An amendment refers to a change, correction, or extension of an agreement that does not modify the basic thrust of the agreement.
Assignment of Lease involves the transfer of rights to use a leased property. The new tenant, or assignee, acquires all the rights and privileges of the original lessee (assignor), who remains responsible to the landlord unless formally released.
The term 'attorn' refers to the legal act of transferring or turning over money or property to another party, often used to describe a tenant recognizing a new property owner as their landlord. This can occur during the sale or transfer of leased commercial or residential properties.
A Base (Expense) Year is a lease provision whereby the landlord agrees to pay an expense amount based on the expense for a base year (typically the first year) of the lease, and the tenant pays the increase in expense for subsequent years.
A bond-type lease is a type of net lease requiring the tenant to pay rent for the entire lease term, providing a near-guaranteed income stream to the landlord and often resulting in favorable rental rates for the tenant. This lease arrangement continues regardless of any damage to the leased property.
A Cancellation Clause is a provision within a contract that grants the right to terminate the agreed-upon obligations upon the occurrence of specified conditions or events.
A co-occupant arrangement is an agreement between two or more unrelated individuals to share a dwelling unit. This document typically delineates the financial responsibilities, rights, and obligations of each tenant to avoid disputes.
Contract Rent refers to the amount of rent that has been explicitly agreed upon in a lease or rental agreement between a tenant and a landlord. It remains fixed over the term stated in the contract unless otherwise adjusted according to specified conditions.
A Credit Tenant is a commercial tenant that is large, financially stable, and well-rated by credit agencies, which can influence favorable terms for mortgage financing based on the tenant's creditworthiness.
The term 'Demised Premises' refers to the property or portion of property that is leased or rented to a tenant under the terms outlined in a lease agreement.
An escalator clause is a provision in a lease that requires the tenant to pay additional rent based on an increase in specified costs such as real estate taxes, operating expenses, or other financial metrics.
An Estate for Years is an interest in land that grants possession for a specified and limited period, often defined in a lease agreement. It is a fixed-term tenancy where the duration of the estate is explicitly stated.
An estoppel certificate is a document used in real estate transactions to detail the current status and conditions of a lease agreement, providing verification of lease information to third parties, such as lenders or prospective buyers.
An estoppel certificate is a legal document where the borrower acknowledges the amount of debt secured by a mortgage. It also can be a lease clause where a tenant confirms the lease's enforceability, absence of landlord default, and current rent status.
Excess rent refers to the amount by which the rent specified in an existing lease exceeds the rental rate currently demanded in the market for similar properties. It carries implications for property valuation and investor decision-making.
An Expense Stop, also known as a Stop Clause, is a provision in a lease agreement that sets a limit on the amount of operating expenses a landlord will cover. Any expenses beyond this limit are the tenant's responsibility.
An extension is an agreement between two or more parties to extend the time period specified in a contract. Extensions are common in real estate transactions and are used to ensure that all parties have adequate time to fulfill their obligations.
A gross lease is a type of lease agreement wherein the landlord is responsible for paying all property expenses, including taxes, insurance, utilities, and repairs. The tenant pays a fixed rental fee.
A guarantor is a third party to a lease, mortgage, or other legal instrument who guarantees performance under the contract. Guarantors play a critical role in helping individuals or businesses secure financing or lease agreements by providing an additional layer of security for the lender or landlord.
A holdover clause is a provision in a lease that outlines the actions and conditions when a tenant remains in the property beyond the expiration of the lease term.
A hunting lease is an agreement between a landowner and a hunter that grants the hunter access to specific property for hunting purposes. This can range from a day to an entire season and might include limitations on the type of game that can be hunted.
A Lease Abstract encapsulates the major highlights and key provisions of a lease agreement, offering a quick reference for property managers, landlords, and tenants while ensuring essential information is easily accessible.
A Lease Proposal is an offering made to a prospective tenant that outlines the key terms and conditions of a potential lease agreement, facilitating the leasing process.
A leasehold estate refers to a tenant’s right to occupy and use real estate for a defined period as stipulated in a lease agreement. Leasehold estates provide tenants with significant rights over the property during the lease term.
In real estate, a lessee is an individual or entity that rents or leases property from a lessor. The lessee is responsible for adhering to the terms of the lease agreement, including payment of rent and maintenance obligations.
In real estate, a 'LET' refers to the act of renting out a property to a tenant. It commonly applies to residential or commercial properties that are being leased for an agreed-upon rent amount over a specified period.
A legal document indicating that a tenant recognizes a new owner of the property as their landlord, effectively transferring tenancy.
A Memorandum of Lease is a concise document prepared for public recording that includes the key terms of a lease agreement without disclosing the full details of the lease.
A Military Clause is an option included in residential leases that allows a tenant currently serving in the military or reserves to break the lease without forfeiture of the security deposit in the event of a transfer or call-up to duty.
Minimum Rent (also known as Base Rent) is the fundamental rental amount agreed upon in a lease agreement, ensuring a consistent and predictable source of income for landlords.
A Notice of Default is a formal notification sent to a borrower or a tenant indicating that they have failed to make the required payments or comply with the terms of a loan or lease agreement. It often includes details on the grace period provided to cure the default and the penalties that will be applied if the default is not resolved.
A Notice to Quit is a formal, written notification issued to a tenant to vacate rented property by a specified date. It is commonly used by landlords when the lease expires or the tenant violates the rental agreement.
An occupancy agreement, limited, allows a prospective buyer to obtain possession of a property under a temporary arrangement, typically before the official closing of the sale.
An operating lease is an agreement where the lessee leases an asset from the lessor for a certain period but does not assume risks and rewards of ownership.
Partial eviction occurs when a tenant is deprived of a portion of the leased property, often resulting in a reduced rent or relocated space within the property.
A penalty is a sum of money that one must pay for breaking a law or violating part or all of the terms of a contract. Penalties serve to ensure compliance with legal and contractual obligations.
A Periodic Estate, also known as periodic tenancy, is a type of lease agreement that automatically renews at the end of each lease period unless either party provides notice of intention to terminate the agreement.
A radius clause in a shopping center tenant's lease restricts the tenant from opening another store within a specified distance from the shopping center to prevent competition and reduced traffic to both the existing store and the shopping center. This is often crucial for anchor tenants and can also apply to ancillary tenants.
A reappraisal lease is a type of lease agreement where rental levels are periodically reviewed and adjusted based on appraisals conducted by independent appraisers. This ensures that the rent reflects the current market value of the property.
A Renewal Option in a lease agreement gives the tenant the right, but not the obligation, to extend the lease for an additional term under specified conditions.
A Rent Roll is a detailed list of individual tenants within a property, typically including information such as unit numbers, lease agreements, monthly rents, and lease expiration dates. It serves as a critical document for property management, providing an overview of rental income and tenant occupancy status.
A sandwich lease is a real estate arrangement in which a lessee becomes a lessor by subletting the property. This intermediate leaseholder holds a secondary lease between the property owner and the end user, typically without owning or primarily using the property.
A sublease is a lease agreement between a tenant (lessee) and a third party (sublessee) allowing the sublessee to occupy the leased property. The original tenant remains liable to the landlord for the lease obligations.
A subordinated ground lease is a lease agreement wherein the mortgage on the property holds priority over the ground lease. This structure can affect the leaseholder's rights, particularly in cases of foreclosure.
Surrender refers to the cancellation of a lease by mutual consent of the lessor and the lessee, where both parties agree to terminate the lease agreement before its stipulated end date.
A tax stop is a clause in a lease agreement that sets a limit on the amount of property taxes the lessor (landlord) is responsible for paying. Any property taxes exceeding this limit are paid by the lessee (tenant).
A tenancy for years is defined by a lease agreement for a specified period, such as months or years, typically fixed from the outset.
In real estate, the term can refer to the duration during which a lease is effective or the maturity period of a loan such as a mortgage. Understanding the implications of the term is crucial for both lessees and borrowers.
A Utility Stop is a clause in a lease agreement that limits the landlord’s liability for the costs of utilities, such as electricity, water, and gas, by specifying a maximum amount that the landlord will cover. Any utility expenses exceeding this amount are passed on to the tenants.
Voidable refers to a legal agreement or contract that is valid and enforceable until one party who is entitled to void it exercises the right to do so. Unlike void contracts, voidable contracts require action to be considered invalid.
