Vocabulary: Chapter 15-Leases

Question 1

Actual Eviction

Answer 1

The legal process that results in the tenant’s being physically removed form the leased premises

Question 2

Assignment

Answer 2

The transfer in writing of interest in bond, mortgage, or lease

Question 3

Constructive eviction

Answer 3

Actions of the landlord that so materially disturb or impair a tenant’s enjoyment of the leased premises that the tenant is effectively forced to more out and terminate the lease WITHOUT LIABILITY FOR FURTHER RENT

Question 4

Estate at sufferance

Answer 4

The tenancy of a lessee who lawfully comes into possession of a landlords real estate but who continues to occupy the premises improperly after his or her lease rights have expired. (Deadbeat tenant)

Question 5

Estate at will

Answer 5

An estate that gives the lessee the right to possession until the estate is terminated by either party: The term of this estate is indefinite (Will it to end)

Question 6

Estate for years

Answer 6

An interest for a certain exact period of time in property leased for a specified consideration (IE summer rental)

Question 7

Estate from period to period

Answer 7

An interest in leased property that continues from period to period- week to week, month to month, year to year

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, and operation expenses. Most residential leases are this. FLAT RATE FEE

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. Usually long term

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 (1yr or more) or oral contract (less than 1 yr)-Statute of Frauds: between a landlord and tenant that transfers the right to exclusive possession and use of the real property for a specified period of time for a stated consideration.

Question 12

leasehold estate

Answer 12

A tenants 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

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

Question 14

lessee

Answer 14

Tenant, receives right to occupy real property

Question 15

lessor

Answer 15

Landlord, grants right to occupy real property for consideration

Question 16

month to month tenancy

Answer 16

periodic tenancy under which the tenant rents for one month at a time. In absence of a written lease, tenancy is usually considered month to month

Question 17

net lease

Answer 17

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

nondisturbance cause

Answer 18

mortgage clause stating that the mortgagee (bank) agrees not to terminate the tenancies of the lessees in the event the mortgagee(Bank) forecloses on the mortgagor-lessor’s (Landlord) building

Question 19

percentage lease

Answer 19

Commercial property lease whose rental is based on the gross sales of the premises. Usually stipulates a base monthly rent + % of gross sales above a certain amount

Question 20

purchase option

Answer 20

Granting the lessee the option to purchase the leased premises. Normally gives the tenant the right to purchase the property at a predetermined price within a certain period, possibly the lease term

Question 21

renewal option

Answer 21

A clause in a lease that grants the lessee the privilege of renewing the lease

Question 22

reversionary right

Answer 22

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

Question 23

right of first refusal

Answer 23

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

Question 24

sale and leaseback

Answer 24

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

Question 25

security deposit

Answer 25

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

Question 26

sublease

Answer 26

Leasing of premises by a lessee to a third party for part of the lessee’s remaining term. NOT THE SAME AS ASSIGNMENT