Unit 17 Leases Flashcards
How does the statue of frauds relate to leases?
Requires lease agreements for more than one year to be in writing tobe enforceable. Verbal leases up to 1 year are binding.
What is a reversionary are right?
The right to take possession at the end of a lease.
What is a reversionary right?
The right to take possession at the end of a lease.
What is a leasehold estate?
Right of a tenant to possess the real estate for the term of lease (Less than freehold).
What is an estate for years?
A leasehold estate that continues for a definite period.
What is a holdover tenancy?
Tenancy created when tenant remains in possession after lease term expires, in a period to period.
What is an estate from period to period?
Aka periodic tenancy.
1- Indefinite term
2- Typically has continuity, auto renewing..
What is an estate at will?
1- indefinite term
2- Possession with landlord’s consent
What is a gross lease?
A lease where the fixed rent covers all operating expenses, and property charges.
What is the estate of sufferance?
Tenant who lawfully possessed real property continues to possess the premises without the landlords consent after the right of possession has expired.
What is a percentage lease?
Landlord gets a fixed monthly rent and gets percentage of gross revenue.
What is a net lease?
The tenant pays all of the property charges in addition to the rent. Income to landlord is NET.
What is a constructive eviction?
The tenant can terminate the landlord when:
1-there’s conscious neglect.
2-tenant must vacate.
What is a revisionary right?
Right of landlord to possession of property after the end of lease.
What is estate (tenancy) for years?
A leasehold that continues for a definite period of time.
What is required for a valid lease?
1- Capacity to Contract
2- Legal Objective
3- Offer and Acceptance
4- Consideration
What is a non-disturbance clause?
Clause that mortgagee agrees not to terminate tenancy of the lesses if mortgagor defaults.
What are the 3 types of options in leases?
1- Renewal option
2- Purchase Option
3- Right of First Refusal
What is a ground lease?
Leasing of just the land.
How are breaches in a lease remedied?
Depends on state laws.
What are the 2 types of eviction?
1- suit for possession (unlawful detainer/actual eviction)
2- constructive eviction - tenants claim that property is uninhabitable.
What is the Uniform Residential Landlord Tenant Act?
An act many states have adopted to create uniform laws in regards to leases.
