Chapter 16 Real Estate Leases

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Chapter 16Real Estate Leases

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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 Lease

• Lessor Lessee
• Description of premises
• Agreement to convey accept possession
• Rent payment provisions
• Start date and duration of lease
• 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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Sample Lease
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Sample Lease (continued)

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Landlord-Tenant Laws

• Notice needed to terminate tenancy.
• Landlords 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