Question 1

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

Accepted Answer

The provision in the lease that releases the landlord and tenant from liability to each other in the event of a casualty will impair the insurance company's right of subrogation. Subrogation refers to the right of the insurance company to recover the amount it paid on a claim from any third party that may be responsible for the loss. Essentially, the provision would prevent the insurance company from pursuing any legal action against the landlord or tenant for their role in causing the casualty.

Question 2

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

Accepted Answer

A bump increase is a lease provision that specifies a predetermined rent increase on a predetermined date. It is also known as a step-up lease or a graduated lease. A CPI escalator refers to rent increases that are tied to the Consumer Price Index, a measure of inflation. A percentage rent clause requires the tenant to pay a percentage of their gross sales as rent. A net lease requires the tenant to pay a portion of the operating expenses of the property in addition to rent.

Question 3

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

Accepted Answer

A radius clause is a lease provision that prohibits a tenant from opening another store within a certain geographic area of the leased premises. This is often used in commercial leases to protect the landlord and other tenants from competition.

Question 4

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

Accepted Answer

A guaranty is an agreement in which a third party agrees to be responsible for another's debt or performance under a contract, such as paying a tenant's rent under a lease. An attornment is a tenant's agreement to recognize a new landlord when ownership of the property changes. Subletting is when a tenant rents out all or part of the leased property to another person. A memorandum of lease is a document that summarizes key terms of a lease agreement, such as the parties involved, lease term, and rent amount, but does not create any new obligations.

Question 5

The Uniform Residential Landlord and Tenant Act gives a tenant who is subject to domestic violence the right to terminate a lease.

Accepted Answer

Under the Uniform Residential Landlord and Tenant Act, a victim of domestic violence is allowed to terminate a lease without penalty by giving written notice to the landlord.

Question 6

If a debtor does not reject a lease within the time period provided for in the bankruptcy act, the lease will be deemed automatically assumed.

Accepted Answer

The answer of If a debtor does not reject a...

Question 7

The Uniform Residential Landlord and Tenant Act provides that a landlord may not receive a security deposit from a tenant in an amount in excess of one month's rent.

Accepted Answer

The Uniform Residential Landlord and Tenant Act limits the security deposit amount to not more than one month's rent.

Question 8

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:

Accepted Answer

A lease is a contract that creates a landlord-tenant relationship. The lease is effective and commences on the date it is signed by both parties, which in this case is May 10.

Question 9

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

Accepted Answer

Under a gross lease, the tenant pays a fixed amount of rent and the landlord is responsible for paying all operating expenses, including insurance and utilities.

Question 10

Typically the parties to an attornment nondisturbance agreement are:

Accepted Answer

An attornment nondisturbance agreement is a three-party agreement between the mortgagee (lender), the tenant, and the landlord (mortgagor). The agreement ensures that the tenant's leasehold interest in the property will not be disturbed if the landlord defaults on the mortgage or if the property is foreclosed. Therefore, the correct parties to the agreement are the mortgagee and tenant who are the primary beneficiaries of the agreement, and the landlord who will comply with the terms of the agreement in favor of the tenant.

Question 11

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

Accepted Answer

A landlord has several remedies for a tenant's default under the lease, including suing the tenant for performance, terminating the lease and suing for damages, and dispossessing the tenant without termination of the lease and suing for damages. These options provide the landlord with flexibility in how to address the default based on the specific circumstances and the terms of the lease.

Question 12

Under the Uniform Residential Landlord and Tenant Act, a willful and negligent failure on the part of the landlord to provide heat, hot water, or other essential services gives the tenant a right to terminate the lease.

Accepted Answer

The Uniform Residential Landlord and Tenant Act provides tenants with the right to terminate their lease if the landlord willfully or negligently fails to provide essential services, including heat and hot water.

Question 13

The Uniform Residential Landlord and Tenant Act provides that a landlord cannot receive a security deposit from a tenant in an amount in excess of three months' rent.

Accepted Answer

The Uniform Residential Landlord and Tenant Act does not specify a limit on the amount of security deposit a landlord can receive from a tenant. However, some states may have their own laws regarding security deposits. It is important for both landlords and tenants to familiarize themselves with the laws and regulations in their state regarding security deposits.

Question 14

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

Accepted Answer

A landlord typically cannot proceed directly against a sublessee for lease violations because the sublessee's agreement is with the original tenant, not the landlord. The landlord's recourse is usually against the original tenant or sublessor.

Question 15

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

Accepted Answer

Under a net lease, the tenant is responsible for paying for all of the items listed, including utilities, taxes on the property, and insurance.

Question 16

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

Accepted Answer

The answer of A default by a landlord under the...

Question 17

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

Accepted Answer

This provision is known as a quiet enjoyment provision, which ensures that the tenant has the right to occupy and use the premises without interference or disruption from the landlord. It is a fundamental right of a tenant and is included in most lease agreements.

Question 18

The Uniform Residential Landlord and Tenant Act requires good faith in landlord and tenant dealings.

Accepted Answer

The Uniform Residential Landlord and Tenant Act (URLTA) does require good faith in landlord and tenant dealings. This is stated in section 1-304 of the URLTA.

Question 19

A trustee or debtor in bankruptcy has 120 days after the bankruptcy petition has been filed to either reject or assume leases.

Accepted Answer

This is true. The trustee or debtor in bankruptcy has 120 days after the bankruptcy petition has been filed to either assume or reject leases. If they do not take action within this time frame, the lease is deemed rejected.

Question 20

The Uniform Residential Landlord and Tenant Act requires that the tenant be given at least 90 days to cure any defaults under the lease prior to termination of the lease by the landlord.

Accepted Answer

The Uniform Residential Landlord and Tenant Act does not establish a specific time frame for curing defaults. It is up to individual state laws to determine the notice period required for a tenant to cure a default before a landlord can terminate the lease. Some states may require a shorter or longer notice period than 90 days.

Quiz 17: Condominiums and Cooperatives