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Freehold Estate: Indefinite duration
Leasehold Estate: Definite duration
Term Tenancy (Estate for Years)
Periodic Tenancy
Tenancy at Will
Tenancy at Sufferance
Tenancy that terminates without any action by either party on expiration of term stated in agreement
If parties fail to stipulate amount of rent due, then reasonable rent is required
-Tenancy that endures for a certain period and for successive periods of equal length unless terminated at end of any period notice by either party
Unless otherwise stated in agreement adequate notice is 1 period (up to 6 months)
E.g., Jerry leases his property to Phil "from month to month beginning Jan 1, 2022
Tenant who retains possession after expiration of leasehold interest
Terms of holdover tenant's new lease are same as those of original lease (except as to length of lease)
E.g., Holdover remaining in possession is offer to rent premise under periodic tenancy
Tenancy that endures only as long as both parties agree to its continuance
Under common law, no notice was required; some statutes require minimum notice period
Unlike other lease tenancies, tenancy at will is terminated by death of either party of sale of property
Tenancy in which tenant's possession of leased property continues even though tenant's rights have terminated
Tenant differs from trespasser in that tenant has entered property legally
Tenancy is typically holdover tenant from term tenancy: landloard has option of evicting tenant or holding tenant for another term
Term Tenancy: Specified in agreement and no notice required
Periodic Tenancy: Renewable period to period and notice required 1 month/ 6 months
Tenancy at Will: Unit either party opts out and no notice or statutory
Tenancy at sufferance: Option of lessor and no notice required
Holdover tenant: One period up to 1 year and same notice required at periodic tenancy
Contract conveying property interest (leasehold estate) to tenant
Leasehold interest is transferable (unless otherwise specified in lease agreement) and not revocable
Landlord surrenders possessory rights to premises for duration of lease
Landlord, who may be owner of premises in fee simple, is not permitted to invade exclusive possession of tenant without authorization
Possession is given in exchange for rent
Conveyance by landlord to tenant of estate in real property covering premises leased (which creates privity of estate between landlord and tenant)
Contract between landlord tenant which governs both landlord's delivery and maintenance of premises and tenant's possession of, use of, and payments for premises (which creates privity of contract between landlord and tenant)
Creation and interpretation of contract
Prerequisites for transfer of interest in real property
Names and signatures of parties
Description of property
Term of lease
Rental amount
Lease must identify parties as lessor (landlord) and lessee (tenant) and both parties must sign document
Spouse of landlord should sign lease as well
Because lease is conveyance of property (as well as contract), lease must describe property with certainty required in a deed
Absent agreement to contrary, lease of building will be construed to include use of everything reasonably necessary for enjoyment of property
Date lease begins and date lease ends, as well as duration, should be clearly stated in lease
E.g., Lease is "for one year beginning Jan 1, 2014 and terminating Dec 31, 2014"
Consideration paid for use of property
Rent may take any form of value
Lease can be recorded because lease is a conveyance of interest in land
Uncommon to record short-term leases because actual possession by tenant provides notice of tenant's interest
Longer term leases are often recorded in jurisdiction where tenant's possession does not satisfy notice requirements
Gross Lease: base rent; Landlord pays expenses
Net Lease: base rent + some or all taxes, insurance, or maintenances
Double net lease: based rent + taxes + insurance
Triple net lease: base rent + taxes + insurance + maintenance
Group lease: base rent + some or all taxes, insurance, or maintenance; tenant pays to construct building
Percentage lease: base rent + % of gross sales
Indexed lease: rent to particular index
Tenant pays rent and landlord is responsible for expenses incurred in operating premises
For tenant, gross lease provides certainty
Double Net Lease: Tenant pays rent, taxes, and insurance
Triple Net Lease: Tenant pays rent, taxes, insurance, and maintenances
Like gross lease, net leases do not necessarily take into account loss of purchasing power over time due to inflation
Types of net lease that involves undeveloped commercial land that is leased to tenants, who then have rights to develop and use property for duration of lease
Ground leases are also often called land leases, as landlords lease out land only
During the term of a ground lease, the tenant owns any improvements made to the property, including any buildings it constructs
Ground leases tend to have very long terms (running up to 99 years in many cases)
Rent is often tied to appraised value of land
Improvements made to land that is ground leased become property of landlord after lease expires, or tenant might be required to demolish them
Tenant pays landlord fixed periodic base rental amount + fixed percentage of gross sales made by tenant
E.g., Landlord charge flat minimum rent $2.5k/month + % of gross sales over stipulated amount (2% of gross sales over $100k)
Lease often contains renewal provision that requires tenant to give tenant to give notice of renewal by specified period prior to termination of lease or, alternatively, makes renewal automatic absent notice on non-renewal by either party
Renewal is new lease
Note 
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