Types of Leases Flashcards

Types of Leases Flashcards Gross LeaseRent is a fixed payment amount for tenant. Lessor pays all property expenses Lease-OptionLease with option to buy or re-lease Percentage LeaseBase rent is paid plus a percentage of lessee's gross sale volume. Common in leasing retail space, especially in shopping malls Graduated LeaseLease with an Escalator Clause that calls for increases/decreases in rent at specified intervals Sale LeasebackOwner sells the property to an investor and at the same time leases the property back from the investor Net LeaseTenant pays a fixed amount plus the property expenses, including utilities, real estate taxes, insurance premiums and maintenance. Lessor remains liable for mortgage payments (debt service) Ground LeaseLease for the land only Index LeaseRent is tied to an index, such as the Consumer Price Index.Can go up or down Anchor LeaseLease with a major tenant such as a department store or supermarket Sandwich LeaseLease with a sub-lease Surrender and AcceptanceMutual agreement to end the lease Proprietary LeaseLease in a co-op in which the tenant has the right to rent a particular unit Condemnation ClauseCancels lease if eminent domain is exercised. Usually found in a commercial lease