Definition of "Demise"

Joseph  McCarthy real estate agent

Written by

Joseph McCarthyelite badge icon

August Associates, LLC

The definition of the term “demise” covers more spectrums than just real estate related. Most commonly the term demise is used to talk about someone’s death. It is also used to describe the end of something that had been considered powerful but is no longer, such as a business, industry, or a system. In law, the term “demise” is used to describe a property that you decide to rent to someone for a specific period of time, or a legal agreement through which you rent, give or leave someone a property through a will. Another legal term used in real estate today is demised premises.

In the past the term “demise” was used to lease or rent a vessel by the shipowner to someone else. From the start date of the demise to the end date, that ship, it’s earnings, use and management fell entirely in the hands of the person renting it. When that time expired, everything went back to the shipowner and the demise contract had to be written again.

What means demise in real estate?

In order to define the word “demise” in real estate, we have to go to its origins. The term, when used in a legal or real estate setting, is derived from the Anglo-Norman démettre or demittere which means to send away. Today, the word “demise” is a legal jargon that means the act of granting a lease of property. For real estate, it refers to giving an estate, to transfer it through a will or a lease. What is important to mention is that a real estate demise is defined by a lease that allows ownership of a property for a specific period of time or for life, but the end time of the lease is mentioned, whether by date or by something that will happen in the future (i.e. Demise a property till the time of death). It is used synonymous to leasing or letting a property for a period of time. To demise means to convey land or property through a deed or contract for a particular period of time.

Comments for Demise

Lauren Lauren said:

What does demise mean?

Feb 23, 2020  08:12:10

 
Real Estate Agent

Hello, Lauren! Demise refers to the act of transferring legal rights, custody, attributes or other related aspects from one party to another or from one person to another. In real estate, demise can also mean a conveyance of property. The transfer of property for lifetime or for a determined amount of time. The term is loosely used to describe any conveyance. Demise is sometimes used synonymously with a lease, by which one conveys property, land or services to another for a determined amount of time. Also, having a short term lease or a long term lease is debatable and we have an article that highlights the pros and cons of short term leases.

Apr 08, 2020  12:23:17
 
 
image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

A proposal to buy property at a specified price. The seller of the property has the options of accepting the offer, rejecting it, or making a counteroffer. For example, John signs a listing ...

Factor employed by real estate agents or appraisers to determine the change needed in operating income to obtain a desired rate of return. It is used to evaluate income-producing property. ...

Reduction of part of the balance of property by charging an expense or loss account. The reason for a write-down is that some economic event has occurred indicating that the asset's value ...

Descriptive of the architectural development of property in a certain area. For example, a housing subdivision may use very similar building architecture throughout the development. All the ...

Principle stating that the joint tenants must have equal rights to possession of the whole property. ...

Landlord's right to receive the value of the tenant's property to pay for unpaid rents or for damages to the leased premises. ...

The definition for the gross living area published by the Appraisal Institute’s Dictionary of Real Estate 4th Edition is: “The total area of finished, above-grade residential ...

Characteristic of a trust that prevents the invasion of its principal by the trustees while providing a lifetime income to its principal beneficiary with the rest going to the son's ...

Under a FHA-insured mortgage, both the property and the borrower must meet certain minimum standards. The borrower is charged an insurance fee of one-half percent on the unpaid balance and ...

Popular Real Estate Questions