1. © 2012 Cengage Learning

2. Real Estate Leases Chapter 16

3. © 2012 Cengage Learning In This Chapter You will look at leases from the standpoint of the tenant, owner, and property manager.

4. © 2012 Cengage Learning Leasehold Estate Lessee = Tenant Lessor = Owner = Landlord Reversion - right of owner to retake the property at end of leased period.

5. © 2012 Cengage Learning 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

6. © 2012 Cengage Learning Valid Lease 1. Lessor & Lessee 2. Description of premises 3. Agreement to convey & accept possession 4. Rent payment provisions 5. Start date and duration of lease 6. Signature of parties to lease

7. © 2012 Cengage Learning STATUTE OF FRAUDS The Statute of Frauds in Texas provides that a lease of real estate for a term that cannot be performed within one year must be in writing. A lease of one year or less need not be in writing to be enforceable.

8. © 2012 Cengage Learning Lease

9. © 2012 Cengage Learning Landlord-Tenant Laws Notice needed to terminate tenancy. Landlord’s lien for rent. Need for security devices. Habitable premises. Smoke detectors. Occupying limit of 3 adults per bedroom. Security deposits and 30 day rule for accounting to tenant. Commercial leases 60 days. Duty to mitigate. Family Violence & Service Members.

10. © 2012 Cengage Learning 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

11. © 2012 Cengage Learning Lease Terms Option clause Assignment Subletting Ground lease Lease termination Eviction – Forcible Entry and Detainer  3 days written notice  Justice of Peace Court

12. © 2012 Cengage Learning Key Terms Quiet enjoyment Reversionary interest Sublease Sublessee Sublessor Escalation clause Ground rent Lessee Lessor Option clause