Chapter 7 REAL ESTATE LEASES

1
Chapter 7REAL ESTATE LEASES

• Real estate leases are contracts that transfer
  the rights of use and possession, but not
  ownership of real estate between landlord and
  tenant.

2
LEASE

• Agreement between property owner and tenant that
  transfers the rights of use and possession (but
  not ownership) of the property to the tenant in
  exchange of rent payments.
• Leases divide estates in land into two
  components a leased fee interest and a leasehold
  interest.

3

• Requirements of a Properly Prepared Lease
• Name of the lessor and lessee
• Conveyance of the premises
• Descriptions 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

4

• Classifications of Leases
• Duration of term
• Tenancy for stated period
• Tenancy from period to period
• Tenancy at will
• Tenancy at sufferance
• Type of use
• Ground Lease
• Residential Lease
• Commercial Lease

5

• Method of Payment
• Gross lease
• Net Lease
• Net Net Lease
• Net Net Net Lease
• Fixed-Rent-Lease
• Graduated-Rent-Lease
• Reappraisal Lease
• Percentage Lease
• Index Lease

6

• Other Issues in the Landlord-Tenant Relationship
• Renewal Option
• Common Area Maintenance Fees
• Assignment and Subleasing
• Security Deposits
• Improvements

7
Rights and Obligations of Tenant and Landlord

• Covenant of Quiet Enjoyment
• Warranty of Habitability
• State Statutes Affecting the Landlord-Tenant
  Relationship