Deck 13: Leases

Question 1

A tenant's right to the leased premises is subject to all the landlord's title defects.

Answer 1

True

Question 2

A lease without a specified term is deemed to be a perpetual lease.

Answer 2

False

Question 3

A lease may provide that possession will begin several months in the future after the lease is signed.

Answer 3

True

Question 4

A lease must describe the property that is being rented.

Question 5

The clause in a lease that prohibits a tenant from opening another store within a certain geographical distance of the leased premises is known as a nondisturbance agreement.

Question 6

A foreclosure of a prior mortgage on leased premises will terminate the lease.

Question 7

The tenant's contractual obligation to pay rent will continue even if the tenant has transferred his or her interest in the lease and vacated the premises.

Question 8

A CPI rent escalator in a lease protects the tenant against inflation.

Question 9

A percentage rent clause in a retail lease will generally provide that a percentage of the tenant's net income will be paid to the landlord as rent.

Question 10

A percentage rent clause in a retail lease will generally provide that a percentage of the tenant's gross sales or net sales on the premises will be paid to the landlord as rent.

Question 11

The tenant's obligation to pay rent in the lease will terminate upon the tenant's transfer of the lease or the vacation of the premises.

Question 12

Failure of a landlord to perform its obligations under a lease is always an excuse for the tenant not to pay rent.

Question 13

A lease in which the tenant pays rent plus all expenses of the premises is known as a net lease.

Question 14

A foreclosure of a prior mortgage on leased premises will not terminate the lease.

Question 15

Rent is generally payable in advance.

Question 16

A lease provision that agrees to release and hold harmless both the landlord and tenant from each other's actions in regard to any casualty to the premises impairs an insurance company's right of subordination.

Question 17

A CPI rent escalator in a lease protects the landlord against inflation.

Question 18

Failure of a landlord to perform its obligations under a lease is not always an excuse for the tenant not to pay rent.

Question 19

A provision in a lease that prohibits a tenant from opening another store within a certain geographical area of the leased premises is known as a radius clause.

Question 20

A tenant's right to the leased premises is not subject to all the landlord's title defects.

Question 21

A mortgage holder's agreement to honor a tenant's lease upon foreclosure of the mortgage is known as a subrogation.

Question 22

Oral leases are not enforceable under URLTA.

Question 23

Under common law, a tenant was obligated to continue paying rent even if the leased premises had been damaged or destroyed.

Question 24

A mortgage holder's agreement to honor a tenant's lease upon foreclosure of the mortgage is known as an estoppel.

Question 25

A landlord generally has a right to terminate a lease for tenant's default.

Question 26

Under common law, a tenant was excused from its obligation to pay rent when the leased premises were damaged or destroyed.

Question 27

A subtenant has no responsibility to the original landlord under the lease.

Question 28

URLTA requires an obligation of good faith in landlord and tenant dealings.

Question 29

Under URLTA, unless the rental agreement sets a definite term, the tenancy is a month-to-month tenancy.

Question 30

An assignee of a lease under all circumstances is responsible for the lease covenants.

Question 31

A mortgage holder's agreement to honor a tenant's lease upon foreclosure of the mortgage is known as an attornment.

Question 32

A subtenant is responsible to the original landlord for rent but not for other lease covenants.

Question 33

URLTA prohibits a rental agreement that provides that the landlord shall pay the tenant's attorneys' fees.

Question 34

The original tenant after an assignment or sublet is released from its responsibility.

Question 35

A landlord's covenant that the tenant will peacefully and quietly enjoy the premises without hindrance or interference by the landlord is known as a grace period.

Question 36

A landlord's failure to perform under the lease generally does not give the tenant the right to terminate the lease.

Question 37

Under URLTA, a rental agreement may not provide that the tenant agree to pay the landlord's attorneys' fees.

Question 38

A landlord may have a right to dispossess the tenant without termination of the lease for tenant's default.

Question 39

A landlord's failure to perform under the lease generally gives the tenant the right to terminate the lease.

Question 40

The original tenant after an assignment or sublet remains responsible under the lease.

Question 41

A landlord may not be able to proceed against which of the following parties in regard to violations of lease provisions:

A) original tenant
B) sublessee
C) sublessor
D) assignee

Question 42

A security deposit is usually given to secure the landlord's performance under a lease.

Question 43

A landlord's basic remedies for tenant's default under the lease are:

A) sue the tenant for performance
B) terminate the lease and sue for damages
C) dispossess the tenant without termination of the lease and sue for damages
D) (a) and (b)
E) all of the above

Question 44

A lease provision that provides that both landlord and tenant will hold each harmless from the other's actions in regard to any casualty to the premises will impair an insurance company's right of:

A) attornment
B) subrogation
C) subordination
D) redemption

Question 45

Under a gross lease, a tenant would pay which of the following items:

A) insurance
B) utilities
C) rent
D) all of the above

Question 46

A lease provision that provides that rent will increase in a predetermined amount on a predetermined date is known as a:

A) CPI escalator
B) bump increase
C) percentage rent clause
D) net lease

Question 47

A lease provision that prohibits a tenant from opening another store within a certain geographical area of the leased premises is called a:

A) waiver of subrogation
B) estoppel
C) radius clause
D) quiet enjoyment provision

Question 48

A security deposit is usually given to secure a tenant's performance under a lease.

Question 49

An obligation by a third party to pay a tenant's rent under a lease is known as a:

A) attornment
B) sublet
C) guaranty
D) memorandum of lease

Question 50

A lease is entered into between landlord and tenant on May 10 and provides that the tenant shall take possession of the premises on August 1. The lease is effective and commences on:

A) August 1
B) May 10
C) the date tenant actually takes possession of the premises
D) none of the above

Question 51

A lease provision that provides the landlord will not hinder or interfere with a tenant's possession of the premises is known as a:

A) grace period
B) attornment and nondisturbance agreement
C) quiet enjoyment provision
D) waiver of landlord's right of subrogation

Question 52

Typically, the parties to an attornment and nondisturbance agreement are:

A) mortgagee and tenant
B) mortgagor and landlord
C) mortgagor and tenant
D) landlord and tenant

Question 53

A default by a landlord under the lease generally gives the tenant the right to:

A) withhold rent
B) sue the landlord for performance
C) terminate the lease
D) file a lien on the landlord's property

Question 54

URLTA provides that if there is substantial destruction to the premises, either the landlord or the tenant may terminate the lease.

Question 55

Under a net lease, a tenant would pay which of the following items:

A) utilities
B) taxes on the property
C) insurance
D) all of the above
E) none of the above