Also known as:estates for years · term of years · lease for years
Written by attorneys · grounded in primary & secondary sources — see below
A leasehold estate whose duration is fixed in advance in units of a year or multiples or fractions thereof. The term begins and ends on definite dates without need for further notice of termination.
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How it applies
Common Examples
6
Fixed Three-Year Transit Counter Lease
Lakeside Coaches signed a written agreement with Metro City Transit Authority granting exclusive use of a designated counter area from June 1 2024 through May 31 2027 in exchange for monthly rent. When the city later ordered Lakeside to vacate claiming the document created only a revocable permit Lakeside sued for possession. The fixed calendar dates established a definite beginning and ending measured in years so the arrangement created an estate for years that ended automatically on the stated date.
Three-Year Data Center Floor Term
Nimbus Cloud signed a written agreement with Orion Properties granting exclusive use of an entire data center floor from March 15 of this year until March 14 three years later in exchange for monthly rent. A dispute arose over whether the interest qualified as an estate for years. The explicit start and end dates fixed the duration in years so the tenancy terminated automatically on the final date without any requirement of notice.
Lindsey v. Normet405 U.S. 56 (1972)
Twenty-Year Rooftop Ground Lease
Brook Connect LLC and Bright Satellite executed a document titled Twenty-Year Ground Lease identifying the rooftop as premises setting a twenty-year term and stating five thousand dollars monthly rent with authorized signatures. Bright Satellite later sought a declaration of its interests after Brook Connect demanded removal of equipment. The twenty-year term stated in fixed units of years created an estate for years despite clauses permitting rent renegotiation every five years.
Reste Realty Corp. v. Cooper251 A.2d 268 (N.J. 1969)
Four-Year Suite Lease With Sale Condition
Bayview Properties LLC leased Suite 101 to Harbor Realty under a written agreement granting exclusive use from January 1 2026 through December 31 2029 subject to the landlord's right to terminate if the building was sold. Harbor claimed a fixed-term leasehold that could not be treated as at will or periodic. The stated calendar dates fixed the duration in years creating an estate for years even though the sale condition made the term defeasible.
Javins v. First National Realty Corp.428 F.2d 1071 (D.C. Cir.), cert. denied, 400 U.S. 925 (1970)
Ten-Year Equipment Room Arrangement
Before any writing Bright Satellite and Brook Connect orally agreed that Bright Satellite could lease an equipment room for ten years. Bright Satellite installed towers and cabling while Brook Connect accepted quarterly payments matching the discussed terms. The substantial performance referable to the ten-year term created an estate for years that received full effect despite the absence of a writing.
Tenhet v. Boswell(1976) 18 Cal. 3d 150, 155, 133 Cal. Rptr. 10, 554 P.2d 330
Fixed Term Commercial Loft Lease
Duane granted Luke exclusive possession of a top-floor unit for a fixed multi-year period in exchange for ongoing promotion of the building. Luke took possession invested in improvements and provided favorable coverage. The definite term measured in years created an estate for years that passed by will or intestate succession upon the tenant's death rather than terminating automatically with any change in ownership.
What distinguishes an estate for years from a periodic tenancy?+
An estate for years ends automatically on a definite date fixed at the outset while a periodic tenancy continues indefinitely from period to period until one party gives proper notice of termination. The key is whether the parties have agreed to a certain term that terminates without further action.
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Does a clause allowing early termination upon a specified event prevent creation of an estate for years?+
No. A landlord's reserved right to terminate upon a particular event such as sale of the building makes the term defeasible but does not convert the interest into a periodic or at-will tenancy. Courts treat the arrangement as a tenancy for years subject to the early termination clause.
Supporting sources
Must an estate for years last a full calendar year or coincide with calendar years?+
No. The duration need only be fixed in units of a year or multiples or fractions thereof with definite beginning and ending dates. Terms such as nine months three and a half years or from one stated calendar date to another all qualify.
Supporting sources
How does the label the parties use affect classification as an estate for years?+
Labels such as permit or license do not control. Courts look to the substance of the rights granted especially whether exclusive possession is given for a fixed term measured in years rather than any unilateral re-labeling after the fact.
Supporting sources
What happens when parties fix recurring rent but omit any end date?+
The arrangement creates a periodic tenancy keyed to the rent period rather than an estate for years. Without an agreed fixed term the law construes the interest as continuing from month to month or year to year until proper notice of termination.
Supporting sources
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Real PropertyOwnership of real property · Present estates and future interestsUBEIntermediate