12A LEASES Flashcards
TENANT
LESSEE
Landlord
Lessor
Interest
A right to or share(portion) in something
Leasehold Estate
Real Estate interest that gives leaseholder right to possession without conveying title.
Title
Actual Lawful ownership of real property and refers to holding the bundle of rights. Conveyed title is not a document, but rather a concept pertaining to ownership-claim.
Estate
Possessory interest in real property; either freehold or leasehold
Estate For Years
A leasehold estate with a specific expiration date after which it automatically terminates. Can be for any length of time (1day/1yr); is not terminated or invalidated by death of either party or property sale.
Periodic Estate
A leasehold estate, which continues for successive equal periods of length until terminated by proper notice from either the less or the lessee. week to week or month-to-month not terminated by death of either party or property sale. 
Estate at Will
A leasehold estate that does not have a lease to specify the termination date or rental. Like renting to a family member with no lease agreement and occasional payment. 
Tenancy at sufferance
A leasehold estate, which describes possession of property by a tenant who came into possession of the property under a valid lease, but stays on after the lease expires without the landlords permission . if landlord, except rent from a holdover tenant, a month to month periodic tenancy is automatically created. 
Four types of leasehold Estates
estate for years/periodic estate/estate at Will/tenancy at sufferance
Lease
A contract in which the Lessie pays the less or rent in exchange for possession of real estate. A convenience of a leasehold estate from the fee owner to a tenant.
Reversionary interest
Reversion of property to an owner at the end of a lease term.
Assignment
The transfer of a lease contract from a Lessee to an assignee.
Five types of commercial leases
Net, lease, percentage, lease, land, lease, index lease, graduated lease
Percentage lease
Tenant pays a percentage of their gross sales, in addition to a fixed monthly rental payment. May include a reclamation clause, if gross sales fall below a specified point.
Land lease
A tenant leases unimproved land on a long-term basis usually with a provision that tenant may construct a building on the property which tenant will own upon completion.
Index lease
Rent is tied to a common index indicator, such as a consumer price index that neither landlord nor tenant controls rent increases at the same percentage rate that index increases.
Graduated lease
 Step-by-step, rent increases generally paid in installments, usually for long-term leases, which spell out annual rent increases. 
Estate for Years
Yearly lease
Periodic Estate
Month-to-month, week-to-week lease agreement, a leasehold estate that continues for successive equal periods of time until terminated by proper notice by lessor/lessee.
