CHEPKURUI LYDIA NRB 48760 LAW WBA Course code: ccm103 Lecturer: Mr.

Koech PK

Tenancies Definition 1. (Law) the temporary possession or holding by a tenant of lands or property owned by another 2. (Law) the period of holding or occupying such property 3. The period of holding office, a position, etc. 4. (Law) property held or occupied by a tenant Free hold may refer to:

Freehold (law) and fee simple: ownership of land and the buildings on such land (as opposed to a leasehold estate where property reverts to the owner when the lease expires) customary freehold, privileged copyhold or copyhold of frank tenure

Leasehold A leasehold is a form of real estate ownership. When we speak of a lease, most people have the image of a standard rental agreement for an apartment or business property. This type of lease is for a short term usually a year or less and usually provides for a fixed monthly rental fee (although this can be variable, especially with some types of business property) for the duration of the lease. Unlike a short term apartment or small business property lease, leaseholds are usually for a much longer term, frequently going for periods of up to 99 years. Ninety-nine years seems to be the maximum term of this type of lease. The 99 year limit appears to be based upon the common law concept known as the Rule Against Perpetuities. This legal concept is designed to prevent property from being tied up and controlled for too long from beyond the grave. While it is true that a person cannot take their property with them after death, vehicles such as leaseholds and trusts, can be a way for a deceased person to continue to control, after death, the actions of their survivors. An example of this is the Disney Corporation where, some four decades after the death of founder Walt Disney, the directors of the Disney Corporation still find their hands tied in certain business dealings because of stipulations in the will and other legal devices crafted by Walt Disney before his death in 1966.

These legal arrangements enable Disney to continue to exercise some influence over the company despite his no longer being alive and physically participating in the affairs of the company. By limiting the maximum time the terms of a contract can remain in force prevents descendants from being bound by rules and restrictions laid out generations earlier. How Leaseholds are Used In a leasehold the owner of the land and his heirs still hold title to the land but rent it out to tenants for a period of up to 99 years. The leasehold agreement states the term of the lease, the monthly or annual rental payment (which is usually fixed for the term of the lease) and various other conditions. The tenant, in exchange for the payment of the rent, is able to use the land as if he/she owned it subject to any restrictions in the lease. In addition to having use of the land and the income produced by it, the tenant can obtain a mortgage based upon the lease (the lender, of course, can only take the lease in foreclosure, not title to the land as in a mortgage on land owned outright by the borrower) and sell the leasehold property. The buyer of the leasehold property is subject to the terms of the lease and has to pay the stipulated rent but that person too can mortgage, develop, sell, etc. the property, again subject to the terms of the lease. All improvements, such as buildings, infrastructure such as irrigation systems for agriculture, clearing for agriculture, mines dug, oil wells drilled, etc. revert to the owner of the property upon the expiration of the lease. Basically, being the holder of a long term lease, in its early years, is not much different than being the owner of a property. During the later years of the lease things become a little more complicated due to the fact that the term of the lease is getting progressively shorter. It becomes more difficult to sell the leasehold since buyers are reluctant to purchase a property that will revert to its owner in a few years. Getting a mortgage to purchase the leasehold or finance improvements is also difficult as lenders are reluctant to make a loan when the leasehold securing the loan is about to expire. Joint Venture An association of two or more individuals or companies engaged in a solitary business enterprise for profit without actual partnership or incorporation; also called a joint adventure. A joint venture is a contractual business undertaking between two or more parties. It is similar to a business partnership, with one key difference: a partnership generally involves an ongoing, long-term business relationship, whereas a joint venture is based on a single business transaction. Individuals or companies choose to enter joint ventures in order to share strengths, minimize risks, and increase competitive advantages in the marketplace. Joint ventures can be distinct business units (a new business

entity may be created for the joint venture) or collaborations between businesses. In a collaboration, for example, a high-technology firm may contract with a manufacturer to bring its idea for a product to market; the former provides the know-how, the latter the means. All joint ventures are initiated by the parties' entering a contract or an agreement that specifies their mutual responsibilities and goals. The contract is crucial for avoiding trouble later; the parties must be specific about the intent of their joint venture as well as aware of its limitations. All joint ventures also involve certain rights and duties. The parties have a mutual right to control the enterprise, a right to share in the profits, and a duty to share in any losses incurred. Each joint venturer has a fiduciary responsibility, owes a standard of care to the other members, and has the duty to act in Good Faith in matters that concern the common interest or the enterprise. A fiduciary responsibility is a duty to act for someone else's benefit while subordinating one's personal interests to those of the other person. A joint venture can terminate at a time specified in the contract, upon the accomplishment of its purpose, upon the death of an active member, or if a court decides that serious disagreements between the members make its continuation impractical. Joint ventures have existed for centuries. In the United States, their use began with the railroads in the late 1800s. Throughout the middle part of the twentieth century they were common in the manufacturing sector. By the late 1980s, joint ventures increasingly appeared in the service industries as businesses looked for new, competitive strategies. This expansion of joint ventures was particularly interesting to regulators and lawmakers. Properly chosen and implemented, joint ventures can be a great way for your small business to get in on opportunities (and profits) that otherwise you would miss out on. I like to think of them as diamonds on the beach. You see the diamonds lying on the sand but try as you might, you can't pick them up until you team with someone else who knows the trick of scooping them up. By teaming up with other people or businesses in a joint venture, you can:

extend your marketing reach access needed information and resources build credibility with a particular target market access new markets that would be inaccessible without the partner

For instance, suppose you and five other potters form a joint venture to hold a Potter's Fair on a particular date. Because you pool your resources, you're able to do much more advertising and promotion than you would be able to go alone, bringing out crowds of customers for your joint event. How to Get a Joint Venture Started

The first step to creating a joint venture is to set your goals and decide what you want your joint venture to do. If you need help getting started with this, look at the four things a joint venture can do that I've listed at the beginning of this article, pick one, and then develop a goal that is as specific as possible. Then it's time to look for the like-minded - people or firms that might be interested in the same goal or goals you want to pursue. Look in the business groups you already belong to, both in

person and virtually. Use your social networking connections. Study business listings in the phone book or on Web sites to find those that might share your goals.

And be open to being asked. Once you start talking to other people about what you might do together, a joint venture idea you havent even thought of might pop up - one with a lot of potential. Once you've found the people to share in a joint venture, be sure to have it all put into writing in a joint venture agreement. I strongly recommend hiring a legal professional to do this.

So instead of dismissing an opportunity as out of your reach, start thinking instead about how you could participate with a joint venture. Properly planned and executed, joint ventures can help your small business go where it's never been able to go before. Landlord & Tenant Covenant Act The premise of the Landlord & Tenant Act, which was passed in 1995, is to address the needs and concerns of both landlords and tenants. The Landlord & Tenant Act pertains to both residential and commercial properties, and the presumed rights of both parties. Landlords must also be cognizant of the Fair Housing Act, and both federal and state housing codes.

Section 17 of the Landlord & Tenant Act

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Landlords are required to inform tenants, in writing, of their intent to recover monetary damages related to improper care or destruction of property, breaking a lease, and any deposits or rent still owed. After six months, landlords can take the tenant to court to recoup monetary damages.

Uniform Residential Landlord And Tenant Act (URLTA)

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During the Civil Rights Movement, which raised concerns about the legal rights of the poor and disenfranchised, the U.S. government funded a project to write a model landlord and tenant act which was then presented to the National Conference of Commissioners on Uniform State Laws, which drafted the Uniform Residential Landlord and Tenant Act (URLTA) in 1972. This was the forerunner of the 1995 Landlord & Tenant Act.

Topics as Defined by the Landlord &Tenant Act

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Some of the topics or subtopics defined in the Landlord & Tenant Act include tenant abandonment of a rental property, types of eviction, leases, rent control, subletting the apartment by a tenant and other considerations.

State Landlord & Tenant Acts

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Individual states have their own landlord and tenant laws that are based wholly, or in part, on the Landlord & Tenant Act. State landlord & tenant acts are grounded in both property and contract law.

Housing Codes
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Housing codes are built into the Landlord & Tenant Act to ensure that properties are habitable from the time they are rented and throughout a tenant's occupancy. Most states protect tenants from punitive costs when a landlord violates the federal and state housing codes. This may include a tenant not having to pay rent, their being allowed to make repairs and bill the landlord for the costs involved, or being allowed to move before a lease is up.

Definition of Easements Definition: An easement is a right given to another person or entity to trespass upon land that person or entity does not own. Easements are used for roads, for example or given to utility companies for the right to bury cables or access utility lines. Landlocked home owners sometimes pay for an easement to cross the land of another to reach their home. Easements run with the land. Almost every home has an easement. It is important to look for easements in the public records, especially if a prospective buyer plans to put in a swimming pool. A property owner cannot build on top of an easement. Easements by prescription are acquired by hostile, open and notorious use for five years. For example, prescriptive easements could be claimed by a person who travels across a parcel of land owned by another and continuously for five years without the owner's permission or consent. Facts About Easements and Rights-of-Way Easement - An easement is the right to use another person's land for a stated purpose. It can involve a general or specific portion of the property. Right-of-Way - A right-of-way is a type of easement that gives someone the right to travel across property owned by another person. An easement can benefit a property. Ms. Smith owns a tract of land that borders the Nantahala National Forest, a popular area for hiking, climbing, rafting, and fishing. Mr. Scott lives next door to her, but his land does not touch the National Forest. To avoid trespassing, he must access the Forest by walking or driving to a public entry point. Instead, Ms. Smith grants an easement allowing present and future owners of Mr. Scott's property to cross her land to access the National Forest. It becomes part of the deed for both properties.

An easement can benefit an individual or a business entity. In the example above, a tract of land was granted an easement so that its owners could use a neighbor's land to access a public area. Ms. Smith could grant an easement to another individual to do the same, but without adding it to her deed. That type of easement normally expires at a specific time or event or upon the death of the person who benefits from it.

An easement may give a utility company the right to erect power lines or bury a gas pipeline across a tract of land. A housing development might possess an easement that allows it to build and maintain a water storage facility. Both easements above would probably be included in a deed description and remain in place if the land is sold.

How does an easement affect the person who grants it? The landowner who grants an easement usually cannot build structures within an easement area or use fencing that would hinder access. Other activities might also be prohibited. Before you purchase property you should know where all easements are located and what restrictions are associated with them. Can easements affect property values? It's possible.

Several easements on a tract of land might seriously limit the choice of building sites. High tension power lines running through an easement near an otherwise great building site can be unsightly. Resale values may be affected since many people feel that living too close to power lines is a health risk. Buyers may simply not like the idea that others have a right to use the land in some way.

Don't assume that because an easement is not currently being used it will never be used. As long as an easement is a part of your deed there's always a possibility that the individual who benefits from it will decide to enforce it. Talk to an experienced real estate attorney to find out how and when an easement can be terminated. What is the difference between charge and mortgage?

Mortgage is a conveyance of property, subject to a right of redemption whereas a charge only gives a right to payment out of a particular immovable property without transfering it A legal document that pledges a property to the lender as security for payment of a debt. Instead of mortgages, some states use First Trust Deeds Mortgage The name given to credit used to buy property or loan secured by land.