Chapter 7 - Leases

A holdover tenancy cannot extend beyond how many months...? 1 month 3 months 6 months 12 months

12 months

According to HUD, what is a reasonable occupancy standard per bedroom...? 1 occupant 2 occupants 3 occupants 4 occupants

2 occupants

The Texas Property Code sets the maximum number of adults occupying an apartment at ........ the number of bedrooms in the apartment? 1x 2x 3x 4x

3x

Lease

A contract between owner and tenant, setting forth conditions upon which tenant may occupy and use the property and the term of the occupancy. Sometimes used as an alternative to purchasing property outright, as a method of financing right to occupy and use real property.

Gross Lease

A gross lease is a type of commercial lease where the landlord pays for the building's property taxes, insurance and maintenance.

Net Lease

A lease requiring a lessee to pay charges against the property such as taxes, insurance and maintenance costs in addition to rental payments.

Periodic Tenancy

A lease that automatically renews for successive periods unless terminated by either party; also called estate from year to year.

Tenancy at Will

A property tenure that can be terminated at any time by either the tenant or the owner (landlord). It exists without a contract or lease, and is unspecific in duration or the exchange of payment.

Leasehold Estate

A tenant's right to occupy real estate during the term of the lease. This is a personal property interest.

A lease is found in which of the following types of real property...? Residential properties Industrial properties Commercial properties All of the above

All of the above

Ground Lease

An agreement for the use of land only, sometimes secured by improvements placed on the land by the user.

Estate for Years

An interest in land by virtue of a contract for the possession of them for a definite and limited period of time. May be for a year or less. A lease may be said to be an estate for years.

Lessor

An owner who enters into a lease agreement with a tenant; a landlord.

An interest in land by virtue of a contract for the possession of them for a definite and limited period of time is known as a/an...? Fee Simple Estate Estate for Years Freehold Estate Life Estate

Estate for years

A lease in which the lessor pays all costs of operating and maintaining the property and real property taxes is known as a...? Net lease Gross lease Ground lease Graduated lease

Gross Lease

An agreement for the use of land only, sometimes secured by improvements placed on the land by the user is known as a...? Gross lease Net lease Percentage lease Ground lease

Ground Lease

Percentage Lease

Lease on the property, the rental for which is determined by amount of business done by the lessee; usually a percentage of gross receipts from the business with provisions for a minimum rental.

Graduated Lease

Lease which provides for a varying rental rate, often based upon future determination; sometimes rent is based upon result of periodical appraisals; used largely in long-term leases.

A tenant's right to occupy real estate during the term of the lease is known as a...? Lease Fee Estate Life Estate Leasehold Estate Fee Simple Estate

Leasehold Estate

An owner who enters into a lease agreement with a tenant is referred to as a...? Lessor Lessee Grantor Grantee

Lessor

Renting a property, rather than owning a property, may benefit an individual who is...? Looking for a tax shelter Looking to take advantage of appreciating home prices Looking for more flexibility in where they live All of the above

Looking for more flexibility in where they live

Lessee

One who contracts to rent, occupy, and use property under a lease agreement; a tenant.

A lease on a property, the rental for which is determined by amount of business done by the lessee is referred to as a....? Graduated lease Gross lease Percentage lease Net lease

Percentage lease

A lease that automatically renews for successive periods unless terminated by either party is known as a...? Periodic Tenancy Tenancy at Will Recurring Lease Term Lease

Periodic Tenancy

Which of the following is used as a means of security by the landlord for any physical damage done by the tenant to the property...? Security deposit Down payment Origination fee Principal fee

Security deposit

XYZ company is looking to rent an entire office building for the long-term. What type of lease may the building owner most likely offer to XYZ company...? Triple net lease Gross lease Ground lease Percentage lease

Triple net lease