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© 2012 Cengage Learning

Real Estate LeasesChapter 16

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In This Chapter

You will look at leases from the standpoint of the tenant, owner, and property manager.

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Leasehold Estate

Lessee = Tenant Lessor = Owner = Landlord Reversion - right of owner to retake the

property at end of leased period.

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Estate Periods

Estate for years- specific starting & ending date

Estate at will- terminated anytime by either party

Periodic estate- one that renews itself automatically

Tenancy at sufferance- holdover tenant

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Valid Lease1. Lessor & Lessee

2. Description of premises

3. Agreement to convey & accept possession

4. Rent payment provisions

5. Start date and duration of lease

6. Signature of parties to lease

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STATUTE OF FRAUDS

The Statute of Frauds in Texas provides that a lease of real estate for a term that cannot be performed within one year must be in writing.

A lease of one year or less need not be in writing to be enforceable.

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Lease

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Landlord-Tenant Laws Notice needed to terminate tenancy. Landlord’s lien for rent. Need for security devices. Habitable premises. Smoke detectors. Occupying limit of 3 adults per bedroom. Security deposits and 30 day rule for accounting

to tenant. Commercial leases 60 days. Duty to mitigate. Family Violence & Service Members.

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Rent Gross lease = Fixed rent Graduated rent = Step-up rent payments over

term Percentage lease = Rent is percent of gross

income Net lease = Rent plus increases in expenses Index lease = Rent tied to economic indicator

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Lease Terms Option clause Assignment Subletting Ground lease Lease termination Eviction – Forcible Entry and Detainer

3 days written notice Justice of Peace Court

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Key Terms Quiet enjoyment Reversionary

interest Sublease Sublessee Sublessor

Escalation clause Ground rent Lessee Lessor Option clause