Ch 17 quiz

Which transaction is BEST described as involving a ground lease? a. The tenant pays a base amounit for the property plus O a percentage of business-generated income. O b. A landowner agrees to let a tenant drill for oil on a property for 75 years. O c. The tenant agrees to pay a proportionate, increased rental based on annual appraisals of the rented property. O d. A landlord charges a commercial tenant separate amounts for the land and the leased building,

A landlord charges a commercial tenant separate amounts for the land and the leased building,

Which of the following describes a net lease? O a. An agreement granting an individual a leasehold interest in fishing rights for shore line properties O b. A lease in which the tenant pays rent, plus some-or most-of the operating expenses related to the property O C. An agreement in which the tenant pays fixed rent and the landiord pays all taxes, insurance, and expenses related to the property O d. A lease in which the tenant pays the landlord a percentage of the monthly income derived from the property

A lease in which the tenant pays rent, plus some-or most-of the operating expenses related to the property

growing business. Another business owner is A tenant's lease does not terminate for five more interested in leasing the premises from the tenant for three years. Which of the following would the parties use for the years. The premises, however, have become too small to accommodate the tenant's tenant to lease the space to the business owner? Oa. A tenancy at sufferance Ob. An assignment O c. A novation O d. A sublease

A sublease

Which of the following must be contained in a commercial lease agreement for it to be valid? O a. Name of institution in which the security deposit is held O b. Amount of taxes on the leased premises OC. Assessed valuation of the property O d. Amount of rent to be paid and the method of payment (monthly, quarteriy and so on)

Amount of rent to be pald and the method of payment (monthly, quarterly and so on)

A woman signs a lease to rent an apartment. Her lease runs from October 1 until November 1 of the folowing year. A man signs a two-year lease to rent an apartment in a new building that will be ready for occupancy in 15 months. Which of theses leases must be in writting to staisify the staute of frauds?

Both the man's and the woman's

A tenant agrees to rent on a month-to-month basis after the termination of the original lease. This is known as a/n

Estate from period to period

A lease would be terminated by which of the following? O a. Death of the tenant O b. Abandonment of the leased premises by the tenant O c. Sale of the leased premises O d. Expiration of the term in a lease for years

Expiration of the term in a lease for years

In the event of a lessee, without good reason, abandons leased premises, leaving it in good condition, to what degree is the lessee normally liable to the lessor?

For rent due and payable for the remaining period of the lease

When a landowner leases unimproved land to a tenant, who agrees to erect a building on the land, the lease is usually referred to as a/n: O a. Ground lease. O b. Gross lease. O c. Improvement lease. O d. Lease purchase.

Ground lease.

A tenant signs a lease that includes the following clause: "TTie stated rent under this agreement will be increased or decreased every three months based on the percentage increase in the consumer price index (CPI) for that period." What kind of lease has the tenant signed?

Index

What is the purpose of a security deposit held by a landlord?

It compensates the landiord in the event of rent defauit or premises damage

The clause in a lease that gives a tenant the right to purchase leased property at a specific price is a:

Lease option

Some tenants want to buy the house they are renting. However, they do not have enough money for the down payment. The landlord agreed to put part of the tenants' rent toward the purchase price. The landlord and tenants have agreed to a/n:

Lease purchase.

During the term of the lease, whose property is the security deposit?

Lessee

Who owns the building that is erected on land that has a ground lease?

Lessee.

The owner of real estate who leases it to another is called the

Lessor

A percentage lease calls for a minimum rent of $1,200 per month plus additional annual rent of 4% of the year's gross business exceeding $150,000. If the business generated $270,000, how much annual rent does the tenant owe?

Minimum rent is $14,400 ($1,200 per month x 12 months). Percentage rent is $4,800 $270,000 - $150,000 =$120,000 $120,000 x .04% = $4,800 $14,400 +$4,800 =$19,200.

A woman rents an apartment from a man under a one-year written lease. The expiration date of the lease is May 1. How much notice must the man give the woman to recover possession when the lease expires? Oa. 60 days. b. No notice required. Oc. 30 days. O d. One week.

No notice required.

landiord has been planning to replace the roof. However she has not yet laid a tarp on the roof to prevent more water coming in. However. after two months, the landiord had still not repaired the damage to the apartment. The tenant maves out and replaced it. In spring, a heavy rainstorm created a roof leak that badly damaged the tenant's apartment. The landlord A tenant has a lease on a top-fioor apartment in a building owned by a landlord. The building is old, and the clalms construction eviction, Can she win this case?

No, because the apartment was not uninhabitable.

uncomfortably warm. The next day, the tenant sues the landlord for constructive eviction. Under these facts, will the tenant win? A tenant lives in an apartment bullding owned by a landlord. Vandals break into the building and destroy the central air-conditioning system. The tenant's apartment becomes

No, the premises are not unusable the condition was not due to the landlord's conscious neglect, and the tenant has not abandoned the apartment.

In a triple net lease, the tenant usually pays for all the following EXCEPT: O a. utilities O b. management fees O c. insurance O d. mortgage payments

O d. mortgage payments

A man operates a small store in a shopping center. Under the terms of the lease, the landiord pays all operating expenses. The man pays a base rent of $1,000 per manth, plus 15 percent of monthly gross profits over $10,000. The man has a:

Percentage lease.

Under a percentage lease, a commercial lessee may agree to pay

Percentage of sales

Assume there is a five-year lease at $5,000 per year. The lessor in year three usually cannot: O a. Mortgagė O b. Sell O C. Raise rent O d. Devise

Raise rent

A man rents an apartment under a two-year written lease from a landlord. Three months after signing the lease, the man is transferred to another country for a year, During this period, he leases the apartment to a woman. The woman mails monthly rent checks to the man, who continues to make monthly rental payments to the landlord. In this situation, the woman has a:

Sublease.

When a developer obtains a ground lease and intends to obtain a construction loan to build a condominium project, what type of provision regarding financing should be included in the lease? O a. Subrogation clause O b. Subordination clause O C. Acceleration clause O d. Escalation clause

Subordination clause

Which of the following is the best definition of actual eviction? O a. The enforcement of a court order to remove a lessee O b. The enforcement of a court order to remove a lessor O c. The landlord's reversionary right in the rental premises O d. The right of a landlord to use the rental premises

The enforcement of a court order to remove a lessee

A tenant signed a one-year lease with a landlord on April 10. On the following March 1, the landlord asked the tenant whether the lease would be renewed. The tenant did not respond but was still in the apartment on April 11. What can the landlord do? O a. The landlord may either evict the holdover tenant or accept a rent check, creating a holdover or periodic tenancy. O b. The landlord cannot evict the tenant; because the tenant remained in possession of the premises, the lease has been automatically renewed for an additional year. O c If the tenant offers a rent check, the landlord must accept it and the tenant is entitled to a renewal of the one-year lease. O d. The landlord must initiate eviction proceedings within the first one-month rental period.

The landiord may either evict the holdover tenant or accept a rent check, creating a holdover or periodic tenancy.

Which of the following is TRUE about a hold over tenant? O a. The tenant may continue to occupy the premises without permission of the landlord. O b. The landlord must accept additional rent O c. The landiord may evict the tenant. O d. The tenant must give the landlord a 30-day notice to vacate.

The landlord may evict the tenant.

Mr. And Mrs. Delong lease a two-bedroom apartment from Karos Management Company. Due to ordinary wear and tear, the dishwasher breaks down. Who must pay for its repair?

The lessor

Under the provisions of the Uniform Residential Landiord and Tenant Act, which of the following is true? Oa. The lessee has a right of first refusal. O b. The lessor can put in the lease a requirement for lessor's consent prior to the lessee's subletting the premises. Oc The maximum amount of money the tenant is required to pay at the start of the lease is equal to three months' rent. O d. bearing account for the lessor's account. O e. The lessor must place security deposits in an interest

The lessor can put in the lease a requirement for lessor's consent prior to the lessee's subletting the premises,, bearing account for the lessor's account.

A man rented a house from a landlord. During the lease term, the man moved out of the state without telling the landiord. The man assigned the lease to a woman, who failed to make any rental payments. In this situation, which of the following statements is TRUE? O a. The man has no obligation to the landiord, because the lease was assigned, not sublet. O b. The man is still liable to the landlord because his arrangement with the woman as described is a sublease, not an assignment. O c. The man is still liable to the landiord for the outstanding rent, because the landiord did not release the man when the lease was assigned to the woman. O d. The woman has no obligation to the landlord, because her lease agreement is with the man.

The man is still liable to the landlord for the outstanding rent, because the landiord did not release the man when the lease was assigned to the woman.

In August, a tenant signs a one-year lease in an apartment complex. Rent payments are due on the 15th of each month. On December 12, the apartment complex is sold to a new owner. On March 14, the building burns. Which of the following statements accurately describes the tenant's obligations? O a. The tenant is required to continue paying rent, but the residential lease is converted by law into a ground lease. O b. The tenant is required to continue paying rent for the full lease term, because a tenancy for years cannot be terminated by the destruction of the premises. O c. The tenant is not required to continue paying rent after March 14, because the premises have been destroyed. O d. The tenant is not required to continue paying rent after December 12, because the sale voids the preexisting lease.

The tenant is not required to continue paying rent after March 14, because the premises have been destroyed.

Which of the following would automatically terminate a residential lease? O a. Death of the tenant O b. Sale of the property O c. Total destruction of the property O d. Falure of the tenant to pay rent

Total destruction of the property

If a tenant remains in possession of leased property after the expiration of the lease tem, without paying rent and without the landiord's consent, what is the tenant's status?

Trespaser

A tenant moves a pet into an apartment community that has a no-pets policy. The land lord wishes to remove the tenant due to the breach. The legal process to remove a tenant is known as

actual eviction.

The principal difference between an estate for years and an estate from year to year is that O a. and estate for years cannot be terminated. O b. an estate from year to year must be in writing. O c. an estate for years is a left estate. O d. an estate from year to year has no expiration date.

an estate from year to year has no expiration date.

The lessor and lessee have agreed to a lease term of five years. In order to ensure that the rental income during the term is reflective of market conditions, the lessor could O a. negotiate a new lease each year. Ob. negotiate an index lease. O c negotiate a gross lease. O d. collect an additional security deposit each year.

an index lease.

Rent would BEST be described as

consideration for the use of real property.

The tenant leases a heated apartment, but the landlord fails to provide heat because of a defective central heating plant. The tenant vacates the premises and refuses to pay any rent. This is an example of

constructive eviction,

The tenant leases a heated apartment, but the landiord fails to provide heat because of the defective central heating plant. The tenant vacates the premises and refuses to pay any rent. This is an example of

constructive eviction.

The authority to carry out the eviction of a delinquent tenant from rented property comes from the

court.

A tenant's tenancy for years will expire in two weeks. The tenant plans to move to a larger apartment across town when the current tenancy expires. In order to terminate this agreement, the tenant must O a. sign a lease for the new apartment, which will automatically terminate the existing lease O b. give the landiord one week's prior notice or the lease will automatically renew. O c. do nothing because the agreement will terminate automatically at the end of the current term. O d. give the landlord immediate notice or the lease will automatically renew.

do nothing because the agreement will terminate automatically at the end of the current term.

A person has a one-year leasehold interest in a house. The interest automatically renews itself at the end of each year. The person's interest is referred to as a tenancy

from period to period.

A tenant has an estate for years. According to the written one-year lease, the tenancy will expire on May 1st. To obtaln possession as of that date, the landlord

is not required to give the tenant any notice.

When a tenant holds possession of a landlord's property without a current lease agreement and without the landiord's approval, the a. landlord can file suit for possession. b. landiord may he subject to a constructive eviction. C. tenant is maintaining a gross lease, d. tenant has no obligation to pay rent.

landlord can file suit for possession.

A lease that will terminate within one year of its inception

may be oral.

With a tenancy for years...... a. the term of the lease must be for a least one year. b. no notice is required to terminate the lease. c.a 30-day notice is required to terminate the lease. d. the lessee has a freehold estate.

no notice is required to terminate the lease.

The covenant implied in a lease that ensures that the tenant will not be evicted by someone claiming ownership of the property prior to that of the lessor is the covenant

of quiet enjoyment.

Under the negotiated terms of a certain residential lease, the landiord is required to maintain the water heater. If the tenant is unable to get hot water because of a faulty water heater that the landiord has falled to repair after repeated notification, the tenant could do all of the fol lowing EXCEPT O a. sue the landlord for damages. O b. terminate the lease agreement. O c abandon the premises claiming constructive eviction. O d. order a new water heater and send the bill to the landlord

order a new water heater and send the bill to the landlord.

A tenant enters into a commercial lease that requires a monthly rent of a minimum fixed amount, plus an additional amount determined by a percentage of the tenant's gross receipts exceeding $5,000. This type of lease is called a

percentage lease,

The purpose of a security deposit is to

repair damage to the property caused by the tenant,

A lease should contain all of the following provisions EXCEPT O a. possession of the premises O b. sale and leaseback clause O c use of the premises O d. term of the lease

sale and leaseback clause

A tenant's lease has expired, but the tenant has not vacated the premises or negotiated a renewal lease. The landlord has declared that the tenant is not to remain in the building. This situation is an example of O a. tenancy at sufferance. O b. an estate for years. O c. tenancy at will. O d. an estate form year to year.

tenancy at sufferance.

The Tolson's apartment lease has expired, but their landlord has indicated to them that they may remain on the premises until a sale of the building is closed. They will be charged their normal monthly rental during this period. The right held by the Tolson's is called a/n

tenancy at will.

When a tenant holds possession of a landiord's property without a definite lease term but with the consent of the landlord, this is called

tenancy at will.

If a tenant moved out of a rented store building because access to the building was blocked as a result of the landiord's negligence, the Select one: Oa. landlord may be liable for the rent until the expiration date of the lease. O b. tenant might have no legal recourse against the landlord. O c. landlord may have to provide substitute space. O d. tenant may be entitied to recover damages from the landlord

tenant may be entitied to recover damages from the landlord

When a tenant sublets all or any part of the premises rented under a written lease, O a. the original lease is automatically canceled and the sublessee takes possession of the property on a month to month basis. O b. the sublessee becomes primarily responsible to the landlord for the payment of rent and maintenance of the property. O c. the tenant assigns all rights, title, and interests in the rented property to the new lessee. O d. the original lease is unaffected unless it contains a provision that prohibits such subletting.

the original lease is unaffected uniess it contains a provision that prohibits such subletting.

A lessee is in possession of property under a tenancy at will. Which of the following is true? O a. The tenancy has a definite terminate date. O b. The tenancy was created by the death of the lessor. O c the tenancy will terminate if the lessee dies. O d. The lessee has not received the consent of the landlord to possess the property.

the tenancy will terminate if the lessee dies.

Generally, an oral lease for five years is

unenforceable.