Ch. 14 - Landlord and Tenant Relations

index lease

provides for the ADJUSTMENT of rent according to changes in a price INDEX.

graduated lease

rent payments start at a fixed amount but increase as the lease term matures.

gross lease

requires the landlord to pay the property's operating expenses, (including utilities, repairs, and maintenance) while the tenant pays only RENT.

net lease

tenant pays not only the rent for occupancy, but also pays maintenance and operating expenses (such as taxes, insurance, utilities, and repairs)

renter is the...

tenant, or lessee.

5 required steps for a legal eviction in California

1)Appropriate 3-day notice to vacate the property 2)Filing of the unlawful detainer action 3)Summons is issued to the tenant who has 5 days to respond to the charges 4)If the tenant ignores the summons the landlord can file a default judgment and have the sheriff evict the tenant. 5)If the tenant responds to the summons the parties will present their case to the court and the court will make a final ruling if the tenant must leave the premises or not.

California has 2 types of rent control ordinances:

1)Ordinances without vacancy decontrol - limit rent increases for both new and existing tenants. 2)Ordinances with vacancy decontrol - allow a property owner to set the rent for a new tenant without any restrictions.

6 of 25 How much notice must a landlord give a tenant to enter a rental property in most situations? 2 days 24 hours 12 hours 8 hours

24 hours In most situations the landlord must give, or attempt to give, the tenant advance notice to enter the rental property, typically 24 hours.

In most cases, a landlord may enter a dwelling unit upon giving...

24-hour notice. In emergency situations, under a court order, where the tenant has abandoned or surrendered the premises, or when the lease agreement stipulates other situations, no notice is required.

7 of 25 When using the repair-and-deduct option, how long should a tenant wait for a landlord to fix items before choosing to fix them him or herself if the problem is not severe? 7 days 21 days 30 days 60 days

30 days The tenant must wait a "reasonable time" for the landlord to fix the items before choosing to fix them him or herself. The statute states 30 days as a reasonable time, but stipulates a shorter time is warranted if the problem severely affects living conditions, such as no toilet, water, electricity, or gas.

23 of 25 How many days notice to terminate must a tenant be given in a mobile home lease agreement? 15 days 45 days 60 days 30 days

60 days Tenants must be given a 60-day notice to terminate.

21 of 25 How many days notice, before the date of increase, must be given to homeowners in a mobile home lease agreement, regarding the increase of rent? 30 days 90 days 45 days 60 days

90 days Any increases of rent must be given to homeowners 90 days before the date of the increase, and fees cannot be charged to homeowners without notice of services at least 60 days before the charge.

2 of 25 In what type of lease does the landlord pay the property's operating expenses, including utilities, repairs, and maintenance? A graduated lease A gross lease A net lease An index lease

A gross lease A gross lease, or full service lease, requires the landlord to pay the property's operating expenses, including utilities, repairs, and maintenance, while the tenant pays only rent.

13 of 25 What is an oral or written agreement that creates and governs, by express or implied terms, a landlord-tenant relationship? An agency A sales contract A listing A lease

A lease A lease is an oral or written agreement that creates and governs, by express or implied terms, a landlord-tenant relationship.

20 of 25 What describes a lease where the rent is based on a percentage of the monthly or annual gross sales made on the site? A proprietary lease An index lease A percentage lease A net lease

A percentage lease A percentage lease is a lease whose rental is based on a percentage of the monthly or annual gross sales made on the site.

10 of 25 What type of lease conveys a leasehold interest to an owner of a cooperative? A land lease A percentage lease An index lease A proprietary lease

A proprietary lease A proprietary lease conveys a leasehold interest to an owner of a cooperative.

25 of 25 What describes money that a tenant deposits with the owner, in advance of possession, for the repair of any damages for which the tenant is responsible? A lease deposit A partial payment A security deposit An escrow deposit

A security deposit A security deposit is money that a tenant deposits with the owner of the property, in advance of possession, for the repair of any damages to the property for which the tenant is responsible.

24 of 25 What describes a report that is filled out by the landlord stating the condition of a property upon the tenant's moving in and moving out of the property? An inspection report A housing report A residential property form A statement of property condition

A statement of property condition A statement of property condition is a report, filled out by the landlord (but within the presence of the tenant), which states the condition of the property upon the tenant's moving in and moving out of the property.

1 of 25 If a tenant is in default what can the landlord file to repossess the property and evict the tenant? A suit for default A breach of contract An order of removal A suit for possession

A suit for possession If a tenant is in default, the landlord may file a suit for possession, also called a suit for eviction.

4 of 25 What type of suit compels the defaulting party to perform the contract obligation that was breached? A suit for breach of duty A suit for specific performance A suit for possession A suit for misrepresentation

A suit for specific performance A successful suit for specific performance compels the defaulting party to perform the contract obligation that was breached.

16 of 25 What describes a guarantee that a property meets the minimum health and housing codes? A home warranty A tenancy guarantee A home service warranty A warranty of habitability

A warranty of habitability A warranty of habitability guarantee that the property meets the minimum health and housing codes.

18 of 25 What is a lease provision that gives the tenant the right to extend the lease for an additional period of time and sets forth the terms for the renewed lease? An extension An option to renew A recommence clause A time revision

An option to renew An option to renew is a lease provision that gives the tenant the right to extend the lease for an additional period of time and sets forth the terms for the renewed lease.

Landlords have the following RIGHTS:

Receive rent Re-possess the property following the lease term Terminate a month-to-month rental agreement Inspect a property periodically, but must follow specific guidelines. Monitor the tenant's obligations to maintain the premises

The covenants (agreements or promises) in the lease are very important.

Capacity to contract Demising clause Description of the premises Clear statement of term Specification of rent and how it is to be paid In writing Signatures Delivery

5 of 25 What lease clause talks about the landlord leasing the property and the tenant taking possession of the property? Capacity to contract Rent Demising clause Description

Demising clause "Demising clause says that the landlord leases the property and the tenant takes possession of the property."

17 of 25 Which of these is not a type of leasehold estate? Estate for Years Estate at Will Estate at Sufferance Estate at Conveyance

Estate at Conveyance "Estate at Conveyance is not a type of leasehold estate. There are four basic types of leasehold estates: Estate for Years, Estate from Period to Period (Periodic estate), Estate at Will, and Estate at Sufferance."

4 types of leasehold estates

Estate for years Estate from period to period (periodic estate) Estate at will Estate at sufferance

Tenants have the right to:

Exclusive possession and occupancy Exclusive use Quiet enjoyment Necessary repairs are made in a reasonable time Profits from use

8 of 25 What refers to the right a tenant has to exclusively have possession of a rental property? Possessor rights Tenancy rights Exclusive use Specific use

Exclusive use Under exclusive possession and occupancy, a tenant has the sole right to occupy and use the premises without interference from outside parties, including the landlord.

Landlords have the following OBLIGATIONS:

Guarantee that the property meets the minimum health and housing codes Ensure the property's common areas are safe Respect the tenant's use and quiet enjoyment of the property Follow federal and state fair housing laws

California's Statute of Frauds requires a lease to be in writing if:

It has a term longer than one year It has a term less than one year, which expires more than one year after the agreement is reached. The property is managed by a property manager and the property manager or an employee will be signing the lease agreement as the owner's legal agent.

What two types of rent control ordinances does California have?

Ordinances without vacancy decontrol, which limit rent increases for both new and existing tenants. Ordinances with vacancy decontrol, which allow a property owner to set the rent for a new tenant without any restrictions.

OBLIGATIONS the tenant has to the landlord:

Pay the rent when it is due. NOT damage the property Notify the landlord if any defect arises after taking possession. Give appropriate notice to vacate property. Not interfere with the rights of other tenants. Keep the premises clean and sanitary Comply with the rules and regulations of the building

12 of 25 What refers to a government regulation of the amount of rent a landlord may charge a tenant? A cap Lease regulation Income stabilization Rent control

Rent control Rent control is a government regulation of the amount of rent a landlord may charge a tenant.

What is rent control and how does it affect a city?

Rent control is a government regulation of the amount of rent a landlord may charge a tenant. While it protects a tenant from large increases in rent, it also results in many landlords neglecting their properties. Also, cities with rent control policies tend to have more housing shortages than cities without rent control.

List three topics California Mobilehome Residency Law outlined in Civil Codes 798-798.88 addresses.

Rental agreements Rules and regulations Fees and charges

A tenant must provide notice to a landlord if repairs are needed. If the landlord receives this notice and fails to make the repairs necessary within a reasonable amount of time, the tenant has the right to:

Spend up to one month's rent in repairs Abandon the premises, in which case the tenant is relieved from the requirement of paying additional rent and the performance of other conditions of the lease Call local building inspectors or the health department to complain about the violations.

15 of 25 What describes the transfer by a tenant, the sub lessor, of a portion of the leasehold interest to another party, the sublessee, through the execution of a sublease? Subletting Renting Owner financing Assumption

Subletting

22 of 25 What term describes the giving up of a lease or other estate, thereby ending any further obligations? Breach Condemnation Surrender Voluntary agreement

Surrender Surrender is the giving up of a lease or other estate, thereby ending any further obligations. Leases are surrendered through mutual agreement or by an operation of the law

A lease may terminate for any of the following causes

Term expiration or appropriate notice Voluntary agreement Property destruction Condemnation Abandonment or surrender of the premises Bankruptcy of tenant Breach of contract Eviction

14 of 25 What Act is a model law enacted as a blueprint for state laws to regulate leasing and management practices of landlords with residential properties? The Residential Community Act The Property Accommodations Act The Uniform Residential Landlord and Tenant Act The Tenancy Regulation Act

The Uniform Residential Landlord and Tenant Act The Uniform Residential Landlord and Tenant Act (URLTA) is a model law enacted as a blueprint for state laws to regulate leasing and management practices of landlords with residential properties.

19 of 25 Who is responsible for maintaining a residential property in a condition fit for human occupancy? The city The tenant The lessee The landlord

The landlord It is the landlord's responsibility to maintain a residential property in a condition fit for human occupancy.

11 of 25 What option allows a tenant to arrange and pay for repairs, then deduct the amount from rent payments? The tenant repair option The repair-and-deduct-option The right of refusal The landlord settlement option

The repair-and-deduct-option The repair-and-deduct option allows the tenant to arrange and pay for repairs, then deduct the amount from rent payments.

If the use of a mobilehome park changes and management decides to evict tenants, how much notice is management required to provide?

The tenant must be given 6 months to vacate the property if the change required government approval. If no approval was required, the tenant must be given 12 months.

3 of 25 If both parties agree to terminate a lease it is called what? Term expiration Voluntary agreement Condemnation Abandonment

Voluntary agreement "Voluntary agreement is a common way for leases to terminate. Both parties can agree to terminate a lease at any time."

repair-and-deduct option

allows the tenant to arrange and pay for repairs, then deduct the amount from rent payments. The tenant must wait a "reasonable time" (in California that is 30 days) for the landlord to fix the items before choosing to fix them his or herself.

Although they are called "mobile", mobilehomes...

are not easily moveable since many are on foundations and have additional features such as decks and patios. Special rules apply to the rental of mobilehomes or lots in mobilehome parks. Chapter 2.5 of the California Civil Code outlines the Mobilehome Residency Law

Like other contracts, a lease...

becomes a binding agreement when the parties accept the terms of the agreement and communicate their agreement to the other party.

lease

both an instrument of conveyance and a contract between principal parties to uphold certain covenants and obligations. The legal essence of a valid lease is that it conveys an exclusive right to use and occupy a property for a limited period of time in exchange for rent and the return of the property after the lease term is over.

A successful suit for specific performance...

compels the defaulting party to perform the contract obligation that was breached.

ground or land lease

concerns the LAND portion of a real property. The owner grants the tenant a leasehold interest in the land only, in exchange for rent.

proprietary lease

conveys a leasehold interest to an owner of a COOPERATIVE.

Estate at sufferance

created when a tenant takes legal possession of the property but then remains on the property without the owner's consent after the lease terminates. A tenant who doesn't leave when the lease expires is called a holdover tenant.

Estate for years

definite fixed period of time. The lease can be for any specified length of time measured in days, weeks or months.

Leasehold estates

distinguished from freeholds by their temporary nature. Every leasehold has a limited duration, whether the term is 99 years or not stated at all. While the lease conveys exclusive use, it may also restrict such use to conform to the landlord's desires.

Tenant default occurs most commonly from...

failure to pay rent or maintain the premises. If a tenant is in default, the landlord may file a suit for possession, also called a suit for eviction.

The most common form of landlord default is...

failure to provide services and maintain the property condition.

Rent control

government regulation of the amount of rent a landlord may charge a tenant.

Once a lease is in effect, the tenant's leasehold interest in the property...

is considered personal property.

Tenants are entitled to a safe and livable home, often referred to as...

landlord's "implied warranty of habitability."

In a lease arrangement, owner is the...

landlord, or lessor

percentage lease

lease whose rental is based on a PERCENTAGE of the monthly or annual gross SALES made on the site.

Eviction

legal procedure of removing a tenant from a property because there is a breach of the lease or rental agreement.

lease agreement

legally enforceable contract where an agent or owner of a property gives the exclusive right of possession for a specific amount of time in exchange for money.

Uniform Residential Landlord and Tenant Act (URLTA)

model law enacted as a blueprint for state laws to regulate leasing and management practices of landlords with residential properties. The act aims to: -equalize and standardize rights of landlord and tenant -protect tenants from unethical practices -prevent unfair, complex leases and their enforceability

security deposit

money that a tenant deposits with the owner of the apartment, in advance of possession, for the repair of any damages to the apartment for which the tenant is responsible. The max allowed security deposits in California: -2 months' rent for an unfurnished rental -3 months' rent for a furnished rental. A security deposit is always refundable. Fees are nonrefundable.

Estate at will

no time limit. California does not recognize estate at will, because California statute requires a notice to terminate all leases.

Estate from period to period (periodic estate)

periodic tenancy, periodic lease, or month-to-month lease.

9 of 25 In a lease arrangement the owner is the landlord and the renter is the lessor. tenant. proprietor. freeholder.

tenant. In a lease arrangement, the owner is the landlord, or lessor, and the renter is the tenant, or lessee.

sublease

transfer by a tenant of a portion of the leasehold interest to another party.

assignment of the lease

transfer of the entire leasehold interest by a tenant to a third party.