Question

Lisa has a notions shop in a commercial building. Her lease, which is in writing, is for three years. If Lisa or the building owner dies, the terms of the lease survive. At the end of three years, the parties may negotiate new terms or Lisa may vacate.

This is an example of

Estate for years

Tenancy at will

Answer 1

The lease Lisa has is known as an Estate for Years, characterized by a specific start and end date, and is not automatically terminated due to the death of any party involved. Clear termination guidelines and possession conditions in the lease protect both parties' interests, allowing Lisa to relocate once the lease period or long run is over.

Step-by-step explanation:

Lisa’s lease situation is an example of an Estate for Years, which is a type of leasehold estate in property law. This type of lease has a definitive beginning and end date and survives the death of either party. Upon the lease expiration, Lisa has the choice to renegotiate new terms or vacate the premises. In case of early termination, clear documentation regarding intention to terminate is crucial, as well as the steps to be taken if possession cannot be delivered as agreed.

Policies regarding lease termination and possession are designed to protect both the owner and tenant from unforeseen circumstances and to ensure clear guidelines are set for when the lease is terminated or in the long run where all factors become variable and the tenant has the flexibility to move.