Types of Leases
Jill lives in an apt downtown but is going to Europe for the next 8 months. Noah asks Jill if he can rent his apartment while she is MIA. What is the name of the lease they would use if Noah rents Jill's place while she is away?
What is a Sublease?
In our Legacy world, the Lessor, Property Owner, Licensor, and Mortgagee.
What is Landlord?
Things can become messy when negotiating a commercial lease. From a first call to lease execution, how long should Legacy clients plan lease negotiations to last?
What is 1-2 months?
Minimum amount of money due under the terms of the rental agreement
What is Base Rent
Operating And Easement Agreement. Limitations and guidelines for operation due to Association/development constraints.
What are OEAs?
John is renting space to Joe so he can open the distillery of his dreams. John plans to charge Joe one flat rate per month which includes charges regularly incurred by the property, taxes, utilities, and water. What kind of lease is John planning to use?
What is a Gross Lease / Full Service?
The person who has legal obligations related to the lease contract
What is Guarantor?
The number one item struck in our Legacy lease template, if that Tenant managed to read each page of the Lease.
What is a Confession of Judgment
The square footage that is rented to be used exclusively by the tenant including private restrooms, closets, storage, and any other areas used only by the tenant.
What is Usable Square Feet
Covenants, Conditions, and Restrictions
What are CCRs?
Justin is going to lease his retail space to Jane so he can open his first flower shop and make gazillions. Justin wants to use a lease that includes property taxes, property insurance, and maintenance of the common area paid based on the square footage of the property Jane will occupy. What kind of lease does he want to use?
What is a Triple Net Lease?
Real estate professional whose job is to locate a client's/buyer’s next property
What is Buyer’s agent/listing agent?
A very influential part of the success of a brick-and-mortar business and should be greatly considered in the selection of a rental property.
What is the Business Location
Total square footage of the space being leased usually excluding common areas like a lobby.
What is Gross Square Footage
Signed but not quite yet commenced
What is SNC?
Nick is looking for a large space to manufacture his own pet rocks. Matt owns a large warehouse and is looking to rent it out for the next 10 years. He will rent the space to Nick on the condition he pays base rent at the beginning of the lease, but in later years will pay the base plus a share of some of the other costs associated with the property, such as property taxes, utilities, insurance, and maintenance. What type of lease agreement is Matt trying to use?
What is a Modified Gross Lease?
The act of taking over a portion or all of your land and property based on an improvement or need of the greater good.
What is a Eminent Domain?
The amount a landlord is willing to spend so that the tenant can retrofit or renovate the space. A consideration for the base psf quote.
What are Tenant Allowances
Clause in a lease agreement that states the amount a landlord can increase rent each year.
What is an Escalation Clause
Common Area Maintenance Reconciliation
What is a CAM Rec?
Dan graduated with honors from an Ivy League school. Given his lack of general life skills and employability and plethora of stereotypical millennial ways, he resides with family in exurbia Illinois. What kind of lease does Dan live under?
Who is Your Mom?
The process of examining the property, related documents, and procedures conducted by the purchaser to reduce risk and ensure the actual conditions reflect the information represented by the lessor/seller. The process of confirming that your proposed operation will work in this location.
What is Due Diligence?
In the event of loan default, a business owner must offer what in case the loan can’t be paid off from the assets or cash flow of the business
What is a Personal Guarantee
The process of finishing the initial raw space to meet the specific needs of the tenant.
What is a Build Out
Who is the King of Acronyms at Highland/Legacy?
Who is Sean Coyle?