Unit 17
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Actual Eviction
The physical removal of a tenant from the premises by legal process after a court order. Also called forcible detainer.
After winning an eviction lawsuit, the landlord obtains a court order and the sheriff physically removes the tenant.
Assignment
The transfer of the tenant's entire remaining lease term to another party. The original tenant remains liable unless released by the landlord.
The tenant assigns the remaining 18 months of their lease to a new tenant, but stays secondarily liable if the new tenant defaults.
Cash Rent
A lease where the tenant pays a fixed amount of rent in cash or check, regardless of crop yield or business income.
A farmer pays the landowner a fixed $50,000 cash rent per year regardless of how much corn is harvested.
Constructive Eviction
When the landlord's actions (or failure to act) make the premises uninhabitable, forcing the tenant to move out. The tenant may be released from the lease.
After months of unaddressed sewage backups and no heat, the tenant claims constructive eviction and moves out.
Estate at Sufferance
A tenancy that continues after the lease expires without the landlord's consent. The tenant is a holdover and may be evicted.
A tenant stays in the apartment two weeks after the lease ends without permission. They are now a tenant at sufferance.
Estate at Will
A tenancy that can be terminated at any time by either party with proper notice. No fixed term.
A friend is allowed to stay in a spare room with no lease and can be asked to leave with reasonable notice.
Estate for Years
A leasehold estate with a fixed beginning and ending date. The most common type of lease. Also called tenancy for years.
A one-year apartment lease from January 1 to December 31 creates an estate for years.
Estate from Period to Period
A tenancy that automatically renews for successive periods (month-to-month or year-to-year) until terminated by proper notice.
After the original lease expires, the tenant stays month-to-month. This is an estate from period to period.
Gross Lease
A lease where the tenant pays a fixed rent and the landlord pays all operating expenses (taxes, insurance, maintenance). Common for residential leases.
In a gross lease, the tenant pays $1,800 per month and the landlord covers property taxes, insurance, and repairs.
Ground Lease
A long-term lease of land only, where the tenant owns the building and improvements. Often 50–99 years.
A developer leases land for 99 years and constructs an office building on it under a ground lease.
Holdover Tenancy
A tenancy that continues after the lease term expires. May become a month-to-month tenancy or tenancy at sufferance depending on landlord consent.
The tenant remains in the apartment after lease expiration with the landlord's acceptance of rent, creating a holdover tenancy.
Implied Warranty of Habitability
A legal doctrine that requires landlords to maintain residential property in a habitable condition. Cannot be waived by the tenant.
A landlord must ensure the apartment has working heat, plumbing, and is free from serious defects under the implied warranty of habitability.
Lease
A contract between landlord and tenant that grants the tenant the right to exclusive possession of the property for a specified period in exchange for rent.
The signed lease agreement outlines the rent amount, term, rules, and responsibilities of both parties.
Leasehold Estate
An estate that gives the tenant the right to possess and use the property for a limited time. Created by a lease.
A 12-month apartment lease creates a leasehold estate for the tenant.
Lease Purchase
An agreement where the tenant has the option or obligation to purchase the property at a later date, with part of the rent sometimes applied to the purchase price.
A lease-purchase agreement allows the tenant to buy the home after three years, with 20% of rent credited toward the down payment.
Month-to-Month Tenancy
A periodic tenancy that renews automatically each month until terminated by proper notice (usually 30 days).
After the one-year lease ends, the tenant stays month-to-month and can move out with 30 days' notice.
Net Lease
A lease where the tenant pays rent plus some or all of the operating expenses (taxes, insurance, maintenance). Common in commercial leases.
In a triple net lease, the commercial tenant pays rent plus property taxes, insurance, and maintenance costs.
Nondisturbance Clause
A clause in a lease or mortgage that protects the tenant's right to remain in possession if the property is sold or foreclosed.
A nondisturbance clause ensures the tenant can stay even if the landlord defaults on the mortgage.
Percentage Lease
A commercial lease where the tenant pays a base rent plus a percentage of gross sales. Common for retail stores in shopping centers.
A retail store pays $5,000 base rent plus 6% of monthly gross sales under a percentage lease.
Rental-Finding Service
A business that charges a fee to help tenants locate rental properties. Must be licensed in Illinois if performing brokerage activities.
A company that charges tenants a fee to find apartments must have a real estate license in Illinois.
Reversionary Right
The landlord's right to regain possession of the property when the lease term ends.
When the lease expires, the landlord's reversionary right allows them to take back possession of the apartment.
Right of First Refusal
A clause giving the tenant the first opportunity to purchase the property if the landlord decides to sell, usually on the same terms offered by a third party.
The lease includes a right of first refusal, so if the landlord receives an offer to buy the building, the tenant gets to match it first.
Security Deposit
Money paid by the tenant to the landlord to cover potential damages or unpaid rent. Must be handled according to Illinois law, including interest requirements in some cases.
The landlord collects a security deposit equal to one month's rent and must follow Illinois rules for holding and returning it.
Sublease
A lease from the original tenant to a new tenant for part or all of the remaining lease term. The original tenant remains liable to the landlord.
The tenant subleases the apartment for the summer while studying abroad, but remains responsible if the subtenant damages the unit.