1. © 2010 by Cengage Learning Real Estate Leases Chapter 17 ________________ Real Estate Leases

2. © 2010 by Cengage Learning  Lessee = Tenant  Lessor = Owner = Landlord  Reversion = right of owner to retake the property at end of leased period.

3. © 2010 by Cengage Learning  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

4. © 2010 by Cengage Learning  Lessor & Lessee  Description of premises  Agreement to convey & accept possession  Rent payment provisions  Start date and duration of lease  Signature of parties to lease

5. © 2010 by Cengage Learning Sample Lease

6. © 2010 by Cengage Learning  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

7. © 2010 by Cengage Learning  Option clause  Assignment  Subletting  Ground lease  Lease termination  Eviction

8. © 2010 by Cengage Learning  Tenant selection  Security deposit  Tenant retention  Collecting rents  On-site management  Off-site management

9. © 2010 by Cengage Learning Key Terms Assignment CPM, RPA Gross lease Lessee Lessor Net lease Option clause Quiet enjoyment Reversion Sublessee Sublessor Sublet