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Utah Real Estate: Leases chapter 20
Terms in this set (50)
The legal process by which a lessor evicts the lessee and regains possession of the property.
Assignment of Lease
A contract that substitutes a new tenant in the lease. The assignee becomes liable for the remaining term of the lease. Unless prohibited by the lease contract, this can be done without the approval of the lessor, but the original lessee retains secondary liability.
When the landlord violates the terms of the lease by not keeping the property livable or habitable, the tenant can legally vacate the property and not be held liable for future rent payments.
A clause written into a loan or lease that allows for payments to be periodically increased at specified times by stated amounts or a percentage, as provided in the contract.
(Creates a graduated lease.)
Estate or Tenancy for Years
A leasehold estate form of interest in property that has a predetermined start and termination date. (Doesn't have to be for years, just set time period) (Tenant is protected, can't be addicted if landlord can't afford house anymore for example)
The right of a tenant to use natural resources on leased land, such as timber for fuel on a ranch, water, etc. when required as necessities allowed by law.
The lessee makes periodic, equal rent payments.
A lease where the rent will increase periodically in amounts specified in the lease, as contained in the escalation clause. (Adjusts with changes in market - protects owner so inflation doesn't take away what he'd get for the property normally & protects tenant from overpaying.)
The tenant pays a set amount of rent. From this rent, the lessor is required to pay some or all operating expenses (primarily utilities).
"Payment is so high it's gross!"
The landlord leases the land to the tenant, and the tenant builds improvements on the leased land. Lessor owns land and receives rent on the ground while the lessee pays for and owns improvements.
If not actually written in the lease, there is an unwritten or implied warranty of this in every lease, which says the property is livable.
(A lessee is released from the obligation to pay rent if the property is condemned for health reasons.)
The lessee had an estate for years which has now been terminated. The lessor excepted a rent check so now The tenant is on periodic tenancy basis.
Intangible or non-possessory rights in real estate property such as easements, licenses, mining claims, etc.
Rent payments are periodically adjusted based on economic indicators, such as the consumer price index, usually fluctuates on an annual basis.
(Adjust with changes in market. Protects property owner from inflation taking away what he'd normally get for the property and protects the tenant from overpaying.)
A contract for a less-than-freehold estate or right in real property. Rent is paid for the right of possession in someone else's property.
(Refers to the contract, written or oral, between the lessor and the tenant. Rent is the money that is paid.)
Less That Freehold
An estate or legal interest in real property that is not an ownership interest.
This ceases upon the death of either party and is revoked upon sale of the property.
A limited, revocable interest in property. It grants a privilege, not a right, and is often an oral agreement granting a short term use of real property. Examples would include an owner allowing someone to hunt, boat, or fish on his property; or attendance at movie theaters and sporting events; or library card where you don't own the books there but have the right to use them.
The owner or landlord
(The one who gives property)
Holds an estate in revision. (The stick of possession given to tenant comes back to landlord when lease expires)
(The one who receives property)
Total ownership or "The highest form of ownership."
Also called free hold estate.
Tenants pay the landlord a fixed rent; and in addition, also pay their portion of the operating expenses (such as utilities).
A clause in a mortgage which protects the right of the lessee if the property should be foreclosed by the lender upon the owner's default.
Notice to Quit
The first step a lessor must take against a tenant before filing an Unlawful Detainer with the courts.
Delivered or by certified mail to tenant's last known address
A lease used in commercial leasing. The tenant pays a percentage of the net or gross income derived from the use of the property (only pays if there's profit), or the tenant may be paying a flat rate plus a stated percent of the gross or net income over a hidden dollar amount.
(Most often used on commercial or retail rental property - landlord becomes business partner.)
(Also known as month-to-month)
A lease which automatically renews itself. The period for legal notice is established by statute in each state, or can be agreed upon as one of the terms of the lease (15 days in Utah).
It can be terminated by notice of either party.
The tenant and landlord may agree to whatever term of notice they want so long as it is written in the lease.
This expenses clause allows the landlord to pass along unexpected increases in property taxes, utilities, maintenance costs, etc. above the base year.
Sometimes called and "owner's" lease. It is held by a person who owns shares in a stock cooperatives they own personal property which entitles them to this type of lease.
A lease wherein the rent is determined by a periodic reevaluation of the property's value.
(Adjusts with changes in market. Protects property owner from inflation taking it way what he would normally get for the property, and protects tenant from overpaying.)
This lease is used when the tenant only wants to rent the top of the building. The lessee leases only that part of the building he needs.
(Used mostly for rental of space for billboards, antennas, and satellite or microwave disks.)
An owner sells a property, then leases it back from the new owner. This could be a long or short term lease.
(Good for problem-solving for short term leases.)
A lease given by the original lessee. The lessee remains fully liable to the lessor. The lessee pays rent to be lessor or landlord, and collects rent from the sublettee.
The lessee. He retains primary liability for the lease, and pays rent to the lessor.
Responsible only to the lessee and pays rent to the lessee. He has no legal responsibility to the lessor.
Tenancy at Sufferance (or Estate at sufferance)
The lease has expired and the lessee is now possessing the property illegally, having been given proper notice to vacate. It is similar to trespassing except that the lessee, at one time, held a legal lease.
(If tenant begins paying the rent and the landlord excepts it - transitions to periodic tenancy.)
Tenancy at Will
A lease which requires little or no notice of termination. It is used in special circumstances where in both the lessor and lessee agree that the lease can be terminated by either party. It is uncertain duration.
(House guest) (ex: the never ending BBQ.)
The legal court action a landlord brings against the tenant to evict when there is legal cause.
A lease for either air rights or subterranean rights (such as oil, mineral rights).
Writ of Restitution or Writ of Eviction
In and Unlawful Detainer Action, the judge's orders for the sheriff to evict a tenant and restore the premises to the lessor.
Henry, the owner, negotiates a three-year lease with Sally, the lessee. Six months later he sells the property to Tom. What would happen to the lease in this case?
The lease continues to run and Tom is obligated to the lease until it expires.
Alice is the manager of Hillside Apartments. Oe winter she fails to provide heating to Martin's apartment unit. Martin moves out and refuses to pay rent. What is the legal basis of Martin's argument?
Tim enters into an agreement with George that he will harvest George's wheat if he can keep one-third of the wheat. This agreement would be termed a less than freehold interest for:
In a sublease, the sublettee owes rent to the:
Norbert enters into a lease which is to begin October 1 and end March 1 of the next year. This lease would be considered:
Tenancy for Years
Mike has a three-year lease. During the second year, he assigns the remaining term of the lease to Sam. Which of the following is true?
If Sam defaults, Mike will have to pay the rent.
Buy More for Less, a local general store, leases their building. As rent, they pay a flat fee of $2,300 plus 2% of any gross income in excess of $250,000. This is which kind of lease:
Helen has a one year lease. At the end of the year, Helen continued to send checks for the rent. Her landlord refused the checks and asked her to leave. She refused. Helen is now considered a:
Tenant at sufferance
The legal court action to evict a tenant is called a(n):
A leasehold interest in real property conveys a right of:
What happens to a lease when the property is sold?
Nothing, the lease stays in force.
THIS SET IS OFTEN IN FOLDERS WITH...
Utah Real Estate: Mortgage Law chapter 32
Utah Real Estate: Property Management chapter 21
Property Tax & Tittle Insurance
Utah Real Estate: Federal Laws C chapter 39
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