Chapter 18: Leases and The Landlord-Tenant Relationship

Actual Eviction

A process whereby the landlord may terminate a lease for good reason and the tenant must appear and show cause why he should not be evicted. Also called dispossess proceeding, summary possession, and unlawful detainer. 18-325

Assignment of Lease

Lessee transfers to a third party the entire remaining balance of the lease term for all of the leased property.

Commercial Lease

A lease normally written as a tenancy for years. The three major types of commercial leases are:net lease; gross lease; and percentage lease. 18-324

Constructive Eviction

Breach of the cove-nant warranting quiet enjoyment in a lease; when a landlord performs an act depriving the tenant of quiet enjoyment of the premises, there-by causing the tenant to move. 18-325

Demise

To convey an estate for years; synonymous with lease.

Dispossess Proceedings

A legal process by a landlord to remove a tenant and regain possession of real property due to some breach of the lease agreement by the tenant. 18-325

Escalator Clause

A lease provision that allows rent increases during the term of a lease to reflect increased operating expenses such as higher taxes, maintenance costs and fuel oil. 18-324

Estate for Years

A lease; an interest in land by virtue of a contract for the possession for a definite and limited period of time. 18-323

Eviction

A legal proceeding by a landlord to recover possession of leased premises from a tenant due to some breach of the lease contract. 18-325

Graduated Lease

A lease which calls for a series of predetermined rent increase designed to offset inflation. See "Step-up Lease." 18-324

Gross Lease

A lease of property in which the lessors meets all property charges incurred through ownership. 18-324

Ground Lease

A lease for the use of the land, usually providing for improvements to be placed on the land by the user. 18-324

Holdover Tenant

A tenant who remains in possession of a property after expiration of the lease term. 18-325

Lease

A contract whereby the lawful owner of the property transfers his rights of use and possession to another for a specified term. 18-323

Leasehold Interest

Limited interest in real estate, tenant interest. Non-freehold or less than freehold. 18

Lessee

One who rents property under a lease contract. 18-323

Lessor

An owner who enters into a lease with a tenant. 18-32

Net Lease

A lease in which the tenant pays rent for occupancy, plus maintenance and operation expenses, usually including taxes and insurance. 18-324

Notice to Quit

Notice to a tenant to vacate. 19-362

Percentage Lease

A lease of property in which the rental is based upon the volume of gross sales made on the leased premises. 18-324

Periodic Tenancy

Tenancy of property for an indefinite period, which can be terminated by either party with proper notice. 18-323

Recapture Clause

In a percentage lease, a clause that allows the landlord to cancel if the volume of business falls below a stated minimum. 18-324

Reversion

The residue of an estate left to the grantor or his heirs after termination of all prior estates and interests; the right of a lessor to recover possession of leased property upon the termination of the lease, with all subsequent rights use and enjoy the

Reversionary Interest

A present right to future possession of an estate. 18-323

Security Deposit

Deposited made to assure performance of an obligation, usually by a lessee. 18-327

Sublease

A lease given by a lessee for a portion of the unexpired balance of his term, or one given for a portion of the leased premises. 18-326

Sublessee

Tenant entering into a sublease agreement. 18-326

Sublessor

A lessee or tenant who granted a sublease to another. 18-326

Summary Possession

A process whereby the landlord may terminate a lease for good reason and the tenant must appear and show cause why he should not be evicted. See "Actual Eviction.

Surrender

The cancellation of a lease by an act of mutual consent of lessor and lessee. 18-325

Tenancy at Sufferance

A tenancy arising when the tenant wrongfully holds over after the expiration of his term. The landlord has the choice of evicting the tenant or accepting him for a similar term and under the conditions of the previous holding. 18-323

Tenancy at Will

Possession and occupancy of land terminable at the will of either part. 18-323

Waste

Willful destruction of any part of the land which would injure of prejudice the landlord's or remainderman's reversionary rights. 4-154

Reappraisal Lease

Lease calls for property appraisals every five to ten years as the basis for periodic adjustment in the rent. 18-324

The New Jersey Anti-Eviction Act

Tenants who occupy residential property under an oral or written lease, who are current on their rent payments, cannot be evicted solely on the grounds of foreclosure. 18-326

Option to purchase

The right that is given for consideration to purchase or lease property within a specified time at a specified price and terms. 18-326

Right of first refusal

Provision gives the tenant the opportunity to match the terms of a proposed contract to purchase, before the contract is execute. 18-327

Sandwich Lease

A leasehold interest lying between the primary lease and the sublease.