chapter 17 real estate leases quiz

45) The Institute of Real Estate Management is a? A. Government agency. B. Professional property management organization. C. University. D. Proprietary School.

The Institute of Real Estate Management (IREM) is the professional property management organization within the National Association of Realtors

22) all the following are specifically designed to protect against Rising operating costs except? A. a net lease. B. An escalator least. C. An index clause. D. A gross lease.

a landlord has no automatic protection against Rising operating cost, but could be so protected by the terms of a net lease, an escalator clause or an index clause

27) the only way for a tenant to terminate a lease for 5 years is by? A. Construction eviction. B. eminent domain. C. Mutual agreement. D. Actual eviction.

a lease for years may be terminated by construction eviction, actual eviction, mutual agreement of the parties, or by eminent domain, it may only be terminated by the tenant when the landlord fails to provide essential services

24) J's least of her apartment is silent as to her right to sublet. May J sublet without the landlord's permission? A. yes, because executory contract may be a sign unless they contain a non assignment clause. B. yes, because J will remain responsible to the landlord under the terms of the lease. C. no, because the landlord would have the right to veto any assignment D. no, because landlord tenant laws prohibit the assignment of a lease without the landlord's permission

a lease is an executory contract and maybe a sign unless it contains a non assignment clause

37) hey linklea tenant application form? A. Tends to encourage marginally qualified applicants. B. provides a bias for checking the applicants reference. C. is necessary to provide documentation for HUD. D. Is required for low income housing.

a lengthy tenant application form tends to discourage marginally qualify tenants and also provides a basis for checking backgrounds sources

6) to be valid, which of the following must be in writing and signed? A. Month-to-month lease B. 14 month lease C. 3 month lease D. one week vacation rental

a month-to-month lease is enforceable even though it is not in writing, but at least for more than one year must be in writing in order to be enforceable.

3) a release of fixed-length that continually renews itself for like period of time until the lessor or lessee acts to terminate it is a? A. holdover estate B. periodic estate C. estate at will D. estate at sufferance

a periodic estate continually renews itself until termination by either lessee or lessor

12) a landlord can charge and a tenant can expect to pay A. damages to the premises by tenant. B. Normal wear and tear of the premise by the tenant. C. Old and worn drapes. D. finder's fee

a tenant is so responsible for damage to the premise, but not for normal wear and tear.

7) the right of the lessee is uninterpreted use of lease premise is called? A. quiet positioning B. quiet enjoyment C. quiet rights D. tenant rights

a tenant's right to uninterpreted use of the leased premises

9) a written lease agreement is still legal even though it fails to include? A. the terms of the lease. B. A property description. C. A stated amount of rent. D. An assignment clause.

a valid lease Muscatine the names of all parties, the terms of the agreement between landlord and tenant, and description of the property in order to be legal. It is not necessary to have an clause

42) an on-site resident manager serves as? A. A maintenance person of the property. B. The eyes and ears of the property management company. C. a deterrent to crime. D. a playground supervisor

an on-site resident Management Service bald as general superintendent of the property and as the main person of the Property Management Company

2) a least for a definite period of time, which terminates when the time has expired, is called a? A. estate for years B. periodic estate C. estate at will D. estate at sufferance

any lease which contains a definite termination date is classified as an estate for years

8) under the terms of a one-year lease, the? A. Tenant commits to pay a full year's rent, even if he vacates the premise before the year's expires B. landlord commits the property to the tenant for 6 months, renewable if the rent is current. C. Tenant can terminate the lease early, if he chooses. D. Landlord can terminate the lease early if he sells the building

at least for one year commits the tenant to a full year's rent and the landlord to granting the tenant occupancy for the full year. Neither can terminate early; a new owner must honor existing leases

4) which of the following leases would be unenforceable in court, unless it where in writing? A. Two-week lease of vacation Cottage B. month to month lease C. 3 year commercial lease D. one year lease on an apartment

at least more than one year must be in writing in order to be enforceable. As a rule, a two-week lease, a month-to-month lease, and a one-year lease are enforceable even though not in writing

10) a written lease agreement for a periodic tenancy is still legal even though it fails to include? A. the amount of the rent be paid. B. A security deposit. C. Starting date and duration of the lease. D. Signatures of both tenant and landlord

at least must contain a statement of the amount of the rent be paid but a deposit is not essential

33) W has A 5 year lease on space and an office building. After this lease was recorded in the public records, the landlord security new mortgage on the property, on which he later defaulted. When the lender foreclosed on the property, could W' s lease be terminated by the purchasers at foreclosure? A. yes, because the Foreclosure of a mortgage terminates any lease on the property. B. yes, because the purchaser at foreclosure would have the option of honoring the lease or not doing so. C. no, because mortgage foreclosures have no effect on a valid lease. D. no, because the lease was recorded prior to the mortgage.

because it was recorded, it is not affected by a foreclosure of the mortgage, but remains biding upon the buyer at foreclosure

21) a lease in which the tenant pays a rent based upon the gross sales made from the rental premise is known as? A. percentage lease. B. participation lease. C. net lease. D. Gross lease.

calls for rent to be paid all or in part in the form of a percentage of the gross sale made from The premises

43) which of the following would be classified as an on-site management? A. Accounting. B. Handling tenant complaints. C. Showing vacant spaces perspective tenants. D. maintenance work.

can usually handle off site, handling tenant complaints, showing vacancies to prospective tenants and maintenance are handle on site

41) the best defense against loss from uncollected rent is? A. a threat of legal action against delinquent tenant. B. Careful tenant selection, good service, and a firm policy on rent collections. C. actual eviction when the rent is too late. D. personally visiting the tenant to collect the rent

careful tenant selection, good services and a businesslike policy of rent collection are more effective than threats of legal action in regarding losses from uncollected Rent

40) a property manager can do much to establish and maintain good relationships with tenant through? A. indifferent attentions to repair and maintenance. B. Good communication with tenants. C. Early morning phone calls before the tenant leaves for work. D. Oral communication discourage is the use of reading memoranda or letters

good communication with tenants and prompt attention to repairs and maintenance are fundamental to good tenant relationship

32) a tenant has lease on a service station which is being taken by the state highway department under eminent domain in order to widen the highway. the state must pay compensation to? A. tenant B. landlord C. both of them D. a neutral third-party in trusts

government's exercise of its powers of eminent domain brought damages to landlord and the Tenant and both are entitled to compensation, pay directly to them

5) an owner leased a building to a tenant under an agreement which gave the tenant the right to occupy the permission for 2 years, with an option to renew an additional one year period. in order to be enforceable, must his least be in writing and signed by the owner and the tenant? A. yes, because all contracts dealing with real property must be in writing in order to be enforceable B. yes, because the lease is a period of time in exceeds of one year C. no, because oral leases of five years or lease is enforceable D. no, because a two-year-old lease is enforceable

in order to be enforceable, a least for more than one year must be in writing

47) a person who holds the destination system maintenance administrator has completed required courses offered by the? A. building owners and managers Institute. B. Institute of Real Estate Management. C. National Apartment Association. D. National Association of homebuilders.

it's a designation system maintenance administration upon members who have completed required courses offered by The Institute.

31) a tenant complains to the Housing Authority regarding lack of Maintenance of his apartment. The landlord serve the tenant without eviction notice because of his complaints. This eviction was? A. retaliatory eviction. B. legal C. good business practice. D. dictated by law

landlords actions constitute a Petty eviction and are legal

28) a tennis business has prospered and she needs an additional Warehouse. She wants a five-year lease with an escape available at the end of two years, and she wants to be able to stay in the building for an additional 5 years if her business continues to need space. additionally, she wants protection against unexpected rent increases. Her real estate agent will look for warehouses who owners would offer a? A. Net lease for the next 5 years. B. 2 year lease with an option to renew for three years and an option for five more years. C. 3 year lease with an option to renew for two years followed by an option to buy. D. gross lease for 2 years followed by a three-year net lease with option to buy

lease for 2 years with an option to renew at the end of two years followed by an option to either renew or buy the property best fulfills the tenants objective

17) at least under which the tenant pays a fixed rate and landlord pays all the operating expenses is a? A. Net lease. B. Fixed lease. C. Term lease. D. Gross lease.

one in which the tenant pays a fixed rent and the landlord pays all the operating expenses

23) in Z's 1-year apartment lease, she has a clause that allows her to renew the lease for an additional year at a predetermined rent. This is called an? A. refusal clause. B. Option Clause. C. Assignment Clause. D. Sublease clause.

permits the tenant to renew the lease for an additional period at a predetermined rent

34) experience with rent controls generally indicates that rent control? A. solves more problems than it creates. B. Creates more problems than it solves. C. Assist landlords with larger rent rolls so that they can properly maintain the building. D. Slows down the conversion of rental units to condominium units

rent control often create more problems than they solve

38) Property Owners can attract tenants in a soft rental market by? A. increase in rent. B. Rent concessions. C. lowering maintenance standards. D. insist on longer leases

rent reducers are used to attract tenants in a soft rental market

16) stay in Nags landlord tenant law tenants to? A. Favor the tenant. B. Strike a reasonable balance between the rights and responsibilities of both parties. C. favors of lessor. D. Favor the landlord.

stay in act landlord tenant laws to tend to favor reasonable balance between landlord and tenant

44) a successful department manager e all of the following except? A. Experience in managing people. B. Handling with tools. C. fiscally responsibility. D. Advisor to help tenant manage their finances.

successful property managers tend to be experienced in handling people, money and tools.

15) W install built-in bookcases and his rental apartment without the landlord's permission. All of the following statements are correct except. A. the bookcases became fixtures when installed by W. B. W can be held responsible for expenses incurred by the landlord in removing the book cases upon expiration of the lease C. W forfeited his security deposit by installing the bookcases without the landlord's permission. D. the bookcases become the property of the landlord upon expiration of the lease

the bookcases become fixtures when permanently installed and thus became the property of the landlord. the tenant can be held responsible for forfeiture of the tenant deposit

14) Consumer Protection Law and courts place the burden of upkeep and repairs of rental premises on the tenant in? A. Commercial leases. B. Residential leases. C. Apartment leases. D. Condo leases.

the burden of upkeep and repairs of rental premises falls on the tenant in Commercial leases but not in residential leases

46) Institute of Real Estate Management Awards the designation? A. CMA (certified apartment manager) B. CPM (certified property manager.) C. MAI (members of the appraisal Institute.) D. RAM (resident apartment manager.)

the designation of this award by IREM. CAM is awarded by the national apartment Association, RAM are the National Association of homebuilders and MAI is an appraisal designation

1) which of the following statements regarding a leaseholder estate is not true? A. the tenant is known as the lessee B. the landlord holds a reversion during the term of the lease. C. the landowner is known as the lessor D. the tenant holds a freehold estate

the landlord is the lessor and the tenant is the lessee. The landlord's right to regain control and possession of the premises at termination of the lease is called reversion. The tenant holds a non-free estate

30) G had a five-year lease on a store building which called for the landlord to provide maintenance on the property. although he notify the landlord on several occasions of a badly leaking roof, the landlord failed to make the necessary repairs, and G had to cease his operations. at this option, G could? A. stop paying rent until the roof was repaired. B. Terminate the lease by claiming construction eviction. C. petition the city to acquire the property through eminent domain. D. Hire a roofer to do the necessary repairs

the landlords in action constitutes construction fault and makes the lease terminable at the tenants option.

26) under the terms of the typical ground lease, the? A. Lessor is the fee simple owner of the land. B. Lessor pays for and owns the improvements. C. the duration of the lease is usually less than 5 years. D. The lessee rarely recordes a ground lease

the lessor holds fee simple title to the land, the lessee pays for and owns the improvements. Because they're often for long periods of time, 50 to 99 years, they are often recorded

20) when the tenant pays a base rent plus some or all the operating expenses of a property, the results is a? A. Gross lease. B. Net lease. C. Percentage lease. D. Graduated lease.

the tenant agrees to pay some or all of the operating expenses of the property in addition to a base rent

39) to retain tenant, a property manager think of them as? A. A permanent resident, even through turnover is expected. B. Temporary residence who will leave at the expiration of their lease. C. Ungrateful people who will lower the living standards of the neighborhood. D. Unstable people since they cannot afford to buy their own home.

the treatment of a tenant as permanent residence, even through new tenants May Come, it tends to increase tenant relationships.

19) the clause in a lease which allows a landlord to pass along to the tenant certain increases in operating expenses is called an? A. escalator Clause. B. Non-participation Claus. C. Graduated lease. D. Accelerating claws.

to contract languish whereby the landlord may pass increase in operating expenses to the tenant

36) the least effective use of advertising money for rental housing is? A. newspaper classified advertising. B. Signs and arrows on and near the property. C. Radio and television advertising. D.Referral fees or bonuses to tenants who refer friends to the managers.

to promote rental housing, tenant referral fees, newspaper advertising, signs and arrows on and near the property are more cost-efficient forms of advertising.

13) the word waiver means to A. say goodbye. B. Demand. C. Relinquish. D. Died naturally.

to surrender, abandoned or relinquish

11) a tenant lease an apartment from a landlord under a lease which calls for a total rent of $6,000 for the year, but is silent as to when or and what installment the rent is to be paid. Under common law the rent will be due? A. when the tenant takes permission of the premise. B. in equals installments on the first day of each month. C. When the lease is signed. D. At the end of the year.

unless the lease calls for rent to be paid in advance, its not due until that time

18) a lease switch call for specific rental increases at predetermined intervals is known as gradual or? A Step Up lease. B. Accelerating least. C. Escalating lease. D. Step down lease.

used to denote a lease which calls for a specific rental increase at predetermined intervals

29) which of the following statement is NOT correct with regard to the contract rent and economic rent other property? A. The rent that a tenant must paid the landlord is its contract rent. B. At the beginning of the lease, the contract rent is usually the same as the economic rent. C. The rent which a property can command in the open market is is economic rent. D. The contract rent and the economic rent will remain the same throughout the term of the lease.

usually the same at the beginning of the lease, but the economic rent may increase or decrease during the term of the lease.

25) K signed a one-year lease on an apartment with a rental agency. He sublet the apartment to Z who defaulted on the sublease. And action entered by the landlord would be against? A. K B. Z C. both K and Z D. the rental agent

when a contract is assigned, the assignor remain solely liable for its terms and obligations. The assignee is liable to the assignor.

35) an investor who is contemplating buildings or buying rental houses well? A. Not compare Market rents with operating costs. B. capitalizing the net income to determine how much to pay for the building. C. Have to plan on raising the rent to cover debt financing. D. Not plan on positive cash flow for first several years

with total operating cost in capitalization of net income to determine value are fundamental investment decisions in the purchase of income-producing properties