© 2010 by Cengage Learning Real Estate Leases Chapter 17 ________________ Real Estate Leases
© 2010 by Cengage Learning Lessee = Tenant Lessor = Owner = Landlord Reversion = right of owner to retake the property at end of leased period.
© 2010 by Cengage Learning Estate for years- specific starting & ending date Estate at will- terminated anytime by either party Periodic estate- one that renews itself automatically Tenancy at sufferance- holdover tenant
© 2010 by Cengage Learning Lessor & Lessee Description of premises Agreement to convey & accept possession Rent payment provisions Start date and duration of lease Signature of parties to lease
© 2010 by Cengage Learning Sample Lease
© 2010 by Cengage Learning Gross lease = Fixed rent Graduated rent = Step-up rent payments over term Percentage lease = Rent is percent of gross income Net lease = Rent plus increases in expenses Index lease = Rent tied to economic indicator
© 2010 by Cengage Learning Option clause Assignment Subletting Ground lease Lease termination Eviction
© 2010 by Cengage Learning Tenant selection Security deposit Tenant retention Collecting rents On-site management Off-site management
© 2010 by Cengage Learning Key Terms Assignment CPM, RPA Gross lease Lessee Lessor Net lease Option clause Quiet enjoyment Reversion Sublessee Sublessor Sublet