Lease
In the United States, since it also represents a conveyance of possessory rights to real estate, it is a hybrid sort of contract that involves qualities of a deed.
The narrower term 'tenancy' describes a lease in which the tangible property is land (including at any vertical section such as airspace, storey of building or mine).
A gross lease or tenancy stipulates a rent that is for the global amount due including all service charges.
Influenced by land registration, commonly tenancies initially granted for more than a year are referred to more simply as leases.
The most common form of real property lease is a residential rental agreement between landlord and tenant.
[7] As the relationship between the tenant and the landlord is called a tenancy, this term generally is also used for informal and shorter leases.
A license may be seen in the form of a ticket to a baseball game or a verbal permission to sleep a few days on a sofa.
The difference is that if there is a term (end time), a degree of privacy suggestive of exclusive possession of a clearly defined part, practised ongoing, recurrent payments, a lack of right to terminate save for misconduct or nonpayment, these factors tend toward a lease; by contrast, a one-time entrance onto someone else's property is probably a license.
[8] To circumvent privity of estate which is the general principle flowing from privity of contract, laws exist in several jurisdictions to bind subtenants to some of the restrictive covenants (terms) of the headlease, for instance in England and Wales those which have been held by courts to touch and concern the land.
This gives tenants the ability to commit to a piece of property before any other potential buyers have the opportunity.
With the growth of consumerism, consumer protection legislation recognized that common law principles, which assume equal bargaining power between the contracting parties, create hardships when that assumption is inaccurate.
Consequently, reformers have emphasized the need to assess residential tenancy laws in terms of protection they provide to tenants.
At common law 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" or "until the war is over").
Such a tenancy is generally "at will," meaning the tenant or the landlord may terminate it at any time, upon the providing of proper statutory notice.
For jurisdictions that have local rent control laws, a landlord's ability to terminate a residential tenancy is substantially reduced.
For example, in California, the cities of Los Angeles, Santa Monica, West Hollywood, San Francisco, and Oakland have "rent stabilization ordinances" that limit a landlord's ability to terminate a periodic tenancy, among other restrictions.
The notice must also state the effective date of termination, which, in some jurisdictions, must be on the last day of the payment period.
Under the modern common law, a tenancy at will without compensation is very rare, partly because it comes about only if the parties expressly agree that the tenancy is for no rent, commonly where a family member is allowed to live in a home (a nominal consideration may be required) without any formal arrangements.
In most residential tenancies for a fixed term, for consideration, the tenant may not be removed except for cause, even if there is no written lease.
For example, the changing of locks by the landlord is an indication of the end of the tenancy, as is the vacation of the premises by the tenant.
Formal requirements for a lease are determined by the law and custom of the jurisdiction in which real property is located.
In the case of personal property, it is determined by the law and custom of the jurisdiction in which the rental agreement is made.
[citation needed] A tenancy for a duration greater than one year must be in writing in order to satisfy the Statute of Frauds.
In New Zealand you may have to specifically endorse a promise that the car will not be driven onto Ninety-Mile Beach (because of the hazardous tides).
A renter should be advised that he or she will be responsible for any tolls, parking or traffic violations incurred upon the vehicle during the rental period.
Finally, there may be provisions for making a non-refundable deposit with a booking, terms for payment of the initial period (with discounts, vouchers, etc.
The real estate may be rented for housing, parking vehicles, storage, business, agricultural, institutional, or government use, or other reasons.
Other regulations may require the landlord to submit a list of pre-existing damage to the property, or forfeit the security deposit immediately (because there is no way to determine whether a prior tenant was responsible).
This policy can also cover liabilities arising from accidents and intentional injuries for guests as well as passers-by up to 150' of the domicile.
Common coverage areas are: Additional events including riot, aircraft, explosion, hail, falling objects, volcanic eruption, snow, sleet, and weight of ice may also be covered.
