EAGLESTAR.NET LAND AND PROPERTY REVIEW
http://www.eaglestar.net
Issue #25
July 14, 2008

IN THIS ISSUE:
Properties of the Week:
- Oregon Ocean Views, 2 Homes on 2 Lots
- Minnesota Custom Log Home on Golf Course
Real Estate Roundup: Lease Issues, Pt. 2
Sponsor's Corner:
- Spring Creek Farms
Auction News
- North Georgia Mountain Retreat
- Lake Barkley, KY Development, 13 Parcels
- Missouri Hunting Preserve and Lodge
Landterms.com Term of the Week: Lakefront


"Property is the fruit of labor; property is desirable; it is a positive good
in the world."
- Abraham Lincoln, 16th President of the United States of America


PROPERTIES OF THE WEEK
Gold Beach Oregon: 2 Lots, 2 Homes, and Spectacular Ocean Views
This property on 1.3+/- acres is composed of 2 separate homes with 2 separate
addresses. Main house is 3 bedroom, 2 bath, 2000+/- square feet, wood-framed
and recently had $125K updating/upgrading. Large wrap-around ocean view deck.
Upstairs loft has finished driftwood detail. Second home is a 2 bedroom, 2
bath manufactured home, 1000+/- square feet with wood-framed single car
attached automatic garage. Second home is currently being rented for $825 per
month. Photos and contact information at http://www.eaglestar.net/bmr.html.

Roseau County, Minnesota: Custom Log Home on Golf Course Lot
Custom Montana lodgepole pine log home built in 2000, 3 bedroom and 2 baths on
0.5+/- acres. Includes: custom oak cabinets in kitchen, dishwasher, microwave,
washer, dryer, electric floor heat, heat pump with central air, family room
with gas fireplace, and whirlpool tubs in bathrooms. 3 miles of hiking and
biking on blacktop trails, snowmobile trails, ice fishing, access to clubhouse
and marina. Near beautiful Lake of the Woods, the walleye capital of the world
- 65,000 miles of shoreline and 14,582 islands. For photos and additional
information, visit http://www.eaglestar.net/oso2-.html.


REAL ESTATE ROUNDUP
Common Issues and Considerations in Leasing, Part 2
This is the final article in the Leases and Leasehold Estates section of our
ongoing series on Title, Estates, Tenancies, and Deeds. We have attempted to
highlight some of the more common issues that should be considered by both
landlords and tenants when leasing and negotiating lease agreements. There are
certainly important considerations that have been left out - if you have any
comments, suggestions, advice, or leasing stories (horror or otherwise) you'd
like to share, we'd love to hear from you.

Past issues of the Land and Property Review are available at
http://www.eaglestar.net/newsletter.
Part 1 of Issues and Considerations in Leasing appeared in Issue 24.
Other articles and FAQ's on leasing and leasehold estates can be found in
Issues 20, 21, and 23.
An FAQ (Frequently Asked Questions) on estates in real property appeared in
Issue 18.
Three FAQ's on title to real estate can be found in Issues 14, 15, and 16.

A Note on Security Deposits
Thanks to our reader Helen M. in Golden Valley, Arizona, who pointed out that
many states limit the amount of a security deposit that can be collected and
held by the landlord under a residential lease. In Arizona, security deposits
are limited to an amount equal to 1 1/2 month's rent. Helen stated she rented
in Arizona for many years and was unaware of this fact until she became a
landlord herself. Thanks for your email, Helen.

Utilities and Maintenance
In long-term commercial leases such as a shell or net lease, the tenant may be
responsible for all or a portion of the costs of maintenance and utilities,
depending on the terms of the lease agreement. In a majority of residential
leases, the tenant (lessee) is responsible for the cost of utilities such as
natural or propane gas, electricity, or water, although there are certainly
numerous cases where some or all of the utilities are included in the rent
payments. If the tenant is responsible for utilities, in most jurisdictions
the landlord must ensure that the living unit has utility meters that are
separate from other units, so that the tenant pays only his or her own utility
costs.

In a long-term commercial lease, the tenant may be obligated to pay for repairs
and maintenance for his or her individual unit or for the entire building,
depending on how the lease is structured and what portion of the building is
leased. For buildings with multiple long-term commercial tenants, the landlord
is usually responsible for repairs and maintenance to any common areas and
systems, including elevators, hallways, lobbies, rest rooms, external
landscaped areas, plumbing, wiring, and smoke-detection and sprinkler systems.
Tenant responsibility for maintenance and repairs under residential leases is
not very common. The residential landlord is almost always obligated to
perform repairs and maintenance and must keep the premises in a safe and
habitable condition. For either residential or commercial leases, the landlord
must allow for normal wear and tear and cannot charge the tenant for repairs
unless unusual damage has been done.

Improvements
Many commercial leases allow, and may even provide financial incentives for,
tenant improvements (often abbreviated TI). Even if the lease does not
specifically mention improvements, tenants may make improvements with the
permission of the landlord. If a tenant chooses to do so, he or she would be
wise to secure the landlord's permission in writing, along with a description
of the nature and extent of the improvements. Such improvements almost
invariably become the property of the landlord upon completion. One exception
is the installation of trade fixtures, which most commercial leases allow to be
removed at the termination of the lease. The tenant must return the premises
to their original condition, with allowances for normal wear and tear as
mentioned above.

Subletting (Subleasing) and Assignment
There are two ways a tenant may transfer their rental interest in a property to
another person: he or she may sublet (sublease) the premises, or assign the
interest to someone else. A sublease, in effect, makes the original tenant the
new sub-landlord; this legal process occurs when a tenant transfers less than
the entire leasehold estate. He or she is still responsible for paying the
rent, although the original landlord remains responsible for repairs and
maintenance according to state law and the terms of the original lease. On the
other hand, tenants who assign the lease to another are transferring all of
their lease or rental interest. However, the original tenant is still
ultimately responsible for paying the rent under an assignment unless the
landlord agrees (in writing) to release the tenant from this obligation.

Interestingly, and in nearly all jurisdictions, subleasing and assignment are
legal and are permitted unless the lease specifically prohibits them. Most
leases therefore contain a clause stating that these practices are allowed only
with the permission of the landlord. Unless the lease does prohibit them, the
landlord is usually required to accommodate reasonable requests for either
subleasing or assignment.

Options
Many leases contain clauses that allow the tenant to renew the lease or to
purchase the property at the end of the original lease. An option to renew
allows the tenant to renew the lease for a period of time equal to its original
term. This applies primarily to an estate for years or a periodic tenancy,
since an estate at will has no definite lease period. The tenant must give
notice to the landlord of his or her intent to renew, usually within 30-60 days
of the termination of the original lease. An option to purchase allows the
tenant to purchase the property at the end of the lease. Usually the terms and
conditions of the sale have already been negotiated. Often the landlord will
give the tenant a credit to be used toward the purchase equal to some portion
of the rent that has been paid.

Lease Termination
Once the term of the lease is over, the contract has terminated. The
termination of a lease that has been completed is known as a "discharge". If a
renewal option is exercised, the parties enter into a new contract. A lease,
like any contract, may also be terminated prior to its term if both parties
agree to do so (known as "cancellation", "mutual release", or "surrender and
acceptance"). If one or both parties die, the lease remains in effect, except
for a tenancy at will. The only other exception is a lease based on a life
estate; both the leasehold estate and the life estate end when the life tenant
dies (or upon the death of some other person against whose life the duration of
a life estate pur autre vie is measured). If the property is sold, the lease
remains in effect with the new owner automatically becoming the landlord.
However, many leases contain a "sale clause" allowing the new owner to
terminate the lease after giving the required notice to the tenant (usually
30-90 days). A lease may also be terminated by court order or through the
legal process of condemnation, as when a government body exercises the right of
eminent domain.

Notice may be required to terminate a lease or not, depending on how the lease
is being terminated. General rules about notice of termination are as follows:
- Discharge of the lease - no notice required.
- Surrender and acceptance - no notice required.
- Abandonment of the premises by lessee: notice is required. Usually the
landlord must post this notice on the front door of the leased premises for a
certain period of time before recovering possession. The time period of this
notice varies by state, but 5-7 days is fairly common.
- Destruction of property - no notice required. Note that destruction refers
to extensive and irreparable damage.
- Condemnation of property - varies by situation. If the property has been
deemed unsafe or uninhabitable, the tenant is required to vacate immediately
(for his or her own safety).
- Eviction (Actual) - varies by jurisdiction and situation, usually in the
range of 5-10 days.
- Eviction (Constructive) - if health or safety issue, or if premises have
become unusable, no notice is required. For any other type of breach or
default notice varies according to the situation, usually 5-10 days.

Breach of Lease
Like any contract, the parties to a lease must take legal action to enforce it
if a breach occurs. Unlike most contracts, however, residential
landlord-tenant relationships are covered by laws providing legal remedies that
do not necessarily require a complete and formal lawsuit to terminate the
lease. This is because most states have adopted some form of the "Uniform
Residential Landlord and Tenant Act". For instance, if the leased premises
become unusable for the purposes stated in the lease agreement by some fault of
the landlord, the tenant may vacate the premises, a process known as
"constructive eviction". Notice of constructive eviction is usually between
5-10 days, depending on the situation. However, if serious health or safety
violations have occurred, some states do not require the tenant to give any
notice. In any event, constructive eviction effectively terminates the lease
agreement and allows the tenant to abandon the premises without paying any
further rent. If the tenant wishes to recover monetary damages, he or she must
sue the landlord to obtain a judgment.

If, on the other hand, a tenant defaults on rent payments, refuses to leave
following lease discharge, or abandons or destroys the property, the landlord
has the right to evict the tenant. He or she must begin by first giving the
tenant notice of the impending eviction, except in cases where the property is
unfit for habitation. The time frame of this notice varies by jurisdiction and
situation, but is generally between 5 and 10 days. Once an order of possession
has been issued by a court, the landlord has the right to recover the property.
If the tenant still refuses to leave, the landlord can petition the court to
have the tenant and the tenant's belongings forcibly removed. This entire
process of tenant removal, beginning with the notice of eviction, is known as
"actual eviction". Please note that there is no situation or jurisdiction
where the landlord may forcibly remove the tenant - he or she would probably be
charged with assault, or worse. As is the case with constructive eviction, a
landlord who follows the process of actual eviction must sue the evicted tenant
and obtain a judgment in order to recover monetary damages.

A Little Advice for Landlords and Tenants
If you are leasing a property, either as the lessor or as the lessee, you are
entering a legal contract and you will be held liable for any breaches. With
this fact in mind, it would be irresponsible and unwise to enter a lease
agreement with less than a full understanding of its terms and conditions,
applicable state and local law, and your legal rights and obligations. If you
are unsure about any of these things, you may wish to seek the advice of an
attorney. As they say, an ounce of prevention is worth a pound of cure.

Next in this series: A discussion of the different forms of tenancies, which is
the way in which an interest in real property is held. This includes legal
concepts like joint tenancy, right of survivorship, and tenancy in common.


SPONSOR'S CORNER
The Eaglestar.net Land and Property Review would like to thank this week's
sponsor:
Spring Creek Farms, Nicholas County, West Virginia
Organic Farm and Restaurant For Sale, 100+/- Acres
Includes: Restaurant, 4-story brick house (potential bed and breakfast?),
100+/- fenced acres of meadow and pasture, barn, corn crib, chicken house, 2
sheds, shop, 4 spring-fed cattle ponds, and a creek running through the meadow.
We'll throw in the gently rolling hills and beautiful views at no extra
charge! View photos and additional information at
http://www.eaglestar.net/brs2-.html.


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

Absolute Auction, Blue Ridge Mountains Parcel, Fannin County, Georgia
Saturday July 19, 2008
A secluded retreat in North Georgia's Blue Ridge Mountains on 1+/- acre.
Few areas anywhere can match the unspoiled beauty of north Georgia, where the
scenery and moderate climate are so inviting you’ll never want to go inside.
3-story mountain estate home with two levels of balconies, including: generous
living room with vaulted ceiling and floor-to-ceiling stone fireplace, sun
room, screened porch, upstairs master bedroom with French doors and walk-in
closet, game room with 8-foot pool table (included), and kitchen with all
appliances included. Five minutes south of the North Carolina border and seven
miles from Tennessee, surrounded by the Chattahoochee and Cherokee National
Forests. Abundant recreational and leisure opportunities including fishing on
Lake Blue Ridge, whitewater rafting on the Toccoa River, hiking, hunting,
camping, horseback riding, or a ride on the Blue Ridge Scenic Railway. View
photos and additional information at
http://www.eaglestar.net/Detailed/20819.html.

Barkley Lake, Kentucky 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.

Mudhole Duck Club, Orrick, Missouri, Absolute Auction
Saturday August 2, 2008
World Class Waterfowl Hunting Preserve and Hunting Club Close To Missouri River
World-class hunting preserve for ducks, geese and more on 337+/- acres.
Located in an area that is famous among hunters for its waterfowl populations,
the Mudhole Duck Club has been carefully managed for high productivity and the
ultimate hunting experience. Approximately 240+/- acres flooded for waterfowl
hunting, custom planted river bottom land, hunting depths of 12 to 18 inches,
and wells installed to maintain ideal water levels. Includes heated blinds,
modern hunting lodge with full kitchen and space for 20 bunks, and rights to
Mudhole Duck Club name and mudholeduckclub.com Internet domain. Harvested fowl
as of January 30, 2008: 927 ducks, 879 doves, 571 Canada geese, 24 snow geese,
and 71 teal. See photos and details at http://www.eaglestar.net/crw6-.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: Lakefront
Real property that has direct frontage on the shore of a lake or reservoir,
whether or not ownership of the actual beach or shore adjacent to the parcel is
appurtenant to the property, shared as tenants in common, or public.

Browse definitions for hundreds of other real estate terms at
http://landterms.com/Real_Estate/index.html.


SUGGESTIONS
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Email: newsletter@eaglestar.net

ARCHIVES
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