Real Estate Flash Cards Part. 4

Executory Contract

A contract which has not yet been fully performed (fully executed).

Lessor

One who rents property to another under a lease.

Lessee

A person to whom property is rented under a lease.

Executed Contract

An agreement that has been fully performed.

Holdover Tenant

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

Quiet Enjoyment

The right of an owner or a person legally in possession to the use of property without interference of possession.

Mortgage Contingency Clause

A clause in a contract that states a mortgage must be obtained in order for the contract to be binding.

Option to Renew

A clause in a lease that outlines the terms for renewing or extending an original lease agreement.

Express Contract

A contract in which all elements of a contract are specifically stated (offer, acceptance, consideration), and the terms are stated, as compared to an "implied" contract in which the existence of the contract is assumed by the circumstances.

Lease

A contract whereby, for a consideration, usually termed rent, one who is entitled to the possession of real property transfers such rights to another for life, for a term of years, or at will.

Land Lease

A land lease--also called a ground lease--is a lease agreement that permits the tenant to use a piece of land owned by the landlord in exchange for rent.

Proprietary Lease

A lease given by a corporation to another. It is often used in a co-op context, where the owner is given a certain number of shares in the co-op, along with a proprietary lease for one of the residences in the building.

Triple Net Lease

A lease in which the tenant or lessee is responsible for paying a portion of or all of the common expenses related to real estate ownership, in addition to base rent.

Percentage Lease

A lease of property in which the rental is based upon the percentage of the volume of sales made upon the leased premises, usually provides for minimal rental.

Gross Lease

A lease of property whereby the lessor is to meet all property charges regularly incurred through ownership.

Net Lease

A lease that requires the tenant to pay, in addition to rent, some or all of the property expenses that normally would be paid by the property owner. These include expenses such as real estate taxes, insurance, maintenance, repairs, utilities, and other items.

Index Lease

A lease tied to an index such as the Consumer Price Index.

Graduated Lease

A lease which provides for a graduated change at stated intervals in the amount of the rent to be paid; used largely in long-term leases.

Eviction

A legal proceeding by a lessor landlord to recover possession of real property.

Implied Contract

A legal substitute for a contract. An implied contract is an agreement created by actions of the parties involved, but it is not written or spoken. This is a contract assumed to have been drawn.

Security Deposit

A monetary deposit given to a lender, seller or landlord as proof of intent. Security deposits can be either refundable or nonrefundable, depending on the terms of the transaction.

Covenant

Agreements written into deeds and other instruments promising performance or nonperformance of certain acts, or stipulating certain uses or non-uses of the property.

Periodic Lease

Also known as a tenancy from year to year, month to month, or week to week, is an estate that exists for some period of time determined by the term of the payment of rent.

Ground Lease

An agreement in which a tenant is permitted to develop a piece of property during the lease period, after which the land and all improvements are turned over to the property owner.

Sublease

An arrangement in which the lessee (tenant) in a lease assigns the lease to a third party, thereby making the old lessee the sublessor, and the new lessee the sublessee, or subtenant.

Constructive Eviction

Any disturbance of the tenant's possession of the leased premises by the landlord whereby the premises and rendered unfit or unsuitable for the purpose for which they were leased.

Leasehold Estate

The interest or estate which a lessee of real estate has therein by virtue of the lessee's lease.

Assignment

The method or manner by which a right or contract is transferred from one person to another.

Actual Eviction

Where one is either by force or by process of law, actually put out of possession.