Lease Agreement with Option to Purchase Contract
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Farm Building Rent Presentation
Building Rent What’s a Fair Value? Ken Bolton UW‐Extension Center For Dairy Profitability Arriving at a Fair Rental Value • For whom? • Landlord? • Renter? • Both? – High/Low approach Arriving at a Fair Rental Value Landlord Renter • High • High – Out –of‐pocket costs, PLUS – Full ownership cost – Annual ownership costs • Low • Rate of return on Investment – Less than • Low (Out Of Pocket) • Taxes – Taxes • Insurance – Insurance • Repairs – Repairs? Arriving at a Fair Rental Value • Full ownership cost – Actual costs for • Taxes‐ (1‐1.5% of building’s market value) • Insurance‐ (0.5‐1.0% “) • Repairs‐ (1.0‐1.5% “) ‐PLUS‐ • Capital Recovery Charge (CRC) – Depreciation (0‐5%) – Interest on investment‐ CD rate Arriving at a Fair Rental Value • What’s a Building Worth? – Market value – Insured value – Assessed value – Appraised value – Replacement cost MINUS depreciation – Contributory value • Farm value‐land value Real Estate Tax Bill Arriving at a Fair Rental Value • “Improvements” – House‐ 4 bedroom, finished basement built 1996 – Shop‐ 40’ X 60’, 4‐ season built 2004 – Pole barn ‐ 40’ X 60’ built 2004 Arriving at a Fair Rental Value • “Fair” market Value • Using The Real Estate Tax Bill – Assessed value of Improvements ‐ value of improvements not to be rented= value building to be rented – $274,700 – ($214,700 house + 50,000 shop) = • $10,000 pole barn – 40’ X 60”= 2400 ft.2 = $4.17/ft.2 Arriving at a Fair Rental Value • Real Estate Tax Bill, continued – $10,000 building value X 2.5% (taxes, insurance, repairs) = • $250 – $10,000 building value X 3% (depreciation) = • $300 – $10,000 building value X 1% (hopeful CD rate) = • $100 – Total ($250 + 300 + 100) = • $650/year/ $54.17/month (add value of technology) • $250 min. -
Long-Term Leases: Rent Reset Analysis
Peer-Reviewed Article Long-Term Leases: Rent Reset Analysis by Tony Sevelka, MAI, SRA, AI-GRS Abstract A provision for resetting rent is often found in long-term leases, with the objective being to periodically analyze the value attributed to the leased real estate. The property rights to be valued at each rent reset depend on the language of the lease, especially the rent reset clause. The lack of specificity associated with use of the term market value has led to questionable application of the term in rent resets. Inconsistent interpretations of a lease can lead to divergent opin- ions of value. Sometimes rent resetting provisions have no connection to the terms of the lease or the actual property rights; this may result in situations where it is difficult to apply conventional appraisal methods. This article summarizes and discusses a sample of rent reset cases and explores creative valuation solutions to rent reset valuation challenges. Introduction rent reset is dictated by the provisions of the lease, and the lease usually calls for arbitration if Rent reset clauses are typically found in long- the landlord and tenant are unable to negotiate a term leases for land (unimproved or improved).1 new rent within a specified time frame. A lease is “a contract in which the rights to use A rent reset analysis for a land lease has the and occupy land, space, or structures are trans- same objective as for a space lease—quantifying ferred by the owner to another for a specified a new rent—unless the land lease only calls for a period of time -
1400 Co Ownership and Condominium
1400 CO-OWNERSHIP AND CONDOMINIUM Marshall E. Tracht Associate Professor, Hofstra University School of Law © Copyright 1999 Marshall E. Tracht Abstract Co-ownership refers to legal relations in which two or more entities have equal rights to the use and enjoyment of property. Co-ownership relationships may satisfy the preferences of some owners, and predefined categories of co-ownership, as opposed to contractually defined relations, may allow parties to satisfy these preferences at relatively low cost. However, shared ownership results in coordination and externality problems, which the law attempts to mitigate in numerous ways, including judicial oversight of ‘reasonableness’ (as in the law of waste) or fiduciary duties; ending the co-ownership relation (through the right of partition) or providing rules that seek to optimize the joint decision-making process (such as compulsory unitization). A major area of growth in shared ownership is in condominium developments, where entities own some property individually, while co-owning common facilities. This permits parties to take advantage of economies of scale and the joint provision of common goods. Condominium arrangements are governed by a combination of contract, statute and judicial law, and typically include democratic decision-making structures intended to minimize the sum of decision-making costs (gathering information, voting, and bargaining) and the cost of erroneous decisions. JEL classification: K11, P32, H41 Keywords: Cotenancy, Co-ownership, Condiminium, Cooperative, Communal Ownership 1. Introduction Co-ownership refers to legal relationships that entitle two or more entities to equal rights to the use and enjoyment of property. Although it most often arises in the context of real property, co-ownership may apply to any type of property. -
CTCAC GOOD CAUSE EVICTION LEASE RIDER (To Be Attached to Resident Lease)
CTCAC GOOD CAUSE EVICTION LEASE RIDER (to be attached to resident lease) Property Name:______________________________________ Unit #___________ Household Name:____________________________________ Dear Resident or Applicant: The owner(s) of this property rents residential units under the federal Low-Income Housing Tax Credit Program (the “program”) administered by the California Tax Credit Allocation Committee (TCAC). Under the program, the owner has agreed to rent some or all of the units in the property to low-income households and restrict the rents for those units. Another protection provided by federal law is that Low Income Tenants may not be evicted without good cause. The following Lease Rider is an important part of ensuring your rights to good cause for eviction. The Lease or Rental Agreement dated ________________ is hereby amended by adding the following provision: Lease Rider: Good Cause for Eviction Owner may not terminate the tenancy the Lease or rental agreement of a Low Income Tenant except for good cause, including a serious or repeated violation of the material terms and conditions of the Lease, or a violation of applicable Federal, State, or local law. To terminate the tenancy the Lease, Owner must provide written notice to the tenant of the grounds with sufficient specificity to enable the tenant to prepare a defense. The notice must be served at least three days before the termination of tenancy, and must comply with all requirements of California law and other applicable programs. Tenant has the right to enforce this requirement in state court, including presenting a defense to any eviction action brought by Owner. -
1 Property Taxes and Residential Rents Leah J. Tsoodle & Tracy M
Forthcoming. Journal of Real Estate Economics, 2008, 36(1), pp. 63-80. Property Taxes and Residential Rents Leah J. Tsoodle & Tracy M. Turner Abstract. Property taxes are a fundamental source of revenue for local governments, comprising 73% of local government tax revenue in the United States. In this paper, we empirically investigate the impact of residential property taxes on residential rents. Using data from the American Housing Survey and the National League of Cities, we estimate numerous specifications of a hedonic rent equation with comprehensive unit-level, neighborhood-level and city-level controls. We find that a one standard deviation increase in the property tax rate raises residential rents by roughly $400 annually. ______________________ Tsoodle: Coordinator, State of Kansas Land Use-Value Project. Turner: Department of Economics, Kansas State University. We thank Allen Featherstone, John Crespi, Bryan Schurle, Dong Li, and session participants at the American Real Estate and Urban Economics May 2005 conference for valuable feedback. We thank Matt Gardner for a helpful discussion, Jack Goodman for generously calculating some statistics for us, and two anonymous reviewers for helpful comments. We especially thank Editor Coulson for his insights and guidance. Tsoodle gratefully acknowledges funding from the U.S. Department of Housing and Urban Development Early Doctoral Research Program. 1 I. Introduction Property taxes are a fundamental source of revenue for local governments, comprising 73% of local government tax revenue in the United States (Statistical Abstract, 2006), and an extensive literature examines their economic impacts. By extending and empirically testing the Tiebout (1956) model, much of this research investigates the extent to which property taxes and public services are capitalized into house prices, and whether household mobility and local government competition can lead to an efficient provision of local public services. -
Condominium: a Reconciliation of Competing Interests?
Vanderbilt Law Review Volume 18 Issue 4 Issue 4 - A Symposium on Small Article 7 Business Symposium on Small Business 10-1965 Condominium: A Reconciliation of Competing Interests? James C. Clark Follow this and additional works at: https://scholarship.law.vanderbilt.edu/vlr Part of the Property Law and Real Estate Commons, and the Tax Law Commons Recommended Citation James C. Clark, Condominium: A Reconciliation of Competing Interests?, 18 Vanderbilt Law Review 1773 (1965) Available at: https://scholarship.law.vanderbilt.edu/vlr/vol18/iss4/7 This Note is brought to you for free and open access by Scholarship@Vanderbilt Law. It has been accepted for inclusion in Vanderbilt Law Review by an authorized editor of Scholarship@Vanderbilt Law. For more information, please contact [email protected]. NOTES Condominium: A Reconciliation of Competing Interests? I. INMRODUCTION As Americans have migrated to urban areas, the suburbs have grown at an astounding pace, principally by means of single home sub- divisions. Of necessity, this march to the suburbs must cease at some point and people will begin to return to the central city and its close- lying peripheral areas if for no other reason than to lessen the heavy economic burden resulting from man-hours wasted in commuting great distances. Often the alternative to the suburban home is an apartment in the city. Apartment renting, however, runs counter to a deeply ingrained American tradition of individual home ownership, a tradition encouraged by favorable tax consequences.' It seems only 1. The homeowner may deduct state and local, and foreign real property taxes, INT. -
Business Income – Landlord As Additional Insured (Rental Value)
POLICY NUMBER: COMMERCIAL PROPERTY CP 15 03 06 07 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. BUSINESS INCOME – LANDLORD AS ADDITIONAL INSURED (RENTAL VALUE) This endorsement modifies insurance provided under the following: BUSINESS INCOME (AND EXTRA EXPENSE) COVERAGE FORM BUSINESS INCOME (WITHOUT EXTRA EXPENSE) COVERAGE FORM SCHEDULE Description Of Rented Premises: Name Of Additional Insured: Mailing Address Of Additional Insured: Applicable Business Income Causes Of Coverage Form Coinsurance Loss Form (Enter Form Number) Limit Of Insurance Percentage $ % Endorsements, If Any, Supplementing Or Restricting The Covered Causes Of Loss With Respect To The Coverage Provided Under This Endorsement: Information required to complete this Schedule, if not shown above, will be shown in the Declarations. A. The person or entity identified in the Schedule is C. With respect to the coverage provided under this insured for loss of "Rental Value", up to the Limit endorsement, the definition of "Rental Value" is of Insurance shown in the Schedule. Such cover- replaced by the following: age applies in accordance with all terms of Busi- "Rental Value" means the: ness Income – "Rental Value" Coverage under the applicable Business Income Coverage Form, and 1. Net income that would have been earned as all conditions in the Common Policy Conditions rental income from tenant occupancy of the and Commercial Property Conditions, except as premises described in the Schedule, as fur- otherwise provided in this endorsement or other nished and equipped by the Additional Insured; applicable endorsement. and B. The Causes Of Loss Form shown in the Schedule 2. Amount of continuing normal operating ex- applies to the coverage provided under this en- penses which are the legal obligation of the dorsement. -
Real Property Co-Ownership and Mineral Developments
University of Tulsa College of Law TU Law Digital Commons Articles, Chapters in Books and Other Contributions to Scholarly Works 1997 A Tale of Two Owners: Real Property Co- Ownership and Mineral Developments Marla Mansfield Follow this and additional works at: http://digitalcommons.law.utulsa.edu/fac_pub Part of the Oil, Gas, and Mineral Law Commons Recommended Citation 43 Rocky Mtn. Min. L. Inst. 20-1 (1997). This Article is brought to you for free and open access by TU Law Digital Commons. It has been accepted for inclusion in Articles, Chapters in Books and Other Contributions to Scholarly Works by an authorized administrator of TU Law Digital Commons. For more information, please contact [email protected]. --- STITUTE 19-60 ' gas might not attract as Chapter 20 :re stated to be a penalty A TALE OF TWO OWNERS: zlements of the definition REAL PROPERTY GO-OWNERSHIP AND MINERAL DEVELOPMENT y. If Shipper delivers Unautho- r's System, then such Unautho- ned by, the Unauthorized Gas @MarlaE. Mansfield it of Policies and Procedures. Professor of Law The University of Tulsa, College of Law t doesn't meet all of the Tulsa, Oklahoma r scheduled gas. Because to that unauthorized gas statement of Policies and Synopsis :opy of that Statement of .e agreement is signed, Q 20.01 Introduction ;o revise it later, without !asily make unauthorized [I] The Concept of Owning Together n those specified in the [21 Inherent Problems with Concurrent Ices. A general require- Ownership acts might limit Gather- Q 20.02 Tenants-in-Common and Non-Mineral [re -
HUD Section 8 Model Lease
OMB Approval No. 2502-0204 (Exp. 06/30/2017) MODEL LEASE FOR SUBSIDIZED PROGRAMS (A) 1. Parties and The parties to this Agreement are ____ ____ Dwelling ____________________, referred to as the (B) Unit: Landlord, and ______________________________ ____________________________, referred to as the Tenant. The Landlord leases to the Tenant(S) unit number(C) __ ____, located at (D) __________________________ _______________________________________ in the project known as______(E) _______________________________. 2. Length of Time The initial term of this Agreement shall begin (Term): on(F) ____ _____ and end on(G) ____ _____. After the initial term ends, the Agreement will continue for successive terms of one(H) _______ ____ each unless automatically terminated as permitted by paragraph 23 of this Agreement. (I) 3. Rent: The Tenant agrees to pay $____ __ for the partial month ending on(J) _____ ______. After that, Tenant agrees to pay a rent of $_(K) _ per month. This amount is due on the(L) ____ ____ day of the month at (M) ____________________ ___________________________________________ __________________________________________________________________. The Tenant understands that this monthly rent is less than the market (unsubsidized) rent due on this unit. This lower rent is available either because the mortgage on this project is subsidized by the Department of Housing and Urban Development (HUD) and/or because HUD makes monthly payments to the Landlord on behalf of the Tenant. The amount, if any, that HUD makes available monthly on behalf of the Tenant is called the tenant assistance payment and is shown on the "Assistance Payment" line of the Owner’s Certification of Compliance with HUD’s Tenant Eligibility and Rent Procedures form which is Attachment No. -
Apartment | Select | Ebrochure
Apartment CORE COVERAGE HIGHLIGHTS Travelers Apartment business • Employee dishonesty: General liability highlights – Coverage is included up to $25,000 (with an option General liability coverage protects you against claims for owners policy offers an to cover property managers as employees). Limit may damages because of bodily injury or property damage to affordable way for you to be increased others resulting from your business operations. • Equipment breakdown: • General liability limits of $1 million per occurrence/ obtain property and liability – Coverage for equipment breakdown is included within $2 million aggregate are standard for Apartment Pac and applicable limits Apartment Pac Plus with an option for higher limits of insurance. This policy includes – Diagnostic equipment, power-generating equipment $2 million per occurrence/$4 million aggregate available key coverages that are important and production equipment are limited to $100,000 for for Apartment Pac direct damage. Limit may be increased • Bodily injury and property damage liability – Service interruption of water, communication or power to any business, and also offers • Medical payments for $5,000 per person supply services is covered from a covered breakdown (when business income and extra expense is covered) • Damage to premises rented to you is included up to additional business-specific $300,000. Limit may be increased • Newly acquired or constructed buildings: options that are important for • Host liquor liability – Coverage is provided for newly acquired or constructed any apartment owner. buildings up to $500,000 for up to 180 days • Limited worldwide coverage • • Ordinance or law coverage: Personal and advertising injury Property highlights • Premises liability – Coverage is included for a combined limit of $25,000 at Property coverage covers your building and business personal each described premises. -
In the United States Court of Federal Claims the National
IN THE UNITED STATES COURT OF FEDERAL CLAIMS THE NATIONAL APARTMENT ) ASSOCIATION, DARBY DEVELOPMENT ) COMPANY, INC., GWR MANAGEMENT, ) Case Number LLC, MCLEAN INVESTMENTS, LLC, ) ________________________________ SHANDER INTERNATIONAL, LLC, ) ) Plaintiffs, ) COMPLAINT ) v. ) ) THE UNITED STATES OF AMERICA, ) ) Defendant. ) ) Plaintiffs (“Plaintiffs”), by and through their undersigned counsel, bring this Complaint against the United States of America (“Government”), and in support state and allege as follows: I. NATURE OF THE ACTION 1. On September 4, 2020, the Centers for Disease Control and Prevention (“CDC”), a Government agency, issued a nationwide order entitled “Temporary Halt in Residential Evictions to Prevent Further Spread of COVID-19” (the “CDC Order”). The CDC Order effectively prohibits property owners from evicting tenants of residential rental properties who are delinquent or in default on their rent payments, contrary to the property owners’ legal, contractual, and constitutional property and other rights. The CDC Order has been extended multiple times and will be effective by its terms until at least July 31, 2021. The CDC Order has subjected property owners nationwide, over their objection, to an extended Government-authorized physical invasion, occupation, or appropriation of their private property by third parties without compensation. 2. Under settled constitutional law, the right to exclude is a fundamental element of property rights and falls within the category of interests that the Government cannot take without just compensation. As a result of the CDC Order and their consequent inability to exercise their constitutional property rights and contractual rights, property owners in the United States have suffered enormous economic consequences. Without limitation, while continuing to incur all costs of ownership, they have been unable to evict non-rent-paying tenants from rental units and to generate income by leasing those units to rent-paying tenants. -
THE BASICS: Commercial Leases
THE BASICS: Commercial Leases Adam M. Silverman Cozen O’Connor 1900 Market Street | Philadelphia, PA 19103 215.665.2161 | [email protected] TABLE OF CONTENTS Introduction ................................................................................................. 1 The Granting Clause ..................................................................................... 2 The Commencement Date ........................................................................... 3 Rent .............................................................................................................. 4 Permitted Use – Exclusives .......................................................................... 6 Tenant Improvements ................................................................................. 7 Maintenance ................................................................................................ 8 Insurance – Waiver of Subrogation ........................................................... 10 Default – Remedies .................................................................................... 11 Assignment And Subletting ........................................................................ 12 Subordination – Estopple Certificates ....................................................... 13 © 2010 Cozen O’Connor. All Rights Reserved. Comments in this article are not intended to provide legal advice. The analysis, conclusions, and/or views expressed herein do not necessarily represent the position of the law firm of Cozen O’Connor