Chapter 12: Leases - Lanlord and Tenant Flashcards Preview

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Flashcards in Chapter 12: Leases - Lanlord and Tenant Deck (24):
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Actual eviction

The tenant breaches a lease or improperly retains in possession

1

Americans with Disabilities Act

ADA was passed in 1990 and went into effect in 1992. title I provided for employments. Property managers should also be familiar with Title III , which prohibits discrimination in commercial buildings. Managers must ensure that people with disabilities have full and equal access to facilities and services. Property managers must also prepare to execute a plan for restructuring and retrofitting a building that is not in compliance. to protect owners of extensive remodeling the ADA recommends reasonable achievable accommodations. New construction and remodeling however must meet the higher standards. typical examples of reasonable achievable modifications include ramping and removing an otherwise obstacles, Lowering mounted telephones, installing auditory signals in elevators, and reversing the dirction in which doors open.

2

Certified property manager

Institute of Real Estate management (IREM) was founded in 1933 and is part of the NAR. Members may earn the designation Certified Property Manager (CPM).

3

Constructive eviction

Claimed by a tenant when services for human habitation such as heat, electricity, or water become uninhabitable.

4

Demise

A transfer of property by lease.

5

Estate for years

A leasehold estate (tenants right to occupy land is called a leaehold estate), that continues for a specified period with a specific termination date. Need not necessarily last for years or even one year. e.g. for six weeks or for ten months.

6

Gross lease

Tenant's obligation is to pay fixed rent. Landlord pays all taxes, insurance, mortgage payments, repairs and property charges.

7

Holdover tenancy

When no no new lease agreement has been made, the landlord may either evict the tenant or accept the holdover tenancy. A New Jersey tenant who remains in possession after giving notice may be held liable for double rent.

8

Implied Warranty of habitability

Landlord's responsibility for decent living conditions.

9

Ground lease

When a landowner leases their land to a tenant who agrees to erect a building on it. Such a lease must be long enough term so that the investor to make the transaction desirable. These leases are usually net leases and can run for terms of 50 years or longer.

10

Lease

Transfers the right to possession and use of the owner's property to the tenant for a specified period of time. the agreement sets forth the length of time the contract will run, the amount to be paid by the leasee for the right to use the property and the other rights and obligations of the parties. The New Jersey Statute of Frauds requires all leases for more than a period of three years be in writing. a lease may be recorded if it is for two years or more.

11

Lessee

Tenant

12

Lessor

Owner who transfers rights under a lease.

13

Management agreement

Agreement creates an agency agreement between the owner a the property manager. generally considered a general agent whereas most brokers serve as special agents. Should cover; Description of the property, time period, management's responsibilities, extent of authority, reporting, management fee and allocation of costs.

14

Net lease

Provides that in addition to the rent, tenant also pays some of or all of the property charges. Leases for entire commercial or industrial or industrial buildings and the land on which they are located, ground leased and long-term leases. Triple net means the tenant pays taxes, insurance and all other expenses except debt services.

15

Percentage lease

Provides the rental be based on a percentage recived by the tenant doing business on the leased property. Commonly found in shopping malls.

16

Periodic estate

Estates from period-to-period that continues for an indefinite period of time without specific reference to a specific expiration date. A month to month tenancy is created when a tenant takes possession with no specific termination date. A periodic estate can be terminated by either the landlord or tenant with proper notice. to end a month-to-month tenancy, New Jersey requires one month's written notice before the date the rent is due.

17

Property manager

someone who preserves the value of an investment property while generating income as an agent for the owners. Acts a manager (general agent for owner) of property pursuant to a management agreement. Secures suitable tenants, collects rents, cares for premise, budgeting and controlling expenses, hiring and supervising employees, and keeping proper books and records and making periodic reports.

18

Sublease

transfers most of the terms of the lease to sublessee. The sublessor has a sandwich lease and is in the middle position without occupying the property. Original tenant is still responsible for seeing that the rent is paid.

19

Suit for possession

When a tenant breaches a lease or improperly retains possesion the landlord may regain possession through a suit for possession or summary proceeding to regain possession of real estate. Law requires owner to serve notice on the tenant before commencing the suit, except in a suit based on nonpayment of rent. Can also be referred a dispossess proceeding.

20

Summary proceeding

See suit for possession

21

Tennacy at sufferance

When a tenant who lawfully came into possession of real property continues, after his or her rights have expired, to hold in possession the premises without the consent of the landlord. A tenant at sufference can be evicted at any time.

22

Tenancy at will

An estate that gives the tenant the right to possess with the consent of the landlord for an indefinite period. The term of a tenancy at will is indefinite, but the estate may be terminated by giving three months notice. An estate at will is automatically terminated by the death of either the landlord or the tenant.

23

Truth-in-Renting

The New Jersey Department of Community Affairs publishes an annual updated statement on the rights and duties of residential landlords and tenants. Included in the procedures are eviction, building maintenance requirements, and rent and lease provisions. Landlords must give a copy to every tenant and post a copy on the property. applies to residential property, including mobile homes, but not to commercial real estate. Exceptions include transient tenants with terms of less than one month and those in single family or two family houses (three if the landlord lives in one).