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Do I Have to Honor a Lease on Property I Inherited?

Do I Have to Honor a Lease on Property I Inherited?

Q: What happens when lease time expires?

When a lease expires, the tenant typically must vacate the property unless a renewal or extension is agreed upon. If the lease has an option to renew, the tenant may exercise that option if they comply with the terms. If no agreement is made, the landlord can seek a new tenant or negotiate a new lease with the current tenant.

Q: What is a long-term lease in real estate generally considered to be a minimum of?

A long-term lease in real estate is generally considered to be a lease that lasts for one year or more. However, the specific definition can vary based on local market practices and the context of the lease agreement. Always check the terms of the lease for specific duration details.

Q: What happens if a land lease expires?

If a land lease expires, the tenant must vacate the property unless a renewal or extension is negotiated. The landlord may then choose to lease the land to a new tenant or negotiate a new lease with the existing tenant. It's essential to review the lease terms for any specific provisions regarding expiration and renewal.

Q: What happens after a land lease expires?

After a land lease expires, the tenant is typically required to leave the property unless an extension or renewal is agreed upon. The landlord may then re-enter the property and decide whether to lease it again, sell it, or use it for another purpose. Review the lease agreement for any specific terms related to expiration.

Full question:

My late father leased his Hawaii property for 10 years with 2 10 year options to someone. I inherited part of the property. I want to be able to decide to lease the property to someone else and not be tied up with the current lease and two 10 year options to the current leasers. Since he has died are the Hawaii lease and lease options still valid?

Category: Contracts
Date: 04/07/2025
State: California

Answer:

The contract terms will determine whether the contract is binding on you or not. For example, you will have to honor the lease if it contains a successor clause similar to the following:

“The rights and obligations of the parties to this agreement will be binding on, and will be of benefit to, each of the parties’ successors, assigns, heirs and estates.”

"This agreement shall be binding upon and inure to the benefit of the parties and their respective legal representatives, executors, heirs, administrators, successors and assigns"

In that case, you may be able to negotiate with the lessees to terminate the lease. We suggest you read the lease terms carefully to determine your rights and obligations in regard to terminating the lease, as well as those of the other party.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Do all heirs have to agree to sell property?

No, not all heirs have to agree to sell property. However, if the property is co-owned, decisions about selling may require agreement among co-owners. If there is a dispute, it may be necessary to seek legal advice or mediation to resolve the issue. It's important to review any estate documents or wills for specific instructions regarding the property.

Is there capital gains tax on inherited property in Hawaii?

In Hawaii, inherited property is generally not subject to capital gains tax at the time of inheritance. The property's basis is stepped up to its fair market value at the date of the decedent's death. However, if you sell the property later, you may owe capital gains tax on any appreciation from that stepped-up basis. It's advisable to consult a tax professional for specific guidance.