THE LEASE CONTRACT
● instrument of leasehold conveyance; contract of covenants and obligations
● landlord grants temporary, exclusive use in trade for rent and reversion
Leasehold rights and obligations
● tenant rights: exclusive use and possession; quiet enjoyment; profits
● tenant obligations: pay rent; maintain premises; follow rules
● landlord rights: receive rent; repossess; monitor property condition
● landlord obligations: support and services; maintenance
● leasehold rights survive death and conveyance or encumbrance
Contract requirements
● parties; legal description; exclusive possession; legal use; lease term; consideration; offer and acceptance; signatures; written if over one year in term
Lease clauses
● rent; deposit; term; repairs and maintenance; subletting and assignment; rules and regulations; improvements; alterations; options; damage; destruction
TYPES OF LEASE
● based on expense responsibility; how rent is paid; property type; rights leased
Gross lease
● landlord pays expenses; tenant pays more rent
Net lease
● tenant pays some or all expenses; rent is less
Percentage lease
● landlord receives rent minimum plus percentage of retailer's sales
Residential lease
● gross lease hybrid; short term; uniform terms reflect landlord-tenant standards
Commercial lease
● longer term; entails tenant improvements; complex, negotiable lease terms
Ground lease
● landlord owns and leases ground but does not own improvements
Proprietary lease
● for cooperative unit owners; indefinite term; assigned to new unit owner on sale
Leasing of rights
● leasehold transfer of rights for limited use; examples: air, mineral, water rights
DEFAULT AND TERMINATION
Remedies for default
● sue for damages, lease cancellation, and/or specific performance
Default by tenant
● cancellation; damages; suit for possession; must give proper notice
Default by landlord
● suit for constructive eviction; must vacate premises to uphold
Causes for lease termination
● default; term expiration; notice; voluntary agreement; property destruction; condemnation; death, in some cases; abandonment
UNIFORM RESIDENTIAL LANDLORD AND TENANT ACT
● aims to balance landlord and tenant rights; to standardize leases and eviction procedures; to protect tenants; serve as model for state-level legislation
Areas of regulation
● contract language; waiver of rights; deposit; obligations of landlord and tenant; default and eviction
* IN SOME STATES THIS VIDEO CAN ONLY BE USED AS STUDY GUIDE AND DOES NOT COUNT TOWARDS CLASS TIME
For access to more videos and help passing the exam:
https://www.asktherealestateinstructor.com
Or
If you are in New Jersey and looking to change careers go to:
https://newdirection.school