lease

Any agreement which gives rise to relationship of landlord and tenant (real property) or lessor and lessee (real or personal property). Smith v. Royal Ins. Co., C.C.A.Cal., Ill F.2d 667, 671.

A contract for exclusive possession of lands, tenements or hereditaments for life, for term of years, at will, or for any interest less than that of lessor, usually for a specified rent or compensation. Feeley v. Michigan Ave. Nat. Bank, 1 Dist., 141 Ill.App.3d 187, 95 Ill.Dec. 542, 545, 490 N.E.2d 15, 18.

Contract wherein one lets to the other a certain space, property or building for specified unit of time, generally a week, month or year. Spiers v. Lake Shore Enterprises, Inc., La.App., 210 So.2d 901, 903.

Agreement under which owner gives up possession and use of his property for valuable consideration and for definite term and at end of term owner has absolute right to retake, control and use property. Transamerica Leasing Corp. v. Bureau of Revenue, App., 80 N.M. 48, 450 P.2d 934, 937.

When used with reference to tangible personal property, word "lease" means a contract by which one owning such property grants to another the right to possess, use and enjoy it for specified period of time in exchange for periodic payment of a stipulated price, referred to as rent. Undercofler v. Whiteway Neon Ad, Inc., 114 Ga. App. 644, 152 S.E.2d 616, 618.

The Federal Consumer Leasing Act provides for certain disclosure requirements in consumer leases. 15 U.S.C.A. No. 1667 et seq. In addition, certain states require that consumer (e.g. residential) leases be written in "plain language." See McKinney's (N.Y.) Consol.Laws, Gen Obi, No. 5-702.

See also U.C.C. Article 2A with respect to consumer leases.

The person who conveys is termed the "lessor," and the person to whom conveyed, the "lessee;" and when the lessor conveys lands or tenements to a lessee, he is said to lease, demise, or let them. The word when used as verb, means to transfer for term specified therein from lessor to lessee property therein demised, also to let, to farm out, to rent.

See also assignable lease

- community lease

- consumer lease

- demise

- finance lease

- graduated lease

- ground lease

- mining lease

- net lease

- operating lease

- percentage lease

- sale and leaseback

- sandwich lease

- Underlease.

For extension of lease, see extension

Compare license.

@ concurrent lease

One granted for a term which is to commence before the expiration or other determination of a previous lease of the same premises made to another person; or, in other words, an assignment of a part of the reversion, entitling the lessee to all the rents accruing on the previous lease after the date of his lease and to appropriate remedies against the holding tenant.

@ graduated lease

Lease that takes into consideration future increases in operating expenses. In a graduated lease there must be a base year on which an increase is judged. With inflation and continuing increases in taxes, energy costs, and other expenses, this type lease has become more popular than the fixed-straight lease.

+ graduated lease

A type of lease arrangement which provides that rent will vary depending upon future contingencies, such as the amount of traffic or gross income produced

@ gross lease

Lease in which lessee pays a flat sum for rent out of which the lessor is required to pay all expenses such as taxes, water, utilities, insurance, etc.

@ index lease

A lease arrangement that provides for increases in rent according to increases in the consumer price index.

See also graduated lease

@ lease and release

A species of conveyance much used in England, said to have been invented by Serjeant Moore, soon after the enactment of the Statute of Uses. It is thus contrived: A lease, or rather bargain and sale upon some pecuniary consideration for one year, is made by the tenant of the freehold to the lessee or bargainee. This, without any enrolment, makes the bargainor stand seised to the use of the bargainee, and vests in the bargainee the use of the term for one year, and then the statute immediately annexes the possession. Being thus in possession, he is capable of receiving a release of the freehold and reversion, which must be made to the tenant in possession, and accordingly the next day a release is granted to him. The lease and release, when used as a conveyance of the fee, have the joint operation of a single conveyance. 2 Bl.Comm. 339. By the Law of Property Act of 1925 all lands and all interests therein now lie in grant only

@ long term lease

@ long-term lease

See ground rent.

@ master lease

A main lease controlling subsequent leases or subleases.

@ mineral lease

Lease in which the lessee acquires the right to work a mine of oil or gas, etc. The rent is commonly based on the amount or value of the mineral withdrawn.

+ mineral lease

An agreement permitting use of land to explore, and then, if mineral is discovered, giving right to take mineral either for definite term or so long as it can be produced in paying quantities upon reserved royalty. Gordon v. Empire Gas & Fuel Co., C.C.A.Tex., 63 F.2d 487, 488.

A mineral lease so characterized as a real right, is merely a contract which permits the lessee to explore for minerals on the land of the lessor in consideration of the payment of a rental and/or bonuses. Prestridge v. Humble Oil & Refining Co., La.App., 131 So.2d 810, 820.

See also mining lease

@

- mining lease (mining).

@ month to month lease

Tenancy where no lease is involved, rent being paid monthly. Statutes often require one month's notice to landlord of intent to terminate such tenancy.

@ net lease

Lease which requires the tenant to pay, in addition to rent, the expenses of the leased property, e.g. taxes, insurance, maintenance, etc.

+ net lease

Lease in which provision is made for the lessee to pay, in addition to rent, such additional expenses as the taxes, insurance and maintenance charges.

See also escalator clause

- net rent

@ net-net-net lease

Lease in which the lessee pays all the expenses including mortgage interest and amortization leaving the lessor with an amount free of all claims.

@ parol lease

A lease of real estate not evidenced by writing, but resting in an oral agreement.

@ percentage lease

A percentage lease is one in which the amount of rent is based upon a percentage of the gross or net profits of the lessee's business, or of his gross sales, with a stipulated minimum rent. Such leases are mainly used where location of the property is an important part of its value (e.g. in shopping center).

+ percentage lease

A lease, usually on a retail business property, using a percentage of the gross or net sales to determine the rent. There is usually a minimum or "base" rental, in the event of poor sales

@ perpetual lease

A lease of lands which may last without limitation as to time; a grant of lands in fee with the reservation of a rent in fee; a fee-farm.

@ proprietary lease

Lease used in cooperative form of ownership in which lessee acquires right to possession.

+ proprietary lease

Type of lease in cooperative apartment between owner-cooperative and tenant-stockholder

@ sublease

@ underlease

@ sublease or underlease

sublease or underlease

One executed by the lessee to a third person, conveying the same estate for a shorter term than that for which the lessee holds it.

+ sublease

A lease executed by the lessee of land or premises to a third person, conveying the same interest which the lessee enjoys, but for a shorter term than that for which the lessee holds (as compared to assignment, where the lessee transfers the entire unexpired term of the leasehold to a third party). Transaction whereby tenant grants interests in leased premises less than his own, or reserves to himself reversionary interest in term. Ernst v. Conditt, 54 Tenn.App. 328, 390 S.W.2d 703, 707.

See also lease

- sandwich lease

- subtenant.

A lease of goods the right to possession and use of which was acquired by the lessor as a lessee under an existing lease. U.C.C. No. 2A-103(lXw)

@ top lease

A lease granted on property already subject to an oil and gas lease. Generally, a top lease grants rights if and when the existing lease expires. Shown v. Getty Oil Co., Tex.App., 645 S.W.2d 555

+ top lease

A lease made before the prior lease has expired; therefore the term of the new lease overlaps the term of the old lease. St. Clair v. Exeter Exploration Co., C.A.N.D., 671 F.2d 1091, 1095. A subsequent oil and gas lease which covers one or more mineral interests that are subject to a valid, subsisting prior lease

@ leaseback

Transaction whereby transferor sells property and later leases it back. In a sale-leaseback situation, for example, R would sell property to S and subsequently lease such property from S. Thus, R becomes the lessee and S the lessor

@ leasehold

An estate in real property held by leasee/tenant under a lease. The four principal types of leasehold estates are the estate for years, periodic tenancy, tenancy at will, and tenancy at sufferance. The asset representing the right of the lessee to use leased property

@ leasehold improvements

Improvements made by lessee to leased property such as parking lot or driveway. The term is used in condemnation proceedings to determine the portion of the award to which the lessee is entitled

@ leasehold interest

The interest of the lessor or the lessee under a lease contract. U.C.C. No. 2A-103. The interest which the lessee has in the value of the lease itself in condemnation award determination. The difference between the total remaining rent under the lease, and the rent lessee would currently pay for similar space for the same time period.

See also leasehold value

- no bonus clause

- leasehold mortgage (mortgage)

- leasehold mortgage bond (bond)

@ leasehold value

The value of a leasehold interest. Usually applies to a long term lease when market rental for similar space is higher than rent paid under the lease. Some states allow the lessee to claim the leasehold value against the landlord in eminent domain proceedings, unless specifically prohibited by the lease itself. Other states, by statute, do not allow for such a claim.

See also leasehold interest

- no bonus clause

@