Real Estate Principles (Ch. 10 - Leases Quiz)

What circumstances require a lease to be in writing?

California's Statute of Frauds requires a lease to be in writing if it has a term of more than one year, or has a term of less than one year, which expires more than one year after the agreement is reached. extra info: A lease of 1 year or less can be written or verbal, but under the Statute of Frauds, a lease for more than 1 year must be in writing. Additionally, if the lease has a term of less than 1 year but expires more than 1 year after the agreement is reached, such as making the agreement in advance to the actual commencement of the lease.

Renee is leasing her condo in San Francisco from Brad. For the first six months of the lease, her rent will be $1,200 per month. Every six months her rent will increase $100 per month based on the increases to Brad in taxes, insurance, and other operating costs. What type of lease has Renee signed?

Escalator Clause Lease extra info: Renee has signed a lease that includes an escalator clause which is a clause in a lease in which the parties agree to an adjustment of rent based on set increases in taxes, insurance, maintenance, and other operating costs.

Dr. Mullins owns a home he leases to college students. The tenants have been complaining to Dr. Mullins of bats in the attic. At times, the bats have flown downstairs into the living areas of the home. Recently in the area, a man was bitten by a rabid bat. The students are worried and are unsure of their rights. Which guarantee covers the tenants' right that the property meets the minimum health and housing codes?

Implied Right of Habitability extra info: By renting the property, the landlord has certain responsibilities, First is guaranteeing that the property meets the minimum health and housing codes, known as the implied right of habitability.

Jonathan rents a two bedroom house from Samantha and Gerald. The plumbing keeps backing up into the basement, leaving water and sewage on the basement floor. Jonathan has repeatedly reported this issue to Samantha and Gerald. He has made telephone calls and spoken to each landlord; he has also sent a written request with proof of delivery. It has been two months and not only has nothing been done, they have not even responded to his calls or requests. What are Jonathan's options, if any?

Jonathan has a couple of options available to resolve this issue. He may spend up to one month's rent in repairs or abandon the premises. If he abandons the premises, Jonathan is relieved from paying additional rent and other conditions of the lease.

Michelle owns a rental property in San Diego that she has rented to Luis for four years. The street on which the house is located is going through a major widening and most of the homes are going to be leveled for the project. Through eminent domain, Michelle must sell her home to the city for the construction. What is the required length of notice Luis must receive from Michelle in terminating the lease?

Michelle must give Luis a sixty-day written notice of the lease termination because he has lived in the property for more than one year. extra info: With a tenancy at will, the landlord must give a 30-day written notice of lease termination unless the tenant has lived in the property for more than 1 year, which requires a 60-day notice.

Samir Shah is a landlord leasing apartments for residential use. He will be updating the lighting fixtures in his units during the month of January. He has been having his maintenance crew enter the units at will to make the changes. Several of the tenants have been surprised, frightened, and inconvenienced. Is it acceptable for Samir's employees to enter unannounced?

No, although it is an acceptable reason for the landlord to enter the units, they must give the tenant at least a 24-hour notice and enter between normal business hours. extra info: Under a residential lease, the landlord may enter the dwelling to make necessary or agreed repairs or improvements between normal business hours and only if the landlord has given or attempted to give the tenant advance 24-hour notice, except in case of emergency.

Shanta is renting beachfront property in Malibu. The unfurnished bungalow has two bedrooms, one bathroom, and is right on the beach. Shanta's monthly rent is $1,600. Her landlord, Harold, is requiring a $6,400 nonrefundable security deposit. This amount includes her first month's rent. Is this an acceptable amount for a security deposit?

No, the maximum security deposit allowed in California for an unfurnished property is two months' rent. The correct amount would be $4,800, including the first month's rent. Additionally, security deposits cannot be labeled as nonrefundable. extra info: In California, security deposits for an unfurnished rental are limited to 2 months' rent in addition to the first month's rent and cannot be labeled as nonrefundable.

Which of the following is not a type of leasehold estates?

Tenancy in Common extra info: An estate for years, estate from period to period, estate at will, and estate at sufferance are the four types of leasehold estates. Tenancy in common is not one of these leasehold estates.

Jeff and Ryan rent a house from Mike and Yolanda Reynolds. They are three months behind in their rent and neighbors have been complaining about the noise coming from the home. Mike and Yolanda have tried to work with Jeff and Ryan to help them get back on track with the tardy rent, but the guys are not cooperating. Mike and Yolanda have decided they have no choice but to start the eviction process. Mike wants to just go in and remove the possessions, shut off all the utilities, and change the locks. Yolanda believes Mike's idea may be illegal and thinks there are other options. Is she correct and, if so, what are the options?

Yes, Yolanda is correct. It is illegal for Mike to take such actions. The landlords may serve the tenants with a three-day notice of eviction. extra info: It is illegal for a landlord to forcibly remove the tenant himself or to otherwise take matters into the landlord's own hands by shutting off utilities, changing locks, removing doors, etc. The landlord must serve the tenant with a 3-day notice of eviction since the tenant has defaulted on rent and violated other terms of the rental agreement. Had the tenant not violated the agreement, the landlord would serve a 30-day notice.

Max owns a townhouse in Sacramento. He is in the process of leasing it to Hannah. The contractual lease states Hannah Scott will be leasing Max Thomas' townhouse for two years beginning July 1. She will be paying $1,000 per month due by the first of each month. The lease clearly states Max will be the landlord of the townhouse and Hannah the tenant. Is there a minimum requirement for a California lease missing?

Yes, the missing minimum requirement is the absence of a sufficient description of the property, such as an address and/or a legal description. extra info: The minimum requirements for a California are the duration of the lease, the amount of rent and due date, the names of the parties, a sufficient description of the property, and evidence that both parties intend to create a landlord-tenant relationship. This lease does not appear to include the description of the property.