1. Real Estate Principles Tenth Edition
An Introduction to the Profession
Tenth Edition

2. Chapter 17 Real Estate Leases
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3. Leasehold Estate Lessee = Tenant Lessor = Owner = Landlord
Reversion = right of owner to retake the property at end of leased period.

4. Estate Periods Estate for years- specific starting & ending date
Estate at will- terminated anytime by either party
Periodic estate- one that renews itself automatically
Tenancy at sufferance- holdover tenant

5. 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

6. Sample Lease

7. Sample Lease (continued)

8. Rent Gross lease = Fixed rent
Graduated rent = Step-up rent payments over term
Percentage lease = Rent is percent of gross income
Net lease = Rent plus increases in expenses
Index lease = Rent tied to economic indicator

9. Lease Terms Option clause Assignment Subletting Ground lease
Lease termination
Eviction

10. Property Management Tenant selection Security deposit Tenant retention
Collecting rents
On-site management
Off-site management

11. Key Terms Assignment CPM, RPA Gross lease Lessee Lessor Net lease
Option clause
Quiet enjoyment
Reversion
Sublessee
Sublessor
Sublet