© 2012 Cengage Learning. Real Estate Leases Chapter 16

© 2012 Cengage Learning


Real Estate LeasesChapter 16


In This Chapter

You will look at leases from the standpoint of the tenant, owner, and property manager.


Leasehold Estate

Lessee = Tenant Lessor = Owner = Landlord Reversion - right of owner to retake the

property at end of leased period.


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


Valid Lease1. 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


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.


Lease


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.


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


Lease Terms Option clause Assignment Subletting Ground lease Lease termination Eviction – Forcible Entry and Detainer

3 days written notice Justice of Peace Court


Key Terms Quiet enjoyment Reversionary

interest Sublease Sublessee Sublessor

Escalation clause Ground rent Lessee Lessor Option clause

Documents

© 2012 Cengage Learning. Real Estate Leases Chapter 16