Unit 12 - Leases
covenant
Included in a deed; a guarantee.
constructive eviction
Occurs when the tenant's use of the premises is substantially disturbed or interfered with by the landlord'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.
percentage lease
The lessor receives a percentage of the gross sales or net profits as the rental payment for the lease of the property.
ground
The owner grants the tenant a leasehold interest in the land only, in exchange for rent.
index lease
The rental is tied to some commonly agreed to price index such as the Consumer Price Index or the Wholesale Price Index.
quiet enjoyment
The right of an owner or lessee legally in possession of property, to uninterrupted use of the property without interference from the former owner, lessor or any third party claiming superior title.
demising clause
This clause talks about when the landlord leases the property and when the tenant takes possession of the property.
estate at sufferance
This estate is created when a tenant takes legal possession of the property but then remains on the property without the owner's consent after the lease terminates.
graduated lease
This lease provides for periodic step increases in the rental payments.
estate period to period
When no specific ending date for a lease is defined, but there is an agreed-upon term, such as month-to-month for occupancy. most apartment leases are this.
periodic lease
a lease from period to period
estate at will
a lease that has no time limit
landlord cancels the lease
a situation in which a lease automatically terminates
assignment
a transfer of the entire leasehold interest by a tenant, the assignor, to a third party, the assignee.
lease
both an instrument of conveyance and a contract between principal parties to uphold certain covenants and obligations.
use of the premises
contract provision where landlord describes what activities can take place on a property
Clear statement of term
contract provision where the length of the lease is outlined.
proprietary lease
conveys a leasehold interest to an owner of a cooperative. The proprietary lease does not stipulate rent, as the rent is equal to the owner's share of the periodic expenses of the entire cooperative.
leasehold estate
conveys an interest, but not legal title to a property - also called a less-than-freehold estate
landlease
ground lease....inherently a long-term lease
actual eviction
if a tenant is in default, a landlord may file a suit and, if wins, can repossess the property.
estate for years
lease that has no automatic renewal
security deposit
money that a tenant deposits with the owner of the apartment for the repair of any damages to the apartment for which the tenant is responsible.
capacity to contract
part of a contract that deals with the legal requirements to enter into a contract (eg. sanity, age, etc.)
gross lease
requires the landlord to pay the property's operating expenses, including utilities, repairs, and maintenance, while the tenant pays only rent.
triple net lease
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option to renew
tenant has the option to renew at the end of the lease period
lessor
the owner and landlord
lessee
the renter or tenant
net lease
the tenant pays not only the rent for occupancy, but also pays maintenance and operating expenses, such as taxes, insurance, utilities and repairs.
sublease
the transfer by a tenant, the sublessor, of a portion of the leasehold interest to another party,
constructive eviction
when a landlord defaults on the terms of the lease: where the landlord's negligence or disruptive action has rendered the property uninhabitable, a tenant may leave the property and declare that the lease is cancelled by default
holdover tenant
when a tenant does not leave at the end of a lease.