Unit 11 Test

Which document covers the conditions upon which a tenant may possess, occupy, and use a property? A)Lease B)Insurance binder C)Purchase agreement D)Will

A A lease is a contract between a landlord, an owner of real estate, and a tenant that transfers the right of possession and use of the owner's property to the tenant for a specified period of time.

The landlord has not paid the utility bills for his apartment building, so the heat, water, and electricity are shut off. Because of this, the tenants move out and have the right to terminate their leases. Which of the following legal concepts does this example illustrate? A)Constructive eviction B)Eminent domain C)Mutual rescission D)Actual eviction

A In a constructive eviction, the tenant terminates the lease because the landlord has caused or permitted a substantial interference with the tenant's use and enjoyment of the property.

The North Carolina Association of REALTORS® Standard Residential Rental Contract form is an agreement between a property owner/landlord and A)a tenant. B)a security officer. C)a maintenance worker. D)a developer.

A North Carolina licensees who are members of the North Carolina REALTORS® can access the form in the North Carolina REALTORS® forms library and may fill in the blanks for consumers.

Rent would BEST be defined as A)the consideration for the use of real property. B)the contractual consideration to a third party. C)all monies paid by the lessor to the lessee. D)the total amount owed under the terms of a lease.

A Rent is a fixed periodic payment by a tenant or occupant of a property to the property's owner for the right to use and possess the property, and is legal consideration for those rights.

A contract that conveys the right to quiet enjoyment and possession of property but does NOT convey title is A)a lease. B)a quitclaim deed. C)a bill of sale. D)a dedication.

A The lessor (landlord) grants the right of possession to the lessee (tenant); the lessor retains title.

Because the North Carolina Association of REALTORS® Standard Residential Rental Contract form is a preprinted contract, licensees may prefer to suggest to both landlords and tenants that due to complex landlord-tenant issues, all situations might not be adequately be handled through this form. The tenants and landlords might be better served by seeking A)legal counsel. B)a resource book for legal documents. C)an arbiter. D)copies of old completed contracts to compare.

A While most professionals rely on preprinted contracts and fill in the blanks, when issues arise that are not covered in the contract, the risk of liability may make consulting an attorney the right step.

The tenant has signed a lease in which she will pay a base rent of $1,000 per month plus a portion of the building expenses. This lease is MOST likely A)a gross lease. B)a percentage lease. C)a net lease. D)a fixed lease.

A net lease provides that, in addition to the base rent, the tenant pays all or some of the property charges, such as maintenance, property taxes, and insurance.

Which of the following is the BEST definition of actual eviction? A)The landlord's future interest in the rental premises B)The enforcement of a court order to remove a lessee C)The enforcement of a court order to remove a lessor D)The right of a landlord to use the rental premises

B Actual eviction is the process of physically removing a tenant after a court issues a judgment decree against the tenant and for the owner when the tenant does not voluntarily leave the premises. In North Carolina, the eviction case is called "summary ejectment." The eviction is enforced by the county sheriff.

An estate at sufferance usually terminates A)automatically on its expiration date. B)through a summary ejectment. C)only with prior notice. D)on its second automatic renewal.

B An estate at sufferance, or a tenancy at sufferance, arises when a tenant who lawfully came into possession of real property continues, after the tenant's rights have expired, to hold possession of the premises without the consent of the landlord. The landowner can have the tenant evicted at any time, without advance notice.

A tenant has a one-year leasehold interest in a property. The interest automatically renews itself at the end of each year. The tenant's interest is referred to as a tenancy A)at will. B)from period to period. C)at sufferance. D)for years.

B An estate from period to period, or a periodic tenancy, is created when the landlord and the tenant enter into an agreement that continues for a specific period, being automatically renewed for an indefinite time without a specific ending date. Rent is payable at definite intervals.

An agreement in which the tenant pays a fixed rent and the landlord pays all taxes, insurance, and maintenance on the property is a A)net lease. B)gross lease. C)index lease. D)ground lease.

B In a fixed lease or gross lease, the tenant's obligation is to pay a fixed amount, and the landlord pays all taxes, insurance premiums, mortgage payments, repair costs, and the like connected with the property. This type of lease is most often used for residential rentals but could be used in any type of property.

Under the provisions of a typical commercial lease, any trade fixtures that remain in the property after the lease has expired will be the property of A)the property manager. B)the lessor. C)the future tenant. D)the lessee.

B Trade fixtures are by definition essential to a business owner's operation and must be removed from a leased property when the business owner vacates the property, no later than when the lease expires. When the business owner leaves behind trade fixtures, they become the property of the lessor, the property owner.

Under a residential gross lease, the lessor typically pays all of the following EXCEPT A)maintenance costs. B)real estate taxes. C)a security deposit. D)insurance premiums.

C A residential gross lease requires that the lessee pay a fixed rent and the lessor pays the taxes, insurance, and other charges incurred through ownership of the property. The lease may require that the lessee pay a security deposit that the lessor may retain after the expiration of the lease to cover any costs for damages to property caused by and during the lessee's possession of the premises.

A tenant's apartment lease has expired. She and her landlord have agreed that she may remain on the premises until a sale of the building is finalized or until the tenant locates another suitable rental, whichever occurs first. The tenant will continue to pay her normal monthly rent. She and the landlord made a commitment to inform each other two weeks prior to ending this agreement. The tenancy described is A)periodic tenancy. B)estate at sufferance. C)estate at will. D)estate sale.

C An estate at will is a landlord-tenant relationship for an indefinite time period that may be terminated by either party with proper notice being given to the other party. An estate at will may be an oral agreement.

A leasehold estate with a definite expiration date is A)a fee simple absolute. B)an estate at sufferance. C)an estate for years. D)an estate at will.

C An estate for years has a specific termination date.

Constructive eviction occurs when the A)landlord forcibly removes the tenant from the premises after obtaining a court order. B)tenant fails to pay rent on time and the landlord changes the locks. C)tenant moves out because the landlord fails to keep the premises in habitable condition. D)landlord retaliates against the tenant for complaining to a state authority.

C Constructive eviction gives the tenant the right, in effect, to cancel the remainder of the lease and vacate the premises without penalties if the landlord repeatedly fails to satisfy habitability requirements. The tenant gives the landlord notice that the premises are uninhabitable. If the situation is not corrected within a reasonable time, the tenant can leave the premises and is no longer responsible for paying future rent.

The North Carolina Association of REALTORS® Residential Rental Contract includes all of the following provisions EXCEPT A)tenant's breach of contract. B)late payment fees. C)tenant's right to have pets. D)handling of tenant security deposits.

C Form 410, the Residential Rental Contract, is an agreement between a property owner/landlord and a tenant. The form reviews the tenants' and landlords' obligations, such as the lawful use of the premises and maintenance issues; right of the landlord's entry; occupants and/or pets; and compliance with rules and regulations.

Under the North Carolina Tenant Security Deposit Act, A)a landlord may only use the deposit to repair damage to the unit by the tenant. B)a landlord must collect a tenant security deposit to make the lease enforceable. C)the tenant must receive a final accounting and/or refund of the deposit within 60 days after the tenancy ends. D)the maximum tenant security deposit that can legally be charged is equal to one month's rent.

C If the landlord's claim against the tenant's security deposit cannot be determined within 30 days, the tenant must be provided an interim accounting, with a final accounting no later than 60 days from termination of tenancy and delivery of possession of the premises to the landlord or his agent.

A commercial lease in which the tenant pays the landlord a base rent, plus a share of the gross sales from the tenant's business, is A)a net lease. B)a ground lease. C)a percentage lease. D)a gross lease.

C Percentage leases are most commonly used for retail properties.

With a month-to-month tenancy, the landlord can require a maximum security deposit equal to A)two weeks' rent. B)seven days' rent. C)one and one-half months' rent. D)two months' rent.

C The Tenant Security Deposit Act regulates the amount of money that can be required as a security deposit and what the landlord can do with that deposit. The amount of the security deposit depends on the term of the tenancy. The maximum amount of security deposit is the equivalent of; two weeks' rent if the tenancy is from week to week; one and a half months' rent if the tenancy is from month to month; two months' rent if the tenancy is longer than month to month.

The North Carolina Association of REALTORS® Standard Residential Rental Contract form outlines the consequences of a tenant's breach of agreement and the landlord's A)annual payment for duties served. B)bookkeeping fees. C)rights of rescission. D)remedies.

C The contract form outlines the process and option the landlord has to remove tenants should they not pay the agreed-upon rent.

Both parties have rights and obligations under a lease, making this A)an agreement in principle. B)a handshake agreement. C)a bilateral agreement. D)a verbal agreement.

C The landlord grants the tenants the right to occupy the premises and use them for purposes stated in the lease. In return, the landlord retains the right to receive payment for the use of the premises, as well as a reversionary right to retake possession after the lease term has expired.

Which of the following statements about the North Carolina Retaliatory Eviction Doctrine is NOT correct? A)Eviction can be expedited if the tenant has been involved in criminal activity in the property. B)The tenant's current lease is protected up to 12 months after use of a protected legal right. C)The tenant can withhold rent until the landlord makes timely repairs necessary to provide habitability of the unit. D)The tenant is entitled to secure legal advice about the enforceability of lease terms.

C Under the retaliatory eviction provision (NCGS § 42-37), a landlord cannot evict a tenant who, in good faith, requests that the landlord make required repairs, exercises legal rights against the landlord, becomes involved in a tenants' rights association, or complains to a government entity about a landlord's violation of landlord-tenant law.

The Jones family rented a home from Mr. Smith with a four-year lease term. At the end of the third year, Smith died and the property was sold by his heirs. The lease held by the Jones family is A)terminated upon the death of Smith. B)renegotiable by the new owner. C)not affected. D)terminated upon sale.

C When a landlord dies, the terms of any existing lease remain in place until the termination date of the lease.

An individual rents an apartment for one year. The landlord sells the building during the lease term. What effect does the sale have on the lease? A)The new landlord will decide whether or not to honor the existing lease. B)The lease is terminated after a 60-day notice from the new owner. C)The sale does not affect the lease. D)The lease is automatically terminated.

C When the property is sold, the lease does not terminate.

A percentage lease provides for a A)definite monthly rent not to exceed a stated percentage of the building's value. B)monthly graduated rent amount not to exceed a stated percentage of the original rent. C)long-term rental of a certain percentage of the space in a building. D)definite monthly rent plus a percentage of the tenant's gross receipts in excess of a certain amount.

D A percentage lease provides for rental based on a percentage of the gross or net income received by a tenant doing business on the leased property. This type of lease is usually used in the rental of retail business locations.

A blind tenant with a Seeing Eye dog has given the property manager a rental application. In regards to the tenant's dog, in this situation the manager A)may charge the tenant the same $150 pet fee charged to all tenants in the building. B)may increase the tenant's security deposit amount to include anticipated damage caused by the dog. C)may refuse to rent to the tenant if the building has a no-pets policy. D)must allow the dog and may not charge any extra fees.

D If pets are allowed on the premises, the landlord is allowed to charge a separate, reasonable pet fee that can be nonrefundable. If the animal is a service animal, such as a Seeing Eye dog, it would not be regarded as a pet and a pet fee would not be allowed because a service animal is considered to be an extension of the handicapped person.

The Residential Rental Agreement Act requires the landlord to keep the apartment building in habitable condition. common areas in the rental property in safe condition. A)Neither I nor II B)I only C)II only D)Both I and II

D The North Carolina Residential Rental Agreements Act provides that the landlord's primary duty is implied warranty of habitability and must supply fit and habitable premises to the tenant. The premises must be fit for human occupancy. The Act sets forth standards for habitability and instructs the landlord to do whatever is necessary to put and keep the premises in a fit and habitable condition.

When it comes to lease agreements, an owner of real estate is also known as A)the seller. B)the patron. C)the lessee. D)the lessor.

D The tenant is known as the lessee.