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
Are you ready to unlock the secret to reaching your ideal audience? The key is market delineation! But what what does delineate mean? Join us on this real estate journey and uncover the ...
Act of obtaining land through condemnation. For example, when in interstate highway must be constructed, the land for the new road is obtained through takings. Usually, the government ...
Judicial action to establish property ownership. In a quiet action, adverse claimants are required to state their claims or be forever stopped from any future title claim. The basic ...
An agreement, debt, or low which can be operationalized, fulfilled, completed, or performed. ...
Passageway existing from property. An agree may lead to a roadway or some other form of exit. ...
Return earned on an investment over a given time period. It includes two basic components- the current yields, such as rental income and capital gains, or losses in property values. It is ...
Right of any government agency to enact and enforce certain regulations to provide for the health and safety and general welfare of the public. ...
Rule within the Internal Revenue Code applicable to capital gains from selling real estate that has been depreciated for tax purposes. Most buildings must be depreciated using the ...
(1) Voiding an order to buy or sell real estate. (2) Prematurely terminating an insurance policy. (3) Voiding a negotiable instrument by nullifying or paying it. ...
Have a question or comment?
We're here to help.