Real Estate - Leases And Property Management

it does not convey ownership, but it does coney a leashed estate to the tenant

it gives the tenant the right to exclusive possession of the property agains all other parties, including the owner (landlord), for a specific consideration

1) Both Parties must be legally capable of entering into a contractual relationship,

2) There must be a mutual agreement (also called a meeting of the minds) ,

3) there must be consideration,

4) It must have a legal purpose.

leases of houses, apartments, and other real or personal properties inhabitted by a tenant. Subject to states landlord / tenant laws.

used for businesses and are subject to the terms of the lease and common law. . . there is less law than residential, and often it boils down to what is agreed upon. - Could have a exculpatory clause

provides for the tenant to release the landlord form any liability in connection with the damage to the tenants property as a result of an insurable outlay regardless of the landlords negligence.

used to lease airspace or the top of a building, possibly for an advertising sign

provide for the lessor to receive a flat sum for leasing the right to explore for oil or gas and a royalty for oil or gas obtained from the land.

used for agricultural propert

leases of land on which tenets own the buildings they have constructed or purchased.

type of lease used for apartments and other residences. The rent paid is gross income to the landlord out of which the landlord will pay the operating expenses of the property.

provides for the tenant to pay a rent amount that is net income to the landlord. The tenant pays property expenses, in addition to rent. used in sales-leaseback arrangements, ground leases, and long term leases for office space, retail space and office space.

provides for a fixed rental amount to be paid periodically throughout the term of the lease. (e.g. 1200 a month)

provides for rent to gradually step up at a regular specified interval.

these leases contain a clause that is used to compensate for inflation and rising operating costs.

A lease in which the rent depends upon the volume of the tenants gross business. Most often used in retail space. Could include a recapture clause

In a percentage lease, this provides for termination of the lease if the tenant does not realize a specified minimum level of business.

A promise form the lessor that the lessee will enjoy possession free from any interference from the lessor during the term of the lease. Lessor can not evict the tenant except by legal process

lessee being evicted by court order

Landlord allowing the property to become so bad that the tenants have to leave, thus nullifying the lease.

all lease options tend to favor the tenant.

allows the tenant the option to renew the lease at the present rent amount at the expiration of the term. Only tenant can decided.

provides that the lease automatically at the same terms as the original lease unless one party notifies the other. Either party can decide wether or not to renew.

this gives the lessee the option to expand the amount of space leased. this may pose a problem for the landlord, particularly if the property is tenanted and established.

this would give the tenant the right to buy the property he is leasing at preset terms prior to the end of the term of the lease. If the tenant exercises the option, the landlord must sell. It is an option. . . as in the legal right to purchase if you want to there is not obligation to purchase

this is a contract to purchase real property coupled with a rental agreement. It is different than a lease option in that it includes a fully executed purchase and sale agreement and there are penalties if the buyer defaults (therefore not an option . . .as in the right to purchase if you want to) There is an obligation to purchase

gives the lessee the first opportunity to lease additional space or to purchase property if the landlord decides to offer additional space for lease or the property for purchase. Unlike a option to purchase, this does not give the tenant the power to force the unwilling owner to sell.

Without provision the contrary, the rights of the lessor and lessee are freely transferable and inheritable. Therefore the lessee can transfer some or all rights under the lease, however, most leases have provision prohibiting assignment or subleasing without consent of lessor.

transfer by tenant of his entire interest int he property to a third party. The original tenant is still responsible of liability unless he is granted a novation

a clause that releases the original tenant who assigned his property to a third party (sub leased), from all liability. If Art were to assign his lease to Bill, Art would still be liable for the lease (payment of rent, damages, etc.), unless the lessor agreed to a ________.

In subletting, the lessee becomes the sublessor. The Sublettors lease is considered to be this.

an agreement wherein the lessor and lessee agree to terminate the lease before the contract says so.

provides that foreclose will not terminate lease.

The willful destruction of any part of the land which would injure or prejudice the landlord's reversionary right

1) Maximize Income for land owner,

2) protect the condition of the real estate

the point at which the occupancy level at which gross income for a property equals total fixed and variable operating costs.