7 | Leases

The lead paint notification doesn't apply to which types of rentals?

-Terms of <100 days -Studio apt and zero bedroom lofts -Elderly housing -Premises already dtm'd as lead free

NY Emergency Tenant Protection Act (ETPA)

-certain apts are rent stabilised in NYC and some other locations in NY -for these, no more than 1 month's rent may be charged as sec deposit

Ground/Land Lease

-lease on vacant land or the land under improvements -norm a net lease that requires pmt of rent plus prop charges -often for terms <50 years -Considered personal prop

To end a month-to-month tenancy, NYS requires? NYC requires?

1 month's written notice; 30 days written notice -notice must be given at least one day before a date on which rent is due

8 Essential components of a lease

1. Capacity to contract 2. A demising clause 3. Description of the premises 4. Statement of term duration 5. Lease in writing (if >1yr) 6. Signatures by both parties 7. Copies of lease delivered by lord to tenant

Types of Leases

1. Gross Lease 2. Net Lease 3. Percentage Lease 4. Graduated Lease 5. Proprietary Lease 7. Ground Lease 8. Oil and Gas lease 9. Index Lease

Lease agreements establish:

1. Length of possession 2. Amount to be paid 3. Rights/obligations of parties

For rent stab apts, either a ______ year lease must be offered no less than _____ days prior to the present lease expiration.

1/2, 150

In NYC, at lease _____ tenants in a multi-unit may start a court proceeding to use their rent money to _______.

1/3; remedy conditions for life, health, and safety.

For a rent-stab furnished sublet, the tenant may charge the subtenant up to _____% of the og rent figure. Lord may in turn collect an additional ____% from tenant.

10%, 5%

A tenant who signs a lease for senior housing has the right to cancel within _____ days of signing.

3

A sharing tenant must inform lord of name of any new occupant within ____ days after they move in.

30

Lords have ____ days to form their response to tenant's request to sublet. They have ____ days to ask for additional info.

30 days; 10 days

NY lease terms longer than ____ years are eligible for _____.

3; recording

A rent stabilized apt may not be sublet for more than half of any ______ year period.

4

Lord who conveys real prop must turn over security deposits to new owners within _______ of deed's delivery.

5 days

Lease may be terminated by tenants who are _____ that have been _____. Lords are entitled to _____ days notice and a doc copy of admission into facility.

62+, accepted into an adult care facility, 30

Brokers for a broker's lien have up to _____ months to assert their liens.

8

Sandwich Lease

A lease agreement created when a tenant sublets the property to another person, thus creating a sublessor-sublessee relationship. The person in the "sandwich" is a lessee to one party and a lessor to another

Use Clause

A lease clause that defines what the tenant may and may not do with the space

Proprietary Lease

A lease given by the corp that owns a coop apt building to the shareholder for the shareholder's right as a tenant to an individual apartment.

Net Lease

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

Graduated Lease

A lease where the rent will increase periodically in amounts specified in the lease, as contained in the escalation clause.

Percentage Lease

A lease, commonly used for comm prop, whose rental is based on tenant's gross sales; usually a base monthly rental plus a % of any gross sales above a certain amount.

Broker's Lien

A lien on the rent paid by the tenant in the amount of the compensation (commission) agreed on by the owner and the broker.

Security Deposit

A sum of money usually equal to one month's rent, held by the landlord to cover any damage to the apartment caused by a tenant and guarantee the pmt of rent.

Tenancy at will

An occupation of space for an indefinite period -can be terminated by either party at any time w proper notice -auto terminated by death of either lord or tenant

Periodic lease

Has no specific end date -a periodic tenancy or periodic estate -renewed each time the tenant pays rent to the lord

Why does lord keep 1% of the interest?

It's a form of admin charge and offsets banking fees associated w maintaining the account.

Estate for Years

Lease for a definite period of time -no notice required when time expires -can be terminated by mutual consent, otherwise can't terminate w/o proving a party breached

Periodic Estate

Lease with regular rent payments and no stated ending date -auto renews until a party gives termination notice -to terminate, either party gives proper notice

NY General Obligations Law

Lords must hold all security deposits in trusts and not commingle them w their own funds.

Constructive Eviction

Occurs when the tenant's use of the premises is substantially disturbed or interfered with by lord's actions or failure to act where there is a duty to act. The tenant is effectively forced to move out and terminate the lease without further liability for further rent.

Broom-swept condition

State of apt how the tenant found it

Description of the Premises

Street address or any description that makes the property identifiable to the parties.

Gross Lease

Tenant pays rents, landlord pays all expenses of property; most common form of resi lease

Holdover tenant

Tenant who remains in possession of leased property after the expiration of the lease term.

Index Lease

The rental is tied to some commonly agreed to price index such as the Consumer Price Index or the Wholesale Price Index.

Oil and Gas Lease

This lease gives the tenant the right to extract oil and gas from a specific property

Tenancy at sufferance

When one is in wrongful possession of realty, even though the original possession may have been legal. -when (holdover) tenants continue to occupy premises w/o lord's consent

Leases may be in which formats?

Written, oral, or implied (stat of frauds says written if >1 year)

Lease

a contract granting use or occupation of property during a specified time for a specified payment

For comm leases, rent is always expressed in _____________.

annual terms payable in equal monthly pmts

In NY, rent is normally due in ______

arrears

For any resi prop constructed pre1978, Fed law requires that tenant ______________

be given a booklet on lead paint hazards before signing a lease.

Lords are under no legal obligation to extend/renew a _____ lease.

commercial

NY General Obligations Law (more): If 6+ resi units, lord must notify tenants ______ and give tenants ______.

in writing where the funds are being held in a NY interest bearing bank account; all but 1% of any interest earned.

Pro-tenant legislation: Lord may not legally retaliate bc a tenant ________.

joins a tenant's organization.

Suit for possession

landlord's court action to evict tenant -lord must serve tenant 3 day notice before suit begins

Leases are under the category of a __________ bc of the _________.

non-freehold estate, time restriction of possession

A broker's lien only applies for a ______ lease of more than _____ years.

non-resi; 3

If the tenant dies, the lease

remains in effect

Demising clause

the lessor to let and lessee to take the premises

Recording a lease notifies the world

the long term rights of the tenant (which lord does not want made public)