Real Estate Chapter 5 Flashcards

Leasehold Estates Overview

• Estate for Years: A lease for a specified time with automatic termination at the end of the term and no renewal or notice needed.
• Periodic Estate: Renewed automatically after each lease period; requires notice to terminate, common example is month-to-month rentals.
• Estate at Will: Exists without a formal lease document, specific termination date, or rental period.
• Tenancy at Sufferance: Occurs when a tenant remains beyond the lease term without landlord consent, referred to as a holdover tenant.

Key Parties in Residential Tenancies

• Landlord: Also known as the lessor, this party grants the lease.
• Tenant: Also known as the lessee, this party receives the lease granting occupancy rights.

Leasehold Estate Characteristics

• Leasehold Estate: A type of property use where a tenant occupancy does not equate to ownership, with the obligation to pay rent for the lease duration.
• Reversionary Right: The landlord retains ownership rights, allowing property possession to revert after the lease ends, often referred to as "leased fee estate plus reversionary right."

Types of Leasehold Estates

• Four Types:
  • Estate for Years
  • Estate from Period to Period
  • Estate at Will
  • Estate at Sufferance

Specific Definitions

• Holdover Tenant: A tenant who remains in possession of property after lease expiration without landlord consent.
• Conversion to Periodic Estate: If a tenant at sufferance begins paying rent and the landlord accepts, the arrangement transforms into a periodic estate.