Transcript Document
Chapter 16 _______________________________________ Real Estate Leases Thomson/South-Western©2008 Leasehold Estate • Lessee = Tenant • Lessor = Owner = Landlord • Reversion = right of owner to retake the property at end of leased period. Thomson/South-Western©2008 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 Thomson/South-Western©2008 Valid Lease 1. 2. 3. 4. 5. 6. Lessor & Lessee Description of premises Agreement to convey & accept possession Rent payment provisions Start date and duration of lease Signature of parties to lease Thomson/South-Western©2008 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. Thomson/South-Western©2008 Sample Lease Thomson/South-Western©2008 Sample Lease (continued) Thomson/South-Western©2008 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. Thomson/South-Western©2008 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 Thomson/South-Western©2008 Lease Terms • • • • • • Option clause Assignment Subletting Ground lease Lease termination Eviction – Forcible Entry and Detainer – 3 days written notice – Justice of Peace Court Thomson/South-Western©2008 Key Terms • • • • • Escalation clause Ground rent Lessee Lessor Option clause • • • • • Quiet enjoyment Reversionary interest Sublease Sublessee Sublessor Thomson/South-Western©2008