Ch. 17: Leases

Lease

A contractural agreement between a lessor and a lessee that transfers the right of exclusive possession and use to the tenant for a specified period of time.

Reasonable

A landlord or property manager must give _________ notice before entering a residence.

Net Lease

A lease in which the lessee pays all or most property expenses including insurance, taxes, and maintenance in addition to rent.

Gross Lease

A lease in which the lessee pays fixed rent and some or all of the utility expenses. Lessor pays taxes, insurance, repairs, and maintenance.

Percentage Lease

A lease in which the lessor and lessee agree to a minimum fixed rental fee plus a percent of the gross income of the lessees business that is on the leased property.

Variable Lease

A lease that can either be a graduated or an index lease.

Nondisturbance Clause

A provision in a mortgage that states that if a property is foreclosed on, the mortgagee will honor the lease agreement and not evict the tenant.

Statute of Frauds

A state statute that requires certain types of contracts to be in writing.

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.

Conditional

A tenants obligation to pay rent is _______ on the landlords obligation to keep the premises in a habitable state.

Estate at Sufferance

A type of leasehold in which the tenant lawfully took possession of the property but unlawfully continues to remain in possession of the premises without the landlord's consent.

Estate at Will

A type of leasehold that is informal and has indefinite terms. No period of occupancy is specified and no specific terms are set for payment periods, if any.

Estate For Years

A type of leasehold that lasts for a defined period of time and always has a specific start and end date. Could be days, weeks, months, or years.

Estate from Period to Period

A type of leasehold that lasts for an indefinite period of time with rent due at specific intervals. Does not have a fixed expiration date.

Estate from Period to Period

If the landlord accepts rent payment from the tenant after the lease has expired, an ______________________ is established and can last up to the amount of the estate for years but is not to exceed one year.

More

In SD, the security deposit cannot be ______ than one month's rent.

Legal

In absence of a specific "use" clause for a rented property, the lessee can use the premises for any _______ purposes.

Any

In an Estate at Will, either party can give notice of termination at ______ time.

Vacate

In an Estate for Years, at the expiration of the lease, the lessee is required to ________ and no additional notice is required of the lessor.

Period

In an Estate from Period to Period, notice typically must be given at least one _________ in advance if one of the parties wishes to terminate the lease.

3

In an actual eviction, the lessor must give lessee at least _______ days notice to vacate.

1. Lessor accepts rent and creates tenancy under original lease terms. 2. Lessor rejects rent and negotiates new terms. 3. Lessor treats lessee as trespasser and initiates eviction.

Involving an Estate in Sufferance, there are usually three options when there is no holdover clause.

Implied Warranty of Habitability

Law that requires the lessor to keep the property in a habitable state.

Approval

Often, a landlords ________ is needed before making any improvements to the property.

Reversionary Right

The lessor's right to possession after the terms of the lease expire.

Lessor

The owner of the real estate who is leasing the property.

2

The security deposit or portion of that with reasoning should be returned to the tenant within two weeks of the lease expiration.

1

The statute of frauds applies to leases that last for ____ year(s) or longer.

Covenant of Quiet Enjoyment

The tenant's right to undisturbed enjoyment of the leased property.

Lessee

The tenant.

Assignment

The transfer of contractual rights to a third party. Lessee transfers entire leasehold interest to a new party.

- Estate For Years - Estate From Period to Period - Estate at Will - Estate at Sufferance

What are the four types of leasehold estates?

200

The bad faith retention of a deposit shall subject the lessor to punitive damages not to exceed $________.

Legitimate

An amount of the security deposit that is not returned at expiration must be tied to a _________ cost.

Leasehold Estate

An estate that gives the holder (tenant) a temporary right to possession of a property that the lessor holds title to.

Actual Eviction

Eviction in which the lessee breaches the contract.

Constructive Eviction

Eviction in which the lessor breaches the contract, and the lessee terminates.

Consideration

Rent is usually the ___________ in a lease.

Holdover

When an Estate for Years tenant remains in possession after the lease expires.

Sublease

When the original lessee creates a contract with a new lessee. New lessee pays original lessee. Original lessee is still directly liable to lessor.