Definition of "Master lease"

  1. Major lease in a structure that controls subleases. An example is a landlord and attorney entering into a main lease for the third floor offices of building. This lease takes precedence over a sublease between the attorney and an accountant for one of the offices.
  2. A controlling property lease. Subleases are controlled by the master lease in the sense they cannot extend beyond the terms of the master lease. For example, John grants Jack a 10-year master lease on a commercial office building, Jack can sublease the offices for terms not to exceed the 10-year master lease.

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

Generally speaking, the meaning of warehousing refers to the act of storing assets and keeping a physical inventory expecting a sale or distribution of goods at a later date. Warehousing is ...

An accounting methodology for separately depreciating individual parts or elements of a building or improvement qualifying as business use or a depreciable asset under the IRS tax code. ...

Privilege granted by a franchiser to a franchisee permitting the latter to operate using the franchiser's name. The franchisee must pay a franchise fee for such right. In addition, the ...

Time period for which one expects to keep property such as a real estate investment. ...

payment of a debt before its due such as a mortgage payment or insurance premiums. ...

The definition of alienation clause is the transfer or sale of a particular property or asset that can be applied once the owner has no more financial obligations to said property or asset. ...

Arrangement the insured and insurer share on a proportional payment for a loss. ...

Apartment building in which each resident owns a percentage share of the corporation that owns the building. ...

Real estate business owned by one person having all the rights and obligations. ...

Popular Real Estate Questions