CH 9 TRANSACTIONS USED Iin REAL ESTATE TRANSACTIONS part 2.pdf.docx

Commercial leases are typically tenancy for years a

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Commercial leases are typically tenancy for years. A tenancy for years lease has a fixed term and definite end date. A tenancy for years does not necessarily continue for years, as the term may suggest. It can be for a ___________________________________________________________ Unit 9: Contracts Used In Real Estate Transactions II 330
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period of days, weeks, months, or years. A tenancy for years is also called a year-to-year tenancy. Since the end date is mutually agreed upon, notice to terminate is not required. However, if the landlord chooses to require notice from the tenant before the property is vacated, the agreement must include this requirement as a provision in the lease contract. These leases frequently include a renewal option clause in which the landlord and tenant agree to allow the extension of the lease under certain specific terms. It is important to know that the obligations of a lease do not end upon the death of the tenant or the owner. The heirs remain liable under its terms. Tenancy at Sufferance A tenancy at sufferance occurs when a tenant continues to occupy the property after the expiration of a lease, without having signed a new lease agreement. The tenant is called a holdover tenant . The landlord may require the holdover tenant to sign a new agreement. This new tenancy is month-to-month for a residential tenancy. For a commercial tenancy of more than a year, the new tenancy is year-to-year; otherwise, it is the same period as the period in the original lease. In either case, the landlord can raise the amount of rent as long as the tenant is informed of the higher rent. This must be done in writing and delivered to the tenant at the appropriate time as prescribed by the original lease. The landlord has the option to evict a holdover tenant at any time without notice, as long as the landlord follows the proper procedures. If the landlord is evicting the holdover tenant, the landlord should not accept rent money from the tenant. If the landlord accepts rent, he or she is effectively giving the tenant permission to remain in possession of the property. Unless the tenant leaves the property, a tenancy at sufferance may only be ended when the tenant is legally evicted. Tenancy at Will When there is no written agreement between the landlord and tenant, the tenancy is a tenancy at will . The tenancy may be ended by the unilateral decision of either party. A tenancy at will is a rental agreement that endures as long as both parties are willing. Therefore, a tenancy at will is not for a definite period of time. A tenancy at will automatically terminates upon the death or incapacity of the landlord or the tenant and is not transferable or assignable. The Texas Property Code requires a threeday notice for the landlord to evict under a tenancy at will unless the parties have contracted for a shorter or longer notice period in a written lease or agreement.
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  • Fall '19
  • Leasehold estate

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