Podcast
Questions and Answers
Which type of lease requires the tenant to cover a portion or all of the property expenses, such as taxes, insurance, and maintenance, in addition to the base rent?
Which type of lease requires the tenant to cover a portion or all of the property expenses, such as taxes, insurance, and maintenance, in addition to the base rent?
- Percentage Lease
- Net Lease (correct)
- Gross Lease
- Periodic Lease
If a tenant transfers their lease to a third party, making the original tenant a sublessor, what is this arrangement called?
If a tenant transfers their lease to a third party, making the original tenant a sublessor, what is this arrangement called?
- Option to Renew
- Leasehold Estate
- Proprietary Lease
- Sublease (correct)
In a retail space, a lease agreement stipulates that the rental payment will be a percentage of the sales made on the premises, with a minimum base rent. What kind of lease is this?
In a retail space, a lease agreement stipulates that the rental payment will be a percentage of the sales made on the premises, with a minimum base rent. What kind of lease is this?
- Net Lease
- Percentage Lease (correct)
- Periodic Lease
- Triple Net Lease
A tenant has the right to use a property without interference, ensuring their peaceful possession. Which lease clause protects this right?
A tenant has the right to use a property without interference, ensuring their peaceful possession. Which lease clause protects this right?
Which of the following contract types is formed based on the actions of the parties involved, rather than being explicitly written or spoken?
Which of the following contract types is formed based on the actions of the parties involved, rather than being explicitly written or spoken?
Which type of lease automatically renews for a specified period, such as month to month, unless either party provides notice to terminate?
Which type of lease automatically renews for a specified period, such as month to month, unless either party provides notice to terminate?
In which scenario is a tenant responsible for paying property taxes, insurance, and maintenance costs in addition to rent?
In which scenario is a tenant responsible for paying property taxes, insurance, and maintenance costs in addition to rent?
What is the primary characteristic of a unilateral contract that distinguishes it from other contract types?
What is the primary characteristic of a unilateral contract that distinguishes it from other contract types?
Flashcards
Net Lease
Net Lease
Tenant pays rent plus some or all property expenses (taxes, insurance, etc.).
Triple Net Lease
Triple Net Lease
Tenant pays rent plus all property expenses (taxes, insurance, maintenance).
Leasehold Estate
Leasehold Estate
The right a lessee has to use a property as specified in the lease.
Option to Renew
Option to Renew
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Percentage Lease
Percentage Lease
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Periodic Lease
Periodic Lease
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Express Contract
Express Contract
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Implied Contract
Implied Contract
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Study Notes
- Net Lease requires the tenant to pay some or all of the property expenses, like real estate taxes, insurance, maintenance, and utilities, in addition to rent.
- Triple Net Lease requires a tenant or lessee to pay for all common expenses related to real estate ownership, in addition to rent.
- Leasehold Estate is the interest a lessee has in real estate by virtue of the lease.
- Lessee is the person to whom property is rented under a lease.
- Lessor is the one who rents property to another under a lease.
- Option to Renew is a lease clause that outlines the terms for renewing or extending an original lease agreement.
- Percentage Lease bases rent on a percentage of sales made on the leased premises, usually with a minimal rental provision.
- Periodic Lease, also known as a tenancy from year to year, month to month, or week to week, is an estate that exists for a period of time determined by the term of the payment of rent.
- Proprietary Lease is given by a corporation to another, often in a co-op context, where the owner gets shares in the co-op along with the lease for a residence.
- Security Deposit is a monetary deposit given as proof of intent, refundable or nonrefundable based on the transaction terms.
- Quiet Enjoyment is the right to use property without interference of possession
- Sublease is an arrangement where the lessee assigns the lease to a third party, making the old lessee the sublessor and the new lessee the sublessee.
- Express Contract has all elements (offer, acceptance, consideration) specifically stated with defined terms.
- Implied Contract is an agreement created by actions, not written or spoken, assumed to have been drawn.
- Unilateral Contract is a one-sided agreement where one promises to do something in return for a performance.
- Bilateral Contract involves mutual promises, where each party is both promisor and promisee.
- Executed Contract is an agreement that has been fully performed.
- Mortgage Contingency Clause states that a mortgage must be obtained for the contract to be binding.
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Description
Overview of different types of real estate leases, including net lease, triple net lease, and percentage lease. Explanation of leasehold estate, lessee, and lessor. Also covers option to renew and periodic lease.
