Unit 17: Leases

Question 1

actual eviction

Answer 1

The legal process that results in the tenants being physically removed from the leased premises.

Question 2

Assignment

Answer 2

The transfer in writing of interest in a bond, mortgage, lease, or other instrument.

Question 3

Cash Rent

Answer 3

In an agricultural lease, the amount of money given as rent to the landowner at the outset of the lease, as opposed to sharecropping.

Question 4

constructive eviction

Answer 4

Constructive eviction is where there is a serious and substantial act done by a landlord with the intent to deprive the tenant of the rightful enjoyment of the premises

Question 5

estate at sufferance

Answer 5

occurs when a tenant occupies a property after the lease ends but before they are evicted.

Question 6

estate at will

Answer 6

a property tenure that does not involve a lease or any other form of formal or written agreements, and is only subject to the will of the landlord and the tenant.

Question 7

Estate For Years

Answer 7

An interest for a certain, exact period in property leased for a specified consideration. Also called a tenancy for years. (also called a tenancy for years or fixed-term tenancy)

Question 8

estate from period to period

Answer 8

A monthly tenancy that has no specified end date. A party must give notice to end this type of agreement.

Question 9

Gross Lease

Answer 9

A lease of property according to which a landlord pays all property charges regularly incurred through ownership, such as repairs, taxes, insurance, and operating expenses. Most residential leases are gross leases.

Question 10

Ground Lease

Answer 10

A lease of land only, on which the tenant usually owns a building or is required to build as specified in the lease. Such leases are usually long-term net leases; the tenant’s rights and obligations continue until the lease expires or is terminated through default.

Question 11

Holdover Tenancy

Answer 11

A tenancy whereby a lessee retains possession of leased property after the lease has expired and the landlord, by continuing to accept rent, agrees to the tenant’s continued occupancy as defined by state law.

In Illinois, a holdover tenancy created in such a fashion becomes an estate from period to period based on the original term.

Question 12

Implied Warranty Of Habitability

Answer 12

A theory in landlord/tenant law in which the landlord renting residential property implies that the property is habitable and fit for its intended use.

Question 13

Lease

Answer 13

A written or oral contract between a landlord (the lessor) and a tenant (the lessee) that transfers the right to exclusive possession and use of the landlord’s real property to the lessee for a specified period of time and for a stated consideration (rent). By state law, leases for longer than a certain period of time (generally one year) must be in writing to be enforceable.

Question 14

Leasehold Estate

Answer 14

A tenant’s right to occupy real estate during the term of a lease, generally considered to be a personal property interest.

Question 15

Lease Purchase

Answer 15

The purchase of real property, the consummation of which is preceded by a lease, usually long term. Typically done for tax or financing purposes.

Question 16

month to month tenancy

Answer 16

a periodic tenancy that does not have an expiration date and thus runs for an indefinite time. The tenant continues as such and pays the monthly rent to the landlord until one of the parties gives notice to terminate the tenancy.

Question 17

Net Lease

Answer 17

A lease requiring that the tenant pay not only rent but also costs incurred in maintaining the property, including taxes, insurance, utilities, and repairs.

Question 18

Nondisturbance Clause

Answer 18

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

Question 19

Percentage Lease

Answer 19

A lease, commonly used for commercial property, whose rental is based on the tenant’s gross sales at the premises; it usually stipulates a base monthly rental plus a percentage of any gross sales above a certain amount.

Question 20

Rental-finding Service

Answer 20

Any business that finds, attempts to find, or offers to find for any person for consideration a unit of rental real estate or a lessee for a unit of rental real estate not owned or leased by the business.

Question 21

Reversionary Right

Answer 21

The return of the rights of possession and quiet enjoyment to the lessor at the expiration of a lease.

Question 22

Right Of First Refusal

Answer 22

A clause allowing the tenant the opportunity to buy the property before the owner accepts an offer from another party.

Question 23

Security Deposit

Answer 23

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

Question 24

Sharecropping

Answer 24

In an agricultural lease, the agreement between the landowner and the tenant farmer to split the crop or the profit from its sale.

Question 25

Sublease

Answer 25

The leasing of premises by a lessee to a third party for part of the lessee’s remaining term. See also assignment.

Question 26

memorandum of lease

Answer 26

gives notice of the interest but does not disclose the terms of the lease. Only the names of the parties and a description of the property are included.