Leases Unit 17

A tenant's right to possess real estate for a definite. With a specific starting and ending date is

A estate for years.

This lease is generally used for retail business leases

A percentage lease

A tenant enters into a commercial lease that requires a monthly rent of a minimum fixed amount, plus an additional amount determined by the tenants gross receipts exceeding $5000. This type of lease is called

A percentage lease. - When a business tenant pays rent that varies according to the tenant's gross business receipts, the arrangement is called a percentage lease. In such a situation, the landlord shares in the tenant's business risk because the possibility of receiving no more in rent than the minimum fixed amount .

A tenant transfers less than the entire leasehold interest by ____the premises to a new tenant.

A sublease

A tenancy in which the tenant continues in possession after the lease has expired, without the landlord's permission, is

A tenancy at sufferance

Which of the following describes a gross lease?

A. An agreement in which the tenant pays a fixed rent and some or all of the utilities and the landlord pays for all taxes, insurance, and expenses related to the property(answer) B. A lease in which the tenant pays rent plus some of the operating expenses related to the property C. A lease in which the tenant pays the landlord a percentage of the monthly income derived from the property D. in agreement allowing the tenant to terminate the lease if certain conditions near the premises become unbearable.

Which of the following describes a net lease?

A. an agreement in which the tenant pays a fixed rent and the landlord pays all taxes, insurance, and expenses related to the property B. A lease in which the tenant pays rent, plus some, or most, of the operating expenses related to the property (answer) C. A lease in which the tenant pays the landlord a percentage of the monthly income derived from the property D. in agreement granting an individual release hold interest in fishing rights for a shoreline property

A tenant moves a pet into an apartment community that has a no-pet policy. The landlord wishes to remove the tenant due to the breach. The legal process to remove a tenant is known as

Actual evection. - A tenant's breach of lease can result in an actual evection, whereas landlord negligence can result in a tenants being forced to move, and this is known as constructive evection.

Estate at Will (Tenancy at Will)

An occupation of space, for an indefinite period, which can be terminated by either the lessor or lessee at any time. Also referred to as tenancy at will. Automatically terminated by death of either the landlord or the tenant.

For a contract to be valid a lease must meet the following requirements:

Capacity to Contract, Legal Objective, Offer and Acceptance, and Consideration.

Most often used in commercial and industrial property development, went to landowner leases unimproved land to a tenant who agrees to erect a building on the land, this lease is usually called a

Ground lease

when the tenant pays all or most of the property expenses, such as hazard insurance, property taxes, and/or common area maintenance (CAM) charges.

Known as a net lease

A nondisturbance clause is included in

The financing instrument used to mortgage least premises. Benefits the tenant/Lesee.

When a tenant holds possession of a landlord's property without a current lease agreement and without the landlord's approval,

The landlord can file suit for possession

A tenant still has five months remaining on a one year apartment lease. When the tenant moves to another city, the tenant transfer his possession of the apartment to a friend for the entire remaining term of the lease. The friend pays rent directly to the tenant. This situation, the tenant has become

The sublessor

If a tenant moved out of a rented store building because access to the building was blocked as a result of the landlords negligence,

The tenant may be entitled to recover damages from the landlord.

Which transition is best described as involving a ground lease?

When a landlord charges a commercial tenants separate amounts for the land and the least building.

when a tenant transfers the entire lease hold interest to another person, this is called:

an assignment of lease.

A tenancy in which the tenant continues in possession after the lease has expired, without the landlord's permission is

an estate at sufferance

Rent would best be described as

consideration for the use of real property

The tenant lease is a heated apartment during a literally cold winter, but soon after the tenant moves in, the landlord fails to provide heat because of a defective central heating unit. The tenant vacates the process and refuses to pay any rent. This is an example of

constructive evection

A tenant's tenancy for years will expire in two weeks. The tenant plans to move to a larger apartment across town when the current tenancy expires. In order to terminate this agreement, the tenant must

do nothing because the agreement will terminate automatically at the end of the current term.

At least she has a one-year lease hold interest in a house. The lease automatically renews itself at the end of each year. The leases interest is referred to as a tendency tenancy

for years, from period to period (answer) at Will, at sufferance

under the terms of a net lease, a commercial tenant would usually be responsible For paying all of the following property expenses except

mortgage debt service (answer), maintenance expenses, fire and extended coverage insurance, real estate taxes

A tenant sign the lease that includes a schedule of rent increases on specific dates over the course of the lease term. What kind of lease has this tenant signed?

percentage, net, graduated (answer), index

A tenant signs a lease that includes the following clause: "The stated rent under this agreement will be increased or decreased every three months based on the percentage change in the consumer price index (CPI) for that period." what kind of lease has this tenant signed?

percentage, net, graduated, index (answer)

Holdover Tenancy

situation when tenant remains after lease period has expired.

Under the negotiated terms of a commercial lease, the landlord is required to maintain the water heater used in a health club. If the tenant is unable to get hot water because of a faulty water heater that the landlord has failed to repair after repeated notification, the tenant could do all of the following except

sue the landlord for damages, order a new water heater and deduct the payment from the rent (answer), abandon the premises claiming constructive evection, terminate the lease agreement

The death of either the landlord or the tenant will terminate the lease and the parties' heirs will not be bound by its terms on her which of the following tenancies?

tenancy at will. The only lease that is terminated by death, or either the landlord or the tenant, is a Tenancy at Will. A relationship at Will continues only so long as both parties continue to mutually agree. If one party dies, a mutual agreement no longer exists.

Estate at sufferance (tenancy at sufferance)

when a tenant remains after a lease has expired until the landlord goes through formal eviction; IL = landlord is entitled to double rent

Estate for years (tenancy for years):

1. Continues for a definite period of time, regardless of how long 2. Specific beginning and ending dates 3. No notice is required to terminate 4. Does not automatically renew

Estate from period to period (periodic tenancy)

1. Exists for an initial fixed period of time but automatically renews itself 2. The payment and acceptance of the rent after initial period extends the lease for another period 3. Proper notice (either statutory minimal notice or lease term for longer notice) must be given by either party to terminate the lease a. Tenancy for week to week, notice period is two days b. Tenancy for month to month, notice period is seven days c. Tenancy for year to year, notice period is one month 4. Most typical residential lease is a one-year lease that converts to a month-to-month lease; requires a minimum one-month notice 5. Holdover tenant may be evicted