Chapter 4

A legal term used to disclaim some implied warranties for an item being sold is known as what...?

"As-is"

Which of the following is NOT considered an essential element of a valid contract...?

All signatures must be notarized

A type of offer made in response to another offer, which was seen as unacceptable is known as what...?

Counteroffer

A legal proceeding by a lessor landlord to recover possession of real property is known as what...?

Eviction

A lease tied to an index such as the consumer price index is known as what...?

Index Lease

Which of the following is NOT an essential element of a valid contract...?

Must be a US citizen

A lease that requires the tenant to pay, in addition to rent, some or all of the property expenses that normally would be paid by the property owner is known as what...?

Net Lease

Which of the following is a tenant NOT entitled to in a typical lease agreement...?

Yearly upgrades to interior finishes

A ground lease is also known as what...?

Land Lease

This is a term that denotes that the seller is selling, and the buyer is buying a property in whatever condition it presently exists...?

"As-is"

A phrase in a contract that means that performance by one party at or within the period specified in the contract is necessary to enable that party to require performance by the other party is referred to as what...?

"Time is of the essence"

Which of the following is an example of a contract that will most likely affect agents or brokers...?

Listing agreements

Which of the following is an essential element of a valid contract...?

Mutual agreement

Which of the following is NOT a document needed to prepare a contract...?

Property floor plans

Which of the following is also known as an addendum...?

Rider

Which of the following is a standard provision found in lease agreements...?

The lease must specify the amount of rent to be paid

Where one is either by force or by process of law, actually put out of possession is known as what...?

Actual Eviction

This type of leasehold estate automatically renews...?

Periodic Estate

Which of the following is NOT a standard requirement found in a lease agreement...?

Tenant must be employed with a full-time job

How old must a tenant be in order to enter into a lease agreement with a landlord...?

18 years old

The method or manner by which a right or contract is transferred from one person to another is known as what...?

Assignment

A clause found in real estate contracts that may allow buyers to walk away from an agreed upon sale for any reason is known as what...?

Attorney Review Clause

A latin term that means "let him beware" is also known as what...?

Caveat

This means "let the buyer beware"...?

Caveat Emptor

Use provisions are typically found in what type of leases...?

Commercial leases

Which of the following is an essential element of a valid contract...?

Competent parties

Anything given to induce another to enter into a contract such as money or personal services is known as what...?

Consideration

Which of the following is an essential element of a valid contract...?

Consideration

Any disturbance of the tenant's possession of the leased premises by the landlord whereby the premises is rendered unfit or unsuitable for the purpose for which they were leased is known as what...?

Constructive Eviction

The warranty of habitability, offered in a standard lease, may be violated by this type of eviction..?

Constructive eviction

A provision in a contract that requires the occurrence of a specific event before the contract can be completed is known as what...?

Contingency

Agreements written into deeds and other instruments promising performance or nonperformance of certain acts, or stipulating certain uses or non-uses of the property is known as what...?

Covenant

A down payment made by a purchaser of real estate as evidence of good faith is known as what...?

Earnest Money Deposit

In this type of leasehold estate, either the tenant or landlord can cancel and withdraw at any time...?

Estate at Will

This type of leasehold estate lasts for a specified period of time and does NOT renew automatically...?

Estate for Years

An agreement that has been fully performed is known as what...?

Executed Contract

A contract which has not yet been fully performed is known as what...?

Executory Contract

A contract in which all elements of a contract are specifically stated (offer, acceptance, consideration), and the terms are stated is known as what...?

Express Contract

Which of the following expenses is NOT included in a net lease...?

Facade Maintenance

A special agreement between the lender and the borrower to delay a foreclosure is known as what.

Forbearance

A special agreement between the lender and the borrower to delay a foreclosure is known as what...?

Forbearance

A lease which provides for a graduated change at stated intervals in the amount of the rent to be paid is known as what...?

Graduated Lease

A lease of property whereby the lessor is to meet all property charges regularly incurred through ownership is known as what...?

Gross Lease

A tenant who remains in possession of leased property after the expiration of the lease term is known as what...?

Holdover Tenant

An agreement created by actions of the parties involved, but it is not written or spoken is known as what...?

Implied Contract

Which of the following is NOT an example of a contract that may affect agents or brokers...?

Inventory Agreements

What is the landlord required to do with a security deposit if the building is greater than 6 units...?

Keep the deposit in a separate bank account

A lease agreement that permits the tenant to use a piece of land owned by the landlord in exchange for rent is known as what...?

Land Lease

A contract whereby, for a consideration, usually termed rent, one who is entitled to the possession of real property transfers such rights to another for life, for a term of years, or at will is known as what...?

Lease

The interest or estate which a lessee of real estate has therein by virtue of the lessee's lease is known as what...?

Leasehold Estate

A person to whom property is rented under a lease is known as the...?

Lessee

One who rents property to another under a lease is known as the...?

Lessor

Which of the following is NOT an example of a valid contract...?

Letter of Intent

A provision in certain legal contracts that allows for the payment of a specified sum should one of the parties be in breach of contract is known as what...?

Liquidated Damages

A clause in a contract that states a mortgage must be obtained in order for the contract to be binding is known as what...?

Mortgage Contingency Clause

Mark is looking to rent an apartment in his neighborhood. Which of the following standard lease provisions must Mark satisfy in order to rent an apartment...?

Must have the capacity of contract

Prior to terminating an estate at will, what is the landlord or tenant required to provide to the other party...?

Notice

The act of either: 1) replacing an obligation to perform with a new obligation; or 2) adding an obligation to perform; or 3) replacing a party to an agreement with a new party is known as what...?

Novation

The expression of an offer to contract on certain terms by one person to another person, and an indication by the offeree of its acceptance of those terms is known as what...?

Offer and Acceptance

Which of the following is a tenant NOT entitled to in a typical lease...?

One month of free rent

A right given for a consideration to purchase or lease a property upon specified terms within a specified time is known as a/an...?

Option

A clause in a lease that outlines the terms for renewing or extending an original lease agreement is known as what...?

Option to Renew

A lease of property in which the rental is based upon the percentage of the volume of sales made upon the leased premises is known as what...?

Percentage Lease

Also known as a tenancy from year to year, month to month, or week to week, this is an estate that exists for some period of time determined by the term of the payment of rent...?

Periodic Lease

A written instrument duly signed and executed by a person which authorizes an agent to act on his/her behalf to the extent indicated in the instrument is known as what...?

Power of Attorney

The right of an owner or a person legally in possession to the use of property without interference of possession is known as what...?

Quiet Enjoyment

A remedy whereby a court orders a change in a written document to reflect what it ought to have said in the first place is known as what...?

Reformation

The right of an individual involved in a contract to return to a state identical to that before they entered into the agreement, due to courts not recognizing the contract as legally binding is known as what...?

Rescission

A contractual right that gives its holder the option to enter a business transaction with the owner of something, according to specified terms, before the owner is entitled to enter into the transaction with a third party is known as what...?

Right of First Refusal

A monetary deposit given to a lender, seller or landlord as proof of intent is known as what...?

Security Deposit

Which of the following is NOT a means by which one can terminate a lease...?

Self-help eviction

Which of the following is an illegal means of eviction in New York State...?

Self-help eviction

Who typically prepares the contract in the sale of a home...?

Seller's attorney

An order of a court which requires a party to perform a specific act, usually what is stated in a contract, is known as what...?

Specific Performance

A State law which provides that certain contracts must be in writing in order to be enforceable as law is known as what...?

Statute of Frauds

A statute barring all right of action after a certain period of time from the time when a cause of action first arises is known as what...?

Statute of Limitation

An arrangement in which the lessee (tenant) in a lease assigns the lease to a third party, thereby making the old lessee the sublessor, and the new lessee the sublessee, or subtenant is known as what...?

Sublease

How do State statutes regulate rent controlled apartments...?

The State limits the amount of rent increases each year

Who must provide consent when a tenant assigns his/her lease....?

The landlord

Which of the following is NOT a standard requirement found in a lease agreement...?

The tenant must have a minimum amount of money in the bank

A lease in which the tenant or lessee is responsible for paying a portion of or all of the common expenses related to real estate ownership, in addition to base rent, is known as what...?

Triple Net Lease

A standard set of business laws that regulate financial contracts is known as what...?

Uniform Commercial Code

To have no force or effect is known as what...?

Void

When is a landlord required to keep a security deposit in a separate bank account...?

When the building is 6 units or more