We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system. Share buttons are a little bit lower. Thank you!
Presentation is loading. Please wait.
supports HTML5 video
Published byVictoria Whalen
Modified over 5 years ago
Real Estate Principles, 9th EditionBy Charles F. Floyd and Marcus T. Allen
© Dearborn Real Estate Education 2008Chapter 7 Real Estate Leases © Dearborn Real Estate Education 2008 2
© Dearborn Real Estate Education 2008Leases 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 2008 3
Classification of LeasesDuration of term Tenancy for stated period Tenancy from period to period Tenancy at will Tenancy at sufferance © Dearborn Real Estate Education 2008 4
© Dearborn Real Estate Education 2008Classification 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
© Dearborn Real Estate Education 2008Classification 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
© Dearborn Real Estate Education 2008Classification 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
© Dearborn Real Estate Education 2008Classification 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 building’s 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 2008
Issues in the Landlord-Tenant RelationshipRenewal options Common area maintenance fees (CAM) Expense stops Assignment and subleasing Assignment transfers all of the tenant’s 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 9
Rights and Obligations of Tenant & LandlordCovenant 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 “Landlord’s Liability for Failure to Provide Adequate Maintenance” © Dearborn Real Estate Education 2008 10
© Dearborn Real Estate Education 2008Rights 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 2008
State Statutes Affecting Landlord-Tenant RelationshipEach 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. © Dearborn Real Estate Education 2008 12
By Aaron Doughty. Determine Space Requirements Location Amenity and Service Requirements Parking Number of employees/ offices etc Survey the Market/ Selection.
©2011 Cengage Learning.
RURAL PROPERTY RIGHTS AND INTEREST LAND IS SELDOM HELD IN FEE SIMPLE DUE TO ACCESS EASEMENTS, UTILITY EASEMENTS, MINERAL RESERVATIONS, AND OTHER ENCUMBRANCES.
Real and Personal Property Objective Compare the legal rights of acquisition, transferal and renting/leasing of real or personal property. RELATIONSHIP.
© 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman Chapter 49 Landlord-Tenant Relationship and Land Use Regulation Business Law.
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.
Landlord/Tenant Law Business & Personal Law Gary Nelson April 2001.
Deeds and Leases Chapter 5. Deeds and Leases Deeds –Written document that transfers title to real estate.
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.
Renting Realty Chapter 22.
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.
Renting Real Property CHAPTER THIRTY. Copyright © Houghton Mifflin Company. All rights reserved.30 | 2 Landlord – Tenant Relationship Landlord: the person.
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.
Real Estate Law Residential Leases Real Estate Law Residential Leases.
Leases. Leasing Basics Lessor Lessee Landlord retains a reversionary right In most states, Alabama included, lease agreements for more than one year must.
© 2007 by West Legal Studies in Business / A Division of Thomson Learning CHAPTER 19 Land-Use Control and Real Property.
Lecture 7 Contracts, Deeds, and Leases. Lecture 7 Deeds.
1 Welcome to the International Right of Way Association’s Course 701 Property Management Leasing 701-PT – Revision 8 – INT.
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.
1 ARE 306Unit 15 Tenancies. 2 Definitions l Lessee l Lessor l Rent.
© 2018 SlidePlayer.com Inc. All rights reserved.