Ch 16: Leases
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Created by:
ToddHeadrick on November 18, 2009
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29 terms
Terms | Definitions |
|---|---|
 Assignment | In a lease, transferring all of one's remaining interest in the property, although the original lessee is till responsible for the financial obligations |
| Constructive Eviction | When the tenant is forced to vacate the property because the landlord failed to provide essential services; tenant is no longer obligated for any further rent |
| Estate at Sufferance | Tenant remains on the property, without the landlord's permission, after the lease has expired |
| Estate at Will | Term is indefinite; i.e., "I will rent to you until I sell the house," will be terminated by death of either party or sale of property |
| Estate for Years | Leasehold interest for specific period of time; definite beginning, definite ending; not terminated by death of either party, nor sale of property; no notice required |
| Estate from Period to Period | Leasehold interest that automatically renews until either party gives notice to change the terms; month to month; not terminated by death of either party, nor sale of property |
| Gross Lease | Tenant pays rents, landlord pays all expenses of property; most common form of residential lease |
| Lease, Lessor, Lessee | Contract (lease) between landlord (lessor) who gives up possession and tenant (lessee) who pays rent |
| Leasehold Estate | Tenant's right to occupy real estate during term of lease, generally held to be a personal property interest |
| Lease Purchase | Purchase of real property after a period of a lease, usually long term; usually done for tax or financing purposes |
| Net Lease | Lease requiring tenant to pay not only rent but also taxes, insurance, utilities and repairs |
| Percentage Lease | Common lease for retail property; often a base monthly rent plus a percentage of any gross sales over that amount |
| actual eviction | The legal process that results in the tenant's being physically removed from the leased premises |
| cash rent | In an agricultural lease, the amount of money given as rent to the landowner at the outset of the lease, as opposed to sharecropping |
| distraint | the seizure and holding of property as security for payment of a debt or satisfaction of a claim |
| ground lease | A long-term commercial arrangement, often for ninety years or more, under which the tenant leases only the land and then, at its own expense, constructs a building or other improvements on the property for use in its business. |
| holdover tenancy | A tenancy whereby a lessee retains possession of leased property after the lease has expired and the landlord, by continuing to accept rent, agrees to the tenant's continued occupancy as defined by state law |
| lease option | A lease under which the tenant has the right to purchase the property either during the lease term or at it end. |
| month to month tenancy | A periodic tenancy under which the tenant rents for one month at a time. In the absence of a rental agreement (oral or written) a tenancy is generally considered to be month to month |
| nondisturbance clause | A mortgage clause that states the mortgagee agrees not to terminate the tenancies of the lessees in the event the mortgagee forecloses on the mortgagor-lessor's building. |
| renewal option | A clause in a lease that grants the lessee the privilege of renewing the lease. |
| reversionary right | The remnant of an estate that the grantor holds after granting a life estate to another person. |
| right of first refusal | a right given to a prospective purchaser to be able to meet the price and terms at which the owner is willing to sell the property to another party. Unlike an option, the seller is under no obligation to withdraw his property from the market. |
| sale and leaseback | technique used to reduce up-front cash, buyer sells property owned by company with the closing acquisition the buldings are sold to an investor and cash is applied to purchase of company, at the same time buildings are leased back to the acquired company |
| security deposit | an amount of money paid to the owner of the property by a tenant to guard against any financial loss that the tenant might cause |
| sharecropping | In an agricultural lease, the agreement between the landowner and the tenant former to split the crop or the profit from its sale, actually sharing the crop. |
| sublease | A lease given by the original lessee. The lessee remains fully liable to the lessor. The lessee pays rent to the lessor or landlord, and collects rent form the Sublettee. |
| lessor | title holder of property who contracts for its possession or use by another (landlord) |
| lessee | A party that has made contractual arrangements to use another party's asset without purchasing it |
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