Chapter 18 Leases Flashcards Preview

MA RE Licenscure Exam > Chapter 18 Leases > Flashcards

Flashcards in Chapter 18 Leases Deck (30)
1

lease

between a lessor (landlord) and lessee (tenant).
transfers the lessor's rights to exclusive possession and use of the property to the tenant for a specified period of time and establishes the consideration the lessee is to pay Rent for the use of the property

2

leasehold estate

a tenant's right to posess RE for the term of the lease.
It is considered personal property.

3

Estate for Years

a tenancy for years is a leasehold estate that continues for a definite period. always has a specific starting and ending dates.

4

An estate from period to period

is created when the landlord and tenant enter into an agreement for an indefinite time. does not contain specific expiration date.

5

month to month

when a tenant takes posession with not definite termination date and pays monthly rent

6

holdover tenancy

is created when an estate for years remains in possession or Holds over after the lease term expires.

7

Estate at Will

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

8

Estate at Sufferance

arises when a tenant who lawfully took possession of real property continues in possession of the premises without the landlords' consent after the right of possession has expired.

9

notice to quit

start of an eviction notice

10

Requirements of a vaild lease

Capacity to contract-be of legal and and sound mind.

Legal objective- lease must be legal

Offer and acceptance- mutually agree on all terms of contract

Consideration-$ in exchange for promises

11

covenant of quiet enjoyment

the lessee can occupy the premises without interference for the owner or anyone else

12

Security Deposit

held by the landlord during the lease term.

13

assignment

of a lease the tenant transfers the entire leasehold interest to another person.

14

Sublease

a tenant transfers less than the entire leasehold interest by subletting the premises to a new tenant.

15

Sandwich lease

the lease a sublessor's contract with the new sublessee

16

nondisturbance clause

is included in the financing instrument used to mortgage lease premises.

17

Renewal option

grants the lessee the privilege of renewing the lease

18

purchase option

gives the tenant the right to purchase the property at a predetermined price within a certain period possibly the lease term.

19

right of first refusal

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

20

Gross Lease

the tenant pays a fixed rent and some or all of the utility expenses, while the landlord pays all the taxes, insurance, repairs, and other utility expenses and maintenance connected with the property.

21

Net Lease

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

22

Percentage leases

generally used for retail businesses. the rent is based on a minimum fixed rental fee plus a percentage of the gross income received by te tenant doing business on the leased property.

23

variable lease

allows for increases in the rental charges during the lease term.

Graduated lease- provides for specified rent increases at set future dates

Index lease- allows rent to be increased or decreased periodically based on changes in the consumer price index or some other indicator

24

Ground lease

leased unimproved land that a tenant builds on and leases from the landowner

25

Oil and Gas Lease

when oil companies leases land to explore for oil and gas, a special lease agreement must be negotiated.

26

lease purchase

used when a tenant wants to purchase the property but is not yet able to do so.

27

sale and leaseback

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

28

breach of lease

when a tenant violates any lease provision. the landlord may sue the tenant to obtain a judgment to cover past due rent, damages to the premises, or other defaults

29

suit for possession-actual eviction

When a tenant breaches a lease or improperly retains leased premises, the landlord may regain possession through a legal process known as actual eviction

30

Constructive Eviction

if a leased premises becomes unusable for the purpose stated in the lease, the tenant may have the right to abandon them. and terminates the lease agreement