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

ssdsd

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.