Real Estate Unit 17

Leases

Actual Eviction

When a tenant breaches a lease or improperly retains leased premises, the landlord may regain possession through a legal.

Assignment

A tenant transfers the entire leasehold interest to another person.

Constructive Eviction

If the premises become unusable for the purpose stated in the lease, the tenant may have the right to abandon them.

Estate (tenancy) at will

Gives the tenant the right to possess property with landlord’s consent for an unspecified or uncertain term.

Estate (tenancy) at sufferance

A tenant who’s lawfully taken possession of real property continues in possession of the premises without the landlord’s consent after the right of possession has expired.

Estate (tenancy) for years

Sometimes called an estate for term is a leasehold estate that continues for a specific period. When the estate expires the lessee is required to vacate the premises and surrender possession to the to the lessor. No notice is required to terminate the estate for years because the lease agreement states a specific expiration date.

Estate (tenancy) from Period to Period

Or “periodic tenancy” - the lease is indefinite or does not have a specific expiration date. A periodic tenancy is characterized by continuity.

Gross Lease

The tenant pays a fixed rent and some or all of the utility expenses, while the landlord pays all taxes, insurance, repairs, any other utility expenses and maintenance connected with the property (usually called property charges or operating expenses).

Ground Lease

Holdover Tenancy

Creating a new tenancy under the conditions of the original lease.

Lease

The foundation of the relationship between the property owner and the tenant.

Lease Purchase

When a tenant wants to purchase a property but is not yet able to do so.

Leasehold Estate

A tenant’s right to possess real estate for the term of the lease.

Lessee

The tenant

Lessor

The landlord

Month-to-Month Tenancy

When a tenant takes possession with no definite termination date and pays monthly rent.

Net Lease

The tenant pays all or most of the property expenses, such as hazard insurance, property taxes, and or common area maintenance charges in addition to rent.

Nondisturbance clause

The mortgagee agrees not to terminate the tenancies of the lessees in the event the mortgage forecloses on the mortgagor-lessor’s building.

Percentage Lease

The tenant pays rent plus a percentage of gross sales and may pay property expenses.

Purchase Option

Some leases grant the lessee the option to purchase the leased premises

Renewal Option

A lease may contain a clause that grants the lessee the privilege of renewing the lease.

Rent

A fixed periodic payment made by a tenant of a property to the owner for possession and use, usually by prior agreement of the parties.

Reversionary Right

Right to possession after the lease term expires.

Right of First Refusal

Allows the tenant the opportunity to buy the property before the owner accepts an offer from another party.

Sale-and-Leaseback

Property owners sell the property and then lease it back for an agreed period and rental.

Security Deposit

A payment by a tenant, held by the landlord during the lease term, and kept (wholly or partially) on default or on destruction of the premises by the tenant.

Sublease

A tenant transfers the entire leasehold interest to another person.