Assessment Flashcards
A(n) ___ is created when the landlord and tenant enter into an agreement for an indefinite time, that is the lease does not contain a specific expiration date
Periodic tenancy
A(n) ___ gives the tenant the right to possess property with the landlord’s consent for an unspecified term.
Estate at will
A(n) ___ always has specific beginning and ending dates.
Estate for years
A(n) ___ is a leasehold that continues for a definite period of time
Estate for years
A lease is a type of ___
Contract
To be valid, a lease must meet the same requirements as __
any other contract
What are the 4 elements of a contract?
1) Capacity
2) Legal objectives
3) Offer and acceptance
4) consideration
The ___ makes it illegal to discriminate against tenants on the basis of disability.
FHA
Under the FHA, tenants with disabilities must be permitted to make ___ to a property at ___ expense.
reasonable modifications
the tenant’s
Under the FHA, if modifications made to a property to accommodate a tenant’s disability would interfere with a future tenant’s use, the landlord may require that the premises be ___ at the end of the lease term at ___ expense.
restored to their original condition
the tenant’s
In a triple-net lease, the tenant pays ___ and ___.
Operating expenses
Rent
In a triple-net lease, the ___ pays for all taxes, assessments, insurance, maintenance, utilities, and other charges related to the premises
tenant
In a(n) ___ lease, the tenant pays a fixed rent and the landlord pays all taxes, assessments, insurance, maintenance, and utilities connected with the property.
Gross
In a gross lease, the ___ pays all taxes, assessments, insurance, maintenance, and utilities connected with the property.
landlord
In a net lease, the ___ pays all or some of the operating expenses.
tenant
In a sale and leaseback, the ___ and ___ are the same party.
Tenant and seller
In a ground lease, the ___ agrees to construct a building
Tenant
In a(n) ___ lease, the tenant agrees to construct a building
ground
A(n) ___ combines a lease and sales agreement
Lease purchase
In a(n) ___ lease, the tenant pays some or all of the building’s expenses
Net
In a(n) ___ lease, rent is based on the tenant’s gross income
percentage
In a percentage lease, rent is based on the tenant’s ___.
Gross income
In a(n) ___ lease, the landowner pays all of the building’s expenses
gross
In a gross lease, the ___ pays all of the building’s expenses.
Landowner
A landlord must ___ on the tenant before beginning eviction proceeding.
Serve notice
A landlord must serve notice on the tenant before commencing the legal eviction process, called ___.
Actual eviction
As with any other contract, a lease is ___ when the contract terminates
discharged
As with any other contract, a lease is discharged when the contract ___.
Terminates
Termination of a lease can occur when all parties have ___ or when the parties ___.
Fully performed their obligations under the agreement
Agree to cancel the lease
A tenant rents an apartment in a 100-unit high rise in a chicago suburb for $900 per month. The tenant decides to move when she learns that her rent will be raised by 25% at the expiration of her one-year lease. When she moved in, the tenant deposited $1,200 as a security deposit. The interest rate should be computed at a rate qual to that paid on a(n) ___ at the state’s ___.
minimum deposit passbook
state’s largest commercial bank
A tenant’s tenancy for years will expire in 2 weeks. The tenant plans to move to a larger apartment across town when the current tenancy expires. What must the tenant do to terminate this agreement and why?
Tenant doesn’t need to do anything; agreement will terminate automatically
Before entering into a service relationship with a prospective tenant, a rental-finding service must provide the prospective tenant with a written contract that discloses…
a) Total amount to be paid over the lease term
b) statement that information about rental units may be up to 2 days old
c) copy of the brokerage agreement between the owner and rental-finding service
d) statement that the contract will be invalid if information about a rental unit is provided when the unit has been unavailable for more than 5 days
b) statement that information about rental units may be up to 2 days old
Under the negotiated terms of a particular residential lease, the landlord is required to maintain the water heater. If a tenant is unable to get hot water because of a faulty water heater that the landlord has failed to repair after repeated notification, which remedy would be available to the tenant?
a) suing the landlord for damages
b) assigning the lease agreement
c) abandoning the premises under constructive eviction
d) being refunded back rent by the landlord
c) abandoning the premises under constructive eviction
A ground lease is usually
a) long term
b) short term
c) 100 years or longer
d) a gross lease
Long term
In IL, leases for more than one year must be ___ and ___ to be enforceable in court
in writing
signed
A commercial lease calls for a minimum rent of $1,200 per month plus 4% of the annual gross business exceeding $150,000. If the total rent paid at the end of one year was $19,200, how much business did the tenant do during the year?
$270,000
1200 x 12 = 1400
19200-1400 = 4800
4800 divided by 0.04 = 120000
120,000+150,000= 270,000
A person has a 1 year leasehold interest in a house. the interest automatically renews itself at the end of each year. The person’s interest is called a(n) ___.
Tenancy from period to period
A tenant’s lease has expired. The tenant has neither vacated the premises nor negotiated a renewal lease, and the landlord has declared that she does not want the tenant to remain in the building. This form of possession is called…
an estate at sufferance
A tenant signs a lease that includes a schedule of rent increases on specific dates over the course of the lease term. What type of lease has the tenant signed?
Graduated
When a tenant holds possession of a landlord’s property without a current lease agreement and without the landlord’s approval, the landlord can file ___.
Forcible entry and detainer
or file suit for possession
In IL, a landlord must give a tenant at least 60 days written notice to terminate which of these tenancies?
a) tenancy for years
b) tenancy at will
c) tenancy from year to year
d) tenancy at sufferance
Tenancy from year to year
___ is consideration for the use of real property
Rent
What is rent?
consideration for the use of real property
A tenant enters into a commercial lease that requires a monthly rent based on a minimum set amount plus an additional amount determined by the tenant’s gross receipts exceeding $5,000. This type of lease is called…
Percentage lease
If a tenant moved out of a rented store building because access to the building was blocked as a result of the landlord’s negligence, the tenant would be entitled to…
Recover damages from the landlord
A tenant still has 5 months remaining on a 1 year apartment lease. When the tenant moves to another city, she transfers possession of the apartment to a friend for the entire remaining term of the lease. The friend pays rent directly to the tenant. In this situation, the original tenant has become a(n) ___.
Sublessor
A landlord who owns a 20 unit apartment building in Decatur, IL, has held a tenant’s security deposit for 3 months. The tenant, who is on a month-to-month lease, informs the landlord that he will be vacating the apartment in 30 days. How much interest does the landlord owe the tenant on the security deposit?
NO interest
How many days advance notice is required to terminate a month-to-month tenancy in IL?
30
A lease in which the tenant pays rent plus maintenance and property charges
Net lease
What is a net lease?
A lease in which the tenant pays rent plus maintenance and property charges
A tenant has a 1 year lease on an apartment. If the tenant fails to pay his rent when it is due, the landlord may…
Serve notice on the tenant to pay the delinquent rent within 5 days
Landlords who receive security deposits on residential leases, on deposits held for more than ___ months, are required to pay interest from the date of the deposit at a rate equal to the interest paid on a minimum deposit passbook savings account of the state’s largest commercial bank.
6
Illinois lessees are entitled to receive ___ on their security deposits
annual interest
Rental-finding services are required to enter into ___ with the parties for whom their services are to be performed
contracts
The contract between rental-finding services and the parties who their services are being performed for must clearly disclose a statement that the contract will be void, and all fees paid in advance will be refunded, if the information regarding possible rental units available is not ___ or ___.
Current or accurate
If a leased premises becomes unusable for the purpose stated in the lease, the tenant may have the right to ___, which would terminate the lease agreement
Constructive eviction
___ leases usually involve separate ownership of the land and buldings
ground
___ leases must be for a long enough term to make the transaction desirable to the tenant investing in the building, and often run for terms of 50-99 years
Ground
The statute of frauds in IL requires lease agreements be in writing to be enforcable if they are for more than ___, and must be signed by…
1 year
lessor and lessee
Month to month, week to week, or year to year are all examples of….
periodic tenancy
When a tenant who lawfully possessed real property continues in possession of the premises without the landlord’s consent after rights expire
Estate at sufferance
Periodic tenancy continues ___ until ___.
Indefinitely until proper notice of termination is given
When a tenant breaches a lease or improperly retains leased premises, the landlord may regain possession through a legal process called ___.
Actual eviction
In a tenancy from year to year, at least ___ days written notice is required at any time within the __ month period before the last ___ days of the lease period.
60 days
4 month
60 days
In a(n) ___ lease, rent is based on a minimum fixed rental fee plus a percentage of the gross income generated by the tenant doing business on the leased property.
Percentage lease
If a landlord breaches any clause of a lease agreement, the tenant has the right to ___ and ___ against the landlord, or if the premises become unusable for the purpose stated in the lease, the tenant may have the right to ___ the premises.
Sue and recover damages
Abandon
When a tenant transfers less than all the leasehold interests by leasing them to a new tenant, the original tenant has ___ the property
Subleased
In a sublease, the ___ is responsible for rent being paid to the landlord as well as any damages to the property.
Sublessor (original tenant)
In a sublease, the new tenant pays rent to…
the sublessor (original tenant)
In IL, lessees are entitled to receive annual interest on their security deposits if the property has…
25 or more units
In any periodic estate having a term of less than ___, but greater than ___, 30 days notice is required to terminate.
Less than year to year
Greater than week to week
What is the difference between a net lease and a triple-net lease?
In a net lease, tenant pays ALL OR SOME of the operating expenses.
In a triple net lease, tenant pays ALL operating expenses and other expenses
A contract between a real estate owner and a tenant
lease
a landlord’s right to possession of the premises after the expiration of the lease term
reversionary right
a leasehold estate that has a specific beginning and a definite end
tenancy for years
the estate created for when a landlord and tenant enter into a lease agreement that automatically renews
periodic tenancy
a leasehold estate with an indefinite term that may be terminated by the death of either the landlord or tenant
tenancy at will
the leasehold estate created when a tenant, who was in lawful possession of real property, continues in possession without the landlord’s consent
tenancy at sufferance
the transfer of some of a tenant’s interest, but no tenant obligations
sublease
a lessee’s privilege of renewing a lease
option
the legal process by which a landlord regains possession of leased premises following a tenant’s breach
actual eviction
the action by which a tenant may properly abandon premises that have become unusable due to the landlord’s conscious neglect
constructive eviction
In a lease agreement, the landlord is the ___.
Lessor
In a lease agreement, the tenant is the ___.
Lessee
Unlike a freehold estate, a leasehold estate is considered ___ property.
personal
What is the primary difference between a tenancy at will and a tenancy at sufferance?
The landlord’s consent
An extension of a tenancy for years requires a new ___.
Contract
Although an extension of a tenancy for years requires a new contract, the lease may be terminated prior to the expiration date only if ___ or if ___.
both parties agree
or
one party has breached the agreement
___ are characterized by continuity because they are automatically renewable.
Periodic tenancy
Periodic tenancies are characterized by continuity because they are…
automatically renewable
What are the 4 elements of a valid lease?
1) Offer and acceptance
2) Capacity of the parties
3) Consideration
4) Legal objective
The covenant of ___ is a guarantee by the landlord that the tenant is entitled to possession of the premises without interference from the landlord.
Quiet enjoyment
A tenant who is leasing only part of a building is not required to continue paying rent if the lease premises are ___.
destroyed
When a tenant transfers all leasehold interests to another person, the tenant has….
assigned the lease
Under a(n) ___ lease agreement, the landlord pays all or some of the operating expenses of the property, while the tenant pays only a fixed rental.
Gross lease agreement
Ground leases are generally ___ and are often ___.
Long-term net leases
Recorded
The death of either party terminates a(n) ___.
Tenancy at will
To be entitled to ___, the tenant must show only that the premises have become unusable for the purpose stated in the lease due to the landlord’s conscious neglect
Constructive eviction
To be entitled to constructive eviction, the tenant must show that…
the premises have become unusable for the purpose stated in the lease due to the landlord’s conscious neglect
The ___ requires that, in leased housing, the same criteria must be applied to tenants with children as are applied to adults
fair housing amendments act of 1988
___ in a lease consists of the landlord promising possession and the tenant promising rent.
Consideration
Consideration in a lease consists of the landlord promising ___ and the tenant promising ___.
Landlord promises possession
Tenant promises rent
A tenant’s right to possess real estate for the term of the lease
Leasehold
A lease for a term of ___ years or more is treated as a real property interest in some states
49
A lease for a term of 49 years or more is treated as a ___ property interest in some states
real
A lease for a term of 49 years or more is treated as a real property interest in some states, which means that the lease can be used as…
security for a loan
An estate at will is a(n) ___ term, and possession is with the ___.
indefinite
landlord’s consent
A(n) ___ is the result of the tenant’s previously lawful possession continued without the landlord’s consent.
Estate at sufferance
An estate at sufferance is the result of the tenant’s previously lawful possession continued without…
the landlord’s consent.
A valid lease must have the same requirements as…
any other contract
When a tenant transfers ALL leasehold interests to another person
Lease has been assigned
When a tenant transfers LESS than all of the leasehold interests by leasing them to a new tenant
Sublease
What is the difference between assigning a lease and a sublease?
Assigning a lease = ALL interests transferred
Sublease = SOME interests transferred, but not all
Under fair housing laws, all persons must have access to ___ without any differentiation in the terms and conditions because of their race, religion, color, national origin, sex, diability, or familial status.
housing of their choice
A tenant pays for his own utilities and makes one payment each month to the landlord who pays the taxes, insurance on the building, and maintenance. What type of lease arrangement is this?
Gross
Some tenants want to buy the house they are renting. However they do not have enough money for the down payment. The landlord agreed to put part of the tenants’ rent toward the purchase price. The landlord and tenants have agreed to a(n) ___.
lease purchase
The expiration date of a one year lease is september 30. on july 1, the house is sold to a family that wants to live in the rental property. Assuming the lease does not include a sale clause, how soon can they move in?
October 1, present year
A tenant rents an apartment under a one year written lease. The expiration date of the lease is may 1. How much notice must the landlord give the tenant to recover possession when the lease expires?
No notice required
Two years ago, a landowner rented a parcel of property with a small house to a tenant farmer. The agreement stated only that the tenant agreed to pay the landowner $500 per month.What type of residency does the tenant have?
Periodic
A tenant rents an apartment under a two year written lease. Three months after signing the lease, the tenant is transferred to another country for a year. During this period, the tenant leases the apartment to a friend. The friend mails monthly rent checks to the original tenant, who continues to make monthly rental payments to the landlord. In this situation, the tenant’s friend has a(n)…
Sublease
Vandals break into a building and destroy the central AC system. A tenant’s apartment becomes uncomfortably warm. The next day, the tenant sues the landlord for constructive eviction. In this case, will the tenant win? Why or why not?
No: Premises are not unusable, condition was not due to landlord’s conscious neglect, and tenant has not abandoned the property
In august, a tenant signs a one year lease in an apartment complex. Rent payments are due on the 15th of each month. On december 12, the apartment complex is sold to a new owner. On march 14, the building is destroyed in a fire. Because the premises have been destroyed, the tenant is not required to ___ after ____.
continue paying rent after march 14
Tenant A signs a lease to rent an apartment, with the lease running from october 1 and november 1 of the following year. Tenant B signs a 2 year lease to rent an apartment in a new building that will be ready for occupancy in 15 months. Which of these leases must be in writing to satisfy the statute of frauds and why?
Both tenant’s because they are both greater than 12 months
A tenant signed a one year lease with a landlord on april 10. on the following march 1, the landlord asked the tenant whether the lease would be renewed. the tenant did not respond but was still in the apartment on april 11. The landlord may either ___ or ___.
evict the tenant
accept a rent check
A tenant signed a one year lease with a landlord on april 10. on the following march 1, the landlord asked the tenant whether the lease would be renewed. the tenant did not respond but was still in the apartment on april 11. What term best describes the tenant as of april 11?
Holdover tenant
A tenant signed a one year lease with a landlord on april 10. on the following march 1, the landlord asked the tenant whether the lease would be renewed. the tenant did not respond but was still in the apartment on april 11. If the landlord accepts a rent check, this creates a(n) ____ or ____.
Holdover or periodic tenancy
If a tenant remains in possession of leased property after the expiration of the lease term, without paying rent and without the landlord’s consent, what is the tenant’s status?
Trespasser
A prospective tenant wants to rent an apartment. Because of a physical disability, it would be necessary for the tenant to have all the doorknobs replaced with lever type handles. In this case, what obligation does the landlord have?
To permit the modifications to be made at the tenant’s expense
A prospective tenant wants to rent an apartment. Because of a physical disability, it would be necessary for the tenant to have all the doorknobs replaced with lever type handles. In this case, who is responsible to pay for the modifications?
The tenant
A business owner operates a small store in a shopping center. Under the terms of the lease, the landlord pays all operating expenses. The tenant pays a base rent of $1,000 per month, plus 15% of all monthly gross profits over $10,000. What type of lease does the tenant have?
percentage lease
when a landowner leases unimproved land to a tenant, who agrees to erect a building on the land, the lease is usually called a(n) ___.
Ground lease
A tenant rented a house. During the lease term, the tenant moved out of the state without telling the landlord. The tenant assigned the lease to a friend, who failed to make any rental payments. In this situation, who is liable to the landlord for the outstanding rent and why?
The original tenant, because the landlord did not release the tenant when the lease was assigned
A(n) ___ compensates the landlord in the event of rent default or premises damage
Security deposit
Who owns the bulding that is erected on land that has a ground lease?
The lessee
What must a landlord do before commencing a lawsuit for actual eviction?
Serve notice on the tenant
A landlord comes to a tenant’s apartment on a daily basis to “make sure everything is okay” or to “make repairs”. The apartment, however, is not in need of any repairs. The landlord generally enters the apartment using a spare key. The landlord is violating the….
covenant of quiet enjoyment
A lease that provides for specified rent increases at set future dates is called a(n) ___.
Graduated lease
A type of leasehold estate that gives the right of possession with the landlord’s consent for an unspecified term is called a(n) ___.
Estate at will
Although rent is the usual ___ given for the right to occupy leased premises, labor could also serve this function
Consideration
Recording a lease is usually considered unnecessary because anyone who inspects the property receives ___.
actual notice
If the lease allows the tenant the opportunity to buy the property before the owner accepts an offer from another party, the tenant has the right of ___.
first refusal
if the tenant pays basic rent plus all or most property charges, the tenant has a(n) ___ lease.
net
In a lease agreement, the tenant is called the ___.
Lessee
A leasehold estate that continues for a definite period of time is the ___
estate for years
a mortgage clause that states the lender agrees not to terminate the tenancies of the rent-paying tenants in the event the lender forecloses on the building is the ___ clause.
nondisturbance
The arrangement when an owner of property sells the property and then obtains a lease from the new owner is called ___.
sale and leaseback
A model law that addresses obligations in leases, such as the landlord’s right of entry, premises maintenance, and protection of the tenants from retaliation by the landlord in the event of complaints is the ___.
Uniform Residential Landlord & Tenant Act
A few years ago, a developer purchased a historic downtown block in the exclusive suburban community of West Flightpath. The developer combined the storefronts into a shopping mall. Currently, the mall is completely leased to 3 tenants. Acrylic Acres pays a base rent of $1,500 per month and 15% of the shopping mall’s property charges, limited to utilities and taxes. Acrylic Acres earned $10,000 in gross profints and netted $4,850. This month, the shopping mall had to pay $6,750 in utility bills and $495 in regular repairs and maintenance. The month’s prorated share of local property taxes was $2,560, and the prorated insurance fee was $900. This month, the shopping mall had to pay $6,750 in utility bills and $495 in regular repairs and maintenance. The month’s prorated share of local property taxes was $2,560, and the prorated insurance fee was $900. What type of lease does Acrylic Acres have, and how much did they pay in rent this month?
Net lease; $2902.50
6750 (utilities) + 2560 (taxes) x 0.15 (15%) = 1402.50
1402.50 + 1500 (base rent) = 2902.50
A few years ago, a developer purchased a historic downtown block in the exclusive suburban community of West Flightpath. The developer combined the storefronts into a shopping mall. Currently, the mall is completely leased to 3 tenants. The month’s prorated share of local property taxes was $2,560, and the prorated insurance fee was $900. Blue Buttons Boutique pays a base rent of $2,000 per month and no property charges. They grossed $6,500 and earned a net profit of $3,000. The month’s prorated share of local property taxes was $2,560, and the prorated insurance fee was $900. What type of lease do they have and how much was their rent?
Gross lease; $2,000 rent because no tenant is only responsible for base rent
A few years ago, a developer purchased a historic downtown block in the exclusive suburban community of West Flightpath. The developer combined the storefronts into a shopping mall. Currently, the mall is completely leased to 3 tenants. The month’s prorated share of local property taxes was $2,560, and the prorated insurance fee was $900. Common Custards pays a base rent of $1850 monthly and no property charges, but pays 12% in its monthly gross sales over $4000 to the landlord.This month, they had gross sales of $9542, with profits after expenses of $7370 for the month. What type of lease do they have and how much was their rent this month?
Percentage lease, $2515;04
9542 (gross sales) - 4000 (forgiven sales) = 5542.00
3542 (qualifying sales) x 12% = 665.04
665.04 + 1850 (base rent) = 2515.04
