Deck 16: Real Estate Leases

Question 1

If a lease were signed by a lessee who is a minor, the lease is

A) void.
B) voidable by the landlord.
C) voidable by the tenant.
D) unenforceable.

Answer 1

C
If a lease were signed by a lessee who is a minor, the lease is voidable by the tenant.

Question 2

In any valid lease, the lessor by law gives an implied covenant of

A) quiet enjoyment.
B) satisfaction.
C) reconveyance.
D) undue duress.

Answer 2

A

Question 3

Residential landlord tenant laws recently enacted in many states have modified the reliance on common law and contract tenancy right. These changes include all of the following EXCEPT

A) the landlord must supply a fit and habitable premise.
B) limits on the amount of security deposit that can be required.
C) statutory procedures required for collecting back rent and evicting a tenant.
D) defining a leasehold as a recordable real property belonging to the tenant.

Answer 3

D
This is not typically part of common law and contract tenancy rights.

Question 4

If a lease must be acknowledged for recording, whose signature should be acknowledged?

A) Property manager
B) Lessor
C) Lessee
D) Notary public

Question 5

A contract that contains predetermined rent increases to take effect during the life of the lease is

A) a step-up lease.
B) one with a participation clause.
C) a percentage lease.
D) a net lease.

Question 6

Who holds a less than freehold estate under a valid lease?

A) Lessor
B) Lessee
C) Landlord
D) Owner

Question 7

If a lease on a commercial building contains an escalation clause, the

A) tenant must maintain the elevators.
B) rent could change.
C) rent must go up and down regularly.
D) rent stays the same but the term may change.

Question 8

The tenant has signed a percentage lease. The terms of the lease are $500 per month plus an annual payment equal to 9% of gross sales over $250,000. If, at the end of the year, the tenant is celebrating a million dollars in gross sales, how much additional rent does he still owe?

A) $6,000
B) $61,500
C) $67,500
D) $73,500

Question 9

A tenant seeking both flexibility for himself and commitment from the landlord would request a

A) participation clause.
B) month-to-month lease.
C) long-term lease.
D) lease with options to renew.

Question 10

Upon termination of a rental contract,

A) ownership reverts to the lessor.
B) possession is returned to the lessor.
C) possession is returned to the lessee.
D) ownership reverts to the lessee.

Question 11

A couple's one year lease has expired, but they continued living on the premises. If they now pay rent on a monthly basis, this type of tenancy is

A) by the entireties.
B) at will.
C) periodic.
D) at sufferance.

Question 12

A rental contract gives the tenant

A) the right of possession.
B) temporary ownership.
C) a freehold estate.
D) the right to encumber.

Question 13

A tenant will know in advance how much his rent will be at any time during the lease under a

A) gross lease.
B) percentage lease.
C) pass through lease.
D) participation.

Question 14

Lonnie and Connie had a one-year lease that ended November 30. They were still living in the apartment as of December 12 without a new lease and without the landlord's permission. They have become

A) tenants at sufferance.
B) tenants in common.
C) tenants at will.
D) tenants for years.

Question 15

A lease under which the amount of rent is based upon the tenant's sales volume is known as

A) a percentage lease.
B) a gratuity lease.
C) an escalation lease.
D) usury.

Question 16

A lease for six months is classified as

A) a periodic estate.
B) an estate at sufferance.
C) an estate at will.
D) an estate for years.

Question 17

Under the terms of a normal net lease, the lessee is responsible for all of the following EXCEPT

A) mortgage payments.
B) repairs.
C) water bills.
D) taxes.

Question 18

Current legal thinking with regard to owner's obligations under a residential rental contract is that

A) if a service is not promised in writing, it will not be forthcoming.
B) the owner is obligated to keep the premises repaired.
C) the owner has an obligation only to collect the rent and pay the utilities.
D) only expressed agreements may be pursued in court.

Question 19

A valid lease must contain

A) an option.
B) the signatures of at least three parties.
C) a clean-up deposit.
D) a property description.

Question 20

A lease which requires a fixed constant amount of rent for each payment period of the term is called a

A) gross lease.
B) net lease.
C) percentage lease.
D) raw lease.

Question 21

With regard to renting one vacant apartment, advertising money is usually most effectively spent on

A) radio ads.
B) television ads.
C) newspaper.
D) billboards.

Question 22

A tenant who operates a coffee shop rented a property under a lease which stated there would be no alcohol served. The tenant subsequently began serving liquor. The landlord would most likely seek

A) artistic license.
B) eviction.
C) condemnation.
D) injunctive relief.

Question 23

Under a net lease, the tenant pays a rate based on the net mortgage payment.

Question 24

A lease contract that calls for rent increases that keep abreast with changes in property taxes and utility costs contains a participation clause.

Question 25

When a valid, enforceable lease is terminated before expiration by means of a mutual agreement, but no penalties are required between the lessor and the lessee, the situation would be referred to as

A) surrender.
B) rescission.
C) release.
D) satisfaction.

Question 26

A residential apartment tenant would be expected to pay the landlord for

A) normal wear and tear.
B) damage to the apartment caused by the tenant.
C) any change in the apartment.
D) sun-faded carpet.

Question 27

A 100-unit apartment building would typically require how many full-time management personnel?

A) 1
B) 2
C) 4
D) 6

Question 28

If a shopping center building collapsed and several of the tenants' stores could not be reopened, the effect on the tenants' leases would be

A) actual eviction.
B) an act of God eviction.
C) a sandwich lease.
D) constructive eviction.

Question 29

A lease takes on value when

A) economic rent exceeds contract rent.
B) contract rent exceeds economic rent.
C) contract rent equals economic rent.
D) contract rent is less than economic rent.

Question 30

A valid, written lease will automatically be terminated by

A) death of the lessor.
B) sale of the leased premises.
C) court eviction of the tenant.
D) imprisonment of tenant.

Question 31

The lessee's right to quiet enjoyment allows the landlord no right of entry.

Question 32

A tenant is living in a house that is for sale. The owner has told the tenant that he can stay there until the house sells. Most likely, they have entered into an estate at will.

Question 33

If commercial space is rented out for $.07 per square foot per month the annual rent on a space 80' × 150' would be $9,400.

Question 34

A right of possession for a fixed term that allows for automatic renewals for additional terms is called a periodic tenancy.

Question 35

A lease conveys the right of possession and use to the landlord.

Question 36

A lessee is in possession of a valid lease when a buyer agrees to assume a veteran's loan and close a sale subject to the lease. The earnest money contract is signed before the lease is due to expire. The lease can

A) be terminated immediately.
B) be changed by the new buyer.
C) not be terminated by the buyer.
D) be terminated at close of escrow.

Question 37

A lease cannot be assigned.

Question 38

A current leasehold is an encumbrance on real property and must be honored by the buyer of the leased property.

Question 39

The rent of a small store includes a flat amount per month plus a portion of the gross sales each month. The lease is a percentage lease.

Question 40

The total transfer of a tenant's rights to another person is called

A) an option.
B) a sublet.
C) a waiver.
D) an assignment.

Question 41

Upon termination of a rental contract, ownership reverts to the lessor.

Question 42

The owner has rented a home to a tenant for many years. Lately, however, the owner has failed to keep the premises in decent repair. The tenant has left in dismay and sued for damages. The tenant would most probably claim that the owner's failure constituted constructive eviction.

Question 43

____________________ management consists of duties that can be accomplished without being on the premises.

Question 44

Office and industrial leases of five or more years often include an escalator or ____________________ clause.

Question 45

A lease wherein the owner receives a percentage of the tenant's gross receipts as rent is called a ____________________ lease.

Question 46

When a property owner offers a premium to entice a prospective tenant to move in, this is known as a rent ____________________.

Question 47

The amount of rent that the tenant must pay the landlord for the use of the premises is called the ____________________ rent.

Question 48

Typical duties of a licensed real estate property manager include screening tenants, maintaining deposit accounts and routine maintenance.

Question 49

When a tenant is behind on his rent, the law permits the landlord to remove the tenant's belongings until the rent is paid.

Question 50

The rent that a property can command in the competitive open market is called the ____________________ rent.

Question 51

A written lease agreement is still legal even though it fails to include the terms of the lease.

Question 52

If a renter complains to public health officials about conditions on the premises which violate codes, the landlord may legally react by giving the tenant an eviction notice.

Question 53

The Certified Property Manager (CPM)designation is available from the Organization of Property Managers.

Question 54

A ____________________ eviction is one whereby a landlord evicts a tenant because of a complaint made by the tenant.

Question 55

A broker leasing property for a seller for a fee is a trustee.

Question 56

A lease for a definite period of time, which terminates when that time has expired, is a periodic estate.

Question 57

A(n)____________________ is the total transfer of the lessee's rights to another person.

Question 58

The designation of "certified property manager" means an IREM graduate property manager.

Question 59

To ____________________ means to transfer only a portion of the rights under a lease.

Question 60

A lease where the tenant pays a fixed rent and the landlord pays all property taxes is a ____________________ lease.

Question 61

Choose the one most appropriate answer for each.
a.actual eviction
k.month-to-month lease
b.assignment
l.net lease
c.constructive eviction
m.on-site management
d.contract rent
n.participation clause
e.CPM, RPA
o.percentage lease
f.gross lease
p.rent concession
g.holdover tenant
q.security deposit
h.landlord-tenant laws
r.step-up rent
i.lessee
s.sublessee
j.lessor
t.sublet
a resident manager would be in this category

Question 62

Choose the one most appropriate answer for each.
a.actual eviction
k.month-to-month lease
b.assignment
l.net lease
c.constructive eviction
m.on-site management
d.contract rent
n.participation clause
e.CPM, RPA
o.percentage lease
f.gross lease
p.rent concession
g.holdover tenant
q.security deposit
h.landlord-tenant laws
r.step-up rent
i.lessee
s.sublessee
j.lessor
t.sublet
professional designations for property managers

Question 63

Choose the one most appropriate answer for each.
a.actual eviction
k.month-to-month lease
b.assignment
l.net lease
c.constructive eviction
m.on-site management
d.contract rent
n.participation clause
e.CPM, RPA
o.percentage lease
f.gross lease
p.rent concession
g.holdover tenant
q.security deposit
h.landlord-tenant laws
r.step-up rent
i.lessee
s.sublessee
j.lessor
t.sublet
specified rent increases at various points in time during the life of the lease

Question 64

Choose the one most appropriate answer for each.
a.actual eviction
k.month-to-month lease
b.assignment
l.net lease
c.constructive eviction
m.on-site management
d.contract rent
n.participation clause
e.CPM, RPA
o.percentage lease
f.gross lease
p.rent concession
g.holdover tenant
q.security deposit
h.landlord-tenant laws
r.step-up rent
i.lessee
s.sublessee
j.lessor
t.sublet
one who holds a tenancy at sufferance

Question 65

Choose the one most appropriate answer for each.
a.actual eviction
k.month-to-month lease
b.assignment
l.net lease
c.constructive eviction
m.on-site management
d.contract rent
n.participation clause
e.CPM, RPA
o.percentage lease
f.gross lease
p.rent concession
g.holdover tenant
q.security deposit
h.landlord-tenant laws
r.step-up rent
i.lessee
s.sublessee
j.lessor
t.sublet
example of a periodic estate

Question 66

Choose the one most appropriate answer for each.
a.actual eviction
k.month-to-month lease
b.assignment
l.net lease
c.constructive eviction
m.on-site management
d.contract rent
n.participation clause
e.CPM, RPA
o.percentage lease
f.gross lease
p.rent concession
g.holdover tenant
q.security deposit
h.landlord-tenant laws
r.step-up rent
i.lessee
s.sublessee
j.lessor
t.sublet
an advance deposit given by a tenant to a landlord against which the landlord can deduct for unpaid rent or damage

Question 67

Choose the one most appropriate answer for each.
a.actual eviction
k.month-to-month lease
b.assignment
l.net lease
c.constructive eviction
m.on-site management
d.contract rent
n.participation clause
e.CPM, RPA
o.percentage lease
f.gross lease
p.rent concession
g.holdover tenant
q.security deposit
h.landlord-tenant laws
r.step-up rent
i.lessee
s.sublessee
j.lessor
t.sublet
the tenant

Question 68

Choose the one most appropriate answer for each.
a.actual eviction
k.month-to-month lease
b.assignment
l.net lease
c.constructive eviction
m.on-site management
d.contract rent
n.participation clause
e.CPM, RPA
o.percentage lease
f.gross lease
p.rent concession
g.holdover tenant
q.security deposit
h.landlord-tenant laws
r.step-up rent
i.lessee
s.sublessee
j.lessor
t.sublet
the amount of rent the tenant must pay the landlord as stated in the lease agreement

Question 69

Choose the one most appropriate answer for each.
a.actual eviction
k.month-to-month lease
b.assignment
l.net lease
c.constructive eviction
m.on-site management
d.contract rent
n.participation clause
e.CPM, RPA
o.percentage lease
f.gross lease
p.rent concession
g.holdover tenant
q.security deposit
h.landlord-tenant laws
r.step-up rent
i.lessee
s.sublessee
j.lessor
t.sublet
nonpayment of rent would be grounds for this

Question 70

Choose the one most appropriate answer for each.
a.actual eviction
k.month-to-month lease
b.assignment
l.net lease
c.constructive eviction
m.on-site management
d.contract rent
n.participation clause
e.CPM, RPA
o.percentage lease
f.gross lease
p.rent concession
g.holdover tenant
q.security deposit
h.landlord-tenant laws
r.step-up rent
i.lessee
s.sublessee
j.lessor
t.sublet
partial transfer of rights held under a lease

Question 71

Choose the one most appropriate answer for each.
a.actual eviction
k.month-to-month lease
b.assignment
l.net lease
c.constructive eviction
m.on-site management
d.contract rent
n.participation clause
e.CPM, RPA
o.percentage lease
f.gross lease
p.rent concession
g.holdover tenant
q.security deposit
h.landlord-tenant laws
r.step-up rent
i.lessee
s.sublessee
j.lessor
t.sublet
the party acquiring possession under a sublet agreement

Question 72

Choose the one most appropriate answer for each.
a.actual eviction
k.month-to-month lease
b.assignment
l.net lease
c.constructive eviction
m.on-site management
d.contract rent
n.participation clause
e.CPM, RPA
o.percentage lease
f.gross lease
p.rent concession
g.holdover tenant
q.security deposit
h.landlord-tenant laws
r.step-up rent
i.lessee
s.sublessee
j.lessor
t.sublet
a lease where the amount of rent paid is related to the income the lessee obtains from the use of the premises

Question 73

Choose the one most appropriate answer for each.
a.actual eviction
k.month-to-month lease
b.assignment
l.net lease
c.constructive eviction
m.on-site management
d.contract rent
n.participation clause
e.CPM, RPA
o.percentage lease
f.gross lease
p.rent concession
g.holdover tenant
q.security deposit
h.landlord-tenant laws
r.step-up rent
i.lessee
s.sublessee
j.lessor
t.sublet
a lease wherein a tenant pays a base rent plus maintenance, property taxes, and insurance

Question 74

Choose the one most appropriate answer for each.
a.actual eviction
k.month-to-month lease
b.assignment
l.net lease
c.constructive eviction
m.on-site management
d.contract rent
n.participation clause
e.CPM, RPA
o.percentage lease
f.gross lease
p.rent concession
g.holdover tenant
q.security deposit
h.landlord-tenant laws
r.step-up rent
i.lessee
s.sublessee
j.lessor
t.sublet
a lease clause that allows the landlord to add to the tenants rent any increase in expenses during the life of the lease

Question 75

Choose the one most appropriate answer for each.
a.actual eviction
k.month-to-month lease
b.assignment
l.net lease
c.constructive eviction
m.on-site management
d.contract rent
n.participation clause
e.CPM, RPA
o.percentage lease
f.gross lease
p.rent concession
g.holdover tenant
q.security deposit
h.landlord-tenant laws
r.step-up rent
i.lessee
s.sublessee
j.lessor
t.sublet
complete transfer of rights held under a lease

Question 76

Choose the one most appropriate answer for each.
a.actual eviction
k.month-to-month lease
b.assignment
l.net lease
c.constructive eviction
m.on-site management
d.contract rent
n.participation clause
e.CPM, RPA
o.percentage lease
f.gross lease
p.rent concession
g.holdover tenant
q.security deposit
h.landlord-tenant laws
r.step-up rent
i.lessee
s.sublessee
j.lessor
t.sublet
statutes that set forth the responsibilities and rights of landlords and tenants

Question 77

Choose the one most appropriate answer for each.
a.actual eviction
k.month-to-month lease
b.assignment
l.net lease
c.constructive eviction
m.on-site management
d.contract rent
n.participation clause
e.CPM, RPA
o.percentage lease
f.gross lease
p.rent concession
g.holdover tenant
q.security deposit
h.landlord-tenant laws
r.step-up rent
i.lessee
s.sublessee
j.lessor
t.sublet
a premium, such as a free month's rent, given to entice a prospective tenant to sign a lease

Question 78

Choose the one most appropriate answer for each.
a.actual eviction
k.month-to-month lease
b.assignment
l.net lease
c.constructive eviction
m.on-site management
d.contract rent
n.participation clause
e.CPM, RPA
o.percentage lease
f.gross lease
p.rent concession
g.holdover tenant
q.security deposit
h.landlord-tenant laws
r.step-up rent
i.lessee
s.sublessee
j.lessor
t.sublet
an unfit premises would be grounds for this

Question 79

Choose the one most appropriate answer for each.
a.actual eviction
k.month-to-month lease
b.assignment
l.net lease
c.constructive eviction
m.on-site management
d.contract rent
n.participation clause
e.CPM, RPA
o.percentage lease
f.gross lease
p.rent concession
g.holdover tenant
q.security deposit
h.landlord-tenant laws
r.step-up rent
i.lessee
s.sublessee
j.lessor
t.sublet
the landlord

Question 80

Choose the one most appropriate answer for each.
a.actual eviction
k.month-to-month lease
b.assignment
l.net lease
c.constructive eviction
m.on-site management
d.contract rent
n.participation clause
e.CPM, RPA
o.percentage lease
f.gross lease
p.rent concession
g.holdover tenant
q.security deposit
h.landlord-tenant laws
r.step-up rent
i.lessee
s.sublessee
j.lessor
t.sublet
describes leases wherein the tenant pays a fixed rent