Lease and property management Book chapter 10 – Flashcards
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What is a lease
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A lease as a contact at transfers possession of real estate in exchange for rent
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What is the property owner called
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The landlord or the lessor
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What is the user of the property called
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The tenant are also called the Lessee
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What is the tenets interest called
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Leasehold or leasehold estate
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What is the landlords interest called
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Leased fee or leased fee a state
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Hey lease for one year or longer must be in writing to enforced under the statue of frauds
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Yes
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What is a state for years
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Has a stated expiration date which could be any.
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Estate from year-to-year
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Estate from year to year is automatically read nude unless one party gives notice of termination to another
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Tenancy at will
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Either party may terminate the agreement
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Tenancy at sufferance
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A tenant has remained on the property after lease expired
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What is a gross lease
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The landlord pays operating expenses
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What is net lease
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The tenant pays operating expenses operating expenses generally include property maintenance and insurance net net triple net our terms used to emphasize obligations of the tenant operating expenses do not include that service interest and principal payment or other included taxes because they are financial financing expenses for obligations of the owner
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What is a percentage lease
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Percentage leases are often used for retail properties the tenant pays a base basic rent plus percentage of gross business sales above a certain amount
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Escalated provisions
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Also called pass through's allow for increase in expenses to be paid by the leasee
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Graduation leases
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Call for rent increases at present intervals
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Index or indexed lease allow for increase is this true
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Yes based on changes in and economic index such as the cost of living index
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The sale of a property does not change a lease true or false
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It does not change a least one bit the new owner must observe the tenants rights as described in the lease
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A Lees is typically terminated win what
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By the performance which occurs when both parties observe the full term of the lease
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Upon expiration a tenant may remove and keep trade fixtures in a restaurant this is often includes kitchen equipment signage and barstools
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Yes
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When does a breach of lease occur
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When one party violates a lease provision
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What are the four types of leasehold estate
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Estate for years Estate from year-to-year Tenancy at will Tenancy at sufferance
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What are some other names for estate from year to year
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Periodic estate or estate from Period To period
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What does tenancy at will allow
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The tenant to remain with the consent of the landlord at any time
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What is a holdover tenant
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A tenant who hold property be on the lease term without the landlords consent Also called a tenant at sufferance
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What is a percentage lease
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The tenant must pay a percentage of the sales
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What is a gross lease
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One that requires that the landlord to pay operating expenses such as utilities repairs insurance and property taxes
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What is a net lease
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Hey net lease requires the tenant to pay operating expenses the landlord receives the rent as net return
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What are the terms that may be used for the responsibility of operating expenses
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Hybrid is one of them say my net is another net to net is another and one more is triple net are used to describe the degree that which parties may be responsible for operating expenses
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Escalation or step pro visions are what
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Are found in long term gross leases
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What is a graduate graduated lease
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Is a call for increase at certain intervals such as every year or at two or five year intervals
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What is an InTEXT lease or indexed lease
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Is one in which the rent is change periodically in accordance with a publish economic index such as the cost-of-living index
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Sale of leased property what happens
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When lease property is sold the lease survives the sale the tenant is allowed to continue use under the lease terms
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What does performance mean as for a lease
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The normal termination of the lease is the result of performance went both landlord and tenant have put the old their lease obligations this is said to be performance
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What will also cause a termination of the lease
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A breach in contract
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What are the legal actions that result in a breach of contract or breach of leasing
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The violating party may be held liable for damages when the tenant has breached a lease the landlord to remedy is in court using a court order a landlord may reject or evict the tenant
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What is constructive eviction
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I don't know
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How long are ground leases how long do they usually last
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Anywhere from 25 to 99 years
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What is a ground lease
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A ground lease is a lease of land or airspace at the tenet can usually build whatever they want to on it it can also be called a triple net rent this means that the tenant pays for the operating expense the property taxes and the mortgage payment
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What does premises mean
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Description of the property being leased
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What does term mean
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Stating the terms of the lease
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What does rent mean
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Describes rental amount date and place payable
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What does construction of building an improvement common areas mean
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Describes improvements for purposed property or property to be renovated to suit tenet
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What does Taxes mean
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States he will pay Ad Valorem tax and escalation amounts
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What does repairs mean as far as leases go
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Stage which party is responsible for the repairs and maintenance of the lease
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What does accelerations mean
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States responsible and right of tenant to alter improvements
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Liability insurance mean as far as A lean goes
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Do you designs party who is responsible to carry liability insurance and the extent
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What does other insurance mean as far as a lease
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Designate party who is responsible to carry hazard insurance and the extent
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Damaged by fire and casualty what does this mean as far as a Goes
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Describes operation of these in the event of a fire or other casualty
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What does payment of utilities mean as far as the description of a lease goes
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States which party must pay charges for water heat gas electric sewage disposal and other utilities
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What does subordination mean
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Describes right between landlord and tenant in the event of mortgage foreclosure
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Certificate of Lease Status
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Obligates tenets to inform mortgage lender of occupancy and rent status
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Condemnation in a minute domain compliance of law means what
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Describes operation of police in the event of taking or partial taking of the property
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Access by landlord
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Allows landlord to inspect property
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Mechanics lien
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Describes the discharge of mechanics liens
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Assignment and subletting
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Limits the tenants rights to assign or sublet
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None liability of landlord
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Limits the tenants rights to assign or sublet it freeze landlord from liability due to injury or damage within premises
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Right to cure defaults
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Allows landlord to cure tenets defaults and require reimbursement
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What does use me
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Permits the tenant to use of the property for a specific purpose
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What does notice mean
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Describes method to serve notice to a party
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Definitions
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Defined the terms used in the lease
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Partial invalidity
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Describes operation at least one parts of these are held to be invalid
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Waiver or redemption
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Permits tenant to waive all rights upon lease expiration
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Bankruptcy or insolvency
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Describes required notice and operation of lease in the event of bankruptcy
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What does default main
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What does default mean they defaulted on the lease
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Surrender
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Describes how tenant is to the property upon expiration of these
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Arbitration
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Provides a method to settle disputes
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Encumbrance
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Scribes rights and obligations of the parties to deliver and return property with the respect to liens easement and etc.
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Quiet enjoyment
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Agreement via landlord that tenet while he performs may have hauled in the joint property without interference
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But there are restrictions
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May limit the lease of the space in a shopping center to a competitor
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Entry in agreement
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State that the writing lease is the entire agreement
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Percentage clause
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Stipulates conditions affecting a percentage of these
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Rapture clause
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Stipulates that in a percentage lease or lessor may terminate lease if the sea revenues do you know attain a specific specified level within a certain length of time
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What is a gross lease
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At least that requires the landlord to pay operating expenses such as utilities repairs insurance and property taxes
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What is a net lease
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Requires the tenant to pay operating expenses
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I leasehold is the interest or stay in land that the tenant requires by virtue of a lease
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I leasehold is the interest or stay in the land that the tenant acquires by virtue of a lease
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What is a leasehold estate
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Is the interest or his day and land the tenant Rick acquires by virtue of a lease
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In most states today tree leasing as a real law
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Yes most states the leasing law treats as a leasehold as real property
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What is the purpose of this to make it possible for leasing law
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Is to make it possible for Lisa got to regulate the activities of those involved in the leasing of the property as a business
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Gross Lease
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The tenants pays a fixed monthly rent only
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Graduated to lease
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The tenant pays a fixed rent for an initial. But the rent increases at a Pacific intervals thereafter
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Graduated lease
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Graduated lease For long leases to cover increase general cost of living To attract a tenant and slow market conditions For a retail store and I shopping center or mall where I clientele has not yet been established
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What is another word for graduated lease
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Step up lease
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Index lease
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Index lease is one in which contains a provision for future rent increase based on increased operational cost to the landlord for taxes insurance utilities janitorial services etc.
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What does an index please contain
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Escalator Clause Which provides for the increase based on some economic indicators called and index
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What is a sandwich lease
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Hey sandwich lease occurs when a leased property is sub leased
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Contract rent
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Contract rent Contract rent is the amount of rent the tenant must pay the landlord under the terms of their lease contract
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Economic rent
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Economic rent is the amount of rent the property could be rented for on the open market at a given time if it were available for rent
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Economic rent
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Economic rent At the time the lease contract is signed the economic rent and the contract rent are the same as the lease he matures the economic rent will often exceed the contract rent
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A valid least must contain the following
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Names of both the lessor and the Lessee The signature of the lessor the lessee usually signed it but is not required to I description of the property in most states this must be legal description to a street address would not be exceptable
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Valid lease must contain the following
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And agreement to convey by the lessor and to except by the Lessee Starting date and ending date or the starting date and the direction of the lease
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A valid lease
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Provisions for payment of rent
