A lease is given by a lessor to a lessee to give that lessee the right of possession to the property for a certain period of time. The lessee does not receive ownership, but they receive the right to occupy a residence according to agreement. The lessor must give up possession for the time being, but benefits from the payment of rents. At the end of the agreement, the owner/lessor retakes possession of the property.
A lease both conveys, or transfers possession, and is a contact. Therefore, every lease must contain certain elements. First, a lease must name all parties, including owners and lesses, that are agreeing to the lease. A lease must also identify consideration, which is a promise for a promise, and, in the case of a lease, is the promise of a lessee to pay rent and a lessor to give up current possession. A description of the property and anything included with the property must be included as well as operative words that define the term of the lease and rights and interests for the lessee. Any conditions that must be followed and any covenants, or promises, must be stated as well. Finally signatures of all parties involved must be present on leases longer than a year and the lease itself must be delivered. Delivery is also implied when the tenant takes possession of the property.
A lease ends in multiple ways. If it has a predetermined term, it is referred to as a tenancy for years and ends when the term ends. Notice of the expiration of a lease must be delivered to the tenant and changes according to the terms of leases. A year-to-year tenancy must have a three month notice, a six month tenancy needs one month, a month-to-month tencany needs ten days and a tenancy at will needs three days. A tenant may continue possession if the landlord agrees to renew the lease for a like term. If, however, this is not agreed by the lessor and the tenant remains on the property, they become a tenant at sufferance rather than a tenant at will.
For a lease to end, both parties may agree to terminate the lease by surrender and acceptance. There may also be a breach of condition which can cause a termination or an eviction can occur. The property can also be taken by the government with condemnation, causing the end of a lease or the property can be foreclosed upon.
There are many types of leases in residential and commercial real estate. Below is a list of the most common leases:
I am a real estate professional, serving Boulder and Denver, Colorado. My extensive knowledge of the market, coupled with my commitment to provide extraordinary service, has resulted in hundreds of successful transactions. Let me help you buy or sell your home.