Reversionary Lease
Definition of "Reversionary lease"
The reversionary lease definition is a lease that only starts at a later date. It is not a lease that starts only when another current lease ends. That is a lease of reversion. Not to be confused.
It is often used when the occupancy of a property is postponed for a future date. It can easily be used if, for example, a renter of a particular space runs a business there. The business is profitable and the owner of the space is happy because he has a stable tenant. In this case, a reversionary lease can be drafted to start at the end of the current lease. The lease is done between the same entities just for a different timeline.
A reversionary lease in real estate will also avoid the troubles that an extension of the current lease might bring. An extension on a current lease brings with it taxes, having to register the land as well as other results.
With a reversionary lease in place, if the lease ends at an inconvenient time and both parties want to continue the contract, the change will go by smoothly and both parties are free to go about their own business interests.
Popular Real Estate Terms
Rating used by lenders and creditors to determine if a credit applicant should be granted credit. It depends on many factors such the applicant's job history, earnings, net worth, etc. Some ...
A written mortgage document. A mortgage instrument states the terms of the mortgage including the interest rates, length of payments, payment dates, and remedies the bank is entitled to in ...
An agreement in which the trustee takes title of the property ( called corpus) owned by the grantor (donor) to protect or conserve it for either the grantor or the trust's beneficiary. The ...
The definition of an open-end mortgage underlines the fact that the mortgage or trust deed can be increased by the mortgagee (borrower). The mortgagee may secure additional money from the ...
Mortgagor's signed statement that the stated remaining balance of a mortgage is correct and it is a property lien. This prevents a mortgagor from later stating the facts were ...
Multistory, nineteenth-century house featuring turrets, high chimney, and decorative trim. ...
If you’re looking for the real estate agent definition, you’re in the right place. So, in the following paragraphs, we will try to examine the complex job of a real estate ...
The meaning of plot refers to a parcel or a small lot. A plot is essential in determining the land cost. Additionally, it defines a diagram or schematic drawing of a building or piece of ...
Statement made verbally. It is better legally to have a written statement because verbal ones without witnesses may be denied. ...
Have a question or comment?
We're here to help.