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Real Estate Principles, 9 th Edition By Charles F. Floyd and Marcus T. Allen
© Dearborn Real Estate Education Chapter 7 Real Estate Leases
© Dearborn Real Estate Education Leases Agreement between a property owner and tenant that transfers the rights of use and possession Requirements of a Properly Prepared Lease –Names of the lessor and lessee –Conveyance of the premises –Description of the premises –Term or duration of the lease –Amount of rent and manner of payment –Duties and obligations of parties –Signatures of the parties
© Dearborn Real Estate Education Classification of Leases Duration of term –Tenancy for stated period –Tenancy from period to period –Tenancy at will –Tenancy at sufferance
© Dearborn Real Estate Education 2008 Classification of Leases Type of Use Ground Lease Very long-term (at least 50 years) Lease for undeveloped land Land is developed for commercial, residential, agricultural purposes At the end of the lease, land and improvements revert back to the land owner Often used for financing major office developments or where land ownership is not allowed by law.
© Dearborn Real Estate Education 2008 Classification of Leases Type of Use Residential lease Relatively short-term (often 1 year) Commercial lease Longer term lease (5-10 years) Includes provisions for payments of operating expenses May include provision for changes in base rent
© Dearborn Real Estate Education 2008 Classification of Leases Methods of Payment Gross lease – landlord pays all real estate taxes, utilities, insurance, and operating expenses Net lease – tenant pays for pro-rata share of operating expenses Net net lease – tenant pays for pro-rata share of operating expenses plus insurance Net net net lease - tenant pays for pro-rata share of operating expenses plus insurance plus real estate taxes
© Dearborn Real Estate Education 2008 Classification of Leases Methods of Payment Fixed-rent lease – amount of rent is fixed for entire lease term (common for short-term residential leases) Graduated-rent lease (Step-up lease) – rent starts out at an initial rate for a specified duration and then increases at a set dollar amount or percentage at given intervals (common in commercial leases) Reappraisal lease – rent starts at a given amount and then changes with a reappraisal of the buildings value over a given interval (often for long-term leases of entire buildings) Percentage lease – rent usually includes a base rent and then a percentage of sales above some threshold level (common in commercial retail leases) Index lease – rent changes at a specified interval according to changes in a specified index such as the CPI
© Dearborn Real Estate Education Issues in the Landlord-Tenant Relationship Renewal options Common area maintenance fees (CAM) Expense stops Assignment and subleasing –Assignment transfers all of the tenants rights to the new tenant while subleasing only transfers a portion of these rights –Original tenant is still liable for lease obligations unless released by landlord Security deposits Improvements
© Dearborn Real Estate Education 2008 Rights and Obligations of Tenant & Landlord Covenant of quiet enjoyment –Right to exclusive possession of the property and to legally use the property within guidelines set forth by lease Implied warranty of habitability –Landlord must maintain the premises in reasonable condition –See Legal Highlight Landlords Liability for Failure to Provide Adequate Maintenance 10
© Dearborn Real Estate Education 2008 Rights and Obligations of Tenant & Landlord Maintenance of common areas Protection against criminal acts Renewal clause Negative renewal clause – notice to terminate must be given or lease automatically renews Positive renewal clause – notice to renew must be given or lease automatically terminates
© Dearborn Real Estate Education State Statutes Affecting Landlord-Tenant Relationship Each state has enacted laws that regulate the behavior and relationship between landlords and tenants. To view these laws for individual states, visit on the World Wide Web.
Chapter 7 REAL ESTATE LEASES Real estate leases are contracts that transfer the rights of use and possession, but not ownership of real estate between.
Deeds and Leases Chapter 5. Deeds and Leases Deeds –Written document that transfers title to real estate.
Chapter 5 Deeds and Leases. Deeds Written document that transfers title (ownership) of real estate Necessary Elements of a Deed Designation of the.
Chapter 9 Property Management and L easing Objective of a Property Manager –To secure for the owner the highest net return over the useful life of the.
Leases. Leasing Basics Lessor Lessee Landlord retains a reversionary right In most states, Alabama included, lease agreements for more than one year must.
© 2010 by Cengage Learning Real Estate Leases Chapter 17 ________________ Real Estate Leases.
South-Western Publishing©2002 By Charles J. Jacobus Real Estate Principles Ninth Edition Real Estate: An Introduction to the Profession Ninth Edition South-Western.
© 2012 Cengage Learning. Real Estate Leases Chapter 16.
Thomson/South-Western©2008 Chapter 16 Real Estate Leases _______________________________________.
Chapter 16. Georgia Real Estate An Introduction to the Profession Eighth Edition Chapter 16 Real Estate Leases.
Real Estate Principles and Practices Chapter 14 Leases © 2014 OnCourse Learning.
Real Estate Principles and Practices Chapter 14 Leases © 2010 by South-Western, Cengage Learning.
Chapter 13 Leasehold Estates 2010©Cengage Learning. All Rights Reserved.
© 2015 OnCourse Learning Chapter 13 Leasehold Estates.
© 2008 by South-Western, Cengage Learning Chapter 17 Charles J. Jacobus Thomas E. Gillett.
© OnCourse Learning Chapter 17 : Real Estate Leases.
Chapter 49 Landlord-Tenant Law and Land Use Regulation.
© 2007 by West Legal Studies in Business / A Division of Thomson Learning CHAPTER 19 Land-Use Control and Real Property.
Chapter 6 LANDLORD AND TENANT (Lessor and Lessee) 177.
Comprehensive Volume, 18 th Edition Chapter 53: Leases.
Chapter 11 Rentors/Landlords. Vocabulary Tenant – a party to a lease who pays rent to the landlord in exchange for the possession and use of real property.
© 2010 Pearson Education, Inc., publishing as Prentice-Hall 1 LANDLORD-TENANT LAW AND LAND USE REGULATION © 2010 Pearson Education, Inc., publishing as.
Copyright © 2004 by Prentice-Hall. All rights reserved. PowerPoint Slides to Accompany BUSINESS LAW E-Commerce and Digital Law International Law and Ethics.
Chapter 29 LANDLORD AND TENANT. WHAT IS A LEASE? n Lease an agreement in which one party receives temporary possession of another’s real property in exchange.
Chapter 9.1: Rental Agreements. Chapter 9.1 Vocab Lease –Contract between a tenant and a landlord Lessee –Tenant Lessor –Landlord Tenancy –Possession.
Renting or Owning??? Principles of Law Mrs. Pollison.
1 Click your mouse anywhere on the screen to advance the text in each slide. After the starburst appears, click a blue triangle to move to the next slide.
Essentials Of Business Law Chapter 23 Landlord-Tenant Relations McGraw-Hill/Irwin Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Click your mouse anywhere on the screen to advance the text in each slide. After the starburst appears, click a blue triangle to move to the next slide.
RURAL PROPERTY RIGHTS AND INTEREST LAND IS SELDOM HELD IN FEE SIMPLE DUE TO ACCESS EASEMENTS, UTILITY EASEMENTS, MINERAL RESERVATIONS, AND OTHER ENCUMBRANCES.
© 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman Chapter 49 Landlord-Tenant Relationship and Land Use Regulation Business Law.
Renting Real Property CHAPTER THIRTY. Copyright © Houghton Mifflin Company. All rights reserved.30 | 2 Landlord – Tenant Relationship Landlord: the person.
Landlord and Tenant Business Law I Mrs. Oddo. What is a Lease? Lease: An agreement in which one party receives temporary possession of another’s real.
Chapter 50 Landlord-Tenant Law Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent.
Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning Chapter 51 Leases Twomey Jennings Anderson’s Business Law and the Legal.
Landlord-Tenant Relationships Business Law.
Contracts Lesson Five. Learning Objectives Review meaning of leasehold estate. Learn and understand lease rights. Become familiar with the various.
Renting & the Law CHAPTER 33. Renting & the Law: Chapter 33 The person who rents property is the Tenant or Lessee. The person who owns property and.
Real Estate Law Residential Leases Real Estate Law Residential Leases.
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Real and Personal Property Objective Compare the legal rights of acquisition, transferal and renting/leasing of real or personal property. RELATIONSHIP.
Property Management Chapter 12. Property Management and L easing Objective of a Property Manager –To secure for the owner the highest net return over.
Modern Real Estate Practice in Pennsylvania 12th Edition Chapter 6: Leasehold Estates.
Chapter 8 Contracts and Transferring Real Estate Interests “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner.
Renting or Owning a Home. Exciting event Learn about the rights of landlords and tenants in various kinds in of tenancies Types of co-ownership and deeds.
Chapter 6 Leases and Landlord Tenant Relations1 New Jersey Real Estate for Salespersons and Brokers By Marcia Darvin Spada Thomson/South-Western Copyright,
Modern Real Estate Practice in Illinois Eighth Edition Chapter 17: Leases ©2014 Kaplan, Inc.
Chapter 1: Legal Ethics 1. © 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use.
Rental units come in all shapes and sizes, from single-family homes to multistory high-rises that contain hundreds of units. This block of historic apartment.
Law for Business and Personal Use © South-Western Publishing G O A L S Types of Leases Describe the legal characteristics of a lease Identify the parties.
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