© 2008 by South-Western, Cengage Learning Chapter 17 Charles J. Jacobus Thomas E. Gillett

© 2008 by South-Western, Cengage Learning Georgia Real Estate An Introduction to the Profession Seventh Edition Chapter 17 Real Estate Leases

© 2008 by South-Western, Cengage Learning Leasehold Estate Leasehold Estate Lessee: Tenant Lessor: Owner, Landlord Reversion: right of owner to retake possession at end of leased period.

© 2008 by South-Western, Cengage Learning Estate Periods Estate Periods Leasehold Estate: tenant’s right to occupy Periodic estate: definite period of time with automatic renewal Estate for years: specific starting & ending date

© 2008 by South-Western, Cengage Learning Estate Periods Estate Periods Estate at will: Indefinite period Terminated by either party with notice Tenant: 30 Days Landlord: 60 Days Estate at Sufferance: Tenant remains beyond lease period without consent Holdover Tenant

© 2008 by South-Western, Cengage Learning Valid Lease Valid Lease Lessor & Lessee Description of premises Agreement to convey & accept possession Rent payment provisions Start date and duration of lease Signature of parties to lease

© 2008 by South-Western, Cengage Learning Leases In Georgia: A lease for more than one year must be in writing to be enforceable.

© 2008 by South-Western, Cengage Learning The Lease Document Term: Clearly stated beginning & end Use restrictions Maintenance: Who is responsible? Security Deposit: Breach or damage

© 2008 by South-Western, Cengage Learning The Lease Document Quiet Enjoyment Constructive Eviction Disrepair: excepting normal wear & tear Destruction of premises: Termination of lease Landlord liability?

© 2008 by South-Western, Cengage Learning Landlord-Tenant Laws Landlord Limit security deposit Deliver possession on agreed date Maintain fit condition Notice to enter Procedure for unreturned deposit Eviction procedure Tenant Days notice to vacate May not damage Obey rules Right to make needed repairs

© 2008 by South-Western, Cengage Learning Rent Rent Gross lease: Fixed rent. Landlord pays expenses Graduated rent: R ent payments increase over term

© 2008 by South-Western, Cengage Learning Rent Percentage lease: Rent is percent of gross income Net lease: Rent plus increases in expenses Index lease: Rent tied to economic indicator

© 2008 by South-Western, Cengage Learning Lease Terms Lease Terms Option clause: right to purchase or lease at some future date Lease Options Option to extend Option to buy

© 2008 by South-Western, Cengage Learning Lease Terms Lease Terms Assignment: total transfer of lessee's rights Assignor Remains liable unless released Assignee

© 2008 by South-Western, Cengage Learning Lease Terms Lease Terms Sublet: Transfer a portion of rights Premises Lease term Sublessor: remains liable Sublessee: pays rent to sublessor

© 2008 by South-Western, Cengage Learning Lease Termination Eviction Actual Eviction: Landlord's remedy for Tenant’s breach of contract Constructive Eviction: Tenant is forced to move due to inhabitable premises Retaliatory Eviction: Tenant evicted because he complained.

© 2008 by South-Western, Cengage Learning Lease Termination Eminent Domain Just compensation Partial take Foreclosure Mortgage predates the lease Non-disturbance clause Lease predates the mortgage

© 2008 by South-Western, Cengage Learning Property Management Property Management Residential property management Commercial or Industrial management On- site & Off-site

© 2008 by South-Western, Cengage Learning Property Management Property Management Training Programs IREM CPM ARM BOIM RPA SMA

© 2008 by South-Western, Cengage Learning Key Terms Key Terms Assignment CPM, RPA Gross lease Lessee Lessor Net lease Option clause Quiet enjoyment Reversion Sublessee Sublessor Sublet