REAL ESTATE EXAM
John wants to do a 1031 tax exchange with a property he just sold. How many calendar days does he have to identify a new property for the exchange?
45
EDGE: Which document or documents will help a cooperative buyer learn how the board operates and understand the cooperative's future plans? Board minutes Cooperative Budget Cooperative Newsletter Financial Statements
Board minutes The board meeting minutes provide insight into board operations and future plans.
The difference between what an investor plans to make and spend and what actually happens is known as ______ risk.
Business
EDGE: Terri just bought her first home! She's very excited to be living the American Dream. She owns her home's interior, including the walls, but not the land on which it sits. What type of home does Terri own? Apartment Condominium Cooperative Townhouse
Condominium Condo ownership is real property ownership, but only of the unit and the space inside the unit, as well as shared ownership of common areas
Investors may be allowed to deduct operating expenses, real estate taxes, mortgage interest, and what else?
Depreciation
Which of the following is the best example of investment leverage?
Financing most of an investment and putting very little cash in
Which of the following describes a census tract? Geographic area developed in a community and identified by number Land divided into lots for development Plan that includes water usage, sewers, utilities, and fire and police support Subdivision blueprint
Geographic area developed in a community and identified by number A census tract is a geographic area developed in a community and identified by number. It is developed in cooperation between the community and the U.S. Census Bureau.
The Town Council and Town Board can place a hold on building projects for a specific period of time. This action is known as a ________. Eminent Domain Halt Moratorium Tax hike
Monatorium The Town Council and Town Board can place a moratorium on building projects for a specific period of time
Tammy and Reginald bought a house with a gas line easement on the property. An easement like this one placed by the utility company is an example of a ______. Covenant Deed restriction Private land control Subdivision regulation
Private Land Control Private land controls include covenants, conditions, and restrictions (CC&Rs); HOA or subdivision regulations; liens; and easements.
What type of investment strategy is most similar to a 1031 tax-deferred exchange?
Rolling over funds from one IRA to another
What form do independent contractors file with the IRS to deduct business expenses? Schedule C Schedule D Schedule E Schedule for Independent Contractor Expenses
Schedule C Schedule C is used to deduct business expenses.
Architect Camilla is drawing up plans for a house. Her client is passionate about wanting it to be a Craftsman style. Which of the following parts of the roofing system should Camilla check most closely to make sure her client is happy? The flashing that's installed near the edge of the eaves in the front The ridge beam, or girder The soffit The pitch
The Pitch The roof's pitch plays the greatest role in establishing the style of the house.
In New York, if a lender refinances its own high-cost home loan, what happens? The lender cannot charge points or fees. The lender can only charge points or fees up to 1% of the loan. The lender is fined. The lender is suspended.
The lender cannot charge points or fees. When lenders fund their own high-rate loans, they cannot also charge points or fees.
Maya owns a small graphics shop and is meeting with her tax professional to review the year's receipts and other tax documentation. Her tax advisor lets her know that she has an appreciating asset, which makes Maya very happy! Which of the following is Maya's appreciating asset?
The retail addition she put onto the building she already owned
Why may agricultural land be a good investment?
There is an increasing global demand for food.
Garrett wanted to move his real estate closing to a date after his wedding. His broker and attorney encouraged him not to do it because of which contract clause? Contract novation Indemnification Liquidated damages Time is of the essence
Time is of the essence Garrett signed a contract with a time is of the essence clause, essentially stating that he would avoid any delays to full performance of the contract.
To obtain an associate broker license, an individual must complete a total of ________ hours of approved qualifying education. 120 240 35 75
120 Associate broker applicants must complete a total of 120 hours of education. Of this, 75 hours are from the salesperson qualifying course and 45 from the broker qualifying course.
John wants to do a 1031 tax exchange. He just sold his property. How many days does he have to close on a new property?
180
Ed is a licensee who's always eager to help his clients in any way he can. One of his current clients has received an offer that will give her a tidy profit on her home. She tells Ed she's worried about her tax liability when the home sells. What can Ed tell her that will be most helpful? "I believe you'll be allowed to exclude some of that profit from your taxable income, but you should definitely consult with a tax professional to find out the best way to handle it." "I wish I could help you with that, but as a real estate licensee, I'm not allowed to offer tax advice." "The Taxpayer Relief Act of 1997 will help you avoid paying any taxes on the profit you make from selling your home as long as you've been living there for the last couple of years." "You'll be allowed to exclude as much as $250,000 of capital gains from the sale of your home if you're filing as a single taxpayer. It would be as much as $500,000 if you were married and filing jointly."
"I believe you'll be allowed to exclude some of that profit from your taxable income, but you should definitely consult with a tax professional to find out the best way to handle it." Ed shouldn't give tax advice, which would be outside the scope of his expertise, but he can certainly tell his client about the general potential for tax exemption before he advises her to consult with a tax professional.
A homeowner sells his house for $325,000 more than he bought it for. When he files his income taxes, how much of this profit may he exclude from his capital gains if he's filing as a single taxpayer? $150,000 $200,000 $250,000 All of it
$250,000 The maximum capital gains exclusion for single taxpayers who have lived in their primary residence at least two of the five years immediately preceding the sale of the home is $250,000.
A buyer is purchasing a property for $500,000. He has a down payment of $50,000 and is financing the rest. What's the amount of the loan origination fee if the lender charges one-and-a-half points? $5,000 $6,750 $750 $7,500
$6,750 The amount paid for points = loan amount × number of points. The buyer is financing $450,000 ($500,000-$50,000). Multiply the loan amount of $450,000 by 1.5% (or 0.015) to get $6,750.
A parcel of land measures one half mile by 3,000 feet. If price per acre is $4,200, what's the list price for this parcel? Round to 10ths of an acre for your calculation. $1,527,273 $752,066 $756,000 $763,560
$763,560 Area = length × width. One mile = 5,280 feet. The area of this parcel is 7,920,000 s.f. ([5,280 ÷ 2] × 3,000). One acre = 43,560 s.f. The parcel is 181.8 acres (7,920,000 ÷ 43,560). So, the list price is $763,560 ($4,200 × 181.8).
A licensee sells a property for $325,000. The total commission rate is 6%, which is split evenly with the cooperating agent. What amount goes to the listing broker? $0 $19,500 $4,875 $9,750
$9,750 For this scenario, the listing broker receives 3% of the sales price, or $9,750.
Your client Joseph has a commercial income-producing property. How long does he depreciate this property?
39 years
What's an income shelter?
A deductible allowance from net income
What type of gain is considered long term?
A gain on a property owned more than one year
What type of gain is considered long term? A gain on a property owned more than 10 years A gain on a property owned more than five years A gain on a property owned more than one year A gain on a property owned more than six months
A gain on a property owned more than one year Long-term capital gain is an increase in capital resulting from the sale of an asset (such as property) owned for more than one year plus one day.
Ella is gathering information to fill out the deed on her client's new property. Which of the following piece(s) of data does she NOT need? A list of the buyer's financial assets A certificate of occupancy The seller's name, address, and Social Security number Last year's property tax amount
A list of the buyer's financial assets The buyer's detailed financial information is definitely important for financing documents, like loan applications, but is not needed for a deed.
What type of professional must an investor use to conduct a tax-deferred exchange?
A qualified intermediary
Jose is an investor who found and closed on an investment property, then decided to sell a property other than the one originally marked for the exchange. What is this an example of?
A reverse tax-deferred exchange
Your buyer client is paying cash and wants to know when and whether to purchase property insurance. How do you advise your client? Advise your client that if no lender is involved, insurance is not necessary. Advise your client that insurance is rarely necessary unless the property is in a flood zone. Advise your client that insurance is there to protect him, and it should be purchased upon transfer of ownership. Advise your client that insurance is there to protect him, but it doesn't matter when it's purchased.
Advise your client that insurance is there to protect him, and it should be purchased upon transfer of ownership. Insurance should be in place from the first day of ownership, whether the buyer is paying cash or financing the purchase.
What's a subordination agreement? An agreement by a borrower to lien the property An agreement by a debtor to not be paid An agreement by a lien holder with priority to allow another creditor to have priority An agreement by a title company to process paperwork without a fee
An agreement by a lien holder with priority to allow another creditor to have priority This relates to lien priority.
What is a reverse exchange? A homeowner finds and closes on a house and then decides to sell their existing home. A homeowner sells a property and then finds and closes on a new property. An investor finds and closes on an investment property and then decides to immediately sell another investment property. An investor sells a property and then finds and closes on another investment property.
An investor finds and closes on an investment property and then decides to immediately sell another investment property. An investor can do a tax deferral "backward." This is called a reverse exchange. They're still strapped to the 45- and 180-day deadlines.
Loose fill insulation might be made of perlite, vermiculite, wood paper, or cotton fibers. What causes concern about this insulation type? Asbestos was used in some vermiculite manufacturing. It has a tendency to attract and grow mold. This insulation is installed without a vapor barrier. When installed incorrectly, the vapor barrier can cause illness.
Asbestos was used in some vermiculite manufacturing. Some vermiculite may contain asbestos, because it was used in the manufacturing of this product in the past.
Any home improvement contractor who's charging more than $5,000 for the work has to deposit the payments received before completion into an escrow account. Why? Because of article 36-A of the New York General Business Law Because of article 36-B of the New York General Business Law Because of HUD Rules and Regulations for Contractors Because of the National Electric Code
Because of article 36-A of the New York General Business Law
Which of the following statements about insulation is true? Blanket insulation comes in fiberglass rolls. Loose fill insulation is no longer used due to concerns about formaldehyde. Vermiculite and perlite are examples of blanket insulation. Wallboard insulation often comes in 15.5-inch widths to fit between framing members.
Blanket insulation comes in fiberglass rolls. Blanket insulation often comes in fiberglass rolls that are 15.5 inches wide to fit between framing members.
What is the subject of Amanda's Law? Carbon monoxide Drunk driving Sex offender registry Speeding
Carbon Monoxide Amanda's Law, which went into effect in 2009, is an addendum to carbon monoxide regulations.
A deed states, "For love and affection, the receipt and sufficiency of which is hereby acknowledged." What does this statement represent in the deed? Consideration Granting clause Habendum clause Subject to clause
Consideration Consideration (something of value) is required for transfer of this deed. In a traditional sale, the consideration is the purchase price stated in the deed. In deed transfers, "for love and affection" may be the consideration offered.
Which loans involve increased risk for the lender and therefore usually come with a higher rate? Construction Land contract Reverse Shared equity
Construction Construction loans involve increased risk because the lender is lending on what's being built and not what's already built. If the builder flaked, the lender would be left with an unfinished building.
What are condominium owners' rules and rights called? Certificates, conditions, and restrictions Covenants, certificates, and restrictions Covenants, conditions, and realty Covenants, conditions, and restrictions
Covenants, conditions, and restrictions These are called covenants, conditions, and restrictions, or CC&Rs, and do not just apply to condominiums, but to all housing developments that have a governing association.
Which of the following describes the impact that a deed restriction might have on a property owner? Deed restrictions govern the behavior of residents while they are within the property limits. Deed restrictions have no impact directly on property owners. Deed restrictions limit how a property may be conveyed from one owner to another. Deed restrictions limit the use or appearance of a property.
Deed restrictions limit the use or appearance of a property. Deed restrictions are private agreements that impact the use of the land, limiting the use or appearance of the individual property or an entire development.
What do you do to determine debt coverage ratio?
Divide net income by debt service
EDGE: John sells his single-family home and purchases a new home for his family to reside in.Marcus owns a single-family home, but rents it out to a co-worker while he is on an extended two-year military tour overseas.Donald sells an apartment complex and purchases a new complex in a different part of the city.Which of these consumers is most likely to take advantage of a 1031 tax-deferred exchange? Donald John Donald and John Marcus
Donald Remember, the property must be held for investment or business purposes to qualify for a 1031 tax-deferred exchange.
Which of the following is true regarding the buyer's down payment funds? Generally the buyer's attorney holds the down payment, although in downstate New York, a broker may hold it. Generally the seller's attorney holds the down payment, although in upstate New York, a broker may hold it. Generally the seller's broker holds the down payment, although in New York City, an attorney who is not involved in the transaction must hold it. The seller's attorney always holds the down payment, regardless of location.
Generally the seller's attorney holds the down payment, although in upstate New York, a broker may hold it. Down payments are client trust funds, so handling and delivery must follow established procedures. These procedures differ depending on whether you're in upstate or downstate New York.
EDGE: Trent works for a well-known motorcycle manufacturer in its powertrain operations facility. He loves being around all of the heavy machinery and seeing the bikes come off of the production line. What type of space does Trent work in? Heavy industrial Light manufacturing Loft/warehouse buildings Retail
Heavy Industrial
Which kind of industrial property is typically located away from residential and central commercial areas?
Heavy industrial
Which of the following would used to describe an item that is both a fixture and real property? Above-ground Free-standing In-ground Movable
In-ground "In-ground" is a word used to describe an improvement that's permanently affixed to the property.
Licensee Dionne pointed out to her buyer client the items that would be considered real property. What is one of the key characteristics of an item that is real property (also known as a fixture)? Internal or external to the house Made of the same material as an interior or exterior wall Over or under a certain value Permanently affixed to the property
Internal or external to the house How the item is affixed to the property is a key factor in determining whether it's real or personal property.
Government regulation of a property that deprives the landowner of the economic value of the property without compensation from the government is called ______. Condemnation Eminent domain Escheat Inverse condemnation
Inverse condemnation Inverse condemnation occurs when government takes private property, either physically or by the effect of regulation on the property value, without offering the owner just compensation as is required by eminent domain.
Daniella has invested in an income property and borrowed funds to finance most of the purchase. If interest rates go up, what effect does this have on the value of her property as an investment?
It decreases the value
Which of the following is a mortgagor's responsibility? Assign the mortgage. Charge late payment penalties. Foreclose on the property if in default. Keep the property in good repair.
Keep the property in good repair. The mortgagor (borrower) is required to keep the property in good repair.
When lead is present, what rule covers remodeling of the property? Lead Removal, Repair, and Paint (RRP) Rule Lead Removal, Repair, and Renovation (RRR) Rule Lead Renovation, Repair, and Painting (RRP) Rule Lead Repair, Replace, and Painting (RRP) Rule
Lead Renovation, Repair, and Painting (RRP) Rule The Lead Renovation, Repair, and Painting (RRP) Rule covers remodeling, additions, and scraping for paint preparation of properties known to contain lead.
Which of the following is a contract that outlines the terms of a property rental arrangement between a landlord and a tenant? Binder Lease Option Sales contract
Lease A lease is a contract that outlines the terms of a property rental arrangement between a landlord and a tenant.
In addition to physical possibility, financial feasibility, and maximum profitability, which one of the following is a considerations when determining highest and best use? Legal permissibility Leverage ability Liquidity Rebuilding cost
Legal Permissibility To determine highest and best use, appraisers or investors will consider legal permissibility, physical possibility, financial feasibility, and maximum profitability.
Daniel purchased a home in January of 2010 and then sold the property in October of 2014 for a gain of $5,500. What type of capital gain is this? Appreciated Long-term Short-term Temporary
Long-term Long-term capital gains apply to properties owned more than one year.
What does a CMA determine? (comparative market analysis) Availability of funding Cost of replacement Cost per square foot Market price range
Market price range A CMA helps to determine the appropriate list price through a market price range.
What are the two types of real estate investment trusts? Debit and credit Mortgage and equity Mortgage and lease Residential and commercial
Mortgage and equity The two major investment choices for REITs are mortgage and equity.
Property owners who cannot obtain insurance can contact a pool of all insurance companies that write fire insurance in New York. What is that called? New York Property Insurance Casualty Association New York Property Insurance Coverage Association New York Property Insurance Fire Association New York Property Insurance Underwriting Association
New York Property Insurance Underwriting Association New York Property Insurance Underwriting Association to the rescue!
If a buyer makes no effort to secure financing, can the buyer use the mortgage contingency clause in the sales contract to back out of the transaction and get a refund of the down payment deposited? No; because the buyer did not act in good faith, the seller may retain the down payment No, but the seller must agree to provide financing for the buyer No; if financing is not forthcoming, the contract is voidable by the buyer Yes, as long as the buyer backs out during the mortgage contingency period
No; because the buyer did not act in good faith, the seller may retain the down payment The mortgage contingency clause only provides the buyer the right to cancel the contract and receive the earnest money back if the buyer acts in good faith and makes an effort to secure financing.
Which document (which is submitted to the Attorney General) describes the size of units, construction, floor plans, amenities, recreation facilities, make and model of appliances, windows, how the landscaping of the property is and will be maintained, and the actual land on which a condominium building is situated? Bylaws Common elements survey Declaration Offering plan
Offering plan These are the required elements of the offering plan. The offering plan must be submitted to the Attorney General. If prices change for all of the units, or all units of a specified type, an amendment must be submitted to the AG.
Which of the following is an accurate description of plumbing? A system of pipes that provide heating and cooling for a building One part brings the water in and mixes it with the part that sends it away One part brings the water in, one part sends it away, and the two parts never meet The same pipes that bring water in also send it away
One part brings the water in, one part sends it away, and the two parts never meet Plumbing is basically a system: One part of the system brings water in, and the other part sends it away. The two parts do not meet.
Flynt has a loan for a shopping center and is required to pay not only his mortgage payment but a percentage of the income he earns from the shops. What kind of a mortgage is this?
Participation Mortgage
Generally, there are covenants between the borrower and the lender within a mortgage document. Which of the following is a mortgage covenant? Agree to refinance only with the current lender. Give the lender first right of refusal. Move all checking and savings account to the lender's institution. Pay any charges and assessments against the property.
Pay any charges and assessments against the property. Covenants usually include paying charges and assessments against the property, maintaining both the property and hazard insurance, and keeping the property in good condition.
The New York town of Greenville is growing, and has decided to make some changes to their zoning ordinances. Which of these entities is responsible for making recommendations about amendments to the town's zoning? Architectural review board Mapping board Planning board Zoning board of appeals
Planning board Amendments to a town's zoning ordinances or zoning map are recommended by the town's planning board. The zoning board of appeals is responsible for reviewing requests for variances, not for amendments to the ordinances.
The percentage of the amount invested that the investor receives back is called ______.
Rate of Return
What type of real estate investment may meet the definition of being a security and must adhere to the rules and regulations of the Securities and Exchange Commission?
Real Estate syndicate
Which of the following is true regarding real estate licensee responsibilities when preparing contract riders? Real estate licensees cannot legally add riders to contracts. If the pre-printed contracts do not cover the clients' needs, the licensee must ask an attorney to write a customized contract for the specific situation Real estate licensees have the option of using pre-printed riders, which are faster and easier, or writing their own riders, which can be more time consuming. Real estate licensees may add riders to contracts and use their own language to draft them, as long as they are not handwritten and as long as the buyer initials each clause within the rider in ink. Real estate licensees must use pre-printed riders and refrain from using their own language, or they can be found guilty of practicing law without a license.
Real estate licensees must use pre-printed riders and refrain from using their own language, or they can be found guilty of practicing law without a license. Real estate licensees are NOT attorneys. Therefore, they shouldn't create their own riders. They need to use pre-printed ones and make sure they don't insert their own words.
All of these are components of the flooring system except_______: Girder Sill Plate Lally Column Soffit
Soffit The soffit is part of the roof.
In investments, there are two types of depreciation, and each is defined by a particular event. Which of the following most accurately pairs the depreciation type with the event it is tied to? Economic depreciation and cost recovery Operating depreciation and taxing authority Tax depreciation and cost recovery Tax depreciation and physical deterioration
Tax depreciation and cost recovery Tax depreciation is tied to cost recovery.
EDGE: Which of the following is TRUE regarding septic tanks in New York? For well or sewer construction outside DOH guidelines, a design plan drafted by a homeowner must be submitted to the DOH for approval. Septic tanks must be located at least 25 feet from a well, and an absorption field must be at least 50 feet from a well. The Department of Environmental Conservation must approve septic plans for buildings that process more than 1,000 gallons a day. The DOH doesn't allow absorption trenches if the soil and site conditions allow seepage pits
The Department of Environmental Conservation must approve septic plans for buildings that process more than 1,000 gallons a day. As you would imagine, septic systems are closely regulated, and buildings that process more than 1,000 gallons a day must have their plans approved by the DEC.
How did the decision in Naldi v. Grunberg interpret the New York Statute of Frauds definition of "in writing"? The court ruled that an agreement made via email communication can be considered a binding contract. The court ruled that an agreement must be written or printed on paper to be considered a binding contract. The court ruled that an oral agreement could be considered a binding contract. The court ruled that the Statute of Frauds is an outdated set of regulations and nullified it.
The court ruled that an agreement made via email communication can be considered a binding contract. In Naldi v. Grunberg, the court ruled that an agreement made via email communication can be considered a binding contract.
Your clients closed on their property yesterday, but you still have some paperwork that you need to deliver to them as soon as possible. Under which fiduciary duty are you acting? The duty of accounting The duty of confidentiality The duty of disclosure The duty of obedience
The duty of accounting The duty of accounting may continue even after the transaction closes. The agent must account for any documents or money belonging to the client until it is delivered to the appropriate party.
Under an estate at will in New York, which of the following is required of a landlord who wishes to terminate a tenant's lease? The landlord must either personally serve the notice to the tenant or post it conspicuously on the property at least 30 days prior to the termination date. The landlord must have the notice served by a process server to the tenant at least 45 days prior to the termination date. The landlord must mail a notarized copy of the notice to the tenant via registered mail at least 60 days prior to the termination date. The landlord must notify the tenant via phone or email or post a written notice conspicuously on the property at least 30 days prior to the termination date.
The landlord must either personally serve the notice to the tenant or post it conspicuously on the property at least 30 days prior to the termination date.
What happens when a municipality completes an "in rem" foreclosure? The foreclosure process is circumvented. The municipality must sell the property no sooner than 18 months post-foreclosure. The municipality obtains title to the property. The taxpayer has provided a deed in lieu of foreclosure.
The municipality obtains title to the property. An in rem foreclosure is quite common and allows the municipality to obtain title and sell the property.
Which of the following is true about real estate sales contracts in New York? Real estate sales contracts are standardized by the federal government; the same forms are used throughout the U.S. Standardized statewide binders and sale contract forms are used throughout the state of New York. There are no standardized statewide binders or sales contract forms in New York, although there are standardized forms on a local level. There are no standardized statewide or local binders or sales contract forms in New York; all contracts are prepared by attorneys for each individual sale.
There are no standardized statewide binders or sales contract forms in New York, although there are standardized forms on a local level. There are no standardized statewide binders or sales contract forms in New York, although there are standardized forms on a local level.
Which of the following is true about binders? They are also called purchase offers. They are legally binding if signed by both parties. They replace agency agreements in some states. This is the contract sellers use when they choose to finance all or part of their buyer's purchase.
They are also called purchase offers. A binder is similar to a letter of intent. It's not a contract, so it's not legally binding. Binders are also called purchase offers.
Ida and Barry are buying a home. They'll withdraw money from their traditional IRA to help with the down payment and closing costs. What's NOT true about this withdrawal? The amount they can withdraw for this purpose is $10,000 or less. They can exclude the amount of the IRA withdrawal when filing their income taxes. They must use the money within 120 days of withdrawal for the purpose of acquiring, improving, or building their home, or they'll be charged a penalty. They won't pay a penalty on this withdrawal even though they're both 58 years old.
They can exclude the amount of the IRA withdrawal when filing their income taxes. Ida and Barry are allowed to make this early withdrawal without penalty if they follow the rest of the rules outlined in the Taxpayer Relief Act of 1997, but they must still pay any taxes that may be due.
Why were activities that encourage monopolies to form made illegal? They are profit-driven. They increase advertising expenses. They limit consumer choice. They reduce advertising expenses.
They limit consumer choice Activities that create monopolies violate antitrust laws by limiting consumer choice, which can create an unfair marketplace and increased costs for consumers.
Aside from cash flow, appreciation, and earning passive income, what is another reason someone may want to legally invest in real estate? For depreciation For liquidity To hedge against inflation To launder money
To hedge against inflation Reasons to invest in real estate include a hedge against inflation, tax benefits, cash flow, appreciation, and passive income.
EDGE: What's the primary purpose of the declaration? To disclose to the unit owners the type of governance structure that will be in place. To provide a broad base of information about the condo project. To identify potential purchasers. To market a new condominium property.
To provide a broad base of information about the condo project. The declaration includes information about the land, building, number of units, common interests, common elements, and building use and restrictions.
Without notice, Carla moved out of her apartment for five months, leaving her belongings behind. She didn't pay rent during her absence, and when she returned for her belongings, her landlord, Petra, who knew Carla was gone but didn't know where, asked her to pay up. Which of the following is a true statement? Because Petra didn't remove all of Carla's belongings and change the lock on the apartment door, she can't force Carla to pay the back rent. Petra can pursue a constructive eviction, whereby she presses charges for breach of contract and requires Carla to pay both the five months of back rent and all rents for the remaining months on the lease term. Petra can sue Carla for abandonment and force Carla to pay not only the five months of rent but damages as well. Unless Petra tried to find a new tenant to occupy the apartment during Carla's absence, she can't force Carla to pay the back rent.
Unless Petra tried to find a new tenant to occupy the apartment during Carla's absence, she can't force Carla to pay the back rent. In a case of abandonment, the landlord must make an effort to find a new tenant to occupy the property. A landlord who doesn't look for a new tenant forfeits the right to pursue remuneration for unpaid rent.
