Section 11: Leases In CA Flashcards
Leasehold estate
defines the legal relationship between the parties who sign the lease; grants possession (but not possession of the title) to the tenant for a LIMITED period of time
Estate for years
fixed termination type of lease– may be for a day, week, month, year, several years, or ANY definite period of time; once the specified date occurs, the lease automatically terminates
Periodic estate
lease of possessory interest that’s automatically renewed at the end of each period specified in the lease; e.g. month-to-month lease
Estate at will
lease in which the duration of the lease is unknown at the time it’s created
Estate/Tenancy at sufferance
type of lease in which a tenant stays after the right to possess has terminated
Holdover tenant
a tenant who refuses to leave after the expiration of a lease
Lease
contract that transfers possession for consideration
Lessee
the person who leases and is placed in possession (tenant)
Lessor
the person who leases out and grants temporary possession to another (landlord)
Proportionate shares of occupancy
when rent escalates based on the percentage of the property the tenant occupies
Base year
foundational period in which future escalations are based on
Graduated lease
lease in which rent is stepped up incrementally in specified amounts over the lease term; may contain an escalation clause
Expense/Operating/Dollar stop
escalation in which an estimated amount of expenses is compared to the actual amount and the tenant is reimbursed if expenses are less OR pays more if expenses are more than predicted
Index lease escalation clause
escalation in lease price that is tied to a market indicator, such as the consumer price index (CPI)
Porter’s wage escalation
increase that is tied to the wage rate of cleaning and maintenance personnel
