Chapter 9 Section 4

Question 1

lease

Answer 1

-creates a legal interest in real property, but the lease does not convey ownership
-owner is lessor and tenant is lessee
-can be oral or written
-terminated by: destruction of property, lien foreclosure, condemnation through eminent domain, expiration of lease, bankruptcy of tenant, agreement of parties, or breach of lease provisions

Question 2

valid lease

Answer 2

-the names and signature of lessor and lessee
-consideration (money or something of value given by lessee)
-term of tenancy
-legal description of property

Question 3

enforceable lease

Answer 3

-a lease for a period of more than one year be in writing and signed in order to be enforceable
-must be witnessed by two persons and conform to the same requirements as a valid deed

Question 4

model lease forms for periods of one year or less

Answer 4

-real estate licensees can fill in the blanks of model residential lease forms approved by the Florida Supreme Court covering periods of one year or less
-licensees are not allowed to modify the form in any way or to interpret the language in response to a question

Question 5

sale of leased property

Answer 5

-a property owner may sell a leased property “subject to the lease”
-buyer must honor the rights of the tenant under the original lease

Question 6

gross lease

Answer 6

-a lease which the tenant agrees to pay a fixed rental amount
and the landlord pays all expenses related to the property such as real estate taxes, insurance, and maintenance costs

Question 7

ground lease

Answer 7

-a commercial, long-term lease which the tenant is permitted to develop the property
-all expenses of the property, such as taxes, maintenance, insurance, and financing costs, are the obligation of the tenant
-long term (50-99 years)

Question 8

net lease

Answer 8

-a lease in which the tenant pays a fixed rent plus all or a portion of the operating costs such as real estate taxes, insurance, and maintenance
-commercial and industrial leases are commonly net leases

Question 9

percentage lease

Answer 9

-a lease in which the tenant pays a monthly base rent plus a percentage of the annual or monthly gross sales of goods sold on the premises

Question 10

lease-option

Answer 10

-a lease that contains an option to purchase the property within a certain period of time and under specified conditions
-a portion of the rent may be applied to the purchase price if the tenant wishes to exercise the option
-the lease and the option may be one document or two different documents that are executed simultaneously

Question 11

sale-leaseback

Answer 11

-occurs when a property owner sells the property to an investor who immediately leases the property back to the original property owner who then becomes the tenant
-frees the equity the seller had in the property

Question 12

sale-contractback

Answer 12

-it involves the sale of a property with a provision for it to be repurchased at a future date for a specified price
-the former owner/seller makes mortgage payments to the purchaser rather than lease payments

Question 13

leases with changing payments

Answer 13

-several types of leases in which rent payments are periodically adjusted, usually upward
-adjustments can be specified as pre-determined increments or can be based on other factors such as market value or consumer price index

Question 14

assignment

Answer 14

-all space for the remainder of the lease period
-occurs when a lessee transfers all of the leased space for all of the remaining time

Question 15

sublease

Answer 15

-occurs if a lessee transfers less than 100% of the space that has been leased, or makes a transfer for a shorter period of time than the entire remaining lease period and becomes the sublessor or second landlord

Question 16

nonresidential leases

Answer 16

the Commercial Real Estate Leasing Commission Lien Act, presumes a broker to have a lien on the property interest owned by the party that employs a broker under a nonresidential lease agreement