Unit 16 Leases

A lease would be terminated by which of the following? A) Expiration of the term in a lease for years B) Sale of the leased premises C) Death of the tenant D) Abandonment of the leased premises by the tenant

A) Expiration of the term in a lease for years *a tenancy for years is a leasehold estate that continues for a definite period with specific beginning and ending dates

A lease should contain all of the following provisions EXCEPT A) a sale-and-leaseback clause. B) use of the premises. C) possession of the premises. D) the term of the lease.

A) a sale-and-leaseback clause. *Sale-and-Leaseback is for when an owner sells a property and then leases it back from Buyer.

Leases that run for 100 years or more A) are prohibited in some states. B) are unenforceable. C) cannot be prohibited by law. D) are valid and enforceable in all states.

A) are prohibited in some states.

The principal difference between an estate for years and an estate from year to year is that an A) estate from year to year has no expiration date. B) estate from year to year must be in writing. C) estate for years cannot be terminated. D) estate for years is a life estate.

A) estate from year to year has no expiration date. *Estate from period to period (periodic tenancy)=no specific expiration date Estate (tenancy) For Years= a specific ending and beginning date.

Under the negotiated terms of a certain residential lease, the landlord is required to maintain the water heater. If the tenant is unable to get hot water because of a faulty water heater that the landlord has failed to repair after repeated notification, the tenant could do all of the following EXCEPT A) sue the landlord for damages. B) terminate the lease agreement. C) sue the landlord for breach of the covenant of seisin. D) abandon the premises claiming constructive eviction.

C) sue the landlord for breach of the covenant of seisin. *

If a tenant moved out of a rented store building because access to the building was blocked as a result of the landlord's negligence, the A) landlord may have to provide substitute space. B) landlord may be liable for the rent until the expiration date of the lease. C) tenant may be entitled to recover damages from the landlord. D) tenant might have no legal recourse against the landlord.

C) tenant may be entitled to recover damages from the landlord. *Tenant suffering financial losses because of landlord's negligence could enter an action against (sue) the landlord for those damages.

A percentage lease calls for a minimum rent of $1,200 per month plus additional annual rent of 4 percent of the year's gross business exceeding $150,000. If the business generated $270,000, how much annual rent does the tenant owe? A) $14,400 B) $25,200 C) $10,800 D) $19,200

D) $19,200 *Minimum rent is $14,400 ($1,200 per month × 12 months). Percentage rent is $4,800 ($270,000 - $150,000 = $120,000 × .04% = $4,800). $14,400 + $4,800 = $19,200. rent per month X 12 months= minimum rent Actual amount made - min. amount "taxed"=left over, non-taxed amount. Leftover amount X 4% (taxed amount)= extra rent extra rent+actual min. rent=annual rent owed.

The death of either the landlord or the tenant will terminate the lease and the parties' heirs will NOT be bound by its terms under which of the following tenancies? A) Tenancy at sufferance B) Periodic tenancy C) Tenancy for years D) Tenancy at will

D) Tenancy at will *Only lease that is terminated by death because both parties no longer mutually agree.

A tenant moves a pet into an apartment community that has a no-pets policy. The landlord wishes to remove the tenant due to the breach. The legal process to remove a tenant is known as A) partial eviction. B) eminent domain. C) constructive eviction. D) actual eviction.

D) actual eviction. *Actual eviction=breach of lease (dog in a no animal complex) Constructive eviction=negligence of landlord (inhabitable property)

To be valid, a lease must meet the same essential elements as any other contract, which are A) capacity to contract, legal objectives, and offer and acceptance. B) capacity to contract and offer and acceptance. C) legal objectives, offer and acceptance, and consideration. D) capacity to contract, legal objectives, offer and acceptance, and consideration.

D) capacity to contract, legal objectives, offer and acceptance, and consideration. *To be valid, a lease must meet the same essential elements as any other contract: capacity to contract, legal objective, offer and acceptance, and consideration.

The federal Fair Housing Amendments Act of 1988 significantly alters past practices, particularly as they affect A) seniors. B) national origin, sex, disability. C) race, color, and religion. D) individuals with disabilities and families with children.

D) individuals with disabilities and families with children.

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 A) an estate for years. B) tenancy at will. C) an estate from year to year. D) tenancy at sufferance.

D) tenancy at sufferance. *The Landlord will SUFFER because the tenant will not leave.