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Flashcards in Leases Deck (9)
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1
Q

A lease is both a contract and a conveyance

A

Any lease for more than 1 year must be in writing to be enforceable.

A lease is a contract in that the landlord and tenant have duties extending beyond possession of the premises.

A lease is a conveyance in that it conveys temporary interest in the premises.

2
Q

Lease can be short term or long term lease

A

In Hawaii for leasehold properties, a long term lease is used.

Short term leases are rental agreements.

3
Q

In leasehold properties, the lease is usually 55 years, therefore it must be in writing.
Document identifying ownership / title is an assignment of lease.

A

Assignment of lease may have MESNE ASSIGNMENT
which is an intermediate assignment in a series of assignments which occurs prior to the latest assignment.

The lessee is usually held responsible for maintenance and upkeep including paying real property taxes, assessments and insurance premiums ie fire, flood.

If the leasehold is owner occupied then a homeowner may claim a homeowner’s exemption.

4
Q

Usually there are 2 rent periods for lease

A

rent:

  1st period:  lease rent initially fixed for a period of time ( 25-35 years) w/ possible step up or graduated increments.  This is called FIXED LEASE RENT.

2nd period: at end of the fixed period, a new lease rent rate is established for any time remaining on the lease. This is based on terms of the lease.
The lease can be adjusted periodically (every 10-15 years). This is called
RENT RATE NEGOTIATION PERIOD. The date the rent payment is scheduled to change is called “renegotiation date”.

5
Q

What are the questions that should be considered before buying a leasehold property?

A
  1. How long is the lease term?
  2. When is the expiration date?
  3. Is there an extension clause?
  4. How much is the lease rent?
  5. When are the lease renegotiation dates?
  6. How will the new lease rent be determined?
  7. What are the terms of the surrender clause
6
Q

Sellers of leasehold residential condos and coop apts furnish the buyer a “leasehold disclosure”.

A

Upon acceptance of a sales contract, the disclosure must be provided w/in 10 days.

The buyer has 10 calendar days to review, accept or reject terms of the lease.

7
Q

At the end of the leasehold terms, the “surrender clause” determines the future outcome as to whether:

A

1) land & unit revert to lessor and lessee moves out
2. Land reverts to lessor and lessee owns unit
3. Lessor negotiates to extend lease or negotiate new lease
4. The lessor sells the fee to the lessee and lessee becomes fee simple owner via fee conversion
5. Lessor and lessee have agreed on a price the lessor will pay for the apt. Unit and it’s share of the common elements upon expiration of the lease
6. Lessee may have to remove the structure and restore the leased premises to its original condition per lease provisions

8
Q

Short term lease. Implied in every lease a covenant that the landlord will not interfere w/ the tenant’s quiet enjoyment and possession of the premises.

Covenant of quiet enjoyment can be breached in 3 ways

A

Actual Eviction

Partial Eviction

Constructive Eviction

9
Q

Different variations of short-term tenancies

A

Tenancy for years.
Periodic tenancy.
Tenancy at will
Tenancy for sufference