Ch. 18 Leasing Flashcards Preview

Real Estate Financing > Ch. 18 Leasing > Flashcards

Flashcards in Ch. 18 Leasing Deck (31)
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1
Q

actual eviction

A

when a tenant breaches a lease or improperly retains leased premises, the landlord may regain possession through this legal process (suit for possession)

2
Q

assignment

A

a tenant transfers the entire leasehold interest to another person

3
Q

constructive eviction

A

leased premises become unusable for the purpose stated in the lease, the tenant may have the right to abandon them

4
Q

estate (tenancy) at sufferance

A

arises when a tenant who lawfully took possession of real property continues in possession of the premises without the landlord’s consent after the right of possession has expired

5
Q

estate (tenancy) at will

A

gives the tenant the right to possess property with the landlord’s consent for an unspecified or uncertain term

6
Q

estate (tenancy) from period to period

A

periodic tenancy, created when the landlord and tenant enter into an agreement for an indefinite time-lease does not contain a specific expiration date (automatically renewing)

7
Q

gross lease

A

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

8
Q

ground lease

A

when a landowner leases unimproved land to a tenant who agrees to erect a bldg on the land (usually net leases)

9
Q

holdover tenancy

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

10
Q

lease

A

the foundation of the relationship between a property owner and tenant is the lease. A lease is a contract between a lessor and a lessee

11
Q

lease purchase

A

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

12
Q

leasehold estate

A

A tenant’s right to possess real estate for the term of the lease. A leasehold is generally considered personal property

13
Q

lessee

A

a person who holds the lease of a property; a tenant.

14
Q

lessor

A

the owner of real estate, or landlord

15
Q

month-to-month tenancy

A

created when a tenant takes possession with no definite termination date and pays monthly rent

16
Q

net lease

A

the tenant pays all or most of the property expenses, such as hazard insurance, property taxes, and/or common are maintenance (CAM)

17
Q

nondisturbance clause

A

included in the financing instrument used to mortgage leased premises A type of clause in a mortgage contract. that ensures that the rental agreement between the tenant and the landlord will continue under any circumstances. This is done primarily to protect the renter from eviction by the mortgagor if the property is foreclosed upon.
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18
Q

percentage lease

A

either a gross lease or a net lease/The rent is based on a minimum fixed rental fee plus a percentage of the gross income received by the tenant doing business on the leased property

19
Q

purchase option

A

A lease that grants the lessee the option to purchase the leased premises

20
Q

renewal option

A

A lease that contains a clause that grants the lessee the privilege of renewing the lease

21
Q

rent

A

a fixed, periodic payment made by a tenant of a property to the owner for possession and use, usually by prior agreement of the parties

22
Q

reversionary right

A

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

23
Q

right of first refusal

A

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

24
Q

sale-and-leaseback

A

property owner sells the property and then lease it back for an agreed period and rental /Allows the original owner to use the property as a tenant while freeing up capital for other business purposes

25
Q

security deposit

A

used if the tenant defaults on payment of rent or destroys the premises

26
Q

sublease

A

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

27
Q

estate (tenancy) for years

A

a leasehold estate that continues for a definite period of time. Always has a specific starting and ending date

28
Q

Graduated lease

A

provides for specified rent increases at set future dates

29
Q

Index lease

A

allows rent to be increased or decreased periodically

30
Q

Oil & Gas Lease

A

lease covers subsurface rights, if oil or gas is found, the landowner usually receives a percentage of its value as a royalty. As long as oil or gas is obtained in significant quantities, the lease continues indefinitely.

31
Q

Sales Clause

A

Opposite of the nondisturbance clause, a lease may contain a sales clause stating that requires the tenant be given some period of notice before termination under a new landlord/ or may terminate or renegotiate terms of the lease