Modern Real Estate Practice in Illinois Eighth Edition Chapter 17: Leases ©2014 Kaplan, Inc.

Leases Leasing Real Estate –lessor / lessee Leasehold Estates –Estate for Years (definite time) –Estate from Period-to-Period (indefinite) Termination notice in Illinois –Estate at Will –Estate at Sufferance

Lease Agreements Requirements of a Valid Lease –Capacity to contract –Legal objectives –Offer and acceptance –Consideration

Lease Agreements Possession of Premises Letter of intent Use of Premises Term of Lease Security Deposit Improvements –Accessibility

Illinois Rules on Security Deposits Compensation for damages –5 or more units –statement listing damages within 30 days –return security deposit within 45 days Interest on deposits –25 or more units –if deposits held at least 6 months –pay interest every 12 months

Lease Agreements Maintenance of Premises –In Illinois, implied warranty of habitability Destruction of Premises Assignment and Subleasing Recording a Lease Options

Types of Leases Gross lease Net lease Percentage lease Variable lease –Graduated / Index Ground lease Oil and Gas lease Lease Purchase / Sale and leaseback

Breach of Leases Landlords’ remedies in Illinois –actual eviction (called forcible entry & detainer) -5 or 10 notice to tenant -no right of self-help Tenants’ remedies—constructive eviction

Civil Rights Laws All persons must have access to housing of their choice without any differentiation in the terms and conditions because of their race, color, religion, familial status, disability, or gender. In rental, apply same tenant criteria to everyone. Illinois Human Rights Act

Lead-Based Paint Federal Lead-Based Paint Law requires that landlords disclose any possible lead-based paint or related hazards. Illinois Lead Poisoning Prevention Act

Regulation of the Rental Industry Rental-finding services –Licensed in Illinois Leasing agents –Licensed in Illinois Referral fees –Allowed in Illinois with certain limits