Real Estate Exam - Chapter 16: Leases

A contract (b/w lessor and lessee)
- a conveyance of an in interest in real estate & contract to pay rent etc
Landlord retains Reversionary right to possession after lease expires

1) Any definite period (continuous start and end dates)
2) Indefinite (no specific expiration date but def amount i.e. month-to-month)
3) Indefinite term - no 'periods' but similar. Proper notice must be given.
4) Continued tenancy w/out landlord's consent

- Capacity (legal)
- Legal objectives
- Offer &
- Acceptance
- Consideration (rent)

Neither Landlord nor Tenant required to make improvements.
- Tenant may w/ permission (generally become fixtures)

Must be accessible - under Fair Housing Act illegal to discriminate
- ADA - applies to commercial/non-res properties

Assignment (all leasehold interests) Sublease (less than)
- Lease must specifically permit them
- Usually original lessee still responsible

Renewal option
Lease option (purchase option)
First Right of Refusal (allows tenant to buy before owner accepts another offer)

1) Fixed Rent, landlord pays all taxes, utils etc.
2) Rent + some charges
3) For retail i.e. Rent (gross or net) plus % of income from business on property
4i) provides for specific rent increases at set future dates
4ii) inc or decrease based on consumer price index etc
5) Sells property and leases it back (to get extra capital)

- Legal process for landlord when tenant breaches lease
- Landlord breach, tenant can sue and get damages, right to abandon

- All persons must have access to the housing of their choice without differentiation based on race / color / religion / national origina / sex / handicap / familial status
- Fair Housing Amendments Act of 1988 (particularly disabilities and families w/kids)