Study Cards - Tucker School of Real Estate

Chapter 16

Constructive Eviction

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Lease status; when a tenant is forced to vacate because the property has become unusable for its intended purpose due to conscious landlord neglect, terminating the lease.

Estate from Period to Period

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AKA: Periodic tenancy Lease that automatically renews until one party gives one period's notice to terminate. (i.e. Month to month lease).

Estate at Sufferance

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Lease status; when a tenant remains on the property following the expiration of a lease without landlord permission.

Gross Lease

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Lease where tenant is not separately billed or obligated for operating expenses such as real estate taxes, insurance or common area maintenance.

Estate at Will

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Lease of uncertain term or duration, tenant occupies the premises at the "will" of the landlord. Terminates upon death of either party.

Lease

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Agreement where lessor conveys possession, quiet enjoyment, and some control to lessee in exchange for consideration.

Estate for Years

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Lease for a specified period of time, not necessarily for years. Agreement not terminated by either party's death or sale of the property, no notice required to terminate. Most common form of lease.

Leasehold Estate

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Tenants rights during term of lease.

Lessor

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Landlord/owner.

Lease Purchase

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Binding agreement to purchase just preceded by a lease.

Net Lease

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Lease where tenant pays rent, plus their share of operating expenses such as real estate taxes, insurance and common area maintenance.

Lessee

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Tenant or renter.

Percentage Lease

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Lease commonly used in retail establishments and malls. Tenant pays rent, usually on a net basis, plus a "percentage" of the business's gross sales.

Ground Lease

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Long term lease of an entire parcel regardless of any improvements. Usually for commercial property, in a very desirable location, where the tenant constructs their own building.

Sublease

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Agreement where a tenant (sublessor) leases the property or space to a new tenant (sublessee). Original tenant remains liable to the landlord.