Chapter 7 REAL 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.

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.

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

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

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

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

Rights and Obligations of Tenant and Landlord Covenant of Quiet Enjoyment Warranty of Habitability State Statutes Affecting the Landlord-Tenant Relationship