Definition
The term Demised Premises refers to the specific property or portion of a property that is subject to a lease agreement. This term is used in both residential and commercial leasing to describe the physical space that a tenant has the exclusive right to occupy and use as delineated by the terms stated in the lease.
Examples
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Residential Lease: If you rent an apartment, the apartment unit itself is considered the demised premises. This is the area you have the exclusive right to live in during the lease term.
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Commercial Lease: In the leasing of a retail store, the store space outlined in the lease agreement is the demised premises. The business leasing the space has the exclusive rights to that specific area for operating its business.
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Office Lease: A company renting office space within a building will have a defined demised premises as per the lease, typically specifying the floor, suite number, and square footage.
Frequently Asked Questions (FAQs)
What is included in the demised premises?
The demised premises typically include the physical space within the leased property. This can range from an entire building to a specific office or apartment unit. It often excludes common areas like hallways, lobbies, and shared amenities unless specified otherwise in the lease.
Can the definition of demised premises change during the lease term?
Generally, the definition of demised premises remains consistent throughout the lease term unless amended by mutual agreement between the landlord and tenant, and documented formally.
Is there a difference between demised premises and leased premises?
Both terms are often used interchangeably; however, ‘demised premises’ is more specific in legal contexts to denote the exact space granted under the lease. ‘Leased premises’ is a broader term encompassing the overall concept of leased property.
What responsibilities does a tenant have concerning the demised premises?
Responsibilities generally include maintaining the condition of the space, ensuring it is used as described in the lease (e.g., residential for living, commercial for business), and adhering to specific covenants agreed upon, such as non-modification without landlord’s consent.
- Lease Agreement: A contractual arrangement between a landlord and tenant outlining terms for occupying a property.
- Sublease/Sublet: An arrangement where the tenant leases out a portion or the entirety of the demised premises to another party.
- Common Area: Areas within a property that are shared among tenants, such as lobbies and hallways, not included in the demised premises unless specifically mentioned.
Online Resources
- Internal Revenue Service (IRS) - Guidelines on rental properties and lease agreements, including demised premises: IRS Rental Property Guide
- American Bar Association - Articles and resources about leasing terms and real estate law: ABA Real Property Law
- Legal Information Institute - Comprehensive definitions and legal interpretations related to leases: LII Leases
References
- Black’s Law Dictionary - Definitions and explanations of real estate terminologies.
- IRS Publication 527 - Information on rental income and expenses, including lease terms.
- The American Law of Landlord and Tenant - Guide to understanding leasing laws.
Suggested Books for Further Studies
- “The Complete Landlord and Property Manager’s Legal Survival Kit” by Alan R. Levenson
- “Real Estate Law” by Marianne M. Jennings
- “Landlord’s Legal Guide” by Mark Warda
- “The Leasing Process: A Guide for the Commercial Tenant and Landlord” by Rodney J. Dillman
- “The Book on Rental Property Investing” by Brandon Turner
Real Estate Basics: Demised Premises Fundamentals Quiz
### What does the term "demised premises" refer to in a lease agreement?
- [x] The specific property or portion of property leased to a tenant.
- [ ] The payment terms agreed upon for the lease.
- [ ] Common areas shared among tenants.
- [ ] The maintenance responsibilities of the landlord.
> **Explanation:** The term "demised premises" refers to the specific property or portion of the property leased to a tenant under a lease agreement.
### Who generally has exclusive rights to the demised premises?
- [ ] The landlord.
- [ ] Other tenants.
- [x] The tenant leasing the property.
- [ ] Service providers.
> **Explanation:** The tenant leasing the property generally has exclusive rights to use and occupy the demised premises.
### Are common areas typically included in the demised premises?
- [ ] Yes, common areas are always included.
- [x] No, common areas are usually excluded unless specified in the lease.
- [ ] Common areas are optional based on tenant's request.
- [ ] Only if the landlord allows use of them.
> **Explanation:** Common areas are typically not included in the demised premises unless it is specifically mentioned in the lease.
### Can the demised premises be altered by the tenant?
- [ ] Yes, tenants can modify it as they wish.
- [ ] Only landlords can modify it.
- [ ] It cannot be altered by anyone.
- [x] Only with landlord's consent.
> **Explanation:** The tenant may alter the demised premises but typically requires the landlord's written consent as stipulated in the lease agreement.
### What document outlines the boundaries and rights of the demised premises?
- [ ] Deed of Trust
- [ ] Insurance policy
- [x] Lease Agreement
- [ ] Mortgage agreement
> **Explanation:** The lease agreement outlines the boundaries, rights, and responsibilities related to the demised premises.
### What type of lease would typically include detailed terms about demised premises?
- [x] Both residential and commercial leases
- [ ] Only residential leases
- [ ] Only commercial leases
- [ ] Oral agreements
> **Explanation:** Both residential and commercial leases typically include detailed terms about the demised premises.
### In a commercial lease, what term might be used similarly to "demised premises"?
- [ ] Property key
- [ ] Rented space
- [ ] Shelter
- [x] Leased premises
> **Explanation:** In a commercial lease, the term "leased premises" is often used similarly to "demised premises."
### Is the tenant responsible for repairs within the demised premises?
- [x] Yes, usually as per the lease agreement.
- [ ] No, it is always the landlord's responsibility.
- [ ] Only for emergencies.
- [ ] Only for structural damages.
> **Explanation:** The tenant is usually responsible for repairs within the demised premises as outlined in the lease agreement, except for structural repairs which may fall under the landlord's scope of responsibility.
### When can a tenant legally sublease the demised premises?
- [ ] Always without restrictions.
- [ ] Never, as it is not allowed.
- [ ] Only under specific circumstances.
- [x] With landlord’s approval, as per the lease.
> **Explanation:** A tenant can sublease the demised premises usually with the landlord’s approval as stated in the lease agreement.
### What happens if the demised premises is unfit for habitation?
- [ ] Tenant must still pay rent.
- [x] Tenant can demand repairs or terminate the lease.
- [ ] It becomes the new responsibility of the tenant.
- [ ] Lease terms do not apply in such cases.
> **Explanation:** If the demised premises becomes unfit for habitation, the tenant can demand repairs or may have the option to terminate the lease, depending on legal implications and lease terms.
