Unit 17 - Leases Flashcards
Leasehold estate
Renting
Estate For years
Lease for a definite period of time
Expiration date
Tenancy for years
Holdover tenancy
Lease expired and no other lease is created and tenant still occupies rental
Estate from period to period
Month to month, year to year ect. Can go on forever. No definite expiration date.
Need to give notice of leaving
Periodic tenancy
Estate from year to year
Estate from month to month
Month to month tenancy
Estate at Will
At your will and pleasure
Posses the property for unspecified term, as long As there’s landlord consent. Either party can give notice of termination
Estate at sufferance
Unlawful Living in rented space after lease expires against landlords desire
Requirements of a lease
Offer and acceptance
Bound by consideration
Competent parties
For a legal purpose
Quiet enjoyment
Landlord can’t just let himself in
Possession of premises
Landlord won’t interfere with tenant use of property
Use of premises
May use premise for any legal reason otherwise stated in lease
Term
Can be any time clearly stated in lease. Usually under 10 years
** under a year in length, no need for contract. Can be verbal
Security deposit
In the event of damage or loss of unpaid rent
Improvements
Landlord nor tenant to the lease property
Accessibility
Modifications must be permitted. Tenant must return it to the way it was. Can ask for money deposit in escrow account
Maintenance
Landlord required to make repairs to common areas
Destruction of premises
Premise destroyed lease ends
Assignment and subleasing
Can do either unless stated
Recording lease
Not required. Possession is considered constructive notice , if inspected it called actual notice
Non disturbances clause
If property if taken from landlord, you can’t be kicked out until your contract expires
Options
Can renew rental by a stated date
Can offer to sell it to you
Gross lease
Tenant pays fixed amount and landlord pays PITI And repairs . Most leases are like this
Net lease
Tenant pays all or some of property charges in addition to rent
Insurance on property
Taxes
Usually commercial lease
Percentage lease
Rent is fixed plus percentage of gross income
Variable lease
Rent can go up or down
Graduated lease
Index lease
Most commercial leases have a variable lease tie to account for inflation
