Ch.10 HW (Leases) Flashcards
Which of the following is INCORRECT about leasehold improvements? *
A. Leasehold improvements are made by the tenant.
B. Leasehold improvements belong to the landlord at the end of the lease, unless agreed otherwise by the parties.
C. Leasehold improvements are made by the landlord, because of one’s implied duty to keep the premises habitable.
D. Leasehold improvements must be specifically authorized in the lease or otherwise agreed to by the parties.
C. Leasehold improvements are made by the landlord, because of one’s implied duty to keep the premises habitable.
Which of the following may be used to guard the landlord against the hazards of inflation? * A. Index lease B. Escalator lease C. Reappraisal lease D. All of the answers are correct.
D. All of the answers are correct.
A leasing arrangement used by a business property owner to generate capital is called:
a sale-leaseback.
A lease may be terminated by all of the following EXCEPT:
assignment
If a seller allows a prospective purchaser to take possession before closing the sale, problems of regaining possession can be minimized if the sale does not close by having the parties sign:
an occupancy agreement.
A one-year lease for a single family home requires:
a complete legal description of the premises.
An implied covenant in a lease, which guarantees the tenant that possession will not be disturbed because a defective title allows someone else to claim an interest in the property superior to that of the landlord, is called:
a covenant of quiet enjoyment.
Customarily a lease specifies rent is due in advance of using the premises. If the lease is silent as to when the rent must be paid, then:
it is due at the end of the rental term.
A first right of refusal clause in a lease gives the tenant:
the first opportunity to buy the property if it is offered for sale at a price offered by a bona fide purchaser.
With which of the following are rental payments GUARANTEED to increase during the term of the lease?
Step-up lease
A lease contract is similar to a deed in all of the following respects EXCEPT:
A. it conveys possession of the property.
B. it is of indefinite duration.
C. it requires a full legal description.
D. it conveys the right of quiet enjoyment.
it is of indefinite duration.
Although desirable, it is not necessary that a lease be in writing if it is to be:
for a period of one year or less.
A Salesperson with XYZ Realty has arranged a lease that has now expired. The tenant is demanding a return of the security deposit and the landlord is refusing to return it. The salesperson should:
refer the matter to the broker.
The typical form lease contract is probably inappropriate for arranging:
a commercial lease.
Which of the following statements regarding a lease with option to purchase is true?
The option does not obligate the tenant to buy the property.
