A leasehold estate is an ownership interest in land in which a lessee or a tenant holds real property Real property and personal property are the main classifications of property in the common law. Real property refers to land and the improvements made by human efforts—buildings, machinery, the acquisition of various property rights, and the like. Real property is also termed realty, real estate, and immovable property by some form of title Title is a legal term for a bundle of rights in a piece of property in which a party may own either a legal interest or an equitable interest. The rights in the bundle may be separated and held by different parties. It may also refer to a formal document that serves as evidence of ownership. Conveyance of the document may be required in order to from a lessor or landlord Landlord is the owner of a house, apartment, condominium, or real estate which is rented or leased to an individual or business, who is called a tenant . When a juristic person is in this position, the term landlord is used. Other terms include lessor and owner. The term landlady may be used in some jurisdictions for female owners, but landlord.

Leasehold is a form of property tenure where one party buys the right to occupy land or a building for a given length of time. As lease is a legal estate, leasehold estate can be bought and sold on the open market. A leasehold thus differs from a freehold In English law a freehold refers to the ownership of real property, being the land and all immovable structures attached to such land. This is opposed to a leasehold in which the property reverts back to the owner of the land after the lease period has expired. Immovable property includes land and all that naturally goes with it, such as buildings, where the ownership of a property is purchased outright and thereafter held for an indeterminate length of time, and also differs from a tenancy where a property is let (rented) on a periodic basis such as weekly or monthly.

Until the end of the lease period (often measured in decades or centuries; a 999 year lease is quite common) the leaseholder has the right to remain in occupation as an assured tenant paying an agreed rent to the owner. Terms of the agreement are contained in a lease Leasing is a process by which a firm can obtain the use of a certain fixed assets for which it must pay a series of contractual, periodic, tax deductible payments. The lessee is the receiver of the services or the assets under the lease contract and the lessor is the owner of the assets. The relationship between the tenant and the landlord its, which has elements of contract and property law intertwined.

The term estate for years may occasionally be used. This refers to a leasehold estate for any specific period of time (the word "years" is misleading). An estate for years is not automatically renewed.

Colloquially, a "lease" is often a formalization of a longer, specific period as compared with a "rental" that created a tenancy at will A leasehold estate is an ownership interest in land in which a lessee or a tenant holds real property by some form of title from a lessor or landlord, terminable or renewable at the end of a short period.

History

Landlord-tenant laws existed in places such as Andalusia Andalusia is an autonomous community of Spain and recognized as a historical nationality. It is the most populous (8,285,692 inhabitants in 2009) and the second largest, in terms of land area, of the seventeen autonomous communities of the Kingdom of Spain. Its capital and largest city is Seville (Spanish: Sevilla). The region is divided into, and laws governing such relationships can be found in the Code of Hammurabi The Code of Hammurabi is a well-preserved ancient law code, created ca. 1790 BC (middle chronology) in ancient Babylon. It was enacted by the sixth Babylonian king, Hammurabi. One nearly complete example of the Code survives today, inscribed on a seven foot, four inch tall diorite stele in the Akkadian language in the cuneiform script. However, the common law Common law is law developed by judges through decisions of courts and similar tribunals , rather than through legislative statutes or executive branch action. A "common law system" is a legal system that gives great precedential weight to common law, on the principle that it is unfair to treat similar facts differently on different of the landlord-tenant relation evolved in England The area now called England has been settled by people of various cultures for about 35,000 years, but it takes its name from the Angles, one of the Germanic tribes who settled during the 5th and 6th centuries. England became a unified state in AD 927, and since the Age of Discovery, which began during the 15th century, has had a significant during the Middle Ages The Middle Ages is a period of European history from the 5th century to the 15th century. The period followed the fall of the Western Roman Empire in 476, and preceded the Early Modern Era. It is the middle period in a three-period division of history: Classical, Medieval, and Modern. The term "Middle Ages" (medium aevum) was coined in. That law still retains many archaic terms and principles pertinent to a feudal Feudalism is a political and military system between a feudal aristocracy , and his vassals. In its most classic sense, feudalism refers to the Medieval European political system composed of a set of reciprocal legal and military obligations among the warrior nobility, revolving around the three key concepts of lords, vassals, and fiefs. Although social order and an agrarian Agrarianism and agrarian have two meanings. One refers to a social philosophy or political philosophy which stresses the moral superiority of a rural life based on farming, as opposed to the supposed corruption of city life, with its banks and factories. Thomas Jefferson was a famous representative agrarian economy, where land was the primary economic asset and ownership of land was the primary source of rank and status. See also Lord of the Manor The title of Lord of the Manor arose in the English mediaeval system of Manorialism following the Norman Conquest. The title Lord of the Manor is a titular feudal dignity which is still recognised today as semi-extinct form of landed property . Their holders are entitled to call themselves "[Personal name], The Lord/Lady of the Manor of [.

Modern leasehold estates can take one of forms – the fixed-term tenancy or tenancy for years, the periodic tenancy, the tenancy at will, and the tenancy at sufferance, all discussed below. Forms no longer used include socage Socage was one of the feudal duties and hence land tenure forms in the feudal system. A farmer, for example, held the land in exchange for a clearly-defined, fixed payment to be made at specified intervals to his feudal lord, who in turn had his own feudal obligations, to the farmer and to the Crown. In theory this might involve supplying the lord and burgage Burgage is a medieval land term used in England and Scotland, well established by the 13th century. A burgage was a town rental property (to use modern terms), owned by a king or lord. The property ("burgage tenement") usually, and distinctly, consisted of a house on a long and narrow plot of land, with the narrow end facing the street.

When a landowner allows one or more persons, called "tenants," to use his land in some way for some fixed period of time, the land becomes a leasehold, and the resident (or worker) - landowner relation is called a "tenancy." A tenant pays rent Renting is an agreement where a payment is made for the temporary use of a good, service or property owned by another. A gross lease is when the tenant pays a flat rental amount and the landlord pays for all property charges regularly incurred by the ownership from lawnmowers and washing machines to handbags and jewellry (a form of consideration Consideration is the concept of legal value in connection with contracts. It is anything of value promised to another when making a contract. It can take the form of money, physical objects, services, promised actions, abstinence from a future action and much more. Under the notion of "pre-existing duties," if either the promisor or the) to the landowner. The leasehold can include buildings and other improvements to the land. The tenant can do one or more of: farm the leasehold, live on it, or practice a trade on it.

Tenancy was essential to the feudal hierarchy Feudalism is a political and military system between a feudal aristocracy , and his vassals. In its most classic sense, feudalism refers to the Medieval European political system composed of a set of reciprocal legal and military obligations among the warrior nobility, revolving around the three key concepts of lords, vassals, and fiefs. Although; a lord would own land and his tenants became his vassals A vassal, in the terminology that preceded and accompanied the feudalism of medieval Europe, is one who enters into mutual obligations with a monarch, usually of military support and mutual protection, in exchange for certain guarantees, which came to include the terrain held as a fief. By analogy it is applied to similar systems in other feudal. However, it still happens today in many parts of the world. In the Commonwealth Realms A Commonwealth realm is a sovereign state within the Commonwealth of Nations that has Elizabeth II as its monarch. The sixteen current realms have a combined land area of 18.8 million km² , and a population of 134 million; all but about two million live in the six most populous states, the United Kingdom, Canada, Australia, Papua New Guinea, New leasehold estates are often Crown land Crown land is a designated area belonging to the Crown, the equivalent of an entailed estate that passed with the monarchy and could not be alienated from it held by tenants for a specific period of time, typically 99 years; within certain jurisdictions, for example the Australian Capital Territory The Australian Capital Territory is the capital territory of the Commonwealth of Australia and its smallest self-governing internal territory. It is enclaved within New South Wales, and regularly referred to as Australia's 'Bush Capital', all private land "ownerships" are actually leaseholds of Crown land. In the U.S.A., there are food co-ops which supply tenants with a place to grow their own produce. Rural tenancy Rural tenancy refers to a type of share-cropping or tenancy arrangement that a landowner can use to make full use of property he may not otherwise be able to develop properly. A "tenant" or non-landowner will take residency on the property of the landowner and work the land in exchange for giving the landowner a percentage of the profits is also a common practice. Under a rural tenancy Rural tenancy refers to a type of share-cropping or tenancy arrangement that a landowner can use to make full use of property he may not otherwise be able to develop properly. A "tenant" or non-landowner will take residency on the property of the landowner and work the land in exchange for giving the landowner a percentage of the profits, a person buys a large amount of land and the rural community uses it agriculturally as a source of income.

Fixed-term tenancy or tenancy for years

A fixed-term tenancy or tenancy for years lasts for some fixed period of time. Despite the name tenancy for years, such a tenancy can last for any period of time – even a tenancy for one week would be called a tenancy for years. At Common law Common law is law developed by judges through decisions of courts and similar tribunals , rather than through legislative statutes or executive branch action. A "common law system" is a legal system that gives great precedential weight to common law, on the principle that it is unfair to treat similar facts differently on different the duration did not need to be certain, but could be conditioned upon the happening of some event, (e.g. "until the crops are ready for harvest", "until the war is over"). In many jurisdictions that possibility has been partially or totally abolished.^[1]

Termination

The tenancy will come to an end automatically when the fixed term runs out, or, in the case of a tenancy that ends on the happening of an event, when the event occurs. It is also possible for a tenant, either expressly or impliedly, to give up the tenancy to the landlord. This process is known as a surrender of the lease.

Periodic tenancy

A periodic tenancy, also known as a tenancy from year to year, month to month, or week to week, is an estate that exists for some period of time determined by the term of the payment of rent. An oral lease for a tenancy of years that violates the Statute of Frauds The term statute of frauds comes from an English Act of Parliament passed in 1677 (authored by Sir Leoline Jenkins and passed by the Cavalier Parliament), and more properly called An Act for Prevention of Frauds and Perjuries. Many common law jurisdictions have made similar statutory provisions, while a number of civil law jurisdictions have (by committing to a lease of more than--depending on the jurisdiction--one year without being in writing) may actually create a periodic tenancy, the construed term being dependent on the laws of the jurisdiction where the leased premises are located. In many jurisdictions the "default" tenancy, where the parties have not explicitly specified a different arrangement, and where none is presumed under local or business custom, is the month-to-month tenancy.

Termination

The landlord may terminate the lease at any time by giving the tenant notice as required by statute. Typically, the landlord must give six months' notice to terminate a tenancy from year to year. Tenants of lesser durations must typically receive notice equal to the period of the tenancy - for example, the landlord must give a month's notice to terminate a tenancy from month to month. However, many jurisdictions have varied these required notice periods, and some have reduced them drastically.

The notice must also state the effective date of termination, which, in many jurisdictions, must be on the last day of the payment period. In other words, if a month-to-month tenancy began on the 15th of the month, in such a jurisdiction the termination could not be on the 20th of the following month, even though this would give the tenant more than the required one month's notice.

Tenancy at will

A tenancy at will is a leasehold A leasehold estate is an ownership of a temporary right to land or property in which a lessee or a tenant holds rights of real property by some form of title from a lessor or landlord such that either the landlord or the tenant may terminate the tenancy at any time by giving reasonable notice Notice is the legal concept describing a requirement that a party be aware of legal process affecting their rights, obligations or duties. There are several types of notice: public notice , actual notice, constructive notice, and implied notice. It usually occurs in the absence of a lease A lease is a contract calling for the lessee to pay the lessor (owner) for use of an asset. A rental agreement is a lease in which the asset is tangible property. Leases for intangible property could include use of a computer program (similar to a license, but with different provisions), or use of a radio frequency (such as a contract with a cell-, or where the tenancy is not for consideration Consideration is the concept of legal value in connection with contracts. It is anything of value promised to another when making a contract. It can take the form of money, physical objects, services, promised actions, abstinence from a future action and much more. Under the notion of "pre-existing duties," if either the promisor or the. Under the modern common law Common law is law developed by judges through decisions of courts and similar tribunals , rather than through legislative statutes or executive branch action. A "common law system" is a legal system that gives great precedential weight to common law, on the principle that it is unfair to treat similar facts differently on different, tenancy at will can arise under the following circumstances:

• the parties expressly agree that the tenancy is at will and not for rent.
• a family member is allowed to live at home without formal arrangement. A nominal consideration may be required.
• a tenant wishes to occupy the property urgently, but there was insufficient time to negotiate and execute a lease. The tenancy at will terminates in this case as soon as a written lease is completed. If a lease fails to be realized, the tenant must vacate the property.

In a residential lease for consideration, a tenant may not be removed except for cause Causation is the "causal relationship between conduct and result". That is to say that causation provides a means of connecting conduct with a resulting effect, typically an injury. In criminal law, it is defined as the actus reus from which the specific injury or other effect arose and is combined with mens rea (a state of mind) to, even in the absence of a written lease. If a landlord can terminate the tenancy at will, a tenant by operation of law The phrase "by operation of law" is a legal term that indicates that a right or liability has been created for a party, irrespective of the intent of that party, because it is dictated by existing legal principles. For example, if a person dies without a will, his heirs are determined by operation of law. Similarly, if a person marries is also granted a reciprocal right to terminate at will. However, a lease that expressly continues at the will of the tenant ("for as long as the tenant desires to live on this land") does not automatically provide the landlord with a reciprocal right to terminate, even for cause. Rather, such language may be construed to convey to the tenant a life estate A life estate is a concept used in common law and statutory law to designate the ownership of land for the duration of a person's life. In legal terms it is an estate in real property that ends at death. The owner of a life estate is called a "life tenant" or even a fee simple A fee simple is an estate in land, a form of freehold ownership. It is the most common way real estate is owned in common law countries, and is ordinarily the most complete ownership interest that can be had in real property short of allodial title, which is often reserved for governments. Fee simple ownership represents absolute ownership of real.

A tenancy at will terminates by operation of law The phrase "by operation of law" is a legal term that indicates that a right or liability has been created for a party, irrespective of the intent of that party, because it is dictated by existing legal principles. For example, if a person dies without a will, his heirs are determined by operation of law. Similarly, if a person marries, if:

• the tenant commits waste Waste is a term used in the law of real property to describe a cause of action that can be brought in court to address a change in condition of real property brought about by a current tenant that damages or destroys the value of that property. A lawsuit for waste can be brought against a life tenant or lessee of a leasehold estate, either by a against the property;
• the tenant attempts to assign An assignment is a term used with similar meanings in the law of contracts and in the law of real estate. In both instances, it encompasses the transfer of rights held by one party—the assignor—to another party—the assignee. The legal nature of the assignment determines some additional rights and liabilities that accompany the act his tenancy;
• the landlord transfers his interest in the property;
• the landlord leases the property to another person;
• the tenant or the landlord dies.

Lease expiration

Depending on the laws in force in a particular jurisdiction, different circumstances may legally arise where a tenant remains in possession of property after the expiration of a lease.

Tenancy at sufferance

A tenancy at sufferance (sometimes called a holdover tenancy) may exist when a tenant remains in possession of property even after the end of the lease, until the landlord acts to eject the tenant. The occupant may legally be a trespasser In the law of tort, property, and criminal law a trespasser is a person who commits the act of trespassing on a property, that is, without the permission of the owner. Being present on land as a trespasser thereto creates liability in the trespasser, so long as the trespass is intentional. At the same time, the status of a visitor as a trespasser at this point, and the possession of this type may not be a true estate in land, even if authorities recognize the condition to hold the tenant liable for rent. The landlord may be able to evict Eviction is the removal of a tenant from rental property by the landlord. Depending on the laws of the jurisdiction, eviction may also be known as unlawful detainer, summary possession, summary dispossess, forcible detainer, ejectment, and repossession, among other terms. Nevertheless, the term eviction is the most commonly used in communications such tenant at any time, without notice.

The landlord may also be able to impose a new lease on the holdover tenant. For a residential tenancy, such new tenancy lasts month to month. For a commercial tenancy of more than a year, the new tenancy is year to year; otherwise, the tenancy lasts for the same length of time as the duration under the original lease. In either case, the landlord can charge a higher rent, if the landlord, before the expiration of the original lease, has notified the tenant of the increase.

Continuation tenancy

In some jurisdictions, the tenant has a legal right to remain in occupation of the premises after the end of a lease unless the landlord complies with a formal process to dispossess the tenant of the property. For example, in the United Kingdom The United Kingdom of Great Britain and Northern Ireland[note 7] is a sovereign state located off the northwestern coast of continental Europe. It is an island country, spanning an archipelago including Great Britain, the northeastern part of the island of Ireland, and many small islands. Northern Ireland is the only part of the UK with a land, a business tenant has a right to continue occupying their demise Demise is an Anglo-Norman legal term for a transfer of an estate, especially by lease. The word has an operative effect in a lease implying a covenant "for quiet enjoyment" after the end of their lease under the provisions of sections 24-28 of the Landlord and Tenant Act 1954 (unless these provisions were formally excluded by agreement before the lease was completed). At the end of their lease they need do nothing but continue payment of rent at the previous level and uphold all other relevant covenants such as to keep the building in good repair. They cannot be evicted unless the landlord serves a formal notice to end the tenancy and successfully opposes the grant of the new lease to which the tenant has an automatic right. Even this can only be done under prescribed circumstances, for example the landlord's desire to occupy the premises himself or to demolish and redevelop the building.

Duties of participants

Duties of landlord

The first is to put the tenant in physical possession of the land at the outset of the lease (the 'English' and majority rule, as opposed to the 'American' rule which only requires the tenant be given legal possession, or the right to possess); the second is to provide the premises in a habitable condition – there is an implied warranty of habitability. If landlord violates either, the tenant can terminate the lease and move out, or stay on the premises, while continuing to pay rent, and sue the landlord for damages (or withhold rent and use breach of implied warranty of habitability as a defense when the landlord attempts to collect rent).

The lease also includes an implied covenant of quiet enjoyment – landlord will not interfere with tenant's quiet enjoyment. This can be breached in three ways.

1. Total eviction of the tenant through direct physical invasion by landlord.
2. Partial eviction – when the landlord keeps the tenant off part of the leased property (even locking a single room). Tenant can stay on the remaining property without paying any rent.
3. Partial eviction by someone other than landlord – where this occurs, rent is apportioned. If landlord claims to lease tenant an area of 1000 square metres but 400 square metres of the area belongs to another person, tenant only has to pay 60% of the rent.

Landlord's tort liability

Under the common law, the landlord had no duties to the tenant to protect the tenant or the tenant's licensees The term is used in the USA law of torts to describe a person who is on the property of another, despite the fact that the property is not open to the general public, because the owner of the property has allowed the licensee to enter. The status of a visitor as a licensee defines the legal rights of the visitor if they are injured due to the and invitees In the law of torts, an invitee is a person who is invited to land by the possessor of the land as a member of the public or one who is invited to the land for the purpose of business dealings with the possessor of the land. The status of a visitor as an invitee defines the legal rights of the visitor if they are injured due to the negligence of, except in the following situations:

1. Failure to disclose latent defects of which the landlord knows or has reason to know. Note that the landlord has no duty to repair, just to disclose.
2. For a short term lease (3 months or less) of a furnished dwelling, the tenants are treated as invitees In the law of torts, an invitee is a person who is invited to land by the possessor of the land as a member of the public or one who is invited to the land for the purpose of business dealings with the possessor of the land. The status of a visitor as an invitee defines the legal rights of the visitor if they are injured due to the negligence of, and the landlord is liable for defects even if the landlord neither knows nor should know of them.
3. Common areas under landlord's control (e.g. hallways in an apartment building An apartment or flat (in British English) is a self-contained housing unit (a type of residential real estate) that occupies only part of a building. Such a building may be called an apartment building, especially if it consists of many apartments for rent. Apartments may be owned by an owner/occupier or rented by tenants (two types of housing), if the landlord failed to use reasonable care in maintaining them.
4. Injury resulting from landlord's negligent repairs – even if the landlord used all due care.
5. Public use, if the following three factors exist:
   1. Landlord knows or should know that the tenant makes public use of the land (e.g. the land is rented for use as a restaurant or a store);
   2. Landlord knows or should know that there is a defect; and
   3. Landlord knows or should know that the tenant will not fix the defect.

Duties of tenant

Under the common law, the tenant has two duties to the landlord. These are to pay rent when it is due, and to avoid waste Waste is a term used in the law of real property to describe a cause of action that can be brought in court to address a change in condition of real property brought about by a current tenant that damages or destroys the value of that property. A lawsuit for waste can be brought against a life tenant or lessee of a leasehold estate, either by a of the property.

A tenant is liable to third party invitees In the law of torts, an invitee is a person who is invited to land by the possessor of the land as a member of the public or one who is invited to the land for the purpose of business dealings with the possessor of the land. The status of a visitor as an invitee defines the legal rights of the visitor if they are injured due to the negligence of for negligent failure to correct a dangerous condition on the premise – even if the landlord was contractually liable.

Show All>>

What Links Here:

Recently Viewed Pages:

• Home
• Search Terms
• Referrers
• Images
• Apartment: Answers
• Apartment: Images
• Apartment: Encyclopedia
• Apartment: Dictionary
• Studio Apartment
• Cutlery

Most Popular Pages:

• Search Terms
• Winnie the Pooh: Images
• Boric Acid: Answers
• Studio Apartment: Images
• Eggs
• Boric Acid and Pets: Answers
• Coklat: Blogs
• Studio Apartment
• Mix Boric Acid: Answers
• Bora Bg: Blogs

Related 'Leasehold Estate' Searches: