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43 Cards in this Set
- Front
- Back
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-a contract bewtween owner of real estate (lessor) and tenant (lessee) to transfer rights of exclusive possession and use in exahnge for th epayment of rent and other obligations
-owner retains the reversionary right to possession -lessor's interest is a leased fee estate plus reversionary right |
lease
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-in most states, to be enforceable, a lease fo rmore than 1 year must be in writing
-a lease that can be performed in a lesser period time is usually enforceable in court even if it is oral |
statute of frauds
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-a tenant's right to occupy real estate during the term of a lease, generally considered to be a personal property interest
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leasehold estate (less-than-freehold)
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4 types of leasehold estates
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-estate (tenancy) for years
-estate from period to period -estate at will -estate at sufferance |
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a type of leasehold estate that
-continues for a definite period of time, regardless of how long -specific beginning and ending dates -no notice is required to terminate -does not automatically renew |
estate for years (tenancy for years)
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a type of leasehold estate that
-exists for a fixed period time but automatically renews itself -payment and acceptance of the rent extends the lease for another piod -proper notice must be given to termiante the lease -holdover tenancy created when tenant with estate for years remains in possesionn; landlord may evict or treat holdover tenant as one who has this |
estate from period to period (periodic tenancy)
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a type of leasehold estate that
-exists with the consent of the landlord -usually informal and oral -indefinite in length -proper notice must be given to terminate -automatically terminates at the death of either party |
estate at will (tenancy at will)
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a type of leasehold estate that
-created when the tenant who legally obtained the possession of the property now illegally remains in possession -exists without the consent of the landlord -examples: tenant whose lease has expired but refuses to move out owner whose property has been foreclosed but refuses to vacate the premises |
estate at sufferance (tenancy at sufferance)
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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
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holdover tenancy
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requirements of a valid lease
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CLOAC
capacity legal objectives offer and acceptance consideration |
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a complete description of the premises should be clearly stated, includign specific facilities included in the lease; preprinted lease agreements better suited for residential property; commercial lease more complex, legal counsel should be consulted
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possession of premises
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-the covenant of quiet enjoyment for the tenant is implied by law regardless of whether addressed in the lease
-landlord is allowed to enter property with tenant's permission |
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use of premises
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if the use by a lessee is limited in any manner, that use must be specifically stated in the lease
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term of lease
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-period for which the lease will run
-dates should be stated precisely |
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security deposit
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-held by the landlord during the lease
-applied to unpaid rent or repairs -state or local law may set maximums -In Practice: The lease should specify whether such funds are security deposits or advance payments of rent |
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improvements
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-generally, neither party is required to make improvements
-the tenant may make improvemetns with permission -any trade fixtures should be identified in the lease |
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accessibility improvements
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-Federal Fair Housing Act makes it illegal to discriminate on basis of physical disabilities
-tenants may make reasonable modifications to property but must restore at end of lease term -American With Disability Act applies to commercial, nonresidential property in which public goods or services are provided |
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maintenance of premises
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-historically, the landlord is not obligated to make repairs
-under current landlord-tenant laws, some jurisdictions require landlords to make repairs on residential units to keep them in habitable condition and maintain the common areas -the tenants must return the premises in the same condition as received, except for ordinary wera and tear |
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destruction of premises
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the tenatn is obligated to pay rent if the improvements are destroyed when
-the property is agricultural land -in most states, the lease is a ground lease -in some cases, the tenant rents an entire building if part of a building is destroyed, the tenant is usually not required to continue to pay rent |
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assignment and subleasing
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-can be prohibited by the terms of the lease
-assignment is the transfer of all of the tenant's interests -subleasing is the gtransfer of part of the tenant's interest -either may require the lessor's consent -the original tenant/sublessor's interestina sublease is knowns as a sandwich lease |
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recording a lease
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-recording varies according to state laws and the length of the lease; leases of 3 years or longer generally are recorded
-in some states, only a memorandum of lease is recorded |
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-mortgage clause that states the mortgagee who forecloses agrees not to terminate the tenancies of lessess who pay their rent
-often used in commercial leases |
nondisturbance clause
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a lease may contain a clause that grants the lessee the privilege of renewing the lease
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renewal option
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-some leases grant the lessee the option to purchase the leased premises
-the owner may give the tenant credit toward the purchase price for some percentage of the rent paid |
lease option
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clause allowing the tenant the opportunity to buy the property before the owner accepts an offer from another party
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right of first refusal
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a type of lease where...
-the tenant pays a fixed rental amount -the landlord pays all of the property charges (repairs, taxes, insurance, operating expenses -most often used for residential apartment rentals |
gross lease
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a type of lease where...
-the tenant pays a fixed rental amount -the tenant also pays some or all of the property charges (in a triple-net lease, the tenant pays all operating and other expenses) -generally used for entire commercial or industrial buildings and the land on which they are located -ground leases and long-term leases,too |
net lease
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a type of lease where...
-the tenant pays a fixed amount of rent plus a pcertage of the gross income of the business (gross lease or net lease may also be a percentage lease) -the percentage and basis agreed to between the parties -most commonly used in retail locations specifics vary with the type of business and its location |
percentage lease
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a type of lease that provides for increases in rent during the lease period
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variable lease
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a type of variable lease that provides for increases in the rent at set future dates in specified amounts
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graduated lease
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a type of variable lease where periodic increase or decrease in rent is based on changes in some economic index
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index lease
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a type of lease...
-usually involves separate ownership of land and buildings -allows the tenant to construct a building on land that he/she does not own and use the premises thereafter -generally set up as a net lease -typically for terms of 50 up to 99 years |
ground lease
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a type of lease where..
-the owner receies cash for giving exploration rights -if petroleum is found, the owner usually receives a percentage of its value as a royalty |
oil and gas lease
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a type of lease where....
-the tenant leases the property in advance of its purchase usually for tax or financing reasons; part of the rent is applied toward the purchase price -the purchase is the primary consideration, the lease is secondary |
lease pruchase
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a type of lease where...
-owner sells the property and then leases is back for an agreed period and rental -often used when extra capitalis needed on a construction project -lessee can act more like an owner than tenant, howver, any increase in land value will benefit the tenant |
sale and leaseback
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a type of lease...
-rent can be paid by the tenant in advance (cash rents -tenant and owner can share th eprofits from the sale of the crop when it is sold (sharecropping) |
agriculatural lease
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termination of a lease
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-no notice is required to terminate a tenancy for years
-parties can mutually agree to cancel the lease -tenant may surrender the leasehold interest if the landlord is willing to accept it -tenant who abandons the property is still liable for the terms of the lease, including rent payments -oral and written leases without specific expiration dates require proper notice to terminate as required by law -a lease may be terminated by operation of law, as in a bankruptcy -when owner of leased property dies or th eproperty is sold, the lease does not terminate except for: -a lease from the owner of a life estate when the measuring life ends -the death of either party to a tenancy at will -a sale clause in the lease |
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breach of lease
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-if tenant breaches the lease, the landlord may sue for overdue renta, damages to the premises, or other defaults; if landlord breaches any lease provision, the tenant is entitled to certain remedies
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2 types of eviction
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suit for possession - actual eviction
tenants' remedies - constructive eviction |
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-landlord must serve notice to the tenant, the number of days varies according to law
-the tenant does not leave peaceably, the court may have the tenant and his/her possessions forcibly removed |
suit for possession - actual eviction
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-if landlord breaches the lease, the tenant has the right to sue for damages
-tenant may abandon the premises it.... -landlord's conscious neglect has rendered the premises uninhabitable -tenant must remove himself/herself because of the premises not being usable |
tenants' remedies - constructive eviction
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-pro-tenant legislation that is a result of consumer awareness
-adtoped by some states -provides that both parties have certain obligations -provides state-specific remedies for both parties |
Uniform Residential Landlord and Tenant Act
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-laws that ensure all persons have access to housing of their choice, includig rentals, within their ability pay, without differentiation in terms and conditions, because of their race, color, religion, sex, familial status, handicap, or national origin, disability or famiolies with children
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Fair Housing Law
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