Quiz 40:Leasing and Managing Property

Transcription

1 Quiz 40:Leasing and Managing Property 1. When a tenant sublets all or any part of the premises rented under a written lease, a. the tenant assigns all rights, title, and interests in the rented property to the new lessee. b. the sublessee becomes primarily responsible to the landlord for the payment of rent and maintenance of the property. c. th e original lease is automatically canceled and the sublessee takes possession of the property on a month to month basis. d. the original lease is unaffected unless it contains a provision that prohibits such subletting. 2. T he lessor and lessee have agreed to a lease term of 3 years. In order to ensure that the rental income duri ng the term is reflective of market conditions, the lessor could a. negotiate a new lease each year. b. collect an additional security deposit each year. c. negotiate an index lease. d. negotiate a gross lease. 3. The authority to carry out the eviction of a delinquent tenant from rented property comes from a. t he courts. c. the sheriff. b. t he landlord. d. the property owner. 4. All of the following would acquire title to real property EXCEPT a. The grantee c. The vendee b. The devisee d. The lessee 5. The tenant leases an apartment, that has no hot water because of a faulty hot water heater. The tenant vacates the premises and refuses to pay any rent. This is: a. abandonment. c. constructive eviction. b. actual eviction. d. lessor negligence. 6. A lease would be terminated by which of the following? a. Sale of the leased premises b. Death of the tenant c. Abandonment of the leased premises by the tenant d. Expiration of the term in a lease for years 7. Mr. and Mrs. Nilsson lease a two-bedroom apartment from ABC Management Company. Due to ordinary wear and tear, the dishwasher breaks down. Who must pay for its repair? a. The lessor c. The insurance company b. The lessee d. The real estate agent 8. T he covenant implied in a lease that ensures that the landlord will not interfere in the tenant s possession or use of the property is the covenant of a. of seizin. c. of warranty forever. b. of quiet enjoyment. d. against encumbrances. 9. The Lemon's apartment lease has expired, but their landlord has indicated to them that they may remain on the premises until a sale of the building is closed. They will be charged their normal monthly rental during this period. The right held by the Lemons is called a(n) a. year to year holdover. c. estate at sufferance. b. estate for term. d. tenancy at will. ABC Real Estate School 3 st ed National Workbook August 2010 Page 445

2 10. Generally, a verbal lease for five years is a. illegal. c. a short-term lease. b. unenforceable. d. renewable only in writing. 11. The owner of real estate who leases it to another is called the a. vendor. c. grantor. b. lessor. d. trustor. 12. A lease that will terminate within one year of its inception a. is invalid. c. must be in writing. b. violates the provisions of the statute of frauds. d. may be oral. 13. A lease should contain all of the following provisions EXCEPT a. sale and leaseback clause c. possession of the premises b. use of the premises d. term of the lease 14. A lessee who pays some or all of the lessor' s property expenses has a a. gross lease. c. percentage lease. b. net lease. d. sublease. 15. The principal difference between an estate for years and an estate from year to year is that a. an estate for years is a life estate. b. an estate for years cannot be terminated. c. an estate from year to year must be in writing. d. an estate from year to year has no expiration date. 16. Rent would best be defined as a. a contractual consideration to a third party. b. consideration for the use of real property. c. all monies paid by the lessor to the lessee. d. the security deposit under the terms of a lease. 17. 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. an estate from year to year. c. tenancy at will. d. tenancy at sufferance. 18. A tenant's lease does not terminate for five more years. The premises, however, have become too small to accommodate the tenant's growing business. Another business owner is interested in leasing the premises from the tenant for three years. Which of the following would the parties use for the tenant to lease the space to the business owner? a. An assignment c. A sublease b. A novation d. A tenancy at sufferance 19. When a tenant holds possession of a landlord's property without a definite lease term but with the consent of the landlord, this is called a. tenancy in common. c. tenancy at will. b. tenancy at sufferance. d. trespass. ABC Real Estate School 3 st ed National Workbook August 2010 Page 446

3 20. Under a percentage lease, a commercial lessee may agree to pay a. maintenance. c. insurance. b. real estate taxes. d. a percent of sales. 21. The purpose of a security deposit is to a. provide additional revenue for the landlord. b. repair damage to the property caused by the tenant. c. pay for the last month's rent. d. ensure that the lease is valid. 22. A tenant has an estate for years. According to the written one-year lease, the tenancy will expire on May 1st. To obtain possession as of that date, the landlord a. must give the tenant 30 days' notice. b. must give the tenant 60 day's notice. c. must give the tenant notice before April 15th. d. is not required to give the tenant any notice. 23. Which of the following is the best definition of actual eviction? a. The right of a landlord to use the rental premises b. The enforcement of a court order to remove a lessor c. The landlord's reversionary right in the rental premises d. The enforcement of a court order to remove a lessee 24. In the event that it is necessary for landlord Harry to remove a tenant from the premises, he a. refunds any rents paid. b. refunds the security or other deposits. c. files a suit for possession. d. uses the minimum amount of physical force necessary. 25. An individual rents an apartment for one year. The landlord sells the building during the one-year lease term. What effect does the sale have on the lease? a. The sale does not affect the lease. b. The lease is automatically terminated. c. The new landlord will decide whether to honor the existing lease. d. The lease is terminated after 60 days notice from the new owner. 26. With a tenancy for years a. the term of the lease must be for at least one year. b. no notice is required to terminate the lease. c. a 30-day notice is required to terminate the lease. d. the lessee has a freehold estate. 27. A tenant agrees to rent on a month-month basis after the termination of the original lease. This is known as an a. Estate for years. c. Estate at will. b. Estate from period to period. d. Estate at sufferance. 28. A lessee is in possession of property under a tenancy at will. Which of the following is true? a. The lessee has not received the consent of the landlord to possess the property. b. The tenancy will terminate if the lessee dies. c. The tenancy was created by the death of the lessor. d. The tenancy has a definite termination date. ABC Real Estate School 3 st ed National Workbook August 2010 Page 447

4 Quiz 40 Answer Key 1. d. Subletting does not release the original tenant from the obligations and liability of the lease. Subletting is only allowed when a lease specifically permits it. 2. c. An index lease allows rent to be increased or decreased periodically based on changes in the consumer price index or some other economic factor. 3. a. Actual eviction gives the landlord the right to regain possession through a legal process when a tenant breaches a lease or improperly retains leased premises. The court will issue a judgment for possession to the landlord. 4. d. Lessee is the tenant. Tenants are granted the right of possession, not ownership of the property. 5. c. Constructive eviction terminates the lease when the landlord breaches any clause of the lease agreement. The tenant must prove that the premises have become unusable because of the conscious neglect of the landlord. 6. d. A tenancy (estate) for years is a leasehold estate that continues for a definite period of time with specific beginning and ending dates. 7. a. Most states require residential lessor to maintain property in a habitable condition. The tenant does not have to make any repairs but must return the premises in the same condition they were received, with allowances for ordinary wear and tear. 8. b. The covenant of quiet enjoyment is a promise by the lessor that the lessee may take possession of the premises and the landlord will not interfere in the tenant s possession or use of the property. 9. d. A tenancy (estate) at will gives the tenant the right to possess property with the landlord s consent for an unspecified or indefinite term. 10. b. The Statute of Frauds requires a lease for a term longer than one year must be in writing to be enforceable. In order for an oral lease to be enforceable, it must be for one year or less and the courts must be satisfied with the evidence. 11. b. The lessor is the owner of real estate. 12. d. According to the Statute of Frauds, in general, oral leases for one year or less that can be performed within a year of their signing are enforceable. 13. a. Sale and leaseback is an arrangement when an owner sells the property and then leases it back. 14. b. With a net lease the tenant pays a base rent plus certain costs in the operation of the property such as utilities, property taxes, and assessments. The landlord may pay some property expenses. 15. d. An estate from period to period, or periodic tenancy, does not have a specific expiration date. An estate (tenancy) for years has specific beginning and ending dates. 16. b. Consideration is the exchange of something of value by the tenant for possession of property owned by another person. 17. d. Tenancy (estate) at sufferance occurs when a tenant who lawfully possessed real property continues in possession of the premises without the landlord s consent after the rights expire. 18. c. Subleasing the property is a tenant transferring less than all the leasehold interests by leasing them to a new tenant. The original tenant remains responsible for ABC Real Estate School 3 st ed National Workbook August 2010 Page 448

5 rent being paid by the new tenant and for any damage during the lease term. The new tenant is responsible only to the original tenant to pay the rent due. 19. c. An estate (tenancy) at will gives the tenant the right to possess property with the landlord s consent for an unspecified term. It continues until it is terminated by either party s giving notice. 20. d. With a percentage lease the rent is based on a minimum fixed rental fee plus a percentage of the gross income received by the tenant doing business on the leased property. This type of lease is usually used for retail businesses. 21. b. A security deposit is held by the landlord during the term of lease to compensate for any loss caused by the tenant with default on payment of the rent or damage to the property. 22. d. Notice is not required to terminate an estate for years because the lease agreement states a specific expiration date. When the date comes, the lease expires and the tenant s rights are terminated. 23. d. With actual eviction the landlord may regain possession through legal process. If the tenant fails to vacate the property after the court issues a judgment for possession to a landlord, the landlord can have the judgment enforced by a court officer, who forcibly removes the tenant and the tenant s possessions. 24. c. Suit for possession, or actual eviction, occurs when the landlord may regain possession of the property through the courts because the tenant has breached the lease. 25. a. Since a lease is a contract transferring the owner s right of possession to the tenant for a specified period of time, the lease does not terminate if the property is sold. The new owner takes the property subject to the rights of the tenants. 26. b. An estate (tenancy) for years is a leasehold estate that continues for a definite period of time. Because it always has specific beginning and ending dates, notice is not required. 27. b. An estate from period to period is created when the landlord and tenant enter into an agreement for an indefinite period of time because the lease does not contain a specific expiration date. Such a tenancy is created initially to run for a definite amount of time, but continues indefinitely. It automatically renews under the original terms until one of the parties gives notice to terminate. A month-to-month tenancy is an example of a periodic tenancy. 28. b. An estate (tenancy) at will automatically terminates by the death of either the landlord or the tenant. ABC Real Estate School 3 st ed National Workbook August 2010 Page 449