UNIT 6: Landlord & Tenant Interests

Question 1

Actual Eviction

Answer 1

The result of legal action, originated by a lessor, whereby a defaulted tenant is physically ousted from the rented property pursuant to a court order.

Question 2

Assignment

Answer 2

The transfer in writing of interest in a bond, mortgage, lease, or other instrument.

Question 3

Constructive Eviction

Answer 3

Actions of a landlord that so materially disturb or impair a tenant’s enjoyment of the leased premises that the tenant is effectively forced to move out and terminate the lease without liability for any further rent.

Question 4

Estate at Suffrance

Answer 4

A type of leasehold estate whereby a tenant stays in possession of a property after the lease has expired or been legally terminated without the consent of the Landlord

Question 5

Estate at Will

Answer 5

will gives the tenant the right to possess property with the landlord’s consent for an unspecified or uncertain term. An estate at will is a tenancy of indefinite duration. It continues until it is terminated by either party giving proper notice. No definite initial period is specified, as is the case in a periodic tenancy. An estate at will automatically terminates by the death of either the landlord or the tenant

Question 6

Estate for Years

Answer 6

An interest for a specified time in property leased for a specified consideration.

Question 7

Periodic Estate

Answer 7

The second type of leasehold estate is called a PERIODIC ESTATE:  It is also called an estate from year-to-year.  It begins with an original lease period with a fixed duration.  When the original lease period expires, it is automatically renewed for another period of the
same duration, unless the lessor or lessee acts to terminate it. o EXAMPLE: a month-to-month apartment lease.

Question 8

Gross Lease

Answer 8

A lease of property according to which a landlord pays all property charges regularly incurred through ownership, such as repairs, taxes, insurance premiums, and operating expenses. Most residential leases are gross leases.

Question 9

Ground Lease

Answer 9

A lease of land only, on which the tenant usually owns a building or is required to build as specified in the lease. Such leases are usually long-term net leases; the tenant’s rights and obligations continue until the lease expires or terminates through default.

Question 10

Holdover Tenancy

Answer 10

A tenancy whereby a lessee retains possession of leased property after the lease has expired and the landlord, by continuing to accept rent, agrees to the tenant’s continued occupancy as defined by state law.

Question 11

Lease

Answer 11

A written or oral contract between a landlord (the lessor) and a tenant (the lessee) that transfers the right to exclusive possession and use of the landlord’s real property to the lessee for a specified period and for a stated consideration (rent). By state law, leases for longer than a certain period of time (generally one year) must be in writing to be enforceable.

Question 12

Leasehold Estate

Answer 12

A tenant’s right to occupy real estate during the term of a lease, generally considered to be a personal property interest.

Question 13

Lease Purchase

Answer 13

The purchase of real property, the consummation of which is preceded by a lease, usually long-term; typically done for tax or financing purposes.

Question 14

Lessee

Answer 14

The person renting or leasing the property. Also known as a tenant.

Question 15

Lessor

Answer 15

The person who rents or leases a property to another. Also known as a landlord.

Question 16

Month-to-month Tenancy

Answer 16

A periodic tenancy under which the tenant rents for one month at a time. In the absence of a rental agreement (oral or written), a tenancy is generally considered to be month to month.

Question 17

Net Lease

Answer 17

A lease requiring the tenant to pay not only rent but also costs incurred in maintaining the property, including taxes, insurance, utilities, and repairs.

Question 18

Percentage Lease

Answer 18

A lease, commonly used for commercial property, whose rental is based on the tenant’s gross sales at the premises; it usually stipulates a base monthly rental plus a percentage of any gross sales above a certain amount.

Question 19

Protecting Tenants at Foreclosure Act of 1999 (PTFA)

Answer 19

Federal legislation that requires new owners of foreclosed properties to follow certain requirements with regards to tenants who are current with their rental payments.

Question 20

Purchase Option

Answer 20

Some leases grant the lessee the option to purchase the leased premises. This option normally gives the tenant the right to purchase the property at a predetermined price within a certain period, possibly the lease term.

Question 21

Reversionary Right

Answer 21

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

Question 22

Right of First Refusal

Answer 22

A clause allowing the tenant the opportunity to buy the property before the owner accepts an offer from another party.

Question 23

Sale and Leaseback

Answer 23

A transaction in which an owner sells improved property and, as part of the same transaction, signs a long-term lease to remain in possession of the premises.

Question 24

Security Deposit

Answer 24

A payment by a tenant, held by the landlord during the lease term, and kept (wholly or partially) on default or destruction of the premises by the tenant.

Question 25

Sublease

Answer 25

The leasing of premises by a lessee to a third party for part of the lessee’s remaining term. See also assignment.

Question 26

Suit for Possession

Answer 26

A court suit initiated by a landlord to evict a tenant from leased premises after the tenant has breached one of the terms of the lease or has held possession of the property after the lease’s expiration.

Question 27

Warrant of Habitability

Answer 27

The lessor who leases residential premises warrants that the premises are fit for habitation. If the tenant proves that the premises are not fit for habitation, the court can order a reduction or cessation of rental payment.