Real Estate Chapter 20

lessee

the tenant

lessor

the landlord

reversionary interest

the right to retake possession of a leased property at some future time

quiet enjoyment

the right of possession and use of property without undue disturbance by others

gross lease

rentals paid in leases that don't change during the term

step-up / graduated rental

escalations in leases that provide for reimbursement to the landlord for increases in expenses and costs

escalation clause

provision in a lease for upward and downward rent adjustments

net lease

rentals that are paid to the landlord; the tenant pays all expenses

percentage rents

rentals paid by a commercial tenant that consist of base rentals and a percentage of tenant's sales

option

the right at some future time to purchase or lease a property at a predetermined price

sublease

a lease that is given by a lessee

sublessee

a lessee who rents from another lessee

sublessor

a lessee who rents to another lessee

ground lease

rent paid to occupy a plot of land