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24 Cards in this Set
- Front
- Back
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What is a gross lease?
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Tenant pays fixed rental; Landlord pays taxes, insurance, mortgage payments, repairs, referred to as property charges; most often used in residential leases.
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What is a net lease?
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Tenant pays fixed rental and some of the property charges; tenant pays all property charges lease is called "triple net"; often used for entire commercial buildings, ground leases, and long-term leases.
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What is a percentage lease?
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Minimum fixed rental fee paid in addition to percentage of income over a stated mimimum, rent is based on percentage of gross or net income of tenant; usually used in rental of retail business locations.
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What is a variable lease?
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Allows for increases in fixed rental charges during lease period.
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What is a graduated lease?
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Increase in rents at set future dates.
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What is index lease?
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rent is increased or decreased periodically based on changes in an index, i.e, government cost of living index.
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What is ground lease?
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separate ownership of land and buildings; tenant leases land to erect building on it; usually long-term net lease of 50 years or more.
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What is assignment in reference to lease terms?
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When tenant (lessee) transfers entire remaining term and rights
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What is subleasing?
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When tenant (lessee) transfers part of their remaining term.
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What is a sandwich lease?
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When the lessee is responsible for lease payments or conditions even if they have transferred their apartment over to someone else.
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What are the laws regarding termination of lease for lessor (landlord) and lessee (renter)?
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Oral or written leases without definite expiration dates must have notice in advance.
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What are the laws regarding termination of lease for a commercial property that has an estate for years contract?
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No notice required in written lease for definite period of time. Lease remains in effect if tenant or landlord under estate of years or from year to year dies.
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What happens if lease terms are broken or breached?
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Lease will be terminated according to state law.
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What happens if a tenant abandons the rental?
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The tenant is liable for terms of lease.
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What happens if the property is sold to a new landlord?
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The new owner is bound by terms of written lease.
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Does the death of landlord or tenant end the lease?
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Death of landlord does not terminate lease unless there is a tenancy at will - means there is no lease.
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What is an estate of years? (commercial)
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It is usually for commercial property. It has a definite period of time; specific starting and ending time. No notice is required and will not renew unless lessor or lessee take action to renew and death of either party does not terminate lease.
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What is a periodic estate? (residential)
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Runs for indefinite period of time; no specific termination date; automatically renew; typically a residential lease. acceptance of rent extends lease for another period such a month. Acquiescence and must have notice to terminate.
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What is an estate or tenancy at will?
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Tenant continues possession with landlord's permission although lease has expired; runs for indefinite duration. Notice is required to terminate but will automatically terminate upon sale of property or death of either tenant or landlord.
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What is an estate at sufferance?
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Tenant continues possession without landlord's consent after lease expiration, no notice is required to evict tenant, tenant is considered a trespasser (came in possession with landlord's consent), but cannot make adverse possession claim on property for the same reason.
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What is a breach of lease?
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Non defaulting party may sue defaulting party.
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What is a suit of possession?
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Actual eviction; by landlord, must serve notice as set out by state law and if tenant does not remove peaceable, court may forcibly remove.
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What can a tenant do if landlord is negligent?
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This is called constructive eviction. Tenant may sue for damages against landlord. The can abandon premises if landlord's actions or negligence results in premises becoming uninhabitable for tenant's intended use. They must actually remove self from premises during time property is uninhabitable.
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What is quiet enjoyment?
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Tenant's rights superior to any third party including lessor, previous tenants, etc.....
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