Lease and property management Book chapter 10

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