Real Property Leases and Agreements

• A lease is a contract where someone entitled to real property possession transfers those rights to another for a set period or at will, usually for rent.
• A leasehold estate is the interest a lessee has in real estate because of their lease.
• A periodic lease, such as a tenancy from year to year, month to month, or week to week, exists for a time determined by the rent payment term.
• A covenant is an agreement in deeds and other instruments promising certain actions or uses of property.
• Security Deposit: Money given to a lender, or landlord as proof of intent, can be refundable or nonrefundable based on the transaction's terms.
• Assignment: The method by which a right or contract is transferred from one person to another.
• A sublease is when a lessee assigns the lease to a third party, becoming a sublessor, and the new lessee becomes the sublessee or subtenant.
• Eviction is a legal process by a landlord to regain possession of property.
• Actual eviction occurs when someone is physically removed from possession by force or law.
• Constructive eviction happens when a landlord disturbs the tenant's possession, making the premises unsuitable for its intended use.
• Quiet enjoyment is the right to use property without interference.

Covenants

• Contractual Capacity, must be

  • Over 18 years of age
  • Of sound mind

• A demising clause specifies "the demised premises."

• The description of the premises includes

  • The property address
  • Unit number

• A clear statement of the term (length)

• Consideration specifying the rent or sales price

• Penalties for late rent

• Must be in writing if longer than one year

• Signatures are required but don't need to be notarized unless recorded

• The lease must meet plain language requirements for residential leases

• Use provisions that are lawful purpose use, common in commercial leases

• The Renewal of lease

• Rent control and rent stabilization laws

• A ground lease allows a tenant to develop property during the lease, after which the land and improvements revert to the owner.

• A graduated lease adjusts the rent at set intervals, commonly used in long-term leases.

• In a gross lease, the lessor covers all property charges incurred through ownership.

• A holdover tenant stays on the property after the lease expires.

Explanation of real property leases, leasehold estates, and periodic leases. Covers covenants, security deposits, assignments, subleases, and eviction processes. Actual eviction occurs when someone is legally removed from a property.