EAGLESTAR.NET LAND AND PROPERTY REVIEW
http://www.eaglestar.net
Issue #23
June 30, 2008

IN THIS ISSUE:
Property of the Week: NC Waterfront Lot
Real Estate Roundup: Valid Lease Requirements
Sponsor's Corner
Auction News
Landterms.com Term of the Week: Furlong


"For a man's house is his castle, et domus sua cuique est tutissimum refugium
(and each man's home is his safest refuge)". - Edward Coke (English
jurist, b. 1552 - d. 1634)


PROPERTY OF THE WEEK
Waterfront Lot on Intercoastal Waterway, Salter Path, North Carolina
Ready-to-build lot with frontage on the sound, 0.5+/- acres. Located on the
Intercoastal Waterway in Salter Path, NC - a small 200-yr old fishing village.
Has septic, water, power, dock, shed, and camper. No zoning. Offered below
2007 appraisal.
See gorgeous photos, view contact and pricing information at
http://www.eaglestar.net./dle.html.


REAL ESTATE ROUNDUP:
Requirements of a Valid Lease
This week we take a look at the components and conditions necessary for a lease
or rental agreement to be considered valid ("enforceable at law"). This
article continues the Leases and Leasehold Estates section of our ongoing
series on Real Estate Title, Estates, Tenancies, and Deeds. These articles are
meant as a general reference for and overview of each topic. If our
subscribers request, we will research and present in more detail in future
issues any of the terms or concepts mentioned.
Previous articles in this series may be accessed at
http://www.eaglestar.net/newsletter.

General Title FAQ's (Frequently Asked Questions): Issue 14
Types of Title FAQ's (allodial title, eminent domain, escheat, police power):
Issue 15
Types of Title FAQ's (feudal title, Torrens title, strata title, company
title): Issue 16
Estates in Real Property (freehold estates, fee simple, life estates, qualified
fee): Issue 18
Leasehold Estates (estates for years, at will, at sufferance, and from period
to period): Issue 20
Types of Leases (gross lease, net lease, percentage lease, graduated lease,
etc.): Issue 21

ESSENTIAL ELEMENTS OF A VALID LEASE AGREEMENT
A lease or rental agreement is a legal contract between two or more parties
wherein the owner of the property (the lessor or landlord) agrees to allow
someone else (the lessee or tenant) to use, possess, and occupy the premises
for certain purposes, under certain conditions, and often for a specific period
of time. Like all contracts, legal requirements must be met in order for the
lease agreement to be valid and enforceable. In the U.S., the details of these
requirements vary from state to state, but there are general elements that must
be included in all valid lease agreements, regardless of location.

Competent Parties
Both the landlord and tenant must have the legal capacity to enter into a
contract. First, they must be of legal age. Usually, this means 18 years or
older, known as "majority". Most states recognize the right of a person less
than 18 years of age ("infancy") to legally own real property, but many do not
allow such a person to enter into a contract concerning that property. Second,
both parties must be able to understand all the terms of the contract. "Being
of sound mind" is the legal phrase that describes the ability of a person to
comprehend the nature, extent, and consequences of his or her actions.
Mentally ill or incapacitated persons, as well as felons serving a prison
sentence, are generally considered legally incompetent and are excluded from
entering into lease agreements or other legal contracts.

Legal Purpose
Like all contracts, a valid lease agreement may not contain terms or conditions
that are illegal. The intent or purpose of the agreement must likewise be
allowed under local and state law.

Statute of Frauds
The phrase "statute of frauds" does not apply to any specific piece of
legislation. Rather, it refers to the legal concept that certain kinds of
contracts, including real estate contracts, must be in writing to be considered
valid and enforceable. Interestingly, certain oral lease agreements are
actually exceptions to this general rule of contract law. In some states in
the U.S., oral lease agreements of less than one year duration can in fact be
enforced at law.

Reversionary Right
The specific time period of a lease agreement can vary, depending on what type
of leasehold estate was initially granted to the tenant (see Issue 20:
Leasehold Estates). In all cases, however, the lease agreement must indicate
that possession and fee ownership of the premises reverts to the landlord at
the end of the lease.

Property Description
The real property to be lease must be named and described in the lease
agreement itself. This does not mean that the contract must contain a full
legal description of the property; usually the street address is sufficient,
especially for residential leases. One exception is a long term lease, such as
a net lease, ground lease, or shell lease, which should always contain the
legal description. For multi-unit buildings such as apartments or
condominiums, the individual dwelling to be leased should be clearly
distinguished from other units in the same building. In all cases, ff the
legal description is available, it is usually prudent to include it in the
lease agreement.

Mutual Assent (Offer and Acceptance)
This is a general requirement of most contracts. One party (the "offeror")
must make an offer to another party (the "offeree"), the terms and conditions
of which are amenable and acceptable to both parties. In a lease agreement,
the offeror (landlord) promises to allow the offeree (tenant) to possess, use,
and occupy the premises according to certain rules and conditions, in return
for some sort of consideration, which usually take the form of rent payments.
Once the offeree accepts, he or she has agreed to be bound by the specific
terms and conditions set forth in the offer; possession of the property by the
offeree implies acceptance of the offer.

Consideration
The landlord receives consideration from the tenant in return for the use and
possession of the landlord's property. As mentioned above, rent payments are
the usual form of consideration in a lease agreement. In some types of leases,
such as agricultural leases, non-monetary consideration may be provided in the
form of goods, labor, or other services. Whether monetary or not,
consideration is an essential element of a valid lease agreement.

Let and Demise
A statement of intent to "let and demise" is a proclamation by the landlord
that he or she intends to let (lease or rent) the premises to the tenant
exclusively. The term demise means to transfer an estate by lease. The
statement of intent to let and demise is a crucial element of a valid lease
agreement - it conveys a legal interest in the property to the tenant. Without
this statement, the tenant has no legal interest in the real property, which
means that a leasehold estate has not been created and therefore the lease
agreement itself is not valid.

Duration of Occupancy
Lease agreements must contain some sort of statement describing the duration of
the lease, which can be anywhere from 1 week to several years or longer.
However, this statement is not necessary when the landlord has granted an
estate at will, which allows the tenant to possess the property for an
indefinite and unspecified period of time.


SPONSOR'S CORNER
The Land and Property Review would like to thank this week's sponsor, U.S. Land
and Ranches.
US Land & Ranches is run by a group of men and women who know what we refer to
as the "dirt business" - how to buy land, permit land, build land out, and
eventually sell the land. We don't try to build office buildings, homes, or
strip malls, we just buy beautiful land. Each site is locally owned and
operated by someone who has spent the greater part of their life working in the
land business. These folks know the area, including the large land owners and
the good brokers. We look at many properties, buy very few, and substantially
undersell the competition.

See all U.S. Land and Ranches listings on Eaglestar.net:
http://www.eaglestar.net/Properties/Multiple_Listings/U_S__Land___Ranches/index.html


AUCTION NEWS
http://www.eaglestar.net/Land_Auction_Calendar/index.html

Barkley Lake, KY Development Auction
Saturday, July 19, 2008
Lake Barkley, Eagles' Ridge, Kentucky: 13 tracts ranging in size from 0.79+/-
acres (lakefront) to 51.09+/- acres (lake access, subdividable). Near Cadiz,
KY in Trigg County, close to Tennessee state line.
Eagle’s Ridge – the name says it all. Hidden amongst the foothills near the KY
/ TN state line, this residential and recreational lake community offers some
of the most spectacular views anywhere around. Professionally constructed and
engineered, Eagle’s Ridge has already sold 77 lots in its pre-development
phase. The remaining 13 tracts were retained by the developer and are some of
Eagle Ridge's best.
For protection of your investment, Eagle’s Ridge properties are subject to the
Eagle’s Ridge Property Owners' Association Covenants & Restrictions. The
current annual fee for a lot owner is $250.00. See the spectacular photos and
view contact information at http://www.eaglestar.net/Detailed/20792.html.


LANDTERMS.COM TERM OF THE WEEK
http://landterms.com
Each issue we feature a real estate, forestry, natural sciences or other
land-related term from our partner site, Landterms.com.

This week's term: Furlong
A unit of length equal to 220 yards; 40 poles, rods, or perches; 1/8 mile; or
10 chains. Furlong is an Old English term derived from the phrase "furrow
long", referring to the length or distance that can be plowed by oxen before
they require rest.

Find more Land Measurement terms at Landterms.com:
http://landterms.com/Land_Measurement/index.html.


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