Leasehold

Leasehold Interest

The right a tenant has to use and occupy a property under a lease agreement for a specific period.

Estate for Years

A lease with a fixed term (e.g., 1-year lease). It ends automatically when the term expires.

Periodic Tenancy

A lease that renews automatically (e.g., month-to-month) until terminated by proper notice.

Tenancy at Will

A lease with no fixed term, terminable by either party at any time with notice.

Tenancy at Sufferance

When a tenant stays past the lease term without landlord consent, holding over until evicted or a new lease is formed.

Net Lease

Tenant pays rent plus some or all property expenses (e.g., taxes, insurance, or maintenance). Common in commercial leases.

Percentage Lease

Tenant pays a base rent plus a percentage of their business's gross income, often used in retail leases.

Ground Lease

Tenant leases the land only and may build on it, with improvements reverting to the landlord at the end of the lease term.

Sublease

When a tenant leases part or all of the leased property to another party, but remains responsible to the landlord.

Assignment of Lease

Tenant transfers the entire lease to another party, who takes over all rights and obligations.

Lease Option

A lease that includes an option for the tenant to purchase the property at a specified price during or at the end of the lease term.

Lease Renewal

An agreement to extend the lease term, often with new or adjusted terms, before the original lease expires.

Escalation Clause

A provision in a lease that allows rent to increase based on specific conditions, like inflation or property tax hikes.

Lease Default

When a tenant or landlord fails to meet lease terms (e.g., non-payment of rent or neglecting repairs).

Quiet Enjoyment

A tenant's right to use the property without interference from the landlord or others, implied in every lease.

Constructive Eviction

When a landlord's actions (e.g., failing to fix major issues) make the property uninhabitable, forcing the tenant to leave.

Lease Termination

Ending a lease early by mutual agreement, breach, or legal action, distinct from natural expiration.

Prorated Rent

Partial rent payment for a portion of the rental period, often used when a tenant moves in/out mid-month.

Triple Net (NNN) Lease

A type of net lease where the tenant pays rent plus all property expenses (taxes, insurance, maintenance).