Real Estate Lawyer Indianapolis IN

LEASES

Definition and Nature

The agreement by which one party holds possession of the real property owned by another is a lease. The person who owns the real property is known as the lessor or landlord. The lessee, or tenant, is the one who occupies the property.

Creation of the Lease Relationship

The relationship of landlord and tenant is created by contract. An oral lease is valid at common law, but statutes in most States require written leases for certain tenancies. For example, many States provide that a lease for a term exceeding three years must be in writing. Statutes in other States require written leases when the term exceeds one year.

Essential Elements

The following elements are necessary to the establishment of the relationship of landlord and tenant:

1. The occupying of the land must be with the consent of the landlord;
2. A reversionary interest in the land must remain in the landlord; that is, the landlord must be entitled to retake the possession of the land upon the expiration of the lease; and
3. The tenant must have present possession in the land. This means a right to be in possession of the land now.

Classification of Tenancies

Tenancies are classified by duration as tenancies for years, from year to year, at will, and by sufferance. A tenancy for years is one under which the tenant has an estate of definite duration. The term for years is used to describe such a tenancy even though the duration of the tenancy is for only one year or for less than a year. A tenancy from year to year is one under which a tenant, holding an estate in land for an indefinite duration, pays an annual, monthly, or weekly rent. A distinguishing feature of this tenancy is the fact that it does not terminate except upon proper notice. In almost all States a tenancy from year to year is implied if the tenant holds over after a tenancy for years with the consent of the landlord.

When land is held for an indefinite period, which may be ...