Unit 17 - Leases Flashcards
Define a Lease
A contract between an owner of real estate and a tenant
After the lease expires the landlord retains
A reversionary right
Define a Leasehold Estate
A tenants right to possess real estate for the term of the lease
Define an Estate for Years
Also called a tenancy for years, is a lease hd estate that continues for a definite period of time
In a tenancy for years
No notice is required to terminate the lease agreement because there is a specific expiration date
Define an Estate from Period to Period
Is created when the landlord and the tenant enter into an agreement for an indefinite time
Define an Estate at Sufferance
When a tenant with an estate for years remains in possession after the lease term expires without approval from the landlord
Define an Holdover Tenancy
Created when the tenant remains in possession and the landlord accepts the rent but no new lease agreement is made
The following notices are required by Illinois statute
Tenancy from Year to Year - 60 Days
Tenancy from Month to Month - 30 Days
Tenancy from Week to Week - 7 Days
Define an Estate at Will
Gives the tenant the right to possess property with the landlords consent for an unspecified amount of time
Lease agreements may be
Written
Oral
Implied
The requirements of a valid lease are
Capacity to contract Legal Objectives Offer Acceptance Consideration
Most leases require that the fenant provide some form of
A security deposit
Neither the landlord nor the tenants is required to make any
Improvements to the leased property
Its illegal to discriminate against prospective tenants according to the
Fair Housing Act
Lessors of a residential property are required to
Maintain the dwelling units in a habitable condition
Define Assignment
Occurs when a tenant transfers all of his leasehold interests to another person
Define a Sublease
When a tenant transfers less than all the leasehold interest by leasing them to a new tenant
Define a Nondisturbance Clause
A mortgage clause stating that in the event that property is foreclosed upon, the tenancies will not be terminated if they pay their rent
Define a Renewal Option
An option that grants the lessee the privilege of renewing the lease
Define a Purchase Option
An option that allows the tenant to purchase the property at a predetermined price
Define a Right of First Refusal
A clause allowing the tenant to buy the property before the owner accepts an offer from another party
Define a Gross Lease
A lease in which the tenant pays a fixed rent and the landlord pays all taxes, assessments, insurance, maintenance and utilities
Define a Net Lease
A lease in which the lessee pays the basic rent plus all or some property charges
