Real Estate Chapter 9: Leases
Exculpatory clause
A clause that exculpates or excuses a landlord from liability to a tenant for negligence in maintaining leased property.
Ground lease
A lease of land only, on which the tenant usually owns a building or is required to build as specified in the lease. Typically long term net leases; the tenant's rights and obligations continue until the lease expires or is terminated through default.
Gross lease
A lease of property according to which a landlord pays all property charges regularly incurred through ownership, such as repairs, taxes, insurance, and operating expenses. Most residential leases are this type.
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.
Graduated lease
A lease that allows for increases or decreases in the amount of rent being paid during the lease term, or any renewal of that term.
Index lease
A lease that provides for adjustments for rent according to changes in a price index, such as a consumer price index.
Lease option
A lease under which the tenant has the right to purchase the property, either during the lease term or at its end.
Percentage lease
A lease, commonly used for commercial property, whereby rental is based on the tenant's gross sales at the premises; it usually stipulates a base monthly rental plus a percentage f any gross sales above a certain amount.
Lease purchase
A real property that is preceded by a lease, usually long-term, for a period prior to settlement. Typically done for tax or financing purposes.
Lease
A written or oral contract between a landlord (the lessor) and a tenant (the lessee) that transfer the right to exclusive possession and use of the landlord's real property to the lessee for a specified period of time and for a stated consideration (rent).
Constructive eviction
Actions of a landlord that so materially disturb or impair a tenant's enjoyment of the leased premises that the tenant is effectively forced to move out and terminate the lease without liability for any further rent.
Estate at will
An estate that gives the lessee the right to possession until the estate is terminated by either party; the term of this estate is indefinite.
Estate for years
An interest for a certain, exact period of time in property leased for a specified consideration.
Estate from period to period
An interest in leased property that continues from period to period - week to week, month to month, or year to year.
Sandwich lease
Created when a sublease is negotiated by a tenant under a lease. Original tenant remains primarily liable for the payment of rent to the landlord and is sandwiched between the landlord and the subtenant.
Sharecropping
In an agricultural lease, the agreement between the landowner and the tenant farmer to split the crop or the profit from its sale, actually sharing the crop.
Cash rent
In an agriculture lease, the amount of money given as rent to the landowner at the outset of the lease, as opposed to sharecropping.
Lessee
One to whom property is rented (or leased); usually called the tenant.
Lessor
One who rents, or leases, property to another; usually called the landlord.
Market rent
The amount of rent the property would command in a fully informed competitive marketplace, the going market rate for rental space.
Economic rent
The amount of rent the property would command in a fully informed competitive marketplace; the going market rate for rental space.
Contract rent
The amount of rent the tenant must pay the landlord for the use of the leased premises as specified in the lease contract.
Actual eviction
The legal process that results in the tenant's being physically removed from the leased premises.
Estate at sufferance
The tenancy of a lessee who lawfully comes into possession of a landlord's real estate but who continues to occupy the premises improperly after lease rights have expired.
Sublease
a lease of a property by a tenant to a subtenant.
