of a property to the owner for possession and use.

Answer 22

Rent

Question 23

The return of the rights of possession and quiet enjoyment to the lessor at the expiration of a lease.

Answer 23

Reversionary right

Question 24

Allows the tenant the opportunity to buy the property before the owner accepts an offer from another party.

Answer 24

Right of first refusal

Question 25

The property owners sell the property and then lease it back for an agreed period and rental.

Answer 25

Sale-and-leaseback

Question 26

Held by the landlord during a lease term. Used if the tenant defaults on payment of rent or destroys the property.

Answer 26

Security deposit