1. Revised 7-30-08 Chapter 17 Slide # 1 Copyright – David A. McGowan All rights reserved Chapter 17 LEASES (Page 330) Landlord Property owner Lessor Tenant Occupant Lessee

2. Revised 7-30-08 Chapter 17 Slide # 2 STATUTE OF FRAUDS & LEASES (Page 330) Copyright – David A. McGowan All rights reserved Verbal leases of 1 year or less are enforceable Leases w/terms MORE THAN 1 year must be written to be enforceable.

3. Revised 7-30-08 Chapter 17 Slide # 3 Copyright – David A. McGowan All rights reserved LEASEHOLD ESTATES (Page 330) Estate for Years Estate from Period to Period Estate at Will Estate at Sufferance Types of estates

4. Revised 7-30-08 Chapter 17 Slide # 4 Copyright – David A. McGowan All rights reserved ESTATE FOR YEARS (Page 341) Definite period of time No notice of termination required Lessee expected to vacate upon expiration

5. Revised 7-30-08 Chapter 17 Slide # 5 Copyright – David A. McGowan All rights reserved PERIODIC TENANCY (Page 331) AKA Estate from Period to Period Periodic Estate Indefinite duration Notification of termination required

6. Revised 7-30-08 Chapter 17 Slide # 6 Month to month Any periodic estate having a term of less than year to year but greater than week to week, 30 days’ written notice is required Year to year At least a 60 day written notice is required at any time within the four months prior to the last 60 days of the lease term Copyright – David A. McGowan All rights reserved TERMINATION of PERIODIC TENANCY (Page 332)

7. Revised 7-30-08 Chapter 17 Slide # 7 TENANCY AT WILL (Page 343) Right to use the property Indefinite period of time Frequently interpreted as a periodic estate Copyright – David A. McGowan All rights reserved

8. Revised 7-30-08 Chapter 17 Slide # 8 TENANCY AT SUFFERENCE (Page 343) Retains possession without consent Tenant fails to pay rent Illinois – willful withholding of possession causes double rent Copyright – David A. McGowan All rights reserved

9. Revised 7-30-08 Chapter 17 Slide # 9 Copyright – David A. McGowan All rights reserved REQUIREMENTS OF A VALID LEASE (Page 344) Offer and acceptance Consideration Capacity to contract Legal objectives

10. Revised 7-30-08 Chapter 17 Slide # 10 Copyright – David A. McGowan All rights reserved Maintained in a Special Account Notice of repairs required Interest on Security Deposit Security Deposit (Page 347)

11. Revised 7-30-08 Chapter 17 Slide # 11 Copyright – David A. McGowan All rights reserved ASSIGNMENT (Page 349) Substituting one tenant for another Tenant 2 Tenant 1 Landlord

12. Revised 7-30-08 Chapter 17 Slide # 12 SUBLETTING (Page 349) Tenant 1 subleasing directly to Tenant 2 Landlord (Lessor) Tenant 1 (Lessee) (Sublessor) Tenant 2 (Sublessee)

13. Revised 7-30-08 Chapter 17 Slide # 13 Copyright – David A. McGowan All rights reserved TYPES OF LEASES (Page 351) Gross Lease Ground Lease Lease Purchase

14. Revised 7-30-08 Chapter 17 Slide # 14 NET LEASE (Page 351) 20,000 sq ft @ $23.00 / sq ft Calculations

15. Revised 7-30-08 Chapter 17 Slide # 15 PERCENTAGE LEASE (Page 351) Calculations

16. Revised 7-30-08 Chapter 17 Slide # 16 Copyright – David A. McGowan All rights reserved BREACH OF LEASE (Page 353) Actual eviction Constructive eviction

17. Revised 7-30-08 Chapter 17 Slide # 17 Copyright – David A. McGowan All rights reserved RENTAL INDUSTRY (Page 355) Rental-Finding Services Leasing Agents Referral Fees